Orsino Posted February 1, 2014 Share Posted February 1, 2014 Just arrived back from Buenos Aires. It's been a crazy couple of weeks in which my spending power has increased by 20%. The Argentines don't want Pounds though. There's really only a black market for Dollars and Euros. The attempts of the government to offset falling living standards has caused all kinds of distortions. A city-wide metro ticket costs 30p but a short bus trip will cost £2. A cup of coffee in Starbucks costs the same as 2 months of a water bill. There's a deal with the supermarkets to fix the price of certain essentials but finding these essentials in stock is another matter. UK politicians should take note when they starts talking about fixing the price of electricity. Talking of electricity, even the wealthier districts of Palermo have suffered blackouts in the last fortnight when the temperature has spiked. And here at least the rich fear the poor. They are paranoid about security in the way that the affluent in the UK couldn't (but perhaps should) imagine. Still, the steak and Malbec are out of this world! This should be a rich and prosperous country and the Argentines need much better politicians than they've have. Frankly so do we if we want to avoid the same fate. Quote Link to comment Share on other sites More sharing options...
SuperChimp Posted February 1, 2014 Share Posted February 1, 2014 Just arrived back from Buenos Aires. It's been a crazy couple of weeks in which my spending power has increased by 20%. The Argentines don't want Pounds though. There's really only a black market for Dollars and Euros. The attempts of the government to offset falling living standards has caused all kinds of distortions. A city-wide metro ticket costs 30p but a short bus trip will cost £2. A cup of coffee in Starbucks costs the same as 2 months of a water bill. There's a deal with the supermarkets to fix the price of certain essentials but finding these essentials in stock is another matter. UK politicians should take note when they starts talking about fixing the price of electricity. Talking of electricity, even the wealthier districts of Palermo have suffered blackouts in the last fortnight when the temperature has spiked. And here at least the rich fear the poor. Thanks for your response, really interesting. I was just wondering, did you get to see what people's attitude towards the crisis was in terms of protecting their wealth? Are people buying assets such as property, precious metals and shares to avoid devaluation or are they just buying essentials? Quote Link to comment Share on other sites More sharing options...
silver surfer Posted February 2, 2014 Share Posted February 2, 2014 This should be a rich and prosperous country and the Argentines need much better politicians than they've have. You're right. In the early years of the 20th century Harrods planned on opening a second branch. They could have opened anywhere in the world, but inspired by the example of the USA they looked for the next big thing and concluded Argentina would be it...a giant country, rich in natural resources, just waiting for European technology to ignite the growth. So Buenos Aries got the second branch of Harrods, but then a hundred years of bad government screwed up the master plan. I think the Harrods directors were actually correct, Argentina could and should have become an economic powerhouse, and the fate of Argentina stands as a warning to the damage that populist politicians and corrupt institutions can cause. Quote Link to comment Share on other sites More sharing options...
macbeth79 Posted February 2, 2014 Share Posted February 2, 2014 We always blame politics and politicians, maybe its not the fact they have dodgy politicians because that seems to be the norm the world over, maybe the people just are not hard working enough. Quote Link to comment Share on other sites More sharing options...
Orsino Posted February 2, 2014 Share Posted February 2, 2014 Thanks for your response, really interesting. I was just wondering, did you get to see what people's attitude towards the crisis was in terms of protecting their wealth? Are people buying assets such as property, precious metals and shares to avoid devaluation or are they just buying essentials? Everyone is desperate for dollars. Every street corner in the centre of the city rings to the sound of 'Cambio!' 'Cambio!'. I've never seen so many black market currency traders. We did some filming and attracted a small crowd of onlookers. Any old guy asked 'what's the fuss? Are they selling dollars?' Apparently there's a 20% tax if you don't keep your dollars in the bank. Yeah right! Other than that I don't know how the locals deal with the problem but buying from abroad (online) or traveling abroad for holidays is no longer an option for many. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted February 4, 2014 Author Share Posted February 4, 2014 http://www.bloomberg.com/news/2014-02-04/dad-can-t-buy-daughter-shoes-as-argentine-currency-falls.html Jorge Contrera checked a pair of soiled shoes from top to bottom, tried to buff them with his shirt sleeve, then paid 40 pesos ($5) for his 8-year-old daughter’s present. Before Argentina’s devaluation last month, he planned to surprise her with a new pair.“Do you know how I feel buying my daughter used shoes?” said 29-year-old Contrera, a welder who’s currently working as a delivery man. “The new shoes just went up and I don’t have the cash.” Like Contrera, many Argentines see their standard of living falling as the fastest pace of inflation in a decade erodes their purchasing power and confidence in President Cristina Fernandez de Kirchner’s economic policies. Last month’s 19 percent devaluation of the peso, which drove up prices on products from cars to refrigerators, highlights Fernandez’s dilemma. If she adopts unpopular belt-tightening measures, she could face social unrest, said Mariel Fornoni, director of polling firm Management & Fit. Argentina on the brink? Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted February 4, 2014 Share Posted February 4, 2014 http://www.bloomberg.com/news/2014-02-04/dad-can-t-buy-daughter-shoes-as-argentine-currency-falls.html Argentina on the brink? Show's what happens if you decide to lock yourself out of capital markets as they did 12 years ago. You can spend like tomorrow Ed Balls style, decide not to honour your debts, but sticking up two fingers at the international creditors does have its costs eventually. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted February 4, 2014 Share Posted February 4, 2014 McDonalds Argentina runs out of ketchup: Quote Link to comment Share on other sites More sharing options...
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