Argentine Economy

[PirateMorgan]

Declarations of Peso value STILL don't mean anything unless there is a sufficient supply of dollars to feed the needs of individuals and business in Argentina. The jury is completely out on this. If there isn't enough, oh my, the blue will go to unparalleled levels. It will not take long to shake out one way or the other.

[Daddy Rulz]

I tried to talk somebody into making a test today for a couple hundred pesos and was unable to.

If it works, actually works, I would say probably. It remains Argentina, until somebody has proven that you're not getting raped on the backside (fees, funky exchange when clearing through the banks) I would maintain hope with healthy skepticism.

I'm on an expat FB group and a couple guys there ran a test today (small amounts) with ATM cards and got 9.5. One guy reported that his statement showed "transaction pending." I'm sure it will take a couple days to smooth out, and the residual 9.5 wasn't theft, pretty sure anyway, but lets see what happens. Though it wouldn't even be a stretch for me to see somebody report they questioned the bank about this and the bank said, "Yes, the exchange rate is indeed 14-1 except when you use your debit card to get money from a foreign bank, then it's 9.5-1."

[Daddy Rulz]

I am looking at exchange rates today just out of curiosity and it seems like it is reasonable to bring and use the ATM card again. Dolarblue.net site is down. I looked at a hotel site which I used before and they still have not converted. They are still quoting about 10 to 1. There appears to be some confusion. Look for deals now.

I tried to talk somebody into making a test today for a couple hundred pesos and was unable to.

If it works, actually works, I would say probably. It remains Argentina, until somebody has proven that you're not getting raped on the backside (fees, funky exchange when clearing through the banks) I would maintain hope with healthy skepticism.

[Big Boss Man]

I am looking at exchange rates today just out of curiosity and it seems like it is reasonable to bring and use the ATM card again. Dolarblue.net site is down. I looked at a hotel site which I used before and they still have not converted. They are still quoting about 10 to 1. There appears to be some confusion. Look for deals now.

[Jackson]

Does the "National Sales Tax" include the VAT? If not, that tax amount must also be included in the sales price.

Tres3.

The "National Sales Tax" I referred to is known by it's acronym "IVA".

It's not a Value Added Tax as it's not added on to the cost of a product at each step in the importing / manufacturing / distribution process.

The 21% IVA is added to and included in the final retail sales price, but it is not itemized on the sales receipt like sales taxes in the USA.

Nevertheless, the next time you are motivated to complain about the price of a retail product or service, first recognize that the retailer is only receiving 79% of the price you paid.

Thanks,

Jax.

[TejanoLibre]

So the Nazis had a coincidental fire at the Reichstag but it was for a good reason .

Blame the Red Pigs and gain support.

The new fire in The Ministry of Finance here in BA was obviously intended to cover up KFC's corruption.

http://www.zerohedge.com/news/2015-1...-regimes-files

Unbelievable.

TL.

[Tres3]

LOL!! You would think with 121% tax they would encourage imports!

Most intelligent heads of state long ago discarded the discredited "Import Substitution", but not CFK. In fact, she increased it for the average person who pays taxes. The well connected long ago learned that a well placed bribe could avoid paying the tax.

Tres3.

[Gandolf50]

It looks as if AA got a bellyful of Argentine government game playing. CFK had a number of retaliatory actions. It will be interesting to see if she uses her last days in power to try and impose them. If Aerolineas were worth a shit and flew on time, AA would not sell so many tickets in Pesos, and maybe would keep accepting Pesos. First Venezuela, and now Argentina. I wonder which airline will be next, and I also wonder what Macri will do when he takes over.

http://finance.yahoo.com/news/americ...192148757.html

Tres3.

Macri announced a replacement to run Aereolineas, maybe he can cut the 350 employees per plane to something closer to the norm of around 50. And while hes at it cut the 3.5 million dollars a day subsidy Aereolineas is costing the country.

[Gandolf50]

Much of the difference between the Argentine and the USA asphalt shingle prices can be attributed to Argentina's 100% tariff on imported goods and it's 21% "National Sales Tax" on retail sales.

Thanks,

Jax.

LOL!! You would think with 121% tax they would encourage imports!

[Tres3]

Much of the difference between the Argentine and the USA asphalt shingle prices can be attributed to Argentina's 100% tariff on imported goods and it's 21% "National Sales Tax" on retail sales.

Thanks,

Jax.

Does the "National Sales Tax" include the VAT? If not, that tax amount must also be included in the sales price.

Tres3.

[Tres3]

It looks as if AA got a bellyful of Argentine government game playing. CFK had a number of retaliatory actions. It will be interesting to see if she uses her last days in power to try and impose them. If Aerolineas were worth a shit and flew on time, AA would not sell so many tickets in Pesos, and maybe would keep accepting Pesos. First Venezuela, and now Argentina. I wonder which airline will be next, and I also wonder what Macri will do when he takes over.

http://finance.yahoo.com/news/americ...192148757.html

Tres3.

[Jackson]

In the past week, asphalt roofing shingles here in Buenos Aires have jumped 100 pesos a bundle. Currently selling at $750 pesos a bundle, up from $650 the week before. Prices in the states ( Using Home Depot pricing as a reference ) continue at $21.70 or there abouts. Using the current Blue price of around 15 to 1 they should cost around $320 pesos. What a privelage to live here and pay double for everything and at the same time you get to earn less!!!! :-).

Much of the difference between the Argentine and the USA asphalt shingle prices can be attributed to Argentina's 100% tariff on imported goods and it's 21% "National Sales Tax" on retail sales.

Thanks,

Jax.

[Bobby Doerr]

In the past week, asphalt roofing shingles here in Buenos Aires have jumped 100 pesos a bundle. Currently selling at $750 pesos a bundle, up from $650 the week before. Prices in the states ( Using Home Depot pricing as a reference ) continue at $21.70 or there abouts. Using the current Blue price of around 15 to 1 they should cost around $320 pesos. What a privelage to live here and pay double for everything and at the same time you get to earn less!!!! :-).

A few years ago, Cristina told the country that if inflation were truly 25% or more (like economists outside of her government believed), the country would explode and "disappear into thin air." Spending her days by bald ass lying about CPI and dangerously doing nothing to dampen inflation but doing everything wrong to inflame inflation, the Macri government will have its hands full confronting reality. While empirical evidence pointed to huge MONTHLY increases in inflation rates and after the IMF censured Argentina for its faked inflation statistics, the brown nose asshole Finance Minister Axel Kicillof launched a new metrics system, which he labeled the consumer price index NU (CPINu). Two years ago, the new index put one month's (Jan 2014) inflation at 3.7%--the highest monthly rate recorded by the government since 2002. If extrapolated, such a rate would mean annual inflation of 55%. But the newer and more current numbers are still lower than many private estimates. Think of what Macri is facing. His first job is to stem inflation. Here's some things Macri's Finance Minister must do IMMEDIATELY, (1) Get rid of the export tax, (2) Devalue the peso again, (3) settle old debts with Singer's group, (4) reestablish good relations with the USA, (5) and most of all - increase the number of tourists coming into the country by passing new cheap pussy laws. Thanks, Bobby Doerr.

[Gandolf50]

In the past week, asphalt roofing shingles here in Buenos Aires have jumped 100 pesos a bundle. Currently selling at $750 pesos a bundle, up from $650 the week before. Prices in the states ( Using Home Depot pricing as a reference ) continue at $21.70 or there abouts. Using the current Blue price of around 15 to 1 they should cost around $320 pesos. What a privelage to live here and pay double for everything and at the same time you get to earn less!!!! :-).

[HotRod11]

Seems like we have a lot of smart economist on this site. Help me with a question. If our economy is growing at 2.5% why would we consider raising interest rates. Inflation doesn't seem a factor here. We need a little inflation. If we raise interest rates wouldn't this slow everything down? If our GDP drops below 2.5 This could be a problem.