[QUOTE=Sidney]Down 8% , not inflation adjusted![/QUOTE]You mean deflation adjusted!
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[QUOTE=Sidney]Down 8% , not inflation adjusted![/QUOTE]You mean deflation adjusted!
WSJ article from today about the "Cash" (meaning coin) shortage in Argentina: [url]http://online.wsj.com/article/SB123111629554952657.html?mod=googlenews_wsj[/url]
Can someone tell me how any responsible government could allow this sort of thing to happen? I'm not suggesting that the Kirchners are smart. But, how hard could it possibly be to print up some more coins?
When something this simple goes wrong, logic tells me to look for another explanation. I can't fathom what it would be in this instance. Are people convinced that the economy is going to crash so they're hoarding coins rather than paper currency because the latter will be no better than toilet paper whereas the former can be melted? And even if that's what's happening, I ask again: How hard is it to print more coins? What else explains this?
[QUOTE=Stan Da Man]WSJ article from today about the "Cash" (meaning coin) shortage in Argentina: [url]http://online.wsj.com/article/SB123111629554952657.html?mod=googlenews_wsj[/url]
Can someone tell me how any responsible government could allow this sort of thing to happen? I'm not suggesting that the Kirchners are smart. But, how hard could it possibly be to print up some more coins?
When something this simple goes wrong, logic tells me to look for another explanation. I can't fathom what it would be in this instance. Are people convinced that the economy is going to crash so they're hoarding coins rather than paper currency because the latter will be no better than toilet paper whereas the former can be melted? And even if that's what's happening, I ask again: How hard is it to print more coins? What else explains this?[/QUOTE]I don't know the cost involved in minting coins but what happens with monedas is the bus company's hoard the coins to blackmail the banks for a better rate. Then once coins get a little short people start hording them as well. It happens over and over. Always keep a stash of 40 pesos in coins for when there is a shortage.
Two recent front page stories in La Nación point to a downward economic trend:
1. Tourism was down 8% in the first 10 months of 2008 in comparison to the same period of 2007. Also, those tourist on average spent 5% less in 2008 than in 2007.
2. Last week La Nación reported that 300 restaurants closed in Capital Federal for the following two reasons:
A. Consumerism is down 20% ,
B. Cost of renting represents 20% of gross receipts. Economists believe for a restaurant to be successful cost of renting shouldn't be more than 6% of gross receipts.
It seems to me some owners of these properties were blind to economic trends when they raised monthly rentals a few years back.
Article in newspaper (Clarin?) pointed out that farmers don't need to borrow money to buy more tractors, equipment. When things are bad on the farm they never invest in more machinery! Who needs a new tractor to bring in a crop devastated by drought?
USA #6, maybe if we were a little lower we would not be in this economic mess.