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Argentinians Are Now Poorer Than Citizens Of Equatorial Guinea After Massive Devaluation

Tyler Durden's picture




 

On Wednesday evening, Argentina’s FinMin (and former head of global FX research at JP Morgan) Alfonso Prat-Gay abolished currency controls, fulfilling new President Mauricio Macri’s promise to unify the official and black market peso rates.

The move came on the heels of central bank governor Alejandro Vanoli's forced resignation. Macri has accused Vanoli of endangering the country's finances by racking up some $17 billion in dollar futures which the new government attempted to renegotiate ahead of the deval.

“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,” we said two days ago. Yesterday, the peso did indeed take a nosedive as the parallel rates converged on 14 ARS/USD. 

What does this mean for Argentinians, you ask?

Well, as FT reports, “Argentines woke up on Thursday richer than Poles, Chileans and Hungarians [but] by bedtime they were not only poorer than all three, but also more pecunious than Mexicans, Costa Ricans and the good people of Equatorial Guinea.”

In dollar terms, the sharp peso plunge pushed the country down eleven slots on the list of richest nations in GDP per capita terms. As the following table shows, Argentineans are now worse off than citizens of Chile, Poland, Equatorial Guinea, Hungary, Lebanon, Panama, Croatia, Kazakhstan, Costa Rica, Malaysia, and Mexico.

More generally, the devaluation will cost the country some $167 billion in GDP. "[This is] just the latest ignominy to hit the seemingly accident-prone nation, which just over a century ago was the seventh-wealthiest country in the world on a per capita basis, ahead of the likes of Denmark, Canada and the Netherlands and five times wealthier than Brazil," FT goes on to say.

While the devaluation is likely the right move from a long-term perspective, in the short-run things will be painful. “The peso devaluation is a bitter pill for Argentinian households who kept their savings in pesos and for multinationals who had reported peso cash balances at the official exchange rate on financial disclosures,” Bill Adams, senior international economist at PNC Financial Services Group says.

And with that, we'll close with a few passages from one of the world's greatest economic minds. This is from May 3, 2012: 

"...press coverage of Argentina is another one of those examples of how conventional wisdom can apparently make it impossible to get basic facts right.

 

Articles about Argentina are almost always very negative in tone — they’re irresponsible, they’re renationalizing some industries, they talk populist, so they must be going very badly. 

 

Matt Yglesias, who just spent time in Argentina, writes about the lessons of that country’s recovery following its exit from the one-peso-one-dollar 'convertibility law'. As he says, it’s a remarkable success story, one that arguably holds lessons for the euro zone."

 

 

 

 

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Fri, 12/18/2015 - 20:05 | 6941306 falak pema
falak pema's picture

well they can only move up now.

Fri, 12/18/2015 - 20:08 | 6941316 JungleCat
JungleCat's picture

Methinks you are using old numbers for Equatorial Guinea.

They're an oil country, so they've moved down the list, too.

Fri, 12/18/2015 - 20:21 | 6941345 Looney
Looney's picture

I have an 0bamaCare question.

Does testing positive for gonorrhea have anything to do with Argentina’s elections, the Fed’s raising rates, or looking at the "10-Girl"? ;-)

Looney

Fri, 12/18/2015 - 20:22 | 6941365 clooney_art
clooney_art's picture

All Latin American countries are dirt poor. They live on borrowed money.  Heck I would be rich if I maxed out on my credit card, but only for a short while.

Fri, 12/18/2015 - 20:55 | 6941449 Save_America1st
Save_America1st's picture

I bet she can get that in her mouth...that trophy looks like it's headin' for some lovin'....

someone had to say it ;-)

Fri, 12/18/2015 - 20:58 | 6941465 J S Bach
J S Bach's picture

Somebody slip some cyanide crystals into Krugman's drinkypoo.

Fri, 12/18/2015 - 21:28 | 6941554 El Oregonian
El Oregonian's picture

We broke some folks...

Fri, 12/18/2015 - 21:34 | 6941564 eforce
eforce's picture

It's all Britain's fault! Muh Falklands...

Sat, 12/19/2015 - 00:26 | 6942037 Antifaschistische
Antifaschistische's picture

for about the 40th time in the last 12 years...in countries around the world we can repeat.

"I guess you should have bought gold"

Sat, 12/19/2015 - 01:11 | 6942122 Mat Cendana
Mat Cendana's picture

Okay, that's it - I'm going to do just that this Monday. Will plonk down a third of my intended budget, regardless of what the gold price is or the exchange rate (am in Malaysia). The share markets don't look too solid right now. Might rebound, or might not. Either way it wouldn't hurt to have some insurance in the form of gold (and silver).

Sat, 12/19/2015 - 01:56 | 6942199 Antifaschistische
Antifaschistische's picture

just do it and don't look back.  It's insurance.  If the price goes down..buy more, if it goes up, buy less...but keep buying at regular intervals.

Sat, 12/19/2015 - 12:11 | 6942945 Theosebes Goodfellow
Theosebes Goodfellow's picture

Huzzah for Macri and the people of Argentina! It takes real courage to do what Macri has done. He did it because not doing so would have been what the Fed is doing. The guilt for this is at former señora presidente Fernadez de Kirchner's feet. Someone ought to lampost that bitch. I just wish we in America had the balls to put in order our own economic house.

Fri, 12/18/2015 - 23:23 | 6941879 Freddie
Freddie's picture

Sadly for the Argentines, the real trophy went to Germany.  Argentina played Germany much closer as BRazil was destroyed in the semi finals.

Argentina is tragic.  They have every resource in the world except honesty.   They are totally corrupt like the USA and the EU-SSR. 

Argentian was once (around WW2) the 9th or so wealthiest country in the world.

Sat, 12/19/2015 - 01:42 | 6942184 DriveByLurker
DriveByLurker's picture

"Argentina" comes from the latin "Argentum", silver.  Literally, "Argentina" means "Silver-land".

From the late 1800s until about WW1, the phrase "rich as an Argentine" was common in many European languages.

Sat, 12/19/2015 - 09:39 | 6942614 hedgefunddartthrower
hedgefunddartthrower's picture

the irony....

Sat, 12/19/2015 - 04:42 | 6942320 August
August's picture

>>>Argentina is tragic.  They have every resource in the world except honesty.

A few years ago, I was visiting Argentina when former president Raul Alfonsin died.  It was treated as a very big event, with extensive press coverage; at least one broadcaster openly referred to Alfonsin as "the only honest president Argentina ever had".

All presidents, and people, have their feet of clay, but I can't think of any US president since the ascent of LBJ who struck me as being honest. It's all marketing now, not integrity.

Sat, 12/19/2015 - 12:24 | 6942987 ATM
ATM's picture

no wonder he's dead.

Sat, 12/19/2015 - 09:01 | 6942551 JonNadler
JonNadler's picture

speaking of the final, the gaol Higuain missed is almost a metaphor for the whole country, you're in front of the goaly, you're one of the best goal scorers in the world and you shoot it wide.  To mess up a country so rich takes talent

https://www.youtube.com/watch?v=hHbQIveDjyU

 

poor guy

 

Sat, 12/19/2015 - 01:10 | 6942117 Id fight Gandhi
Id fight Gandhi's picture

"She take my money... When I'm in need..."

Fri, 12/18/2015 - 21:00 | 6941467 Stuck on Zero
Stuck on Zero's picture

If Argentinians are spending most of their money on locally produced goods then their standard of living has not gone down much with devaluation. If, like the farmers, they are producing for export they have suddenly gotten a lot richer.

Fri, 12/18/2015 - 21:42 | 6941585 EBT excepted
EBT excepted's picture

yeah, bruthah...we be callin' dat nigrow rich, but y'all ca spell nigrow howevah ya'all like...

 

nigrow rich, peepses...hunned dollah beel n' a gold toof...

Fri, 12/18/2015 - 20:19 | 6941351 junction
junction's picture

Macri's move may backfire, especially if Argentinians find out Macri has dollar funds stashed in a Cayman Island account.

Sat, 12/19/2015 - 01:19 | 6942138 Mat Cendana
Mat Cendana's picture

It may not be Cayman but the essence is most likely true. Actually he and those with the means would be foolish not to protect their money from various government rules and regulations. Well, now he is "the government". Just hope he doesn't abuse the position to add to that Cayman or wherever account with ill-gotten money.

Fri, 12/18/2015 - 20:09 | 6941320 Hohum
Hohum's picture

Equatorial Guinea's wealth is tied up in one man, so a little misleading.

Sat, 12/19/2015 - 19:51 | 6944291 RichardParker
RichardParker's picture

Equatorial Guinea is home to Africa's longest-ruling dictator, Teodoro Obiang Nguema, who seized power in a military coup by executing his uncle 33 years ago...

http://www.wsj.com/articles/SB10000872396390443687504577565451822103204

Fri, 12/18/2015 - 20:16 | 6941343 HenryHall
HenryHall's picture

Not much sympathy. They voted for that new president, they should have known what was coming as a consequence.

Fri, 12/18/2015 - 20:21 | 6941357 GhostOfDiogenes
GhostOfDiogenes's picture

He didn't do it.

The former Kirchner dictatorship did it, and burnt up the evidence before leaving office.

Fri, 12/18/2015 - 20:27 | 6941376 Soul Glow
Soul Glow's picture

The Kirchers were the Clintons of the South; horribly corrupt people.

Fri, 12/18/2015 - 20:17 | 6941347 Soul Glow
Soul Glow's picture

For those that spent their pesos on fake boobs, good investment.

Fake boobs > pesos

Fri, 12/18/2015 - 20:33 | 6941397 Never One Roach
Never One Roach's picture

Those who bought a bag of gold pesos are sitting pretty.

Fri, 12/18/2015 - 21:04 | 6941482 Save_America1st
Save_America1st's picture

the thing about phyzz for pretty much every other country on the planet in terms of fiat is that all of them are at records or near record prices.  Their people can hardly afford phyzz in their own worthless fiat.

So take advantage right now in here in the U.S. folks...because of the dollar, we're pretty being given the phyzz on silver and gold platters!  Pun intended.  Start or continue to buy phyzz like it's going outta style.  Because the dollar will be the last to go down the toilet and so you better have a nice stack after the SHTF. 

Everyone in these other countries can't hardly buy toilet paper much less an ounce of gold or a 20 roll of silver.  We're getting the stuff easily right now and with regular premium prices for dirt fucking cheap!

John Williams at Shadow Stats crunched the numbers recently, and the price of silver right now compared to the 1980 all-time high adjusted for inflation and the amount of dollars in print today would put silver at around 1.50 an ounce in 1980.  That means silver today should actually be valued at around 600 bucks an ounce.

They're giving it away and silver is being destroyed and becoming more and more scarce due to the industrial destruction and the high cost of mining and refining.  Output is dropping and mines are going to stop bring the stuff to market due to cost.

The GSR is currently around 75:1!!!  That's insane when it should actually be around 15:1 or so.  Silver is the buy of the century...of a lifetime right now!

Keep stacking heavy and you'll never regret it. 

Sat, 12/19/2015 - 01:41 | 6942172 Mat Cendana
Mat Cendana's picture

Gold and silver are still within reasonable prices, even in countries that have seen depreciation against the dollar. I'm in Malaysia where the ringgit has taken a battering over the past 12 months especially. I've bought some silver bars and coins a couple of years ago when it was at $21. It may have gone down in dollar but in the local currency I'm still getting the same amount.

 

The gold-silver ratio shows abnormality. Yes, this is a great time to buy silver, especially with dollars. And with other currencies too. Wouldn't be a bad idea to put our savings in physical precious metals. Just make sure they are safely stored.

We don't know what the future holds, what the prices will be. They may go down, which isn't impossible. However, I doubt we will end up being worse for having physical gold and silver.

 

Thanks for your comment above. It has nudged me into buying more bars and coins.

 

 

Sat, 12/19/2015 - 01:16 | 6942132 Id fight Gandhi
Id fight Gandhi's picture

 

Going rate for a street whore in Greece is €2-5, or a "cheese sandwich" [sic].

She better be bi.. Lingual and GTFO outta there. Get a sugah daddy.

 

Maybe the pope Franky will throw some dough at his home country after he's done ignoring all the scandals and chasing climate change.

 

In other words theyre f#cked. And I don't mean proper f#cked.

 

 

Sat, 12/19/2015 - 09:03 | 6942554 Burticus
Burticus's picture

The saying is "flocked without getting kissed."  Time for the sheeple to wake the flock up.

Sat, 12/19/2015 - 04:17 | 6942316 zvzzt
zvzzt's picture

Fake boobs filled with gold, an even better investment. They will probably hang 'a bit' though and running is going to be difficult

Fri, 12/18/2015 - 20:21 | 6941352 Itchy and Scratchy
Itchy and Scratchy's picture

Viva La Socialista Revolucione! 

Fri, 12/18/2015 - 20:20 | 6941355 GRDguy
GRDguy's picture

Sudden changes in any currency is simply, no more and no less, a gigantic robbery.  The financial sociopaths know this, but without conscience nor empathy, they go right ahead and do it anyway.  That's why I've started using the name "Satan's Angels."  Maybe folks will get it this time.

Fri, 12/18/2015 - 20:45 | 6941424 Proctologist
Proctologist's picture

I prefer to call it " thinking from the pit of hell".

Take the angel right out of it...

Fri, 12/18/2015 - 21:17 | 6941522 Itchy and Scratchy
Itchy and Scratchy's picture

It's never sudden. At first it happens slowly and then it happens all at once! (minor distinction)

Sat, 12/19/2015 - 07:33 | 6942425 fiftybagger
fiftybagger's picture

There was nothing sudden about it.  It's just the new government admitting the true value of the currency, which the black market knew all along.  Just look at Nick the bus driver's currency down in Venezuela:

 

Official rate - 6.5 Bolivar to the dollar

Black market rate - 865 Bolivar to the dollar

Fri, 12/18/2015 - 20:26 | 6941374 Oldrepublic
Oldrepublic's picture

Argentina has a very high human development index of around 40,

in contrast to Equatorial Guinea's 138, almost the bottom of world

 

Fri, 12/18/2015 - 20:28 | 6941379 Soul Glow
Soul Glow's picture

40 and falling....

The value of a currency means everything for standard of living; just look at the US.

Fri, 12/18/2015 - 20:28 | 6941381 Flying Wombat
Flying Wombat's picture

115 years ago, Argentina was one of the richest countries in the world.  There used to be an old saying:  "Rich as an Argentinian."

If there was a fine example of how to screw up an economy, Argentina certainly qualifies. 

Fri, 12/18/2015 - 22:00 | 6941641 GRDguy
GRDguy's picture

The Argentines never had a chance, once they were targeted by the financial sociopaths from the City of London Corporation.

Just like what happened to the United States.

Sat, 12/19/2015 - 01:15 | 6942110 Nexus789
Nexus789's picture

You screwed up your own country nimrod so grow some and accept responsibility. Only a group of half enlightened half wits could go from being the dominant technological power on earth after WW2 to becoming the most indebted while simultanioulsy fueling the rise of the next superpower. 

The development failure of South America can be laid at the feet of the US. After the US Monroe Doctrine all European investment left S America and of course the US never bothered to invest. 

Sat, 12/19/2015 - 01:14 | 6942119 Nexus789
Nexus789's picture

Argentina's economy was growing via UK and European investment. The Monroe Doctrine endded this and South America went backwards. More like a US strategy to stifle economic development and political independence in South America.

Fri, 12/18/2015 - 20:31 | 6941383 grunk
grunk's picture

Debt slavery was the

Gooooooal!!!!!!!!!!!!!!!!
Fri, 12/18/2015 - 20:33 | 6941396 ZombieHuntclub
ZombieHuntclub's picture

Meh, once a shit hole, always a shit hole. 

Fri, 12/18/2015 - 20:55 | 6941451 Midas
Midas's picture

Not sure what you are getting at, but hopefully you are not calling Argentina a shit hole.  I have spent some time there and indeed, the ecomony sucks, but it ain't no shit hole. 

Fri, 12/18/2015 - 21:30 | 6941558 Itchy and Scratchy
Itchy and Scratchy's picture

I think he's thinking Armenia!

Fri, 12/18/2015 - 21:48 | 6941601 EBT excepted
EBT excepted's picture

dat mean dey don' shit in da hole in Ahgenteena?  cuz in d'Mexico, dey mescans shit in da hole in da ground, o' in d'floah...den when dey come to da US, dey stand on da seat like it wud a shit hole...

Fri, 12/18/2015 - 22:35 | 6941762 Midas
Midas's picture

Actually it's funny you bring up toilets.  Argentina has some of the most aggressive toilets I have ever seen.  It starts by putting the tank on the wall about four feet above the bowl.  Not a bad idea.  I've been told they used to have a brand of toilets named after the famous waterfall, Iguazú.

Fri, 12/18/2015 - 20:37 | 6941408 Heiman Van Rock...
Heiman Van Rockerchild's picture

Is that a dildo she's kissing?

 

Fri, 12/18/2015 - 20:51 | 6941444 atomicwasted
atomicwasted's picture

It is when she comes to my place...

Fri, 12/18/2015 - 21:23 | 6941538 Itchy and Scratchy
Itchy and Scratchy's picture

Only in gay porn! 

Fri, 12/18/2015 - 20:40 | 6941414 Stormtrooper
Stormtrooper's picture

100 years ago the United States used to be one of the richest nations on Earth.  And then came the Federal Reserve Bank and now the riches are concentrated amongst a few.

Fri, 12/18/2015 - 23:08 | 6941845 John_Coltrane
John_Coltrane's picture

Remember, Morgan, Rockafellar, Carnagie etc.?  All made their fortunes in the late 1800s long before a central bank existed.  In the late 1800s private wealth was a lot more concentrated than today.  The middle class was essentially non-existent  The FED effect (created in 1913 by the DEMs and Wilson) was to destroy the $ value via inflation while allowing the creation of the welfare/warfare state via debt while eliminating competition in the banking sector via creation of a cartel which still owns the FED and has first access to newly created fiat.  That's much worse than the concentration of private wealth via enterprise.  Creative destruction in a truly free market takes care of both incompetence and too much wealth concentration (i.e. AIG, GM and Citibank would and should all be out of business if not for the government).  The problem is always too large a central government.  Capitalism has built in negative feedback for control.  But government size cannot be controlled if it can issue unlimited debt without worrying about the interest cost of said debt. 

Sat, 12/19/2015 - 00:15 | 6942007 MEFOBILLS
MEFOBILLS's picture

Tell that to the former Oligarchs, who borrowed "Credit" from wall street.. to then attempt to take over Russia.  During the Yeltsin years, steel, banking, and especially Yukos was bought with foreign dollars in the form of loans and gifts.

It was all done as in-group behavior by our favorite tribe, and yes also City of London Rothschild agents.

Russia, with State power is returning gifts of their earth, back to their people.  The Oligarchs were taxed, or put in Jail.  Others have self deported.

All money is law, and hence is ultimate perogative of government.  Law can be coded for morality and must be watched by a vigilant public.

The Morgan interest were especially corrupt.  Standard oil became a monopoly by using bank "credit" to buy out and thwart competition.  Standard Oil and Morgan also price fixed to steal from the public.  Morgan interests are the ones who especially suberted the election in 1912, giving us the Federal Reserve Act and other horrors.

 

Sat, 12/19/2015 - 00:17 | 6942019 4thHorseman
4thHorseman's picture

"and now the riches are concentrated amongst a few."

Isn't it funny that the name of the fraudsters rhyme with "few"

Fri, 12/18/2015 - 20:44 | 6941421 Jack Burton
Jack Burton's picture

The smart Argies already were safe. From 2014 Economist.

 

"WHEN the residents of Buenos Aires want to change the pesos they do not trust into the dollars they do, they go to a cueva, or “cave”, an office that acts as a front for a thriving illegal exchange market. In one cueva near Florida Street, a pedestrian thoroughfare in the centre of the city, piles of pesos from previous transactions lie on a table. A courier is getting ready to carry the notes to safety-deposit boxes.

This smallish cueva handles transactions worth $50,000-75,000 a day. Fear of inflation and of further depreciation of the peso, which fell by more than 20% in January, will keep demand for dollars high. Few other ways of making money are this good. “Modern Argentina does not offer what you could call an institutional career,” says one cueva owner."

Fri, 12/18/2015 - 20:45 | 6941425 Itchy and Scratchy
Itchy and Scratchy's picture

Goldman Sachs strikes again! We will forgive your fiat paper debt in lieu of all your key assets! 

Sat, 12/19/2015 - 00:57 | 6942096 uhland62
uhland62's picture

I think their key assets went in the privatisation rounds under Carlos Menem. I remember an article in Nat. Geogr. praising his economic policies - but of course it all went belly up, regardless.

It's a great big merry go round, turning the circles every 20 years. It's not going to get any better unless some completely new aspects emerge which we cannot see at the moment. The only thing that I can think of for now would be to dissolve all the armed forces - that saves truckloads.

I would even sell the tall ship used for training sailors. Why would such a poor country spend money on a military; who's gonna invade Argentina? Uruguay, no they are happy as small as they are. Peru, Chile - nah, they're busy with themselves, as is Paraguay and Brazil.

And if somebody doesn't like Argentina without a military, they can fund it. Don't go to OAS. IMF, or UN conferences either, wasn't any good so far, save your money. But turning the ships and fighter planes to scrap metal is the best saving measure. Then use the military baracks for something productive.

Fri, 12/18/2015 - 20:46 | 6941429 Jack Burton
Jack Burton's picture

A bit of history to show how really 1st world Argentina was.

"the 43 years leading up to 1914, GDP had grown at an annual rate of 6%, the fastest recorded in the world. The country was a magnet for European immigrants, who flocked to find work on the fertile pampas, where crops and cattle were propelling Argentina’s expansion. In 1914 half of Buenos Aires’s population was foreign-born.

The country ranked among the ten richest in the world, after the likes of Australia, Britain and the United States, but ahead of France, Germany and Italy. Its income per head was 92% of the average of 16 rich economies. From this vantage point, it looked down its nose at its neighbours: Brazil’s population was less than a quarter as well-off."

Fri, 12/18/2015 - 21:02 | 6941476 RhoneGSM
RhoneGSM's picture

Even Argentines of means do it.

 

Cole Porter

Sat, 12/19/2015 - 05:17 | 6942348 August
August's picture

Lithuanians and Letts do it.

 

Cole Porter

Fri, 12/18/2015 - 21:09 | 6941493 rex-lacrymarum
rex-lacrymarum's picture

A brief summary of Argentina's economic history on Acting Man: http://www.acting-man.com/?p=31190

Sat, 12/19/2015 - 07:46 | 6942440 fiftybagger
fiftybagger's picture

Don't forget the role of our favorite reigning Antichrist:

 

"Dogged journalists from Argentina and around the world have raised concern about the election of Cardinal Jorge Bergoglio to become Pope Francis. Was he, they ask, complicit with the Argentine military that kidnapped, tortured, raped, killed, and "disappeared" tens of thousands of people starting even before the coup of March 1976? The victims included two bishops and as many as 150 priests and nuns, and the atrocities reached the absolute horror of stealing newborn babies from their mothers and throwing living prisoners from helicopters and airplanes into the South Atlantic. ...

Vatican spokesmen dismiss it as old smears spread by the anti-clerical left. We have heard this spin before, over … the Church's complicity with the Nazi Holocaust ... Pope Francis needs to do better than that. If he wants to put the dirty war behind him, he needs to provide full and convincing answers to nine deeply disturbing questions.

 

Pope Francis and Argentina's Dirty War: Nine Questions He Needs to Answer

 

Fri, 12/18/2015 - 21:11 | 6941502 Oldrepublic
Oldrepublic's picture

I understand that Patagonia is a favorite place for the world's

elite to buy property. Much nicer than Paraguay

Sat, 12/19/2015 - 09:07 | 6942561 GreatUncle
GreatUncle's picture

world's elite to buy property ...

provided the population are not in revolt of course.

Fri, 12/18/2015 - 20:53 | 6941445 Bear
Bear's picture

They are still way 'richer' than the debt saturated USCitizen ... each of us owes about $66,000

Fri, 12/18/2015 - 21:20 | 6941533 Itchy and Scratchy
Itchy and Scratchy's picture

Ahhhhh....no! Unfortunately they r not the prime reserve currency of the world (for now)! 

Sat, 12/19/2015 - 00:13 | 6942010 4thHorseman
4thHorseman's picture

Slaves to the system owe that. I don't owe shit.

Fri, 12/18/2015 - 20:54 | 6941450 Bear
Bear's picture

I don't know how this happened ... haven't you are about 'white privilege'?

Fri, 12/18/2015 - 20:55 | 6941452 netpounder
netpounder's picture

The peso is still overvalued.  The items on the $1 Dollar menu at McDonalds Argentina costs $20 Pesos.  At the current official/unofficial rate of coversion, it will cost you about $1.50 Dollar for something worth only $1 Dollar.  That $20 Pesos offer is only valid from 15th of October till the 15th of December.  After that, the 30%/year inflation affects the price again.

http://static103.tiendeo.com.ar/images/tiendas/4506/cupones/16752/portad...

I said it before, the Peso shoud be at $40-$50 Pesos per Dollar before tourists go back and Dollars start flowing in.

http://www.mcdonalds.com.ar/

Fri, 12/18/2015 - 21:15 | 6941464 Itchy and Scratchy
Itchy and Scratchy's picture

I'm guessing they ain't gonna be too happy with the new price of a Happy Meal? Cue: Madonna: Don't Cry For Me......

Fri, 12/18/2015 - 20:58 | 6941462 White Mountains
White Mountains's picture

Shoulda' put your money into Bitcoin.  Alas, that would have been too easy.

Fri, 12/18/2015 - 21:05 | 6941480 Itchy and Scratchy
Itchy and Scratchy's picture

Next to take a hit : Mexico, Brazil, Canada, Australia, Peru, Chile. Welcome to DeflatedLand! 

Fri, 12/18/2015 - 21:06 | 6941485 rex-lacrymarum
rex-lacrymarum's picture

Argentines haven't become "poorer" due to the devaluation. The devaluation merely acknowledges reality. Ms. Kirchner's Yale-trained Keynesian central banker printed money out the wazoo, and this is the result. 

Fri, 12/18/2015 - 21:13 | 6941507 Itchy and Scratchy
Itchy and Scratchy's picture

Nobel mensa P. Krugman says they need to print moaaaaaaaarrrrrrr!!!!!! Turn the machines back on Mortimer! 

Fri, 12/18/2015 - 21:10 | 6941499 Itchy and Scratchy
Itchy and Scratchy's picture

Today should be made the official 'Hug-Your-Central-Banker Day' in Argentina!

Fri, 12/18/2015 - 21:11 | 6941501 Money_for_Nothing
Money_for_Nothing's picture

Argentinians are no poorer today than yesterday. They now have an idea of how much real capital they have. The possibility now exist that they might be able to work together and recover from (what ever you want to call it). Their land is bountiful and God loves them or they would have starved to death by now.

Fri, 12/18/2015 - 21:15 | 6941511 Itchy and Scratchy
Itchy and Scratchy's picture

Just wait 'till interest rates hit 20% then get back to us! 

Sat, 12/19/2015 - 02:54 | 6942259 DaveA
DaveA's picture

They're actually better off today, because capital controls made it very difficult to import anything at any exchange rate. Factories often shut down because the government wouldn't let them spend money they had on materials they needed.

Fri, 12/18/2015 - 21:17 | 6941520 Oldrepublic
Oldrepublic's picture

Argentina is a very interesting place. I learned a lot about bad economics during my many visits to that country. Sometimes it has a over valued peso making it one of the most expensive places in the world, other times it has an exchange rate which makes it one of the cheapest places in the world. I usually timed my visits for the times when it was very cheap!

Fri, 12/18/2015 - 21:19 | 6941526 Itchy and Scratchy
Itchy and Scratchy's picture

Usually co-related to (normal) free & open market commodity price volatility! Does days r long gone I'm afraid! 

Fri, 12/18/2015 - 21:19 | 6941525 SethDavis
SethDavis's picture

Countdown to Islas Malvinas rhetoric in 3....2....1....Go.

Fri, 12/18/2015 - 21:21 | 6941534 MEFOBILLS
MEFOBILLS's picture

The constant attacks against Argentina are purposeful.  Herzyl called Argentina the "practical country" for Zion.  If they couldn't have Palestein, they could have Argentina for Zion.  

To this day, Israeli soldiers "vacation" in Patagonia, walking the country like a dog marking its territory.

Ukraine can also be seen in this context, as Ukraine is the original region of Khazars.

The idea is to be able to buy up land for cheap during devaluation periods.  Usually a country will be hooked on foreign loans, and then when the debt cannot be paid, then a devaluation is required.

Salbuchi is a good economist and a source for understanding Argentina.  For english speakers he has a lot of translated material here:

http://www.asalbuchi.com.ar/category/english/

http://www.asalbuchi.com.ar/2010/10/argentina-targeted-by-world-governme...

Cry for me Argentina:

Salbuchi:

· Whilst I write from Argentina and will now describe a rather specific Argentine problem referring to implicit threats upon our territory, the mechanisms described herein have their counterparts in just about every other country in the world.  If World Government is coming, then we all need to be alert because, although it is a truism, Argentina – as every other country – is on this planet, so we had better start understanding what the true consequences of a legally enforceable and extremely power World Government mean for every country in the world.

· Let’s continue with the case of Argentina,  We have a population of around 40 million people, however our territory is at least five times larger than, for example, that of France with a population of 65 million people.  The time will surely come from the Global Power Elite will send us the clear message from the power capitals – Washington, New York or London – saying that we have “too much” territory, and that we must accept “a more balanced reallocation” of it (naturally, in the name of “Mankind”, “peace” and “democracy”).  What will we tell them?  And if the Argentine people were to grasp that the GPE’s plans are not good for our own interests and our own future, what will we be able to do to stop them when they decide to come down upon us?  

· In the case of Argentina, as with many other countries in Latin America and in other continents, successive cowardly and treacherous governments over the past thirty or forty years have left us all but defenseless. The catastrophic policies of so-called “democratic” governments since 1983 to date, have not only destroyed our military capabilities but, what is much worse, through PsyWar perpetrated by the mainstream media that is in their hands and our eroded educational systems, they have confused and weakened our people’s national, cultural and territorial awareness; and eroded our traditional values, especially amongst the younger generations.  The people responsible for this are the very ones whose political careers and campaigns are systematically and lavishly financed with the GPE’s money, and in our country, are symbolized by the successive presidencies of Raúl Alfonsín (1983-89), Carlos Menem (1989-99), Fernando de la Rúa (1999-2001), Eduardo Duhalde (2002-2003) and very especially Néstor Kirchner (2003-2007) and now his wife Cristina Kirchner (2007 to date). 

· As a result, today Argentina is no longer an independent nation.  Countries are sovereign and independent because of their own decision and will, to remain free and independent.  However, if today Argentina has not been not invaded or come under the total control of the GPE, it is only because they – the Global Power Elite – have decided that the time for imposing full control over us has not yet come, and not because we defend and guarantee our own Sovereignty.  The day the GPE decides to “do something different” with Argentina, there will be absolutely nothing that we can do to stop them

Fri, 12/18/2015 - 21:34 | 6941561 Lucky Leprachaun
Lucky Leprachaun's picture

Agree fully with Salbuchi. especially his take on the Globalists. But, as with Greece, the 'treacherous Governments' didn't just drop from the sky.  The people voted them in because they promised plenty of free stuff. The Government borrowed to pay for it and the people had no complaints while the freebies kept flowing. The Argentinians have done this a few times by now so they can't be left off the hook for their part.

Fri, 12/18/2015 - 21:57 | 6941631 MEFOBILLS
MEFOBILLS's picture

That's called "blaming the victims."

Key statement:

political careers and campaigns are systematically and lavishly financed with the GPE’s money

 

So, how is the U.S. any different, as money powers are systematically destroying a former constitutional government and degrading its people?

All money is law.  Trade is only barter.  Argentinians are very confused on these truths, especially as they have been propagandized to since birth using foreign sourced money.

Rent seeking financial Oligarchs are allowed to play God with people's lives, using control mechanisms that are very subtle.  GPE "rentiers/illuminists" gain this power through control of the money system e.g. private emission of debt instruments to then create "credit as money."

www.sovereignmoney.eu


Fri, 12/18/2015 - 21:21 | 6941536 Itchy and Scratchy
Itchy and Scratchy's picture

My only question is r the Argentinan chicks as hot as they look? 

Fri, 12/18/2015 - 21:27 | 6941548 Lucky Leprachaun
Lucky Leprachaun's picture

They're not that good-looking. Most are dark-skinned and dark-eyed with incongruously dyed blond hair.  

Fri, 12/18/2015 - 21:35 | 6941567 Itchy and Scratchy
Itchy and Scratchy's picture

Works fine for me! Kinda like that drapes vs carpet contrast! 

Fri, 12/18/2015 - 21:55 | 6941624 Lostinfortwalton
Lostinfortwalton's picture

A lot of Argentines have a very strong European background. Women there are flat-out beautiful. Very similar to Brazil in many respects. There are a lot of extended families living together so they pull together in adversity - like the US families used to do.

Fri, 12/18/2015 - 21:26 | 6941544 Lucky Leprachaun
Lucky Leprachaun's picture

Equitorial Guinea is a very bad example on two counts.  First it's a tiny country sitting on massive oil wealth.  Second while the per capita GDP is high 95% of the population live in poverty while the remainder live like oligarchs. It's like if Bill Gates walks into a bar the average weekly income goes up by 100.

Fri, 12/18/2015 - 21:50 | 6941607 TAALR Swift
TAALR Swift's picture

#10 is a 10.

Fri, 12/18/2015 - 22:11 | 6941677 Grandad Grumps
Grandad Grumps's picture

Money is the tool of slavers ... who would want to be beaten with a bigger whip?

Fri, 12/18/2015 - 22:55 | 6941803 COL Jackson
COL Jackson's picture

beautiful women and great steaks, who needs a currency anyway.

Fri, 12/18/2015 - 22:59 | 6941818 Itchy and Scratchy
Itchy and Scratchy's picture

You do ... to pay for the steaks you feed the hot women! 

Fri, 12/18/2015 - 23:00 | 6941820 samsara
samsara's picture

I wonder how many pesos per oz of Au the day before and day after?

Seems like Au is good to have in those 'day to day' changes in currency....

Fri, 12/18/2015 - 23:20 | 6941871 HopefulCynic
HopefulCynic's picture

Great!!!!! Now I will get an influx of Argentinians in my country. I am sorry but they are very conceited. We call them the LATAM European Wannabes 

Sat, 12/19/2015 - 00:10 | 6942001 idontcare
idontcare's picture

We've already had the influx..... for decades!!!  Go to the Dade/Broward/Palm Beach, FL area - plenty of conceited Argentinians telling Americans that they are hillbillies and telling all the other Latin cultures that they are low-class and speak Spanish incorrectly since these other Spanish cultures can actually pronounce words without throwing "th" in every other syllable.  

Sat, 12/19/2015 - 00:26 | 6942038 BritBob
BritBob's picture

Worse still their mythical Malvinas claim has been exposed as nothing more than a fairy tale. Google: 'Falklands - Some Relevant International Law' to find out why.

Sat, 12/19/2015 - 02:27 | 6942235 SmittyinLA
SmittyinLA's picture

How Americans can watch the USSR crash and burn then Argentina and then say "ya let's jump off the Socialist cliff too" it blows my mind.

Sat, 12/19/2015 - 04:36 | 6942329 Fed-up with bei...
Fed-up with being Sick and Tired's picture

What's a country to do????   I agree with you totally.   In fact, it appears to me that "fiddling" with economies is the cause and effect all rolled into one.   What CAN we do as Americans other than Vote and then if we say, resoundingly, that we COULD CHANGE things, then that means the system must collapse first by the only instincts I have as a novice economic follower....well, that was poorly worded....I mean, we have no choices in WHO we choose as they are in lock-step, right?   In other words, we vote for either side and one FUCKS US OUT OF OUR MONEY and the other FUCKS US OUT OF OUR MONEY.   I do not see any hope.  Thus, how in the hell do we escape?

Sat, 12/19/2015 - 09:02 | 6942552 GreatUncle
GreatUncle's picture

Under your argument all sides FUCKS US OUT OF OUR MONEY the only logical argument is let nobody govern you as a slave.

The system is designed to keep them in their position of plenty, also TO KEEP YOU IN YOUR POSITION OF NOTHING, because their plenty is why you have nothing and why they will never give up their position.

Sat, 12/19/2015 - 02:30 | 6942240 SmittyinLA
SmittyinLA's picture

People that elect Socialist governments deserve to get fucked

Sat, 12/19/2015 - 03:24 | 6942283 Iam Yue2
Iam Yue2's picture

Foucault writes, “A body is docile that can be subjected, used, transferred and improved”

Sat, 12/19/2015 - 03:27 | 6942286 Iam Yue2
Iam Yue2's picture

"Last week, a banking source told Reuters that Argentina was in talks over a loan with HSBC, JPMorgan Chase & Co,

Goldman Sachs, Deutsche Bank and Citigroup Inc."

 

 

The gift that keeps on giving.

Sat, 12/19/2015 - 06:30 | 6942386 XXL66
XXL66's picture

http://www.xe.com/currencycharts/?from=XAU&to=ARS&view=1W

soon euro and usd will follow

10 year chart is pretty awesome

Sat, 12/19/2015 - 06:30 | 6942388 Fireman
Fireman's picture

Jim Willie's fast approaching tsunami of Scheiße dollahs will be smeared toilet paper in comparison to the Argentine "currency".

Sat, 12/19/2015 - 07:19 | 6942413 fiftybagger
fiftybagger's picture

 

 

January 2013 1 ARS = $.25 - Today 1 ARS = $.075 = 70% loss

January 2013 1 BTC = $13  - Today 1 BTC = $465  = 3500% gain

 

Result: 100k invested in ARS now worth 30k.  100k invest in BTC now worth 3.5 million.  More than 100 fold difference.

 

government = fail

bitcoin = win

 

The Bitcoin Channel

Sat, 12/19/2015 - 08:03 | 6942469 XXL66
XXL66's picture

The problem with Bitcoin is it also can be a 100% loss next year.

Sat, 12/19/2015 - 08:18 | 6942492 fiftybagger
fiftybagger's picture

And a currency can't?  What's yer point?  Anyone investing just 1% of their ARS in BTC in 2013 would be 100% whole today, even if they lost the other 99% of their money.  You can't fix stupid.

Sat, 12/19/2015 - 11:35 | 6942848 Anopheles
Anopheles's picture

Then why don't YOU give me a guarantee of a 100 fold increase in BTC in the next 3 years.  OK? 

Why not?  Look who's stupid. 

Sun, 12/20/2015 - 04:44 | 6945288 XXL66
XXL66's picture

PM's will never go to zero. I like to sleep at night. Governments or banksters will take control over BC when it gets to big because it is a black market, that is NOT what they want. And more importantly, they want control over the money ponzi scheme. And something else, i can see my coins, they are beautifull shiny and heavy unlike Bitcoins you cannot see, it adds credibility. Kinda like worshipping the sun or Joe pesci instead of a invisible god.

Sat, 12/19/2015 - 08:00 | 6942466 Manipuflation
Manipuflation's picture

Well, I think we can all cross off ever traveling to Guinea from our bucket lists.  I found this little tidbit of information from the UK. 

https://www.gov.uk/foreign-travel-advice/guinea

The Guinean authorities maintain police and local militia checkpoints across the whole country. Carry identification with you at all times. See Road travel and Local laws and customs.

Road travel can be hazardous due to poor driving standards and the state of the roads. Essential supplies, such as fuel, may run low from time to time. See Road Travel.

Theft at gunpoint is increasingly common, particularly at night. The gold and diamond trade attracts criminal gangs. See Crime.

Exchanging foreign currency on the street or using unofficial money changers is illegal and can result in military detention. See Money

The British Embassy in Conakry can only provide limited emergency consular assistance.

In an emergency - eg the death, assault, hospitalisation or detention of a British national - call +44 (0)1908 516 666 and follow the instructions to be connected with consular officers.

 

Take out comprehensive travel and medical insurance before you travel.

 

I can say for sure that the gold trade does attract criminal gangs but I think those gangs are from major financial trading brokeragesi.e. they sell shit they don't have and get away with it.

 


Sat, 12/19/2015 - 10:20 | 6942675 Wahooo
Wahooo's picture

Actually, Guinea might just be a great place to practice for the coming years in the U.S. A week or two there would provide insights into America's future:

Military Checkpoints. Check.

Official Papers. Check.

Poor Road Conditions. Check.

Low Fuel Availability. Check.

Rampant Theft at Gunpoint. Check.

Currency Black Market. Check.

Gang-led Precious Metals Trade. Check.

 

Sat, 12/19/2015 - 08:09 | 6942479 Debugas
Debugas's picture

mark to market is always a good idea - admitting the truth is first step in solving the problem

Sat, 12/19/2015 - 11:24 | 6942820 lucky and good
lucky and good's picture

Earlier this year I wrote a piece that indicated a great deal of wealth would be flowing into America seeking protection from the ravages fostered upon them. This is driven by policies that were even worse than those America's leaders have chosen to pursue. The strong dollar acts like a magnet pulling wealth towards America and it may soon get much stronger.

Do not underestimate the power of cross border money traveling into the country as a driving economic force. Another thing you should not underestimate is the advantage our currency has because of its role as the world reserve currency. The article below titled, Strong Dollar Acts As A Magnet" looks into this wealth transfer.

 http://brucewilds.blogspot.com/2015/12/strong-dollar-acts-as-magnet.html

Sat, 12/19/2015 - 13:09 | 6943093 Keynesians say ...
Keynesians say the darndest things's picture

Is there a more punchable face than Krugie?

Do NOT follow this link or you will be banned from the site!