Then And Now

[camberiu]

The only picture you need to see to understand why inflation in Argentina is so insane

Good thing the author did not see Argentina during the 1980s.....

 

[Rich One]

The Car Price was US$17,500 about the same as today at the official rate ?

 

[Noesdeayer]

It is indeed a good thing that the autor did not see Argentina during "La Hiper" ,the hyperinflation of the late 1980s.However,I did.Looking back over my old invoices to client companies I see some for several "cientos de millones de pesos".That was before the Plan Primavera-I believe it was called-when the Austral was introduced.The old million peso bank notes were printed over saying 100 Australes .Presto-Change- O. End of inflation problem.Back to square one. I believe Brazil did something similar with the "cruzeiro".However,I think the wierdest inflation was the Bolivian.maybe someone can recall that one.

 

[syngirl]

I found a Fibertel bill of ours from 2010 the other day. For internet/digital tv pack it was 75 pesos. Last month we paid something like 700 pesos.

In 2007 we bought our King Koil queen size bed (colchon + sommier) for 1800 pesos. Las weekend we went to look for a twin size for our child, the mattress alone was 7000 pesos.

 

[sleslie23]

I found a Fibertel bill of ours from 2010 the other day. For internet/digital tv pack it was 75 pesos. Last month we paid something like 700 pesos.

In 2007 we bought our King Koil queen size bed (colchon + sommier) for 1800 pesos. Las weekend we went to look for a twin size for our child, the mattress alone was 7000 pesos.

Where or where is wild_unicorns to tell us that there is no inflation in Argentina?

 

[camberiu]

I believe Brazil did something similar with the "cruzeiro".

We had similar things with the Cruzeiro, Cruzeiro Novo, Cruzado, Cruzado Novo and Cruzeiro again. This is why the Real is considered a watershed moment in Brazilian economics and politics. It was the first stable currency Brazilians experienced since the end of the Monarchy. Thanks to the Real, implemented in 1995, we had an entire generation of Brazilians who never experienced double digits or high single digits inflation in their lives. The name "Real" has a double meaning. Officially It means "Royal", but in reality it means REAL, as a REAL currency, with real value, something that Brazilians had not experienced in a century. All of a sudden Brazilians felt that they were being paid real salaries, and had real saving in the bank. This concept had a really profound impact on the collective psyche of the nation.
And this is why Dilma can't print her way out of the crisis. For most Brazilians, the Real is more holy than the flag or the Brazilian national team jersey. If she destroys the Real, she might end up with a popular revolution in her hands.

 

[Noesdeayer]

Camberiu. Your words are very true.(uma verdade muita grande!) I remember going to Brazil right after the initiation of the "real" and when I was changing money in the airport the young lady who was changing my dollars, given my surprise that the exchange rate was lower than before, told me very proudly,"Agora o real vale mais que o dolar!". "Now the real is worth more than the dollar".i was happy for her and for Brazil as well.Not to worry.I don't think there's much chance that Dilma especially now with Joaquim Levy as economy minister have the intention of "printing their way out of the crisis".They will continue to leave that route to the " crazy neighbor lady from the south".

 

[nkotb]

Agora o real vale 0.33 dolar.

 

[camberiu]

Agora o real vale 0.33 dolar.

Yep. And it is not worse only because the US is printing like crazy. Dilma is playing a very dangerous game right now. Brazil is one scandal away from a major currency meltdown. And God knows how the public will react to such a thing.


And this will have MAJOR consequences for Argentina.

 

[wild_horses]

Where or where is wild_unicorns to tell us that there is no inflation in Argentina?

Why does people always tend to put words in other peoples mouth? When did I ever say there is no inflation in Argentina. Of course there is and it is really high. Fact.

But you forgot to mention purchasing power, how many good and services you can obtain with your salary and the graphic below will tell you more clear.

And that is only for minimum wage. Is it clear sweetheart?