Inflation in Argentina during the month of June reached 2.2% accumulating 39.9% in the first half of the year, according to the average of private consultants, which is also identified as the Congressional index. The announcement comes a few hours after the official rate from the Indec stats office was released, 1.3% and 15%. Read full article
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Disclaimer & comment rulesFurther proof that the K-administration are a bunch of crooks and liars...
Jul 17th, 2014 - 09:14 am - Link - Report abuse 0The economic activity is cratering. How its possible to have 40% yoy inflation with nobody working is simply flabbergasting.
Jul 17th, 2014 - 10:42 am - Link - Report abuse 0What a crazy place.
I don't see any other outcome but default, devalue, hyperinflation, crash.
Whether it is in 3 weeks or a year it will happen regardless of the an agreement with the holdouts.
This is the worrying thing about this story ”In related news the Argentine budget deficit in the first five months of the year more than doubled (119%), over the same period a year ago, according to a release from the Ministry of Economy. However if the support to the budget from the Central Bank and the pensions’ fund are not included the gap compared to 2013 would be even larger: 146%.”
Jul 17th, 2014 - 10:52 am - Link - Report abuse 0Serious problems...
3. That's why they are flooding the economy with pesos. The Fed Gov't is short, the Provinces are even worse and the only way to fixit is to create more pesos.
Jul 17th, 2014 - 11:36 am - Link - Report abuse 0Soon enough they'll just add a zero to every note and hope nobody notices.
They are absolutely going to have to do another forced u$/Peso conversion after the next devaluation. Which should be massive.
What's the current black market vs official Peso/US$ rates? That is usually a pretty good indication of where things are headed...
Jul 17th, 2014 - 09:43 pm - Link - Report abuse 0@5 8,17/1 official 12,25/1 black market. You can see current rates in lanacion.com.
Jul 17th, 2014 - 10:05 pm - Link - Report abuse 0The black market Euro in Venezuela is now over 100 bsf. 10 x the official exchange rate.
Jul 18th, 2014 - 12:42 am - Link - Report abuse 05. You have to consider that the gov't knows where the black market currency exchanges are located so when it gets a little out of control they can somewhat manage it by having gov't employees with bags of U$ go to the caves at the same time and bring the black market back down.
Jul 18th, 2014 - 10:37 am - Link - Report abuse 0That will work for only a short time.
Eventually the market will take it where it belongs
I expect devaluation around the end of the year probably to 20/1. They have no more tools left to manage the economy and they will not cut down gov't spending. How long have the Prez run under emergency budgetary powers? A decade? Longer?
The next crash will be way worse than 2001. You have all the same problems you did then but no hard assets to cushion the blow and no Int'l banks will bail you out. They couldn't even if you asked.
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