When will life return to normal?

[EL_TIGRE_de_Tigre]

Where will the government get the money to pay $30,000 a month to each citizen? With the economy paralyzed - no production, no sales, no taxes generated - it will come from the printing presses.

Inflation will shoot up, and soon a loaf of bread will cost 15,000. Back to square one....
[/QUOTE

On The Brink >>> You happen to be completely correct.

(I am sorry you are, but you definitely are.)

People within the country (INSIDE Argentina) have no idea of the massive train wreck that is coming their way. They think this will be another 2001 event that they will eventually bounce back from. COMPLETELY WRONG!

The modern world has NEVER seen anything like we are living at this moment in time.

Think about this: THE WHOLE WORLD IS ESSENTIALLY SHUT DOWN ... Nothing is happening except for the most needed goods and services.

How the heck do you bounce back from this inside of 6 months? You simply don't.

Argentines are going back to the stone age on this event.

There is going to be massive poverty, massive inflation, rampant criminal acts of theft and robbery, followed by flight out of the country by those who are able. Foreign investment ... forget about it. Large global companies will avoid Argentina because there are much more business friendly countries with respect to obligations to employees for example that large multi nationals can set up it. The multi nationals will be able to pick and choose from where they want to move into. (Or should I say EXPLOIT, because that is what they will be doing.) These kinds of companies have just learned their lesson of CHINA / SUPPLY CHAIN exclusivity.

NOPE!

This is one for the generations, only to be exceeded by a similar, future event that is even more deadly / disruptive.

Even the biggest economies are going to struggle with this one.

Argentina DOESN'T HAVE A CHANCE - They are a failure before the recovery even get's underway.

Such a shame because the country and culture is quite beautiful.

 

[EL_TIGRE_de_Tigre]

Here is a great article to read:

Op-Ed: Coronavirus will hit emerging markets with devastating force

In short, developing countries – even as they act to save themselves – must shift far greater attention to fragile states and emerging markets, where the hit from the virus is likely to be far more devastating, destabilizing, and enduring, writes Fred Kempe.

www.cnbc.com

 

[GMXam]

How has this changed Argentine traditions (ie. Sunday asado, mate, saludos)?

 

[EL_TIGRE_de_Tigre]

How has this changed Argentine traditions (ie. Sunday asado, mate, saludos)?

It hasn't changed Argentine traditions or culture in any way, shape or form, but it will make asados y mate more expensive and in some cases unaffordable. You can't have what you cannot afford, unless it is given to you or stolen. (Argentina has a lot of honest people, so they will be squeezed or have to do without.)

 

[Bajo_cero2]

I am reading the news. Will 30,000 be enough if the quarantine is extended into and through May? Is the government willing o give employees 30,000 each month if the lockdown needs to be extended. I hope so, but if so, what will that do to the economy.

It's good we get free internet for six months, electricity too. It's not free though, is it? You have to pay it eventually.

My whole point has been the quarantine cannot go on into months. Either way, you quoted a post in which I was directly responding to someone else saying people can learn how to hunt and fish.

1) Yes. It is not for free. The employed has to pay back with a soft loan. They give you until 16 million pesos at 28%.
2) The idea is to extend 1 month more, until May.
3) As soon as this allows tondo not pay the debt, the economy is not going to be that bad.
4) We do not need to hunt and fish, the country produce enough food for 400 million people.

 

[Bajo_cero2]

Where will the government get the money to pay $30,000 a month to each citizen? With the economy paralyzed - no production, no sales, no taxes generated - it will come from the printing presses.

Inflation will shoot up, and soon a loaf of bread will cost 15,000. Back to square one....

Inflation has nothing to do with printing in this country. You have a few companies that control de food production and prizing. With the prices and the usd under State control, There is no hyper inflation.

 

[sergio]

1) Yes. It is not for free. The employed has to pay back with a soft loan. They give you until 16 million pesos at 28%.
2) The idea is to extend 1 month more, until May.
3) As soon as this allows tondo not pay the debt, the economy is not going to be that bad.
4) We do not need to hunt and fish, the country produce enough food for 400 million people.

Until May? The nation will be full of psychologically disturbed people!

 

[MilHojas]

La paura sta diventando rabbia

La paura sta diventando rabbia

www.huffingtonpost.it

Fear turns into anger
(Original article in Italian, google- translated to english)

"We are hungry, we don't pay." In supermarkets there is exasperation. No one sings on the balconies and the first signs of malaise begin to appear in the country

 

[Weyland]

Inflation has nothing to do with printing in this country. You have a few companies that control de food production and prizing. With the prices and the usd under State control, There is no hyper inflation.

Very good news Bajo. The central bank should keep printing and enforce price controls. Why not $60,000 for each citizen? $30,000 is too low.

 

[lunar]

Very good news Bajo. The central bank should keep printing and enforce price controls. Why not $60,000 for each citizen? $30,000 is too low.

If people run out of money and stop buying food in the stores, the prices will go down, right? So, the deflation will take place?

For this not to happen, the government gives them helicopter money accordingly to their usual spending habits.

It is not that they are getting paid extra money in addition to what they earn normally. It is a compensation for the lost income.

So, this move may be not inflationary in this particular situation, at least in the short term.