MercoPress. South Atlantic News Agency
Argentina drastically limits the purchase of ‘cheap dollars’ fuelled by inflation
Argentine Vice-president elect and Economy Minister Amado Boudou reiterated Monday that the new rules for foreign currency purchase in effect as of today are aimed towards discovering the “origin” of funds as opposed to the “destination” of the money. Read full article
Comments
Disclaimer & comment rulesThe events at hand seem to be indicating an upcoming devaluation of the peso. Buying dollars (legally or illegally) makes sense. Moving assets outside the country also make sense. CFK is printing pesos to pay for her vote buying. Act accordingly.
Oct 31st, 2011 - 07:53 pm - Link - Report abuse 0I didnt know you were such an economic genius wesley?Maybe you might tell Osborne how to get the English economy growing even though he has the printers on overdrive
Oct 31st, 2011 - 07:59 pm - Link - Report abuse 0Default is the best option for Britain. Similarly for the US. Argentina is hopeless. The fact that people are buying dollars in Argentina suggests that they sense an upcoming devaluation also. Its not like its never happened before in Argentina (more devaluations than Madonna has had lovers). You can be sure that Mr Boudou has his money outside the country in dollars or Swiss francs.
Oct 31st, 2011 - 08:37 pm - Link - Report abuse 0#3 - or, in gold.
Oct 31st, 2011 - 10:07 pm - Link - Report abuse 0Why would a AAA (stable) country go for a default? There is flexibility to print money in the UK economy because the supply of money had been held back and there was too little money in the system. Rather than printing money we decided to use low interest rates to borrow for investment. Now as the economic cycle has turned then there is capacity to increase the amount of cash in the economy.
Oct 31st, 2011 - 10:14 pm - Link - Report abuse 0Our best strategy is to borrow money at one rate and to lend it at a higher rate to other countires we can trust. Have done this with the Irish and it worked well for both parties.
staying in the Argentine Peso is risky. Argentines are seeing prices going up up and up, meaning, peso is getting worthless. Now the dollar, that is slowly dying, yes we are witnessing the death of the dollar. Leaving the peso for the dollar is exactly like jumping without a parashute out of a plane that is crashing, while pilots are in deny and tell the nervous passangers “we're doing fine”. Argentines know or should know that their economy is on fire while inflation is going up. They should know something doesn't add up. Deny it and you will get burned, because economies do not grow in reality with high inflation, never happened.
Nov 01st, 2011 - 06:32 am - Link - Report abuse 0Now beef, are you a serious ”trader? you believe the UK is still a tripple A? Oh wait, you do. Haven't you learned by now how bogus that is? Haven't you realized something weird there either of how printing money from thin air is creating inflation and not creating jobs while more job losses and more and more people are losing their homes?
You're private bank of england ( YES, it's not a government entity at all similar like the US Federal Rerserve and ECB) is printing money and keep interest rates close to zero. Now why are they doing that. haven't you figured that out yet? Here..printing money (QE) is for ..they print money by the bad assets of the banksters and it becomes magically part of the national debt. Your problem. Zero interest rates? that's to keep the speculators happy (the same banks) and savers get burned. What a good deal for you.
“Our best strategy is to borrow money at one rate and to lend it at a higher rate to other countires we can trust.”
My god, they are proud of tools like you. There are thousands of brits like you on who your government is so proud of to have. How can a nation that needs to print money (meaning it's broke already) from thin air and lend it to already broke nations? It did not work for the Irish, because broke British banks were bailed out and still are being bailed out by QE's.
Fido - as an economy grows the supply of money needs to increase. When our economy was growing at a faster percentage rate than it now is we were not printing enough money. This is taking up the slack in the system. If the balance is not right then this can add to inflationary pressure.
Nov 01st, 2011 - 07:16 am - Link - Report abuse 0If the UK was broke then we are our creditors still investing in the city???
Dear Beef
Nov 01st, 2011 - 01:23 pm - Link - Report abuse 0The money supply can stay static but prices would then adjust downward as production grew. Mild deflation is actually beneficial. It discourages borrowing, encourages saving and you don't have to risk your money to get a return to keep up with inflation. This was the State of affairs in the USA from circa 1870 until 1913. There was a great deal of economic growth and prosperity.
@ 7 The UK is AAA hahaha that is so important!!! Because creditors don't care about people, they only care about money, they suck people's blood until there is nothing left, then they leave and suck another people's blood. You are living a good life, and for you that means that everything in the UK is great!!! But there are people that have no jobs, no home, etc etc etc. You're still dreaming of the Old British Empire, you really are stupid or you must be very old or just a piece of garbage.
Nov 01st, 2011 - 03:10 pm - Link - Report abuse 0Listen to this song and you'll learn something :)
Streets of London
http://www.youtube.com/watch?v=DiWomXklfv8
Even with the massive exchange controls the central bank had to sell u$100 Million yesterday to keep the peso afloat. The central bank is only a couple months away from being at their minimum reserve level, what then?
Nov 01st, 2011 - 04:14 pm - Link - Report abuse 0This doesn't mean that Argentinians fear anything. Buying dollars is part of the Argentinian culture and it will take years and years to leave this behind.
Nov 01st, 2011 - 08:43 pm - Link - Report abuse 0Explaining where did you get the money from to buy dollars is good. In this way narcotraffic and ilegal organizations will have a new limit to operate in Argentina..
@10yankeeboy: The Central Bank sells dollars and also buys dollars when the situation changes. it has been like this for the last years. What is the deal with this? The situation is normal. Argentina is growing and growing and it is normal that Argentinians choose the dollar as their savings currency, it is in our culture... The fact that the Central Bank buys dollars to manipulate the currency change is nothing to be amazed at.
We have paid a huge part of our public debt (debt that was illicit, well, this government paid it anyway...), poors have seen their capacity of buying goods and services more and more every year, more and more people has been included in the public services. Everything without asking for more and more money to the IMF. Of course there are a lot of things to go on working on, but blaming at the Government is LUNATIC!
Big companies have been spreading these “probabilities” of hyperinflation (with the help of media corporations) because they would like this to happen. They would very much like the idea of devaluation because the pesos they have earned in our market and then changed into dollars would give them an amazing fortune.
Speculators are everyday more and more limited in this country, I am happy about that. I hope the societies that are suffering the cost of speculation today (Greece, Spain, Italy, USA, etc.) see this also. we argentinians had to go through a terrible economic and political crisis to learn it.
speculation or gamble are never part of good economic principles.
Nov 02nd, 2011 - 04:26 am - Link - Report abuse 0Unofficial Exchange rate is $5.07/Us$...where it will stop nobody knows! Is it the new Austral or will it be like Venezuela or Zimbabwe...hard to say
Nov 03rd, 2011 - 02:10 pm - Link - Report abuse 0Commenting for this story is now closed.
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