Argentine Economy

[TejanoLibre]

The presidential candidate for the Lets Change (Cambiemos) coalition Mauricio Macri has told businessmen this afternoon that if he wins the October elections, he expects Central Bank Alejandro Vanoli to resign. Vanoli considered the statement a threat.

As President, I would want a steady trade rate. I would lower export taxes, which would boost agro exports and, in turn, lower inflation by increasing dollar reserves. In this scenario, I think the current Central Bank director should present his resignation, said Macri, considering Vanoli to be a different kind of Central Bank director than his presidency would need.

President Elect Macri told the Central Bank Boys to resign yesterday and will name a 6 person committee to head the economy today.

Seems like a good start to me.

Sunday night / Monday morning around 4am while we were at Excedra we watched the armored cars full of the votes driving down Macri's personal 9 de Julio Metro Bus line. Complete with police escorts.

It was a beautiful sight!

I was told that the opposition Did steal votes but not enough to win because that would have caused a riot. They did it to make sure that Macri would not win by more than 54%.

The honor still held by KFC.

Unreal.

TL.

[Jackson]

So what does the election results mean to the expats in Argentina? How will this effect the blue rate? Is this good or bad for us?

For one thing, I think it's safe to assume that somehow the dollar will get stronger.

Jajajajajaja!

Jax

[HotRod11]

So what does the election results mean to the expats in Argentina? How will this effect the blue rate? Is this good or bad for us?

[Dickhead]

Arbitrage theory tells us that the price of a product can only differ in two markets by the difference in taxes and transportation cost. I don't drink much wine but I like Trapiche Malbec. When I was in Argentina this year it sold for about 90 pesos in Cotto, about 7 dollars at the time in the blue market.

So I am in Portugal now and I see it for 4,65 euro which is about $5.20 US. What's up with that? The tax (included in the price) is a whopping 23% on most imported products here = stupid, but only 13% on this wine. So I don't really understand.

Then I am thinking, how did I get two bottles of it, and a liter of OJ, and a chocolate bar, and a pint of Spanish beer taxed at 23% for 13 euro? I looked at the receipt and the two bottles of Trapiche rang up as some local wine for 3,69 euro so the item was not entered correctly in the system.

But wine is heavy and expensive to ship in bottles. How can this be? Then I remembered that argie law allows the producer to prevent the retailer from discounting. But this did not appear to be a sale price. As an economist, I am puzzled but as a drunk I am happy. Super cheap to drink in Italy, Spain, and Portugal. Drinking age is 16 in Italy and in Portugal you can drink beer and wine, but not spirits, at 16 as well. 18 for everything in Spain.

Portuguese wine sucks though. I have had no refrigerator for eight days now so have been favoring wine over beer and wine is about half the price per unit of alcohol. Portuguese beer is not very good either so argie wine seems like a good alternative.

[Tres3]

The below link appeared in today's Miami Herald. Oppenheimer is a well respected, bilingual, and well connected, columnist who writes a syndicated column about Latin America.

http://www.miamiherald.com/news/loca...e38452695.html

Tres3.

[BigMic]

Argentina: Great Economists, Awful Economy.

By Noah Smith.

http://bv.ms/1SHmcwF

Bloomberg View.

[Tres3]

Argentina must turn up the printing presses to make up the difference between the world price of oil and the Argentine price. Someone needs co clue CFK that try as she may, Argentina cannot print dollars. Has no one in the current government studied economics 101? Someone needs to make them truly believe that there is no free lunch.

http://www.bloomberg.com/news/articl...mer?cmpid=yhoo

Tres3.

[Dickhead]

Instead of the word 'rengo' (someone who limps) in my last post, the word should have been 'manco' (someone with one arm). I think she said 'rengo' meaning he is crippled but that is not right. Maybe she said 'manco'.

[Rev BS]

Denial is not just a river in Egypt.

What a closer!

[Dickhead]

I am in Europe now with an argentinean friend and she has 10.000 pesos with her. Prior to our trip, the conversation went like this:

Argie: Should I bring pesos with me to exchange in Europe for euro?

Me: No, you will not be able to exchange pesos in Europe. Exchange pesos for euro before you leave.

Argie: (Looks at me sideways dog-head). Should I bring my ATM card?

Me: No, your ATM card will not work outside of Argentina because of the currency restrictions KFC (I call CFK KFC because her neck wattle makes her look like some type of fowl) has imposed.

Argie: (Looks at me sideways dog-head).

Fast forward to Spain:

Argie: I am going to use the ATM to get some euro.

Me: <crickets>.

Argie: The ATM won't give me any money.

Me: <crickets>.

Argie: I am going to go inside Santander Bank (her argie account is at Santander) and get some euro that way.

Me: <crickets, big smile>.

Argie: They are telling me my ATM card is no good here.

Me, fantasy reply: Boluda, I told you that twenty times before we left.

Me, actual reply: Ay ¡qué lástima!

Fast forward to Italy:

Argie: I am going to go to Western Union and they will exchange my pesos.

Me: (no they fucking won't) Dale.

Argie: Western Union won't take my pesos.

Me: (Duh) No, and neither will anyone else. They are worthless outside of Argentina and a few neighboring countries.

Argie: (Hateful look, tiny feet stamping on the ground). Why?

Me: Detailed explanation of KFC's restrictions (argie hates KFC because 'she gives everything to all those boliguayos and nothing to me'), the default on the debt, Argentina's international reputation for defalcation, etc.

Argie: Why would KFC do that? Isn't that really stupid?

Me: I have no fucking idea and yes it is insanely stupid.

Argie: Well, down by the train station there are a bunch of money changers and banks and I will go there and someone will exchange them, but you need to come with me because I don't feel safe walking around with 10.000 pesos.

Me: No, I will not go with you because you are wasting your time and there are better things to do in this beautiful city.

Argie: Hate face, fume, tiny feet stamping, malas palabras, and so forth.

Six hours later:

Argie: I went to six banks, three exchange offices, and drank twenty mates with a bunch of stupid little crackers I dragged all the way from Argentina and no one will take my pesos.

Me, fantasy reply: Meanwhile, I went to three beautiful museums, four gorgeous parks, and had some gelato.

Me, actual replay: ¡Qué lástima!

Imagine the futility of spending six hours trying to exchange worthless toilet paper. Then further imagine doing so while carrying a backpack containing: your mate, half a kilo of 'zherba,' half a kilo of sugar, a heavy jacket in case the temperature drops below 25 C, a cell phone that does not work in Europe, all your makeup and perfume so the maid won't steal it (because the maid is black), and god knows what else.

I mention that Macri says if he gets elected he will remove the restrictions immediately but that Scioli says he will he will remove them gradually.

Argie: Scioli es un hijo de rrrre mil puta de la mierda y me cago en él y encima es rengo (has only one arm) (at this point the zhizhing and slurring became so pronounced I lost track but none of it sounded very positive towards Scioli) and if he gets elected I will rip off his other arm and stuff it up his culo.

Me: Vamos a comer algo?

Argie: ¡Ojalá! Estoy rrre cansada.

Later she stated with relative certainty that she will be able to exchange the pesos in Germany.

Denial is not just a river in Egypt.

[Tres3]

The Blue Peso has finally made International news.

http://www.bloomberg.com/news/articl...ths?cmpid=yhoo

Tres3.

[Retire N Trave]

Found an amusing article on Argentine economy http://www.bloomberg.com/news/articl...e-all-the-rage.

[Gandolf50]

It looks as if Judge Griesa is tightening the screws.

http://finance.yahoo.com/news/us-jud...001217033.html

Tres3.

Unfortunately, too little, too late.......

[Tres3]

It looks as if Judge Griesa is tightening the screws.

http://finance.yahoo.com/news/us-jud...001217033.html

Tres3.

[Spassmusssein]

In the last 100 or so years has Argentina had a future? The only things keeping the country from being a complete basket case are cows, corn, and soy. It certainly is not the people.

Tres3.

Well, everyone in his place.

I love Argentina, allmost everyone of my friends here is an Argentine and, as beeing in real-estate, I do not have problems.

Do not underestimate, ARG is one of the few midlleclass-countries here around.

I do not see our prob with "the people" here. They are my friends and bizz-partners. Since many years and meanwhile I prefer the "easy going" here to the suicidal "Merkelism" of my Origin.

You are right, that ARG-Industrie is campocampocampo. Manufacturing industry goes in China, India, Southcorea o Burundi Faso (maybe). Absolute brainlessness to try "industrialize" Argentina with the actual labor-laws.

Concerning mongering...ARG is leaving the spot, so Medellin, Cali, Manaos or Rio are better places. Cartaghena just 4 me...

NievelEvil I will stay here as I did within the last years.

Going on vacacions to...yes, ok, wherever.