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Argentine Peso Collapses 29% After Government Lifts Currency Controls
For those interested in a case study of what happens after a dramatic devaluation, you now have front row seats for what is likely to be a 25-30% peso plunge. Grab the popcorn.
That's what we said on Wednesday evening in "Prepare For Peso Plunge: Argentina Lifts Currency Controls," after the country's FinMin Alfonso Prat-Gay announced that, as promised, new President Mauricio Macri would move to unify the official and black market exchange rates in the face of depleted FX reserves and still sky high inflation.
Here's what the gap looked like as of yesterday:
On Thursday, the move to a float sent the peso plunging by nearly 30%:
Now let's just hope Macri's move to negotiate new terms for the $17 billion derivatives book amassed by former central bank governor Vanoli is enough to keep the country from taking a massive hit on its dollar futures.
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Unless your money is backed by bombs and a massive military, your currency is just paper blown about by the whims of the powerful.
Brazilian real will also fall further
The ruble hasn't done well though, Just Observing.
That is a necessary condition but not a sufficient condition
Ruble has been destroyed by Obama's war on oil. The US controls every market using HFT computers.
US gains from this war as it imports 7.5 million barrels of oil a day
All fiat currencies should be called the Peso.
How about we just go with "wipe"?
Ar$e wipe?
Yellen the felon would never let that happen to the dollar.
You can ignore reality for only so long BEFORE the consequences of ignoring reality catch up...
You know a lot of people love to talk about what a shitty hopeless dystopia Argentina is...
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i just hope that nice Mr. Singer is able to squeeze all he can out of those filthy Latins.
http://www.globalresearch.ca/argentina-a-case-study-of-israels-zionist-w...
http://americanfreepress.net/zionist-intrigue-in-argentina-exposed/
You fucking Scotch-Irish scum will soon be a 'disadvantaged' minority in a new Latin American country within 40 years... Go on fucking your pink human caetaceans...
but now they can get toilet paper...or any other import...if they want to pay for it....and that is the real market ....
used tolit paper is at all time highs.
We were never short of toilet paper or any other product, my friend, since 2002.
I hope he kills the export tax on their beef too......they have good beef....They do not export much now because of the tax....maybe they will again
And wine. Fantastic cheap wine.
...and women
Look for their women on SeekingArrangements.com
Calling Latina Lover .... please tango me .... and explain .... SAS (South American Socialism) .... LOL .... take it away ?
I should have dumped all of my soybeans when it hit $8.40+ local price.
That'll fuck up the bean market even more.
30% ? it is not a devaluation, it is a 20% rally.
the peso on the black market was trading way way cheaper...
Ding, ding, ding!! At last someone who knows his stuff. Pity the Scotch-Irish US lumpen, they'll be a Latin American country within 40 years...
I just got back from Agrentina. Does this mean that all the hotel charges pending on my card at the 9.8 peso to dollar rate just saved me 30%???
"Black" market = (gubbermint-) free market
Don't cry for me, Argentina... we'll be there soon enough!
What has just happened - voted for the majority of voters (51% against 49% in the ballottage), believe it or not - is a brutal transference of richness from most of the argentineans to the corporate élite.
A worker who's salary was U$S 1.000 until yesterday, today has lost 40% of its earnings.
But wait, we can buy up to 2.000.000 U$S freely!
But wait! People at the UIF (Unidad de Investigaciones Financieras) comes from HSBC, JP Morgan and associates! (UIF was investigating money laundrey made by... HSBC, JP Morgan & Co.! Charges will be dropped, be sure).
But wait! Minister of Finances is former JP Morgan CEO! (Prat Gay)
But wait! Minister of Energy is former Shell's CEO! (Aranguren)
But wait! The President has just designated two judges to the Supreme Court without passing throughout the Congress!
And so on.
However, we're a lot more alike the "First World" countries!
Guess what was the leit motiv of the campaign? "Yes, we can!". In Spanish, of course: "Sí, se puede".
MSM had main role in the electionary process. Orwell was way short.
the fun thing here is, people wanted this devaluation. they are so well fed by media that people, and I mean poor people, actually think this is beneficial for them in any way.