Is Argentina getting ready to implode again?

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Is Argentina getting ready to implode again?

Post by admin » Wed Mar 26, 2008 3:53 am

This smells a lot like the early stages of the last economic implosion in Argentina.
http://www.bloomberg.com/apps/news?pid= ... in_america

Last time the government ran out of money, they started printing fake U.S. currency (with Argentina's name on it of course).
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Re: Is Argentina getting ready to implode again?

Post by admin » Wed Mar 26, 2008 11:11 am

Yea, I am expecting a whole lot of calls back from all the expats that talked to us over the last few years, I told them not to invest in Argentina (yet), and they did anyway. Even if just the social unrest gets a few of them guessing.

This is not the first red flag to go up either. The first sign was last year when the news broke that Argentina's government economic statistics office had been artificially manipulating the numbers for the last three years for political reasons. Those are the sorts of numbers people start making investment decisions based on, and if they are bad often all the other assumptions about investment tend to go rotten (generally speaking).

All that (relatively) cheap land in Argentina is cheap for a reason. It can get a whole lot cheaper, a whole lot quicker.

I am waiting to buy my ski resort. Think I'll go do some window shopping this season around Bariloche.

When the busts happen however the Argentina population goes in to a sort of denial that it is happening for about 6 months. Everyone tries to tell you there is no problem, and that nothing is wrong; even though their currency is devaluing, banks are closing, and so on. It is that period where you shop and wait for the prices to come down.
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Re: Is Argentina getting ready to implode again?

Post by marti » Fri Jul 17, 2015 10:15 pm

imprpeso.JPG
Ever notice the similarity in the national colors of Greece and Argentina? Just think what would happen if Greece could print their own money? It wouldn't be long before the shortage of wheelbarrows to carry the worthless paper around.

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The Central Bank of Argentina released record-setting figures this month: the monetary base is now at AR$510.5 billion, swelling 10 percent since the start of the year. The central government has used this substantial expansion — comprised of banknotes in circulation, cash in financial entities, and demand deposits in checking accounts — to finance its large fiscal deficit.

President Cristina Kirchner’s administration has monetized the debts with new currency channeled through the National Treasury, on top of raiding the social-security system (Anses). Naturally, this has generated inflationary pressure, with the latest reported year-on-year price-level rise at 28.76 percent, as measured by the National Congress and private consultants for May 2015.


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Inflation in Argentina this year only 28 percent as of May? So far, so good. For last year it was around 38 percent for the year.

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Naturally the Argentine black market dollar responded to the sliding ARS, with the blue dollar today selling for 14 ARS to the dollar.
dolarazul.JPG
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banbonar.JPG
banbonar.JPG (11.49 KiB) Viewed 1021 times


Oh, so Argentina's efforts to sell new debt before they pay off old debt are getting even more difficult? How curious. Does not augur well. Of course, you have to be pretty reckless to want to buy Argentine bonds.

###
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Re: Is Argentina getting ready to implode again?

Post by HybridAmbassador » Sat Jul 18, 2015 2:01 pm

marti wrote:
imprpeso.JPG
Ever notice the similarity in the national colors of Greece and Argentina? Just think what would happen if Greece could print their own money? It wouldn't be long before the shortage of wheelbarrows to carry the worthless paper around.

-------------------

The Central Bank of Argentina released record-setting figures this month: the monetary base is now at AR$510.5 billion, swelling 10 percent since the start of the year. The central government has used this substantial expansion — comprised of banknotes in circulation, cash in financial entities, and demand deposits in checking accounts — to finance its large fiscal deficit.

President Cristina Kirchner’s administration has monetized the debts with new currency channeled through the National Treasury, on top of raiding the social-security system (Anses). Naturally, this has generated inflationary pressure, with the latest reported year-on-year price-level rise at 28.76 percent, as measured by the National Congress and private consultants for May 2015.


-----------------------

Inflation in Argentina this year only 28 percent as of May? So far, so good. For last year it was around 38 percent for the year.

-------------

Naturally the Argentine black market dollar responded to the sliding ARS, with the blue dollar today selling for 14 ARS to the dollar.
dolarazul.JPG
---------------
banbonar.JPG


Oh, so Argentina's efforts to sell new debt before they pay off old debt are getting even more difficult? How curious. Does not augur well. Of course, you have to be pretty reckless to want to buy Argentine bonds.
Ever notice the similarity in the national colors of Greece and Argentina? Just think what would happen if Greece could print their own money? It wouldn't be long before the shortage of wheelbarrows to carry the worthless paper around.
One of my Peruvian friend told me that there are a bunch of Greek officers looking to get in touch with the famous fake Dollar printing artists in the Lima's underground..
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Re: Is Argentina getting ready to implode again?

Post by marti » Wed Jul 22, 2015 4:21 pm

argpeso.jpg
Argie peso. Getting worse. Over 15 ARS to the black market dollar now.
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