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Argentina’s black-market USD rate climbs 24% in two weeks

argentinareports.com

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Re: Argentina’s black-market USD rate climbs 24% in two weeks

#11

Post by the_af »

azinman2 wrote: post #4
missedthecue wrote: post #3

Earlier quoted context omitted.

" Due to many governmental economic measures, a deficit in the fiscal balance, and a large issue of local currency..." (From the article). Chronic lack of competent governance seems to be the culprit.

But this isn’t the first time. You’d think they’d learn their lessons. So something is amiss— perhaps they don’t have a choice? And if so, why?

It's not just the government. There's a broader problem, including unpayable loans from the IMF, lack of dollars leading to restrictions, some things are traded in dollars since our last dictatorship (e.g. real estate) and this is difficult to change, and widespread speculation of our agricultural sector (one of the most powerful groups in Argentina).

Also: the black market of dollars is relatively small and also easily manipulated, but generates panic in people's minds.

Re: Argentina’s black-market USD rate climbs 24% in two weeks

#12

Post by TulliusCicero »

droopyEyelids wrote: post #5
azinman2 wrote: post #4

Earlier quoted context omitted.

But this isn’t the first time. You’d think they’d learn their lessons. So something is amiss— perhaps they don’t have a choice? And if so, why?

way off course on my comment here, oops!

...how exactly do you think Argentina's volatile currency is a result of US foreign policy?

Re: Argentina’s black-market USD rate climbs 24% in two weeks

#14

Post by the_af »

Cyberdog wrote: post #7
azinman2 wrote: post #4

Earlier quoted context omitted.

But this isn’t the first time. You’d think they’d learn their lessons. So something is amiss— perhaps they don’t have a choice? And if so, why?

Figuring out how to stop a country with a history of corrupt government from being a country with a future of corrupt government is one of the biggest problems in human civilization.

The problem with the dollar in Argentina is not just about corruption, though it does have some of its roots in our dictatorship from the 70s. Later governments and businessmen did their part, of course.

Re: Argentina’s black-market USD rate climbs 24% in two weeks

#17

Post by the_af »

missedthecue wrote: post #8
droopyEyelids wrote: post #5

Earlier quoted context omitted.

way off course on my comment here, oops!

Hmmm. Argentina and the US have no beef. Not even historically. The US didn't even officially take the UK's side during the Falklands War. And that's despite the fact that the US/UK alliance is probably the strongest one.

The US did provide military assistance to the UK and none to us, so I'd say they definitely took the UK's side [1].

Complicating things, of course, is the fact the US saw our military junta as a bulwark against communism, and so provided some support to them [2] (and, it is argued, our military dictators thought they saw indications the US would support us in our war against the UK, which is just as deranged as it sounds. Then again, our dictatorship was as incompetent as it was bloodthirsty).

---

[1] https://en.wikipedia.org/wiki/National_Reorganization_Proces...

> "However, relations soured after the U.S. supported the United Kingdom in the Falkland Wars."

[2] https://en.wikipedia.org/wiki/National_Reorganization_Proces...

> "The United States provided military assistance to the junta and, at the start of the Dirty War, Secretary of State Henry Kissinger gave them a "green light" to engage in political repression of real or perceived opponents."

> "The US Congress approved a request by the Ford Administration, to grant $50,000,000 in security assistance to the junta. In 1977 and 1978 the United States sold more than $120,000,000 in spare military parts to Argentina, and in 1977 the US Department of Defense granted $700,000 to train 217 Argentine military officers."

Re: Argentina’s black-market USD rate climbs 24% in two weeks

#18

Post by kragen »

azinman2 wrote: post #4
missedthecue wrote: post #3

Earlier quoted context omitted.

" Due to many governmental economic measures, a deficit in the fiscal balance, and a large issue of local currency..." (From the article). Chronic lack of competent governance seems to be the culprit.

But this isn’t the first time. You’d think they’d learn their lessons. So something is amiss— perhaps they don’t have a choice? And if so, why?

With the exception of a few of the mass murderers of the 01970s, the people who have caused our currency to be so volatile over the last 50 years have all retired to enjoy their wealth. Some of them died at a ripe old age. The people currently running the government definitely did learn a lesson from that: they learned that they, too, will retire to enjoy their wealth, even if they impoverish the country in the process.

However, a number of presidents and finance ministers have had to resign in disgrace when their policies (or those of their predecessors) provoked immediate crises. Printing money is a common way to postpone an immediate crisis.

Re: Argentina’s black-market USD rate climbs 24% in two weeks

#19

Post by rmbyrro »

For those on the "it's-fine-to-print-money-at-will" bandwagon, please meditate on at least this part:

> “everything starts with a large fiscal imbalance, which becomes a monetary imbalance due to printing [money] to finance the deficit.”

Says the chief economist of the Agricultural Foundation for the Development of Argentina.

A.k.a. someone in one of the best places in the world today to really know this stuff.

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