Argentine Politics

[QUOTE=Jackson;446440]As many people tend to do, you're paraphrasing the peso-dollar relationship incorrectly.

The dollar does not get "stronger" or "weaker" against the peso. It is the pesos that fluctuates (usually down) in value in comparison against the relatively stable dollar.

If two men are standing side by side, and one of them doubles over with a stomach ache, you don't describe the situation by saying that the other man got stronger.

Thanks,

Jax.[/QUOTE]Exchange rates are relative and are generally expressed as a comparison of the currencies of any two countries. Lets look at a couple of major factors that affect exchange rates. (1) A country with a consistently lower inflation rate exhibits a rising currency value, as its purchasing power increases relative to other currencies. Countries with higher inflation typically see depreciation. Interest rates, inflation and exchange rates are all highly correlated. (2) By manipulating interest rates, countries exert influence over both inflation and exchange rates, and changing interest rates impact inflation and currency values. Higher interest rates offer lenders in an economy a higher return relative to other countries. The impact of higher interest rates is mitigated if inflation in the country is much higher than in others, or if additional factors serve to drive the currency down like (3) a negative balance of trade between a country when it is spending more on foreign trade than it is earning, and (4) that it is borrowing capital from foreign sources to make up the deficit and that (4) it engages in large-scale deficit financing to pay for public sector debt and when a government is servicing its deficit through domestic means (selling domestic bonds, increasing the money supply), or increases the supply of securities for sale to foreigners, thereby lowering their prices. (5) When balance of trade is in the negative, when imports exceed exports, the price of exports rises by a smaller rate than that of its imports, the currency's value will decrease in relation to its trading partners. (6) Lastly, currency rates depend on a country's political stability and economic performance. Political and economic turmoil can cause a loss of confidence in a currency and affects exchange rates. We all know Kisiloff is a brown-nosing moron and should be taken out to the woodshed because the country has the resources and potential to be great again but the political reality is the reason why a pair of Jeans cost a couple of hundred bucks in BA. Thanks. Bobby Doerr.

The below link appeared in Saturday's Miami Herald.

[URL]http://www.miamiherald.com/news/nation-world/article45747715.html[/URL]

Tres3.

The below link appeared in Sunday's Miami Herald.

[URL]http://www.miamiherald.com/news/nation-world/article45868090.html[/URL]

Tres3.

The below link appeared in The Guardian.

[URL]http://www.theguardian.com/world/2015/nov/22/argentina-election-second-round-vote-could-spell-end-for-kirchnerism[/URL]

Tres3.

The below link appeared in Bloomberg's Sunday News.

[URL]http://www.bloomberg.com/news/articles/2015-11-22/argentines-to-vote-in-first-runoff-as-opposition-leads-in-polls[/URL]

Tres3.

[QUOTE=BobbyDoerr;446446]Exchange rates are relative and are generally expressed as a comparison of the currencies of any two countries. Lets look at a couple of major factors that affect exchange rates. (1) A country with a consistently lower inflation rate exhibits a rising currency value, as its purchasing power increases relative to other currencies. Countries with higher inflation typically see depreciation. Interest rates, inflation and exchange rates are all highly correlated. (2) By manipulating interest rates, countries exert influence over both inflation and exchange rates, and changing interest rates impact inflation and currency values. Higher interest rates offer lenders in an economy a higher return relative to other countries. The impact of higher interest rates is mitigated if inflation in the country is much higher than in others, or if additional factors serve to drive the currency down like (3) a negative balance of trade between a country when it is spending more on foreign trade than it is earning, and (4) that it is borrowing capital from foreign sources to make up the deficit and that (4) it engages in large-scale deficit financing to pay for public sector debt and when a government is servicing its deficit through domestic means (selling domestic bonds, increasing the money supply), or increases the supply of securities for sale to foreigners, thereby lowering their prices. (5) When balance of trade is in the negative, when imports exceed exports, the price of exports rises by a smaller rate than that of its imports, the currency's value will decrease in relation to its trading partners. (6) Lastly, currency rates depend on a country's political stability and economic performance. Political and economic turmoil can cause a loss of confidence in a currency and affects exchange rates. We all know Kisiloff is a brown-nosing moron and should be taken out to the woodshed because the country has the resources and potential to be great again but the political reality is the reason why a pair of Jeans cost a couple of hundred bucks in BA. Thanks. Bobby Doerr.[/QUOTE]What a smokescreen, no doubt intended to impress us with the depth of your international financial prowess.

The fact is that you incorrectly stated that the Argentine government's propensity to print pesos "[I]should make the dollar stronger[/I]" and further you stated that if Macri wins and devalues the peso then "[I]the dollar should be stronger[/I]".

Both of these statements are inaccurate portrayals of the peso-dollar relationship as I detailed in my prior post.

Correctly stated, the Argentine government's propensity to print pesos "[I]should make the peso weaker[/I]" and if Macri wins and devalues the peso then "[I]the peso should be weaker[/I]".

Printing and/or devaluing the Argentine peso has little if any effect on the value of the US Dollar against the world's other major currencies.

Get it?

Thanks,

Jax.

The below link appeared on Reuters Monday morning.

[URL]http://www.reuters.com/article/2015/11/23/us-argentina-election-idUSKBN0TB0XJ20151123[/URL]#Ich1XtAOuqrgCVqB.97.

Tres3.

[QUOTE=BobbyDoerr;446446]Exchange rates are relative and are generally expressed as a comparison of the currencies of any two countries. Lets look at a couple of major factors that affect exchange rates. (1) A country with a consistently lower inflation rate exhibits a rising currency value, as its purchasing power increases relative to other currencies. Countries with higher inflation typically see depreciation. Interest rates, inflation and exchange rates are all highly correlated. (2) By manipulating interest rates, countries exert influence over both inflation and exchange rates, and changing interest rates impact inflation and currency values. Higher interest rates offer lenders in an economy a higher return relative to other countries. The impact of higher interest rates is mitigated if inflation in the country is much higher than in others, or if additional factors serve to drive the currency down like (3) a negative balance of trade between a country when it is spending more on foreign trade than it is earning, and (4) that it is borrowing capital from foreign sources to make up the deficit and that (4) it engages in large-scale deficit financing to pay for public sector debt and when a government is servicing its deficit through domestic means (selling domestic bonds, increasing the money supply), or increases the supply of securities for sale to foreigners, thereby lowering their prices. (5) When balance of trade is in the negative, when imports exceed exports, the price of exports rises by a smaller rate than that of its imports, the currency's value will decrease in relation to its trading partners. (6) Lastly, currency rates depend on a country's political stability and economic performance. Political and economic turmoil can cause a loss of confidence in a currency and affects exchange rates. We all know Kisiloff is a brown-nosing moron and should be taken out to the woodshed because the country has the resources and potential to be great again but the political reality is the reason why a pair of Jeans cost a couple of hundred bucks in BA. Thanks. Bobby Doerr.[/QUOTE]The OP apparently does not realize that the fundamentals of a market are supply and demand. Outside of Argentina the Peso is essentially worthless. No one wants it. It cannot be spent by the average citizen. Only in Argentina can one spend pesos.

There is a market in Argentina, but that is it. As a result, normal currency exchange rules outside of Argentina do not apply, and I think the exchange markets inside of Argentina are manipulated.

Tres3.

[QUOTE=Jackson;446451]What a smokescreen, no doubt intended to impress us with the depth of your international financial prowess.

The fact is that you incorrectly stated that the Argentine government's propensity to print pesos "[I]should make the dollar stronger[/I]" and further you stated that if Macri wins and devalues the peso then "[I]the dollar should be stronger[/I]".

Both of these statements are inaccurate portrayals of the peso-dollar relationship as I detailed in my prior post.

Correctly stated, the Argentine government's propensity to print pesos "[I]should make the peso weaker[/I]" and if Macri wins and devalues the peso then "[I]the peso should be weaker[/I]".

Printing and/or devaluing the Argentine peso has little if any effect on the value of the US Dollar against the world's other major currencies.

Get it?

Thanks,

Jax.[/QUOTE]Hey Jax, Lighten up. I'm neither looking to impress anyone nor am I looking to be confrontational. However, using your logic, if the peso weakens against the dollar, doesn't that mean that the dollar becomes stronger against the peso? You can buy more pesos for the same number of dollars. Expressing currency ratio comparisons is relative and can be expressed as one weakening while the other is strengthening. So what's the point of these semantics? Zilch, nada. I think dollar holders will get a bigger bang for their buck as we see (the peso sinking) and the dollar get stronger.

Either way, I hope our verbal joust on a definition doesn't mean you wont' let me come to your parties. Thanks, Bobby Doerr.

[QUOTE=BobbyDoerr;446456]Hey Jax, Lighten up. I'm neither looking to impress anyone nor am I looking to be confrontational. However, using your logic, if the peso weakens against the dollar, doesn't that mean that the dollar becomes stronger against the peso? You can buy more pesos for the same number of dollars. Expressing currency ratio comparisons is relative and can be expressed as one weakening while the other is strengthening. So what's the point of these semantics? Zilch, nada. I think dollar holders will get a bigger bang for their buck as we see (the peso sinking) and the dollar get stronger.

Either way, I hope our verbal joust on a definition doesn't mean you wont' let me come to your parties. Thanks, Bobby Doerr.[/QUOTE]On a lighter note some Bad guys in Venezuela went to rob a businessman and when he offered up his Worthless Venezuelan Toilet Paper they refused it.

They said they only wanted dollars.

TL.

The peso, as stated by another member of the board during my last visit, is simply a way for Argentines to pay for goods and services. When I was in BA a little over two years ago, the blu market rate was around 8 to 1. Last trip it was a little over 15 to 1. You'd think things would've been cheaper on this last trip. However, with.

Inflation so high, the cost for a cab, a steak, and a chica session remained about the same.

I hope Macri can get Argentina headed in the right direction, because the Argentines, by and large, seem like a very smart population. They deserve a Gov't that can governwith a long term mindset, restructure their debt, maybe loosen up their Protectionist Laws, and leverage the resources of their Country.

I'm not an Economist so I don't even know if this shit is possible. At da very least, this prick needs to at least introduce a $500 peso so we can fit our fucking wallets in.

Our jeans!

The below link is an editorial that appeared on the editorial page of Tuesday's Miami Herald.

[URL]http://www.miamiherald.com/opinion/editorials/article46132610.html[/URL]

Tres3.

More on the Argentina elections. I personally think that there will be a political stalemate, and very little will be accomplished. After all, the CFK political cohorts already stole plenty of dollars, and beyond buying votes care very little about the mann in the street.

[URL]http://finance.yahoo.com/news/argentina-pull-off-next-impossible-200029714.html[/URL]

Tres3.

I'm gonna miss her soooooo much.

[URL]http://www.clarin.com/politica/Reunion-Olivos-Cristina-Macri-transicion_0_1474052607.html[/URL]

It was bought a couple of years ago by a K supporter. The latest nonsense: The USA should correct their course.

[URL]http://www.buenosairesherald.com/article/204007/us-now-has-second-chance-[/URL]