Can anyone interpret implications for the near future?
Bloomberg: Argentina moves to defend the peso
There are 32 replies in this Thread which has previously been viewed 11,428 times. The latest Post () was by EJLarson.
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No one has a clue what will happen.....
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I'm not an economist, so no.
However, when Ecuador's Sucre devalued back in 2000, the country adopted the US dollar as its official currency which is something that maybe the Argentine government should consider. Clearly not one person appears capable of taming this economy, so surely it's time to throw in the towel and retire the peso.
https://www.usnews.com/opinion…-dont-use-their-own-money
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I'm not an economist, so no.
However, when Ecuador's Sucre devalued back in 2000, the country adopted the US dollar as its official currency which is something that maybe the Argentine government should consider. Clearly not one person appears capable of taming this economy, so surely it's time to throw in the towel and retire the peso.
https://www.usnews.com/opinion…-dont-use-their-own-money
That has happened historically when the numbers got ridiculous; e.g., 200.000 pesos for six eggs. (I used that example because I paid 25 this morning.) Changing the numbers on the bills won’t help - tying the money to the dollar? I’m no economist, but if the problem is the economy, got to fix that first.
Wish I knew how.
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I thought as Splinter for a long time, but I am with Ed on this one.
You can use USD directly, but in a dysfunctional market like this one (with odd and random restrictions to import/export), some goods are simply going to be much expensive here, in USD or ARS. In other words, as long as this is a closed or partially-closed system, economy outside of this system won't permeate it.
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I don't see how using the US $ helped Ecuador pull out of their problem (how does that WORK? Physically? Do they buy the $$ from the US?), or how it might help Argentina. Please elaborate on this idea?
Elaboration:
Nothing works in Argentina.
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Can anyone interpret implications for the near future?
From this article: " Those efforts weren’t enough to offset global pessimism toward riskier assets, renewed dollar strength and an exodus of overseas investors from Argentina after a new income tax for foreigners took effect this week." Does anyone know what the "income tax for foreigners" refers to. Is it time to panic?
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TomAtAlki , I think it refers to this: https://www.infobae.com/econom…financiera-a-extranjeros/
and it is only for foreign financial investors.
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and it is only for foreign financial investors.
So it won’t affect my weekly two-kilos-for-price-of-one gelato purchases?
What a relief!
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I cannot understand why many citizens of Bolivia, Paraguay, Colombia, Uruguay and Peru which have no inflation, or a very small inflation, come here to get jobs. If the economy is so bad (and I thing it is so bad because there is a continuous deficit in the State finances), why they prefere come here? Are they masochists?
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Good question Carlos. Perhaps they earn more here?
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TomAtAlki , I think it refers to this: https://www.infobae.com/econom…financiera-a-extranjeros/
and it is only for foreign financial investors.
Why aren't foreign investors fleeing? Perhaps this is simply the Vote of Confidence for Mr. Macri?
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Good question Carlos. Perhaps they earn more here?
I think that they come here because our lax laws about inmigration, but first of all that here there are (despite the disastrous economy) more jobs available, and also a quite acceptable cultural infrastructure.
And, a paraguayan masonry builder told me, is that we pay the works that they do for us. He said that in Paraguay usually the rich takes advantages of its position and delay or neglect payments.
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Honour amongst thieves then?
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It could be as well.
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I think that they come here because our lax laws about inmigration, but first of all that here there are (despite the disastrous economy) more jobs available, and also a quite acceptable cultural infrastructure.
And, a paraguayan masonry builder told me, is that we pay the works that they do for us. He said that in Paraguay usually the rich takes advantages of its position and delay or neglect payments.
I'm glad to be assured that Argentina pays its debts. Yet another way it outshines leaders of other countries.
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My point really was not regarding the Argentine´s government debt, but the particular people who hire inmigrants to make some jobs about cleaning up, plumber, electrician, painters and so forth.
Fortunately we had passed the stage of being a feudalist country, and people generally speaking pay to these workers what had been agreed. Other countries around us still have a feudalist conception that there are some poor people that could be cheated wuthout the minimal moral concern. At least, this was what my Paraguayan mason told to me.
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My point really was not regarding the Argentine´s government debt, but the particular people who hire inmigrants to make some jobs about cleaning up, plumber, electrician, painters and so forth.
Fortunately we had passed the stage of being a feudalist country, and people generally speaking pay to these workers what had been agreed. Other countries around us still have a feudalist conception that there are some poor people that could be cheated wuthout the minimal moral concern. At least, this was what my Paraguayan mason told to me.
Yes, I did understand your point, and I was agreeing that it is good that in Argentina these workers are routinely paid what they are owed. That is the only honorable way. The United States has long prided itself on honorable behavior, yet there are nouveau riche people who hire laborers and small contractors to, say, paint, plaster, do carpentry for buildings they construct -- and never pay them. The calculation is that these people cannot afford the expense of a legal fight for what is owed them, not whether this action is fair or honorable.
While this is not a widespread practice in the USA, people who cheat workers in this way are somehow able to avoid public condemnation, and in some cases, are even trusted and greatly admired by about 35%. Perhaps this implies a return to the feudalist conception to which you refer.
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