Hyperinflation in Argentina

A new currency?

Due to Argentina's high inflation, running at

95 percent, a high-level pitch for a

new currency that Argentina and Brazil

would share for trade purposes ..

seems to be falling flat on its face.

In his first international trip since being

elected, Brazil's Presidente Lula announced

preliminary plans for such a currency at

a news conference in Buenos Aires this week.

The currency theoretically could be rolled out

for use among MERCOSUR nations at

some future time.

However, the currency has no name, the

inflation rate in Argentina is an obvious

impediment and the U.S. dollar is so dominant

that progress on this project is dubious.

News source.... CNBC

           No chance.  A president cannot decide on such an issue: Lula is serving a third term. His heir, Dilma Roussef was dragged long ago by actions and decisions of the PT.  There´s no solid ground for agreement and much caution needed.  " You have the right to remain silent. Anything you say can and will be used against you in the .... political arena. And a stronger link to Argentine´s economy is a weight that can drag you along. 

                Besides, the  struggle for succession  in Argentina adds  fuel to inflation, insecurity, drought...   Europe offered citizenship to descendants of migrants a few years ago. A political stunt.  The war spread famine in Africa and Asia, adding pressure on the Mediterranean.  The trickle from South America turned into a flow: north to the US via Mexico or across the Atlantic by just buying a ticket from airport to airport.  Now  red tape is used as a labyrinth, creating  illegal aliens.

  Though times are global, from SanFransicko to the South China Sea.

Inflation tops 100 percent.

Inflation was running at an annual rate of

104.3 percent in March, according to the figures

for that month as just released by Argentina's

official statistics agency.  This is one of the

highest inflation rates worldwide.

The poverty rate is almost 40 percent

in Argentina.

Complicating things is a long drought that

is devastating exports of wheat, the

major crop, and other crops as well.

A presidential spokesman wrote on Twitter

that this is the worst drought in

Argentina's history.

Source... Reuters, e-published at

www.cuencahighlife.com

Inflation exceeding estimates.

The figures for April are out .. and the persistent

inflation has now reached an annual rate of

109 percent, up another five percent.

With drought limiting the export of wheat,

soybeans and other crops, Argentina's economy

remains beset by a double whammy.

Individuals and families are selling their cars

to avoid the costs of gasoline, insurance and

parking. They are forced to reduce the

consumption of air conditioning and heat

in their domeciles.

Source... Reuters

@cccmedia You have to be careful when using the term 'Hyperinflation' Historically it refers to a concrete event. 'la Hiperinflación', written in capitals, is used to refer to the dire consequences of the external debt management during president Raúl Alfonsín's mandate.

  Apart from that, remember that summer 2022 brought global drought and famine. If the Paraná basin was affected, the Po was reduced to a trickle and the Rhine set off all the alarms.  So, let´s not be prophets of disaster. The incoming 2023 summer is expected to be worse, and the war in Ukraine will continue blocking the grain supplies to Africa and Asia´s poorest areas. Still, you can find worst situations in history, without having to go back even a century. Argentina faced much worse droughts and also was affected by the disrupted global trade during both World Wars. The country is used to it, and the people is more reslient than in the West. We should also take into account the current situation in the US, for example. The Silicon Valley crash ravaged the West Coast.

    When the going gets tough the tough gets going.  'Don´t cry for me, Argentina'

"Let's not be prophets of disaster."

    --   DanMarques

    ------

Stating the facts, which is what I have done on

this thread, is not the same as being a prophet

of disaster.

cccmedia

Maybe preaching is the right term. Preachers rant on current disasters.     Why speak only about Argentina as a wasteland? Expats will keep coming there for a reason. They are not deterred by visions of hell. They are 'expats' not migrants: things are tougher in their countries. Expats move to places where life is affordable. Top country incomes to live a comfortable life at half the price. People from South America, Africa, and  even Asia keep arriving here: I see them search for any job, looking for a room in a shared appartment.

  The worst is the red tape: thousands came for a law that promised citizenship if they could prove to be descendats of European grandparents. Here,  online bureaucracy is jammed, for everybody.  If you can access and get an appointment even  renewing a driver´s license takes ages.

Spanish local papers report  the situation. Other sources and promises are bullshit. People come with no clue of what awaits them here. Many have to go back, broke.

    That´s why local papers avoid to mention the  expat thing. No one will help you to find out what happens in other countries. No English, no info.  I follow the online local news in  Spanish, Portuguese...           Still you need income and savings to be an expat: the cost of life is rising here. I do check personally every supermarket bill, product by product. That gives me a real info of what gets scarce and what holds on. Potrtugal is one hour ride away, rents are soaring also there. Wealthy foreigners buy cheap property te locals can´t afford. This process started decads ago, but then it was about buying or renting a second home by the Mediterranean...now is about moving for a longer time to a warm climate at half price. Away from Northern and Central Europe.

  The same for the USA and Canada. They buy property and gather in English speaking communities. Governments in countries like the Dominican Republic are friendly and eager to get investment. It´s a 2-4 hour flight door to door. Retirement in a tropical paradise and home for Xmas to visit the family and have a look at the old house, now rented out and a growing  source of income. So,  all that fuss about Argentina´s situation means nothing.