The government is printing millions of new $100 notes

  • According to Clarin, the government is printing money like there's no tomorrow, having thrown 1.2 billion pesos into the market since January. 700 million is in $100 notes and they are importing 250 million $500 notes because the printing facilities here can't keep up.

    No mention is made of the $1000 or $5000 note because apparently that would signal that we have an inflation problem, something successive governments love to be in denial over.

    One wonders if this is going to lead to hyperinflation, because according to conventional economic thinking, printing money only increases inflation.

    The other day I had to deliver a quantity of money (around US$500) in $100 notes and I've paid for stuff in similar amounts where higher bills weren't available.

    That old joke about for things with carrier bags stuffed with useless notes is no longer a joke, so if there's something you need, get it now. Otherwise you'll need a wheelbarrow.

    https://www.clarin.com/opinion…millones_0_kFmqvSo6n.html

  • Printing endless amounts of pesos will only make them more worthless, as Italy learned in 1980.


    In 2021 will the same be said of pesos as was said about Italian lire at that time: not worth the paper they’re printed on?


    Why don’t they stop the charade and just print 1000/5000 peso notes? Absolutely NO ONE is fooled.

  • Hyperinflation is incoming, it's beyond if and has become a matter of when. It is looking like Argentina is heading into an economic crisis that will surpass 2001, and by some margin. Some of that has been driven by COVID, but the government would have you believe it's all because of the virus. It's not. This started with the Cristina presidency, was not fixed through Macri, and has continued during Alberto's. If you earn in pesos, prepare yourselves in whatever way you can because bad times are coming. The only question for me is how long the government can hold it off.


    Considering his expertise was in finance (I think), this would be one of those threads where Jan could make a good contribution. Too bad he's pouting.


    Aside from the economic disaster that is inboud, I am deeply concerned about security. It is getting worse by the day and will become a massive problem if there is a complete economic crisis. It baffles me that some people still defend Argentina as a safe place because it is safer than Brazil, Mexico, and bumfuck locations in the USA.

  • Aside from the economic disaster that is inboud, I am deeply concerned about security. It is getting worse by the day and will become a massive problem if there is a complete economic crisis. It baffles me that some people still defend Argentina as a safe place because it is safer than Brazil, Mexico, and bumfuck locations in the USA.

    There is no saving or foreign income that can protect us from that. My worry is that even when the health emergency will subside, we will be still home-bound for safety reason. And there is no good enough reason to incarcerate yourself at home... nor the cheap cost of life, nor the nice weather, nor the buena onda.

    I have sort of resigned to be homebound for the next 2 years and I am actively seeking remote education to keep myself busy and bury my head in the sand.