USDARS - Argentina Peso, faith still evaporating..

soundmoney (55) in usdars • 6 years ago

..when I posted a couple of days ago the rate was 22.49. Since then it has been as high as a touch under 24 but closed the week at 22.99. As you can see the trend has accelerated from the start of May and unless this is broken quickly (reverses) the serial defaulter that is Argentina could be on the path to the same again. Desperate for yield investors bought a 100 year bond last year for 8% yield, one year later they are seeing the risk associated with that 'investment' come at them fast.

usdars peso argentina bond

6 years ago by soundmoney (55)

$0.28

2 votes

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cre47iv3 (62) · 6 years ago

(i wrote this comment for another usser, im from Arg)

We are being ruined here in Argentina, the only entry of foreign currency is for the financial market, when we have a problem of demand for money in pesos. The domestic market is devastated, there is no relative price, many companies do not sell food because there are no relative prices in the economy. The problem is not that the financial market is accepting investments for bonds, the problem is that this administration raised the exit restrictions, before you had to have the money one year, this government put it in zero days, which takes away predictability to the market . Interest rates, to keep these foreign assets interested in permanence are ridiculous, 40% interest rate in the central bank.

Argentina contracted 200 billion dollars in just two years, from this investment ZERO was invested in the generation of wealth.

The JP. Morgan was the one who lent the money to Argentina, then also, they were the ones who invested in these bonds of extraordinary deals. Who were the winners of this financial speculation? Double gain The connection is clear. The bank usurer, this time on the side of those who should agree on the terms of these contracts. What is happening today in Argentina is a case of a scam worthy of a Netflix series.

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3 votes

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soundmoney (55) · 6 years ago

Thank you for your reply, I'm not sure I understood all of you points above, however I feel (lo siento) for the people of Argentina as I'm sure the conditions are very difficult ( muy difícil).
'The domestic market is devastated' = I'm interested to hear about how this has affected the ordinary people of Argentina e.g. food, energy, etc. I think anyone who can hold gold, silver & cryptocurrency will find these as protection against the hyperinflation of the currency that could follow. You only have to look at Venezuala as a model of what could happen, food will be difficult to obtain and when measured in bolivar/peso will explode in price.
I hope your friend and fellow Argentinians find a way through this. The elites(government ministers etc.) will be fine, they will not go hungry of course! buenas dias.

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1 vote

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soundmoney (55) · 6 years ago

In Venezuala I hear that 1 ounce of Silver = 6 months of food!?
Silver = Sound Money ( not printed pieces of paper ).
Fiat Currency = Unsound Money, backed by nothing, borrowed into existence by Goverenment / Central Bankers & the capital and Interest payments are loaded onto the people.

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