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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

#21

Post by rmbyrro »

missedthecue wrote: post #3
azinman2 wrote: post #2

Why does Argentina always have such a volatile currency?

" 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.

Depends on the point of view.

The government there is very competent at stealing their people's wealth through inflation.

I bet there are people like this in every country. They just couldn't find a way to do it unchecked. Yet...

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

#22

Post by likortera »

azinman2 wrote: post #2

Why does Argentina always have such a volatile currency?

I lived for 20 years there. In my opinion the root of all problems there is that it is embedded in the culture to be as egoist as possible and to steal as much as you can from everyone else in the most ruthless and shameless possible way.

People usually complain about the government being corrupt and stealing to the people. But most people are the same, at their own level. They will try to steal as much as they can at their level or what is close to their hands. From bit paying taxes to actually pocketing others money, etc.

I know it is not everyone, but it is the majority of the people that are like this, politician or not.

I still have a friend there, always complaining public services don't work (healthcare, police, etc) but then in the same conversation he says with a straight face that he prefers not to pay with credit cards or bank accounts because then he'd have to pay taxes and declare the money.

There are people like this all over the world, but the proportion in Argentina is huge, a big majority I'd say. It's part of the culture.

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

#23

Post by kragen »

the_af wrote: post #11
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?

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 eas…

As this comment illustrates, partisan propaganda in Argentina is effective at getting much of the population to blame anybody except the ruling party, who somehow believe that "widespread speculation" is something that doesn't happen in countries like the US, the UK, Taiwan, Japan, etc.

The current ruling party (the one that likes to blame the agricultural sector) just signed up for some new unpayable loans from the IMF last month.

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

#24

Post by gftttgggfffddd »

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.

By not aligning with Argentina in that dispute, the U.S. betrayed their own Monroe Doctrine

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

#25

Post by _plg_ »

paraph1n wrote: post #20
gringoDan wrote: post #16

Reminds me of the old line that there are 4 types of economies: 1. Developed 2. Underdeveloped 3. Japan 4. Argentina

What's unique about Japan's economy?

"As of 2022, the Japanese public debt is estimated to be approximately US$12.20 trillion US Dollars (1.4 quadrillion yen), or 266% of GDP, and is the highest of any developed nation."

https://en.wikipedia.org/wiki/National_debt_of_Japan

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

#26

Post by forinti »

gringoDan wrote: post #16

Reminds me of the old line that there are 4 types of economies: 1. Developed 2. Underdeveloped 3. Japan 4. Argentina

Argentina is practically an extractive and agrarian economy now.

It's hard to keep a good standard of living for 45 million people with that.

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

#27

Post by [deleted] »

likortera wrote: post #22
azinman2 wrote: post #2

Why does Argentina always have such a volatile currency?

I lived for 20 years there. In my opinion the root of all problems there is that it is embedded in the culture to be as egoist as possible and to steal as much as you can from everyone else in the most ruthless and shameless possible way. People usually complain about the government being corrupt and stealing to the people. But most people are the same, at their own level. They will try to steal as much as they can a…

[deleted]

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

#28

Post by ab8 »

likortera wrote: post #22
azinman2 wrote: post #2

Why does Argentina always have such a volatile currency?

I lived for 20 years there. In my opinion the root of all problems there is that it is embedded in the culture to be as egoist as possible and to steal as much as you can from everyone else in the most ruthless and shameless possible way. People usually complain about the government being corrupt and stealing to the people. But most people are the same, at their own level. They will try to steal as much as they can a…

How is this related to currency?

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

#29

Post by mixedCase »

the_af wrote: post #11
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?

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 eas…

But it is, just the government. They refuse to cut down on deficit spending, keep a hopelessly intractable tax system, and they keep the money printer running non-stop to keep up. It doesn't help that they keep one of the most unenviable levels of corruption, either.

And it's not limited to the current government, their previous one was woefully incompetent at fixing deficit spending. But it can't also be denied that the party in power is the one that refuses under any circumstance to address the underlying cause.

Everything else you mentioned: Loans, bank runs, rampant inflation impacting land value, and business trying to protect their investments from the governments' byzantine rules and outright thievery through price controls that expects them to produce at a loss, is just a byproduct of government policy that is rotten to the core and a population that keeps electing the same incompetent buffoons that do not dare or desire to make the necessary changes.

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

#30

Post by the_af »

kragen wrote: post #23
the_af wrote: post #11

Earlier quoted context omitted.

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 eas…

As this comment illustrates, partisan propaganda in Argentina is effective at getting much of the population to blame anybody except the ruling party, who somehow believe that "widespread speculation" is something that doesn't happen in countries like the US, the UK, Taiwan, Japan, etc. The current ruling party (the one that likes to blame the agricultural sector) just signed up for some new unpayable loans from the…

Please follow HN's guidelines and be respectful.

I've no particular respect for the current government, and I did mention "it's not just the government", meaning I believe part of the blame is theirs.

Do you deny the agricultural sector is one of the most powerful in Argentina, and one that speculates on the dollar and has a vested interest in it going higher?

Do you deny the illegal dollar market is relatively small but has a high impact in people's minds?

Do you deny the real estate sector trades in dollars?

> As this comment illustrates, partisan propaganda

Your comment is autological!

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