This has stuck in my craw ever since leaving Argentina last March (2012) after hiatus in Buenos Aires. We had an equivalent of about ninety dollars in Argentine pesos and the bureau de change at the airport, not a back alley currency dealer, refused to take the pesos back in exchange for US Dollars. We ended up mailing the pesos to a fresh pasta vendor we became friendly with on the street where our apartment was so all was not lost but it getting worse in Argentina by the day.
According to Infowars, Argentina is dollar poor in a world that needs dollars for almost part of its functioning. Gold would work, but previous governments have looted all the gold. It does have oil -but it won’t be enough. President Cristina Fernández de Kirchner’s administration, like another we know all too well, is dedicated to buying votes with government favors and then printing money to pay for them. Raising taxes and raiding pension funds to increase revenue in the cash starved central government is not working either. Another devaluations is the the unspoken horror in everyone’s mind.
Unemployment and real inflation is so high a bartering system has emerged. Argentines have not forgotten the last currency devaluation. Overnight in 2001, the peso was worth only half what it was when people went to sleep the night before. There was nothing anybody could do. Everyone took it in the chin.
Here’s how they are battling it today.
The devaluation in Argentina a decade ago pulled most other Latin American countries down with them. This is too much like our own problems to ignore. Whoever is elected Nov 6 needs to hit this hard and fast but I just don’t have a lot of faith it will happen. How about you?
~just a blogger (fightin’ like a girl)