Argentina Inflation: Argentina’s Currency Crises Explained?

Gas prices, groceries, paying rent, it’s felt a bit harder lately around the world. Inflation was 7.5 percent last year in the US, the highest in 40 years, but I’ve come to Argentina, where inflation was more than 50 percent last year. Russia started. The government just keeps printing money. When you go to the supermarket, you cannot know how much you’re going to spend, and it’s expected to be 50 percent again this year. We don’t know what’s what’s going to happen tomorrow.

So how do people live knowing the value of their currency is going down rapidly?

We live in the press and then. We do, what we can to survive, you know. The business. So. She’s not exaggerating. It lost 99 percent of its value over the years. Things have gotten so busy here that there are now multiple exchange rates. You have the official rate, and then you have what’s called the blue market exchange rate. Let me explain. This second sandwich and lemonade cost me about 1000 Argentinian. 

If I were to put that on my credit card, that would cost me 23 U.S. dollars, but I’m not going to do that. I’m going to pay cash that the exchange rate, which is about 210 for every US dollar. This one cost me less than $5 in the currency. So often that the government has taken away 130 over the past 4 years, and with such crazy inflation, a lot of these smaller banks don’t mean much at all. 100 Argentinian pesos is now equal to $0.50. Any would be 10 percent, and these coins hardly need anything at all, which means spending money in Argentina can become a hassle. But 100 Argentinian pieces used to be worth $100 back in the nineties.

So how did we get here?

You don’t know how much of the cost of something is you don’t know whether it’s something expensive or is it cheap because when one place it would cause 20 more vessels and the others who are today 20 less vessels nearly everyone here I talked to says that when they get paid they immediately buy everything that the money is the power so. When I get my salary, I could buy milk. By the end of the week I would be able to buy only 6. We’ll try to buy things from the roads whose goal is responsible because the prices are going to go out within that month.

That’s the way to make it up for inflation. Inflation doesn’t get you, and if they had any money left over the rest of it, people would go out by yourself. Are now where they scripted currencies very, very popular and when I say this but more about crypto leaders, so what happens here is that when the currency you’re getting paid in is inflating 60 percent a year, what’s the first thing you do you take that money then you convert it to a more stable currency like the U. S. dollar, so a lot of people, the first thing they do when they get paid.

They will go to a grocery store, buy as many groceries as they can for the month, because chances are those prices will go up the next month. Any extra money they have left, they’re gonna try and convert those to U. S. dollars. The U. S. dollar is hugely popular in Argentina as a form of savings. They don’t spend it. The jets save it, and they literally take $0 bills put it under their mattress and save it. Because so many people here are stashing US dollars under their mattress, it’s believed that this country has one of the highest amounts of $100 bills outside the U. S.

Argentina’s government says the U. S. dollar is equal

To one thing, but the market says that’s equal to a lot more. But to keep its power in insurance people will continue using its own currency. The government here says that private citizens can only buy $200 in foreign currency on the official exchange market every month. They must pay a street tax. So that’s probably why you see a lot of people selling dollars on the streets and the government here, even those raids to crackdown on government exchanges happening. But to fully understand this myself, I had to go to a jewelry shop and win US iris

The reason I’m exchanging money in the back of a jewelry store might be because in this country it’s illegal to publicly advertise currency exchange services best rate you can get only one right. 211. Yes again. One year ago, yes, how much of what reviewed an offer for one. This is the thing that loss is 44 times less. Do you think that they’re going to cut the one-zeros again soon, this bus, and if in years? No, not, this is the biggest thing. No in Argentina, which is about $5 tomorrow. This could be $3. Yeah, completion is so high because the government keeps printing money, but if that’s the problem.

Why doesn’t the government just print less money?

Well, it’s not that easy if you live here. You get free healthcare, free university, and even insanely low electricity prices like $3 for your bill each month. That’s because the government is subsidizing or even paying for a lot of these things, and no politician wants to be the one to cut some of the things we’re doing. It’s a very beautiful idea that everything is the first, of course, helps indication. Wonderful, that’s why you need 6 percent inflation. The finance on the subsidized and Arnold all this was part of the Argentine culture just got used to inflation. It’s very sad to say that Argentines got used to living like this. Spend more money all the time.

 We don’t for this, but some people I speak with say the reason for inflation isn’t just about these government services. It’s also because of corruption. It also comes because they say they spent the pavement on the road. Hi, we rolled and they just kept in the pocket. All of this is causing in the scene instability of its currency and people’s salaries and monthly income transactions in yesterdays, around 250 US dollars, yes, and less and less for the year, of course. Hold on things get expensive and mostly weekly or monthly on your salary gets behind in some margin. Teens have seen it all one long. All the salary I owned was $15. I would pay my rent at $5 for a small apartment. Everything was destroyed, it was around 252580, $0.80 $0, so it was a lot of money, and then light was on scene.

International Monetary Fund

My settings I found were confiscated. Yes, later my retirement account also what. In this house on a one on the side. Or International Monetary Fund has bailed out Argentina 22 times. The country hasn’t been able to pay back its debt, and owes billions of dollars. In fact, Argentina owes more than any other country to the IMF. One IMF gives us money. They’re like putting a damper on the shoulders of generations to come, and that’s robbing. They shouldn’t do that. All you know is that some of the people make a lot of money. It absolutely amazes me that despite such a reckless economic situation, such absurd consecutive inflation that when it feels very, very rich, I mean, you see HSBC bank.

 Some of the biggest banks in the world that have huge towers here, everything is clean. C. I mean, this is really one of the most Colinas and what appears from the outside to be the wealthiest cities I’ve seen in America. In many places I visit there are insanely beautiful parks, beautiful architecture, and an overall feeling that life is good. But what I am seeing does not tell the full story. I know a lot of people are making a lot of efforts to get to the end of the month and they’re having diets like a lot of flour and pasta, and why is there little for their very old V. Yes, and because I see that party growing when I was a kid 41 funds were sent today to 404045 percent.

You can plan for the future.

If you come for friends cities around Argentina is saying you have these parts where most people are really extremely poor, even the poorest and some Congress, and, you know, all in Africa, many of its young people are leaving or trying to leave. You can basically. Let’s say you want to buy a house. We want to buy a car. It’s hard for them. I don’t really like talking like this, unlike the other options. I don’t really see myself leaving here. Of the economy, my goal is to. United States Argentina is now seeing more advertisements and more adoption of crypto currencies.

If you’re talking with someone younger, they are more into bitcoin. It’s going a long time ago for my son, they are trying to do Tom’s thing to play. The cons are pretty tough currency in some ways, but if you talk with someone in their thirties or forties they are thinking just about bowlers. He was playing games, I don’t know whether he showed me that white paper and I was like, oh my god, this is freedom, the more restrictions on gun control. Everything you need and we will be able to keep that well that we could use. I would be very, very important, and not let the government like it waste.

 And. Call me tomorrow, another one, so what solves this here? Don’t spend more than you make a sale. A company or a country, you don’t need to be a great economy to know that it’s simpler. I always say this to them, but then you know about Minnesota, Minnesota, maybe 20, or something. I know the more information you know and all these will stop or how or when.

So can it get better enough for people in their teens?

 We are all out of the young people who are going through your job or the state inspection found that economic situation, okay. Because, you know, they don’t learn the lesson of what’s right for them. They just keep doing the same thing so we’re gonna do the same things and have the same problems. Why would you spend on a solution to that? Because of the economic situation both her daughter and her son, who were in their twenties, moved abroad, that made me very, sad.

 I was like oh I lost my children to learn more I really like decided that I’m going to work very hard as hard as I can as a citizen to make make my country better plays so the one who’s 14 now doesn’t want to leave or be forced to leave when he’s 24 but despite her goal even she doesn’t know what’s next I cannot tell if you’re gonna make it but if we make it we are going to be very very well or very very bad but her containers been like this for a long time and if there’s one thing I’ve learned being here it’s that people are expecting uncertainty they just become used to it they’ve adapted so it kind of makes me wonder can Argentina ever break the cycle.

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