Galt's Gulch

Argentinians Hoarding US Dollars

Posted by khalling 10 years, 3 months ago to News
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Hey shrugginargentina, are you seeing this turmoil? How unstable where you are?
SOURCE URL: http://www.myfoxny.com/story/24588158/argentines-jockey-to-cope-with-economic-turmoil

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  • Posted by ShruginArgentina 10 years, 3 months ago
    Hi, khalling and thanks for your concern.

    I moved to my present location in 2010 to be far from the potential "zone of chaos" aka Ciudad Buenis Aires (and it's environs which include about 14 million inhabitants).

    There is no panic or civil unrest in BA and there is none where I am, either.

    In spite of all of the news, all is calm.

    Argentines know how to cope with inflation as well as regulations.

    So do I (I owned business in the70's in the USA, but I am also fortunate to be able to exchenge my dollars into pesos on line in the USA and then have the pesos deposited into my bank account in Argentina.

    Last week I initaited a transfer at an exchange rate of 9,75 to one. I cancelled it the next day and this week I made the transfer at 10,35 to one. The rate is even higher now.

    When I arived in 2006 the rate was 3.09 too one.

    A yea ago it was about 7 to one.

    Here a few examples of what I pay for "essentials" here (as of today, in USD):

    DirecTV: $25.00/month

    Internet and cell phone: $36.00/month

    Electicity: Less than $20.00/month (four bedroom house).

    LP gas for cooking and heating: $20/month

    Home insurance: $15/month

    Car insurance (comprehensive only): $35/month

    One quart of Budwiser: $1.60

    One quart Stella Artois: $2.50

    One magnum (1250 ML) of very drinkable red table wine (in a bottle with a cork): $2.50

    One pound of the best roast beef (for chili con carne) $185/pound.

    Gas for the car: About $5.00 per gallon

    Rotor Rooter type service to my house in the country to de-root both the kitchen and bathroom drains (two men working two hours) $45.00





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    • Posted by ShruginArgentina 10 years, 3 months ago
      Of course the roast beef is $1.85 per pound.
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      • Posted by ShruginArgentina 10 years, 3 months ago
        And gas for the car is actually about a dollar per litre, so it's less than $4.00 per gallon.
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        • Posted by khalling 10 years, 3 months ago
          my gas is roughly equivalent with the US-that was a recent change
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          • Posted by $ Susanne 10 years, 3 months ago
            When we were in Italy, we were paying thereabouts €1.02 (actually, we did find it at €0.98 for a few days in Collestrada - Just east of the once-again-world-famous Perugia and about 35 km W. from our house) to €1.09 a liter for regular diesel... at the time it was *much* cheaper than diesel here, and about the same as Gas in the states at its worst. I remember when there was a MUCH sharper divide, (As a kid it was closer to $8.75 a gallon) but it's pretty close now. Of course, Economy standards in EU spec cars blow US spec cars out of the ocean... I miss getting 5 and a quarter L-100Km - my best car gets 26 MPG average now. About half what our Wabbit Ragon (Rabbit Wagon) or the little Qubo got. And it makes me cry!!!
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  • Posted by mminnick 10 years, 3 months ago
    As I have said several time here in the Gulch. When there is an issue affecting $$$ people run to the dollar.
    They may not like us out in the real world, but they like the safe haven our dollars provide.
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  • Posted by $ Susanne 10 years, 3 months ago
    My concern is the dollar isn't as stable as one would believe... meaning when push comes to shove comes to hammer, using a known fiat currency as a safe hedge is false economy.
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  • Posted by ShruginArgentina 10 years, 3 months ago
    Consideing yesteday was payday in Agentina, this is one weekend I would not want to shop at Wal-mart (or any major supermarket)!

    The lines will be long and the shopping carts will be filled to the brim, if not more.
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    • Posted by khalling 10 years, 3 months ago
      To hedge against the currency? Supply shortages? So there is some fear?
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      • Posted by ShruginArgentina 10 years, 3 months ago
        There ae no shortages of supply at this time.

        That is something that can happen during a truck drivers' strike which has happened once since I arrived in 2006.

        The first few days of the month are always big shopping days and the recent decline in the value of the peso agarnst the dollar will drive even more Argentines to the supermarkets than usual in the next few days.

        I just went shopping in four shops in the "village" near which I live. No one has raised their prices signifantly in the past month.

        Here's what I bought:

        2 magnums of red wine
        2 loaves of FANTASTIC French bead (baked this morning)
        6 920g bolltles of tomato puree (with seeds-essential for spaghetti sauce and chili con carne)
        2 2,25 liter bottles of grapefruit soda
        4 frozen hamburge patties,
        4 red peppers
        4 970ml bottles of very good domestic beer,
        1 dozen XL brown eggs,
        2 kilos (4.5 lbs.) of boneless roast beef,
        1 kilo (2,2 lbs) of picada especial (ground round),
        4 small tomatoes
        4 huge white potatos
        3 medium onions
        4 cans of "v" (enegy drink) w/guarana

        Total cost: $45 USD
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