(Should read: Argentina announces black market for food.)BUENOS AIRES, Argentina (AP) — Argentina announced a two-month price freeze on supermarket products Monday in an effort to break spiraling inflation.The price freeze applies to every product in all of the nation's largest supermarkets — a group including Walmart, Carrefour, Coto, Jumbo, Disco and other large chains. The companies' trade group, representing 70 percent of the Argentine market, reached the accord with Commerce Secretary Guillermo Moreno, the government's news agency Telam reported.Read more: http://www.myfoxny.com/story/20958959/argentina-freezes-pric...
Argentina announced a two-month price freeze on supermarket products Monday in an effort to break spiraling inflation.WIN.
IF there is one thing the Argentines are good it, it is screwing up their economy.
The government announced the price freeze on the first business day after the International Monetary Fund formally censured Argentina for putting out inaccurate economic data. The IMF has given Argentina until September to bring its statistics up to international standards, or face expulsion from the world body in November.There I thought the 'international standard' for obfus... I mean, measuring inflation were based on creative hedonics. Did Argentine statisticians put their US colleagues to shame?
IF there is one thing the Argentines are good it, it is screwing up their economy. I met with a lady from Argentina last week who had just returned from visiting her parents.She said that there are two different exchange rates for converting Argentine Pesos (ARS) to dollars (USD).There is the "official" exchange rate that one can obtain from an Argentine bank, and then there is another, between 50% and 75% above the official exchange rate, on the street.I asked her why people would exchange their ARS for USD outside a bank when they could get a better price at the bank.She told me that no one goes to the bank to obtain USD, because then the bank (and thus, the government) would know exactly who is holding USD.In other words, the government's not-so-recent, but still painfully remembered, confiscation of private retirement accounts has taught people to keep their finances - and their savings - outside the reach of the banks or the government as much as possible.This is how black markets develop. It also is the sort of experience that leads people to hide cash in mattresses and buried in the yard.Wasn't it not so long ago that Argentina seemed to be recovering from their last crisis?So sad.
IF there is one thing the Argentines are good it, it is screwing up their economy.Excuse my mirth but shouldn't you be looking over your own shoulder when you say that ?
I couldn't think of a way of saying that without being unduly snarky. Thank you.
IF there is one thing the Argentines are good it, it is screwing up their economy.Excuse my mirth but shouldn't you be looking over your own shoulder when you say that ?No need. The Argentines *can't* match us at that. They are good at it, but since they don't issue the world's reserve currency they can't possibly eff up as badly as the US.
Excuse my mirth but shouldn't you be looking over your own shoulder when you say that ?Fair point, you're excused. However, I am not as doomy and gloomy as most METARs. The USA has made some unforced errors in recent years but we haven't screwed up nearly as badly as say, England or Spain. Argentina is a fairly tragic case.
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