When Will The Peso Hit 10?

[trennod]

There are many university graduates and even lawyers that don't understand any of that. And it is not only in Argentina.

Of course, unless you have studied business, economics and/or have an interest in it more likely than not you wouldnt have a clue. Governments play on the ignorance of people (and definitely not only in Argentina). The sad thing is though, its easier in these countries because unfortunately there is more ignorance.

The thing is, its the responsibility of government (should be) to be honest, and to employ policies for the good of its people. Its well known the current Argentine government lacks well educated and capable MPs and Advisers all across the board. Look at Hernán Lorenzino (Me quiero ir, Minister of the Economy) for one. Hes a friggen lawyer.

Even Martín Redrado (very highly regarded both here and in the US) got the kick out of the Central Bank when he didnt agree to Kristinas cash grab (of the pension funds). Remember that one? And guess what the pension funds are now invested in? Argentina government bonds.

 

[trennod]

Printing money is also not a cause. It is also a symptom.

I would argue its both.

 

[ajoknoblauch]

Ok, let s say you can change the policy about dollars: what would you do?

Let supply and demand determine the currency's value.

 

[Joe]

Here is the secret formula:

This really is the Golden Rule of economics: "Don't buy stuff you can't afford". And it applies equally well to individuals and governments.

The primary purpose of getting an advanced degree in economics, if you plan to work in the public sector, is to come up with theoretical constructs that make it seem more complicated - so that hopefully the masses get bored and tune out.

There are countries that have learned this lesson, e.g. Singapore, Chile and Norway and because of this their population can sleep comfortably knowing their pensions are safe and economic calamities are things that occur in distant lands.

 

[Gringoboy]

Love the video.
But try telling that to my other half who happens to be an accountant and she reckons that putting it on the card is the only way to beat inflation and it's the only way to buy stuff when the Peso in your pocket is worthless....almost..

 

[Bajo_cero2]

Talking about restricting imports, just out of curiousity, does anyone know what is the rational behind imposing a daily limit on withdrawal from a Foriegn Account ? This is extra money from outside the country to SPEND in Argentina. What harm does it do?

To protect you from express kidhapping (they take you to an atm tour)

 

[Bajo_cero2]

Plus, to keep the people happy (so they stay in power), they just continue to print the money and hand it out. The majority of the 54% that voted for the Ks dont understand any of this, unfortunately.

They understand very well that neoliberal dogmas means the lost of the job, poverty, etc.

 

[camberiu]

They understand very well that neoliberal dogmas means the lost of the job, poverty, etc.

The money printing policy adopted by Cristina is the exact same one being adopted by the Federal Reserve, the European Central Bank and the Bank of Japan. So, who is following the "neoliberal dogma" again?

 

[Joe]

The "Neoliberal" school of Argentina has two main characteristics:

• a fixed exchange rate (Convertibilidad) - leading to gross misallocations of capital followed by economic collapse (see Domingo Cavallo).
• a privatization program based on getting the minimum price on public assets for the maximum benefit of your crony friends (see Menem).

I don't blame most Argentinians for loathing this. But please note that these two characteristics are TOTALLY contrary to the Neoliberism school in the rest of the world. Totally Contrary.

 

[khairyexpat]

To protect you from express kidhapping (they take you to an atm tour)

Rich One gave me same answer and I thought he was joking. It is no joke then. Wow !!!!!!!!!!!!

I had an incident once, but I was lucky. I came out of the ATM a kid and his mother followed me. She on my left, asked me the time (for distraction) . The kid on my right with his hand in my pocket. Fortunately I managed to fiercefully grab my money back out of his hand.