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Argentina Solves Its Inflation Problem


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#1 Peter Hun

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Posted 19 March 2012 - 07:59 AM

Going to McDonalds is more expensive in Argentina than in USA, I knew that much, but seems that the evil looking clown has no problem in playing along the local corrupt government.
You see, thereís this thing called the Big Mac Index, an informal index created by The Economist in 1986 to measure purchasing power parity, or in other words how expensive stuff is compared from one country to another. To do that you need a product that is similar in each country, and the BigMac does just that. As informal as the Big Mac Index is, its been around long enough to be taken very seriously.

Surprised was I when I read that Argentina does quite well in the BigMac IndexÖ but why is it then that Iíve always found it to be MORE expensive than other countries where Ive been to McDonalds?Ö wait.. why is it that Iíve always ordered Quarter Pounders with cheese instead of BigMacs?Ö oh! Thatís right! Thereís NO BIGMAC in Argentina! Its not advertised, its not displayed in any of their menu options, at least not openly in those big banners with pictures and menus. If you donít see it offered, you donít order it, and thatís the idea. McDonalds doesnít want you to order the BigMac in Argentina.

But why would they do this? Simple. To LIE about the BigMac Index, and make Argentina sound 50% cheaper than it actually is. If you compare the unusually low official price of the BigMac to the rest of the menus you see how its surprisingly low. The Argentine government came to some sort of arrangement with McDonalds: Keep the BigMac at X price, and weíll make it up to you. Thatís why the price is kept so low, and thatís why they donít tell anyone the BigMac is listed.
But can you actually get the BIgMac in Argentina, even if itís a best kept secret? I do remember this one time when my father visited us in Argentina and ordered a BigMac and they told him they didnít have it, but other sources assure that they are obligated to sell it to you, so give it a try!
Thatís how it works in Argentina. In any other sane country a company would openly advertise a product that they have at a very low price. In Argentina, its kept secret so as to not lose money, yet officially have it listed.

NY Times details -

http://latitude.blog...big-mac-attack/


http://ferfal.blogsp...ne-big-mac.html

Edited by Peter Hun, 19 March 2012 - 08:02 AM.


#2 interestrateripoff

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Posted 19 March 2012 - 08:11 AM

Genius idea.

We could solve inflation in a few minutes doing this.

Proof that Brown had repeated IMF / OECD / BIS warnings over house prices and did nothing!!!
Looting: The Economic Underworld Of Bankruptcy For Profit
The exponential growth of debt and the unsustainability of debt
The logic of HPI @ 10% YoY means your £100k house would be worth £1.38bn in 100 years
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It's time to sue the Bank of England / Federal Reserve for GROSS NEGLIGENCE
If DEBT is the problem REPAYMENT is the solution or you default

 

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#3 tomandlu

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Posted 19 March 2012 - 08:31 AM

I don't get this. What happens if you ask for a big mac? If they give you one, then surely the 'secret' would be out, and everyone would always just buy big macs? If they don't actually sell them at all, then how would this be allowed?
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#4 scrappycocco

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Posted 19 March 2012 - 08:32 AM

and they want the falklands oil........the argentines should direct their hate towards their government.......

#5 Peter Hun

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Posted 19 March 2012 - 08:45 AM

I don't get this. What happens if you ask for a big mac? If they give you one, then surely the 'secret' would be out, and everyone would always just buy big macs? If they don't actually sell them at all, then how would this be allowed?


They don't have them in store, the price is 35% cheaper but you you can't actually buy it. Laws in Argentina are flexible.

Edited by Peter Hun, 19 March 2012 - 08:46 AM.


#6 Democorruptcy

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Posted 19 March 2012 - 08:56 AM

Mervyn King may want to do this with all food in the UK.

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If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

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http://classiclit.ab...en-Part-2_4.htm

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#7 RufflesTheGuineaPig

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Posted 19 March 2012 - 10:03 AM

Mervyn King may want to do this with all food in the UK.


No, we have FAR better tricks to hide food inflation.

Just look at how heavy a bag or crisps is these days.

Or how much soup/meat/whatever is in a can.

Or how heavy your chocolate bar is.

Or the vitamin content of the 32" TFT TV we are expected to buy every 6 months.

Edited by RufflesTheGuineaPig, 19 March 2012 - 10:03 AM.

It's time to pay the piper. There is no magician who will magic away the debt. Someone is going to have to pay it. Bend over and prepare to make payment.

In this glorious nation of ours, if you work hard and keep your head down for 25 years then you too can aspire to own one-eighth of a one bedroom flat in Manchester.


My mum and day always tell me how important it is to save to buy a house. They should know, it took them nearly 6 months to save for theirs. As teenagers, they bought a 3 bed semi.

#8 tomandlu

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Posted 19 March 2012 - 10:10 AM

They don't have them in store, the price is 35% cheaper but you you can't actually buy it. Laws in Argentina are flexible.


Weird - apart from anything else, the one thing you'd expect to be fairly cheap anyway in Argentina is beef...
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#9 Gigantic Purple Slug

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Posted 19 March 2012 - 10:21 AM

Weird - apart from anything else, the one thing you'd expect to be fairly cheap anyway in Argentina is beef...


Suppose it depends on whether you are exporting it all to get hard currency or not.

probably the reason why the president is going big on the Falklands. 1 because of the money on the oil and 2 because it distracts people.

#10 erranta

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Posted 19 March 2012 - 11:15 AM

http://ferfal.blogsp...ne-big-mac.html


With a name like 'HUN'

- has it ever occured to you that off-spring of escaped Nazis are manipulating Sarf American countries in the background?
(along with aid from CIA used to undermine real democracy etc)

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#11 Paddles

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Posted 19 March 2012 - 12:38 PM

I don't know if it's still the case, but back in the 80s in UK McC@@ts you could order and receive a root beer despite it not appearing on the menu. It was like the secret track on that obscure progressive rock album you liked, except, erm different.
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#12 bajista

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Posted 19 March 2012 - 12:49 PM

Weird - apart from anything else, the one thing you'd expect to be fairly cheap anyway in Argentina is beef...


Not sure beef is cheap in argentina - just very very good quality.

So I can't imagine that Argentine beef gets anywhere near a Big Mac -it is probably shipped in from hormone enriched US. Yumm. Not.

#13 JustAnotherProle

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Posted 19 March 2012 - 12:57 PM

I don't know if it's still the case, but back in the 80s in UK McC@@ts you could order and receive a root beer despite it not appearing on the menu. It was like the secret track on that obscure progressive rock album you liked, except, erm different.


Ah don't get me started on McRootBeergate, one of my favorite soft drinks that go excellently with a burger and fries, stolen from us by some corporate BS, I think this all happened when they stopped making their own drinks etc and why now we have bad tasting coke and other "coca cola" company rubbish. I once emailed McD head office to complain and got a nice but negative response about bringing it back, maybe we need a pressure group like this:

http://www.facebook....er/181604877534
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#14 Oh Well :(

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Posted 19 March 2012 - 02:23 PM

I can sell you a house for £50K.

Well I could but there arent any.

:lol: :lol:

#15 Peter Hun

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Posted 19 March 2012 - 02:35 PM

With a name like 'HUN'

- has it ever occured to you that off-spring of escaped Nazis are manipulating Sarf American countries in the background?
(along with aid from CIA used to undermine real democracy etc)


Well, I'm half Polish not German.

Not sure beef is cheap in argentina - just very very good quality.


Neither cheap or good, the best is exported for hard currency.

Edited by Peter Hun, 19 March 2012 - 02:38 PM.





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