Thats a long story there are many videos on how we ruined our economy. There is a small park in Recoletta neighborhood in Buenos Aires. It takes 1 person to clean, garden. Our government has 20 people on the payroll for that job. This is done throughout the entire country. The people on the payroll keep voting for the same socialist policies. Our government inacted laws that drove away private businesses and foreign capital investments and also took money directly from our savings accounts off on and on over the decades to pay for their programs. The govt then tries to fix prices of goods. The core issue is that we don't produce enough and imports/consumes more than they produce for exchange with other countries. We also have a huge portion of our population working for the government on duplicate jobs like 10 cleaners for job required by 1. These jobs are services that produce nothing... For example if they did farming or manufacturing this will produce a good that can create value.
“Fernandez's election in 2019 sparked a massive selloff in government bonds that his government later defaulted on. Without access to credit following the default, Fernandez printed money during the pandemic to finance cash handouts and salary programs, which set the stage for inflation to surge higher.”
World Economic Forum members are everywhere, and not just in Government positions. "You will own nothing and you will be happy "Klaus Schwab quote. Digital currency coming our way sooner than we think. Universal Basic Income. Microchiping. We are all heading in the same direction, because the 1%wants to rule the world.
@@jon6309 *Regional Power. The only true superpowers in the world are America and maybe China. No other country really has any superpower potential. It requires a huge population, advanced economy/industries and great geography. Brazil may have had some superpower potential in the 1800’s if the country was governed better. But that was a long time ago and Brazil’s geography is very bad, only the coastal areas are habitable. Most of Brazil is completely uninhabitable for large human settlements
They only have themselves to blame since they perennially are the ones that enable and vote virtually the same people into office who enact the same policies that led them down this route. Furthermore, FIFA world pride doesn't put food on the table and pay the bills. Not everything in life revolves around futbol.
@@pisaconpala you don't have to but I went to school there. I also went to University and College. It was not good at all. Most kids in Argentina finish school having issues with reading comprehension and math.
I Love Argentina 🇦🇷. Whenever I buy Digital Games in Nintendo Eshop I always Changed the Region to Argentina to get the Lowest Possible Cost and Its Tax Free.
Besides airfare, everything else is cheaper in Arg. Nothing wrong with the Alps but if one has already been there then trying a new country can be delightful.
It depends on where you’re looking. Look for places using Spanish keywords and places that charge in pesos, not dollars. Using the blue dollar rate makes things significantly cheaper if you’re starting with Euros or USD
Wishing away the problem is not going to solve the problem. Whoever in charge needs to analyze the problem and then find the tool to fix. Most of the time, it's the incompetent people in charge. But this inflation problem is a worldwide problem. Of course, not all inflations are equal.
money ease policy was directly contributed to the world inflation, especially to country like argentina and other financial vulnerable countries in the world.
Well... you have described inflation as if it was some kind of natural disaster. But it is not. The populist and left wing Argentinien government does everything to inflict self-harm on the country. Printing money in order to put ever more people on government subsidies, price-controls, imposing export tariffs on important Argentinien goods make everybody poorer. A country managed by economic laymen. And in addition to that they are selling out the country to China by borrowing money from the Communist regime.
Argentina has had decades of right wing rulership and right wing neo liberalism and they had the same problems. This has nothing to do with left wing policies or socialism. Just go to your neighbor Uruguay, which is the richest country in Latin America by far and also the most socialist and left wing ruled state for decades...
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I concur. I've generated over $435k since 2020 with the guidance of my advisor. In the long run, it proves more beneficial to select high-quality stocks and stick with them.
Do your homework and choose one that has strategies to help your portfolio grow consistently and steadily. *Mary Onita Wier* is responsible for the success of my portfolio, and I believe she possesses the qualifications and expertise to meet your goals.
Well 2:13 at $130USD for a pair of shoes? .... even in the US those would be considered on the luxury side. No idea how they expect business charging those prices.
As an Argentine I think it's a temporary setback. The problem is the government printing to much money, alberto screwed up. However it is twmporary, things aren't that bad yet, altho the winter will be tough. Here is hoping that bussines improves.
What are you smoking dude. Interest rates are >90%. Why you are not all on the streets rioting is beyond me. I used to cover Argentinas assets for a big multi National manufacturer, we winded down operations because it's useless doing business when your profits are wiped away tomorrow. Start a fresh, what you have has failed, sorry to say.
Wrong. That's how deceiver deceived it's victims. It's not about printing more money. It's something else beyond your knowledge. I can explain to you what is it.
I’m an economist by training and having spent many months in Argentina over the recent past on holiday but travelling widely it’s not clear to me what the problem is as far as inflation is concerned. It doesn’t make sense. It’s a HUGE country with lots of natural resources, and should be self sufficient in the basics, the people are really hardworking and everything works well. People seem very positive about adapting to a situation which is difficult at best, and impossible for some. I don’t think it helps that the political leadership is very inward looking when the country would do well to create external links and inward investment. For example, Fernandez didn’t even go to the World Cup Final. And everyone says the politicians are on the fiddle but that doesn’t explain the inflation either. But its a wonderful country, the people are just great and if you get the chance to go seize it!
Socialism brings policies that lead to economic degrowth which in turn leads to the government to react so they print money which in turn leads to inflation.
Yes, but unlike the US government, the Argentinian government didn’t send out checks during pandemic. Americans always think they have it harder than anyone else in the world.
Argentina need more Salesman and join more trade shows... The only way to secure economy is by doing business with the World's fastest growing economy and population which is Asia.
Unfortunately , Argentina was colonised by the Spanish and not the British . Otherwise it would have been another Aus, Canada , NZ, or America The Spanish sadly spread their ineffective system to South America
@@JitzyJT moreover, Argentina is more analogous to the aforementioned countries as the new culture was established by the colonisers . The British for Eg couldn’t replace the segregation style culture of Indian caste system
I'm trying to think how far back you have go to a time when Argentina wasn't in a financial crisis. Maybe the 1920's? Seems the country has been in the economic toilet for a long, long time.
@@btdoe3259Bitcoin is based on William Buffet's "bigger fool theory". Fool A buys something with no intrinsic value in the expectation that fool B will buy it from him at a higher price. I'm avoiding bitcoin. I'm putting my money into Dutch tulips. 😄
this country is in deep economic trouble, it has two choices, a bailout by the imf, or withdraw its own currency and begin to use another countries currency.
Honestly if I were Argentina right now I just introduced a whole new currency and completely and the current one 8 restore confidence beads be able lower interest rates so this way they aren't at 97% with inflation this high and to just clear out the muk
Formula for doubling time (in years): ln(2)/annual rate of inflation. Do the math: ln(2)/1.09 = 0.6359, slightly less than 2/3 of a year. At 109% annual inflation, prices in Argentina double in a little less than 8 months. But hey, at least it won the World Cup.
So prices doubled in 12 months. But you somehow calculated they double in 8 months? No, the formula is T = t_d*ln(2)/ln(1+annual rate of inflation), e.g. here: T=1yr*ln(2)/ln(2.09) which is just a little less than 1yr.
@@juergenbubeckGood point. The formula varies depending on the compounding. I should have mentioned ln(2)/r is for continuous compounding. For annual compounding your formula and result are correct. I don't know which compounding formula was used by Argentina (or others) in calculating the inflation for the year, although it's more likely a single period was used. At either 0.635 years or 0.94 years, Argentina is in the toilet.
You mean rising interest rate alone does not stop inflation? Why do central banks in north America think they can stop inflation with just rising rates???
It's like a bus driver already swinging around when driving, then you change another bus driver who is a lunatic to driver and the bus goes into a ditch....
They will get another loand from IMF. A friend of mine works in the local government, he is quite high up in the management level ... he said he gets load of money from the government when the IMF loan goes through. He have 3 holiday homes with swimming pools, 3 cars and holiday 4 times abroad a year. He is like Lionell Messi. He also said that money from the IMF will not trickle down to the poorest.
Just wondered why Argentina's economy high inflation is spattering like an old steam engine train. Years ago, I heard on the news of great same inflation problem coming from this country. Why can't their Government hire a good economic expert to see what the problem is. One thing though why a country gets suffocated with problem other than inflation is corruption in the government. That's all.
Argentina has no dearth of experts to analyze what are the problems in their economy. They know the problem. The people know the problem. But nobody wants to tackle the problem head-on. All the government does are band-aid solutions. More loans. More debts. They got the biggest bailout in IMF history at 57 billion dollars which should be enough to stabilize the peso, cover short-term debts, and help distressed businesses and industries recover. Have you ever heard of what became of the loan?
Cryptocurrency isn't a viable option to fiat notes because their value is in constant fluctuation. The FED know this and they'll never let the crypto value stabilize, don't think they don't have the power to do so. They do as always, making the assets value artificially high or low (And cryptos are assets, like it or not). However, crypto do serve a lot as a weapon against them if people know when to get in and out in time. What politicians can't touch is gold/silver, that's why they hoard more of it as time passes.
Your information is mistaken! You report interest rates being raised to 97%. Not so. The given value is interest rate per year, but not total financial cost. With interest rates at 5% (per year) both a essentially very similar. The difference lies whether interest is accrued per month or per year. In this case that amounts to 8%... per month. And when interest is compounded monthly total financial cost is.... 154%.
Barbarian politicians and barbarian politics/policy. When you mess with private property at such a level is game over, just like Zimbabwe and Venezuela. No country in the world can prosper if it's always flirting with 'social justice'.
This just bursts the bubble of the myth, that raising interest rates controls inflation. It clearly doesn't. The issue is productive capacity and efficiency of production.
Depends on the country. In the U.S. where so much of the capital floating around is actually just debt, raising interest rates will reduce the supply of money.
Yeah I accept that, however it will also increase costs of finance that could be used to build new industrial capacity to help increase supply, so its a double edge sword. It's a very blunt instrument with a boom bust impact. The increased cost of finance also adversely impacts business that already operating under financed debt and can result in them having to raise prices to cover that cost, hence also adding to inflationary pressures. That's why I think the interest rate approach is over relied upon, when dealing with a rising price environment. The COVID pandemic resulted in a massive production drop and increase in cash circulating in the economy and when it ended, the consumer demand surged, however productive capacity had not recovered to meet that surge in demand. This created a whiplash effect in the economy, driven by shortages of goods and services and more cash circulating adding to inflationary pressures. I think it's better to create new productive capacity at higher efficiency, in order to help fill demand relative to supply at reduced cost. I see it as the perfect opportunity for that and whilst also moving industry forward to the next level of automated technology, resulting in lower production costs. I think sending your economy into boom bust via manipulating interest rates is destructive towards economies and populations that rely upon them.
Then what is the solution you would implement? You have the complaint part, whats the solution? Interest rates seem to work everywhere else in the world. The only other system I have seen is Singapore, which conducts monetary policy vis-a-vis the exchange rate, instead of primarily the interest rate.
The rates manipulation approach works to an extent, however not without significant detrimental cost and to limited effect and in some aspects are inflationary themselves. I already outlined part of my solution above, however I like Singapore's approach, as I think it could better help protect the local economy, than boom bust of interest rate manipulation, which in itself benefits the wealthy when they rise and when they fall, well the wealthy are better placed to absorb the impact. I just think too much reliance is placed on rate manipulation. Seems like a lazy approach to managing the complexities of an economy.
Milton Friedman was proven wrong in 2008. Also inflation in Argentina is tied to their dependency on dollars which have become more expensive to get since the Fed keeps raising interest rates for whatever reason instead of strengthing anti trust laws, increasing taxes on corporations n billionares, and breaking up the various monopolies that control production, transport, and distribution.
Not a single word on why Argentina is facing such high inflation. Thanks, guys. Very informative.
USD interest rate hike making all loan in Argentina sufficiently higher, this is not just Argentina but the rest of the world.
Thats a long story there are many videos on how we ruined our economy. There is a small park in Recoletta neighborhood in Buenos Aires. It takes 1 person to clean, garden. Our government has 20 people on the payroll for that job. This is done throughout the entire country. The people on the payroll keep voting for the same socialist policies. Our government inacted laws that drove away private businesses and foreign capital investments and also took money directly from our savings accounts off on and on over the decades to pay for their programs. The govt then tries to fix prices of goods. The core issue is that we don't produce enough and imports/consumes more than they produce for exchange with other countries. We also have a huge portion of our population working for the government on duplicate jobs like 10 cleaners for job required by 1. These jobs are services that produce nothing... For example if they did farming or manufacturing this will produce a good that can create value.
“Fernandez's election in 2019 sparked a massive selloff in government bonds that his government later defaulted on. Without access to credit following the default, Fernandez printed money during the pandemic to finance cash handouts and salary programs, which set the stage for inflation to surge higher.”
Respuesta facil: por el tío Sam
World Economic Forum members are everywhere, and not just in Government positions.
"You will own nothing and you will be happy "Klaus Schwab quote.
Digital currency coming our way sooner than we think.
Universal Basic Income.
Microchiping.
We are all heading in the same direction, because the 1%wants to rule the world.
"Inflation" and "Argentina" are synonyms.
i thought venezuela was bad
Crazy when you think that a bit over a century ago Argentina was one of the richest countries in the world
It has the geographic position to actually be a global superpower however mismanagement has hindered its progress!
@@jon6309 *Regional Power. The only true superpowers in the world are America and maybe China. No other country really has any superpower potential. It requires a huge population, advanced economy/industries and great geography.
Brazil may have had some superpower potential in the 1800’s if the country was governed better. But that was a long time ago and Brazil’s geography is very bad, only the coastal areas are habitable. Most of Brazil is completely uninhabitable for large human settlements
@@jon6309 as with every big country in the past.
America will probably end up similarly
That's what happens in socialism..if u give people freebies, that's how u end up...
Argentina is a cliche at this point since this isn't the first time. A country that is always trying to live beyond its means.
The real problem isn't that but the ridiculous income inequality
@@drunkensailor112
It is that. Income inequality is a natural result of economic freedom. Argentina is a relatively closed economy.
Corruption is rampant in this country ,from top to bottom , even ur vessel is new u cant pass the inspection , it cost the vessel owner huge amount.
Bitcoin has a low inflation of 1.74 % (and that will be cut in half next year ❤).
Unfortunately, one thing Argentines universally agree on is that it suffers from appalling, chronic corruption.
They only have themselves to blame since they perennially are the ones that enable and vote virtually the same people into office who enact the same policies that led them down this route. Furthermore, FIFA world pride doesn't put food on the table and pay the bills. Not everything in life revolves around futbol.
@@ingothitrust5248not anymore
Exactly. Corrupcion and ignorance. The education system in Argentina is one of the worst in the world.
@@fedvvvv definitely don't agree in the last sentence
@@pisaconpala you don't have to but I went to school there. I also went to University and College. It was not good at all. Most kids in Argentina finish school having issues with reading comprehension and math.
It's like the country goes to war every 10-20 years. Except at least in wars the failing systems are usually removed in place of newer, working ones.
Still better than Iran, goes to war every 8-10 years and system stay the same lol
I Love Argentina 🇦🇷. Whenever I buy Digital Games in Nintendo Eshop I always Changed the Region to Argentina to get the Lowest Possible Cost and Its Tax Free.
Buying games digitally. Especially Nintendo, is the dumbest thing you can do.
Turkiye: hold my tea
It's not as high as this. Close though
And it will only get worse when erdogan stays in power 😢
@Langton Industries it is maybe not the official what Erdogan tells his supporters but unofficial definitely
So I was looking for a ski vacation in Argentina and it wasn't much cheaper than the Alps. Definitely prefer going to the Alps...
Besides airfare, everything else is cheaper in Arg. Nothing wrong with the Alps but if one has already been there then trying a new country can be delightful.
@@Entonces that is true the wine and meat are perfect and cheap i never been to the alps but i went to Argentina and 10/10 recomend
Bitcoin has a low inflation of 1.74 % (and that will be cut in half next year ❤).
It depends on where you’re looking. Look for places using Spanish keywords and places that charge in pesos, not dollars. Using the blue dollar rate makes things significantly cheaper if you’re starting with Euros or USD
Argentinians are used to this. Still, it would be great if the country can attain financial stability nevertheless.
Used to constant financial stress is terrible for health.
@@WaveRider1989 very true. I wish it isn't so. Argentinians are nice people with very nice culture.
@@JohnJaneson2449 nobody deserves it.
@@WaveRider1989 It's sad because the country has such great potential
Wishing away the problem is not going to solve the problem. Whoever in charge needs to analyze the problem and then find the tool to fix. Most of the time, it's the incompetent people in charge. But this inflation problem is a worldwide problem. Of course, not all inflations are equal.
I hope the every day regular people can barter and share to get through these hard times. My heart breaks for the suffering people.
Meh. Most of them voted for it.
Penalty kick for Argentina!
money ease policy was directly contributed to the world inflation, especially to country like argentina and other financial vulnerable countries in the world.
Winnie the Pooh is holding the jar, raising the price of honey.
I think by the end of this year... quantitve easing will start again then hyperinflation
Bitcoin has a low inflation of 1.74 % (and that will be cut in half next year ❤).
But you have football and Messi, the only thing that counts, right?
Installments to buy shoes. Damn.
If a pair costs thousands of pesos, why not? Unless you, as the business owner, want to keep your products to yourself for many years.
Well... you have described inflation as if it was some kind of natural disaster. But it is not. The populist and left wing Argentinien government does everything to inflict self-harm on the country. Printing money in order to put ever more people on government subsidies, price-controls, imposing export tariffs on important Argentinien goods make everybody poorer. A country managed by economic laymen. And in addition to that they are selling out the country to China by borrowing money from the Communist regime.
Don't tell the truth! You will be unpopular
Socialism at its best
Yup, read about that somewhere. They need financial orthodoxy.
Oh no! The Ghost of Communism attack again! Typical Right-Wing mentality.
Argentina has had decades of right wing rulership and right wing neo liberalism and they had the same problems. This has nothing to do with left wing policies or socialism. Just go to your neighbor Uruguay, which is the richest country in Latin America by far and also the most socialist and left wing ruled state for decades...
Can't wait for this to be the UK
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I concur. I've generated over $435k since 2020 with the guidance of my advisor. In the long run, it proves more beneficial to select high-quality stocks and stick with them.
@@maryHenokNft Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems.
Do your homework and choose one that has strategies to help your portfolio grow consistently and steadily. *Mary Onita Wier* is responsible for the success of my portfolio, and I believe she possesses the qualifications and expertise to meet your goals.
Thank you, I copied and pasted his name on web browser and sent a email waiting for reply.
Argentina can win the World Cup but somehow then cannot run an economy...sad.
Better than fail at everything at once.. at least in sports, Argentinians are talented.
PJ is a criminal enterprise
Priorities.
Germany has its own inflation history
Better than Pakistan: bankrupt, has nuclear, prominent for its extremism, non existent on its sports or pop culture achievement = recipe for disaster.
Well 2:13 at $130USD for a pair of shoes? .... even in the US those would be considered on the luxury side. No idea how they expect business charging those prices.
Argentina, once upon a time one of the greatest economies of the world
And then Juan Domingo Peron came along.
Please make a programme about srilanka inflation and economic situation
Bitcoin has a low inflation of 1.74 % (and that will be cut in half next year ❤).
As an Argentine I think it's a temporary setback. The problem is the government printing to much money, alberto screwed up. However it is twmporary, things aren't that bad yet, altho the winter will be tough.
Here is hoping that bussines improves.
What are you smoking dude. Interest rates are >90%. Why you are not all on the streets rioting is beyond me. I used to cover Argentinas assets for a big multi National manufacturer, we winded down operations because it's useless doing business when your profits are wiped away tomorrow. Start a fresh, what you have has failed, sorry to say.
Wrong. That's how deceiver deceived it's victims.
It's not about printing more money. It's something else beyond your knowledge.
I can explain to you what is it.
It's transitional, don't worry.
Are people using US dollars like Venezuela? If so, do prices of goods and services stay stable in USD?
PJ is a criminal enterprise
Libanon still winning, keep up Argentina!
This is not a country. This is very sad. Sad for the people
Huh? I'm pretty sure it's a country. Poorly governed for many years but a fantastic place to visit, check it out.
@@Entonces it's a bot troll don't worry
Effect all in the world
I’m an economist by training and having spent many months in Argentina over the recent past on holiday but travelling widely it’s not clear to me what the problem is as far as inflation is concerned. It doesn’t make sense. It’s a HUGE country with lots of natural resources, and should be self sufficient in the basics, the people are really hardworking and everything works well. People seem very positive about adapting to a situation which is difficult at best, and impossible for some.
I don’t think it helps that the political leadership is very inward looking when the country would do well to create external links and inward investment. For example, Fernandez didn’t even go to the World Cup Final. And everyone says the politicians are on the fiddle but that doesn’t explain the inflation either.
But its a wonderful country, the people are just great and if you get the chance to go seize it!
Socialism brings policies that lead to economic degrowth which in turn leads to the government to react so they print money which in turn leads to inflation.
In the U.S. everything doubled in price in 3 years. Isn’t 100% just double? Houses that were 200,000 are now 400,000, all food doubled in price too.
Yes, but unlike the US government, the Argentinian government didn’t send out checks during pandemic.
Americans always think they have it harder than anyone else in the world.
@@andreaelizabethpadillaramo4595nah I know we have it the best
Why 109
Not “around the globe”, many countries don’t have much inflation, check the data
Like the USA?
@@tajmajal4197 check Hong Kong’s inflation number, hovering around 2-3% or lower
What blows my mind is they say this is the worst.............then say since 1990. It's mind blowing there was a worse
Don't cry for me Argentina
*Argentina🇦🇷 have border disputes with Chile.*
make border agreement & keep peace!
What, do you live in the 1950s?
Also this is a lie
Any country which cannot control their corruption ends up in this kind of debacle.
The corruption is just political, it's societal.
No worries now that rhey’re on BRICS everything will boom right?
Always vote for, free education, free price controls, free healthcare, free police brutality, free import,export taxes, free inflation, free minimum wages, free concentration camps. All free by you're benevolent government.
Argentina need more Salesman and join more trade shows... The only way to secure economy is by doing business with the World's fastest growing economy and population which is Asia.
Unfortunately , Argentina was colonised by the Spanish and not the British . Otherwise it would have been another Aus, Canada , NZ, or America
The Spanish sadly spread their ineffective system to South America
the British colonised South Asia....Not a single country in the region is doing better
@@JitzyJT I don't know about that India overtook the UK in GDP terms.
@@AlTarif yeah with a population of 1.4 billion and just 2500 usd per capita
@@JitzyJT Singapore is the best country in the region
Hong Kong was formerly the best
@@JitzyJT moreover, Argentina is more analogous to the aforementioned countries as the new culture was established by the colonisers . The British for Eg couldn’t replace the segregation style culture of Indian caste system
I'm trying to think how far back you have go to a time when Argentina wasn't in a financial crisis. Maybe the 1920's? Seems the country has been in the economic toilet for a long, long time.
Argentina was still among the 8 richest countries in the 1950s
Bitcoin has a low inflation of 1.74 % (and that will be cut in half next year ❤).
@@btdoe3259Bitcoin is based on William Buffet's "bigger fool theory". Fool A buys something with no intrinsic value in the expectation that fool B will buy it from him at a higher price. I'm avoiding bitcoin. I'm putting my money into Dutch tulips. 😄
this country is in deep economic trouble, it has two choices, a bailout by the imf, or withdraw its own currency and begin to use another countries currency.
Surely someone profited on this SCAM.
USA and Europe say inflation is high in their countries well look at Argentina.
Honestly if I were Argentina right now I just introduced a whole new currency and completely and the current one 8 restore confidence beads be able lower interest rates so this way they aren't at 97% with inflation this high and to just clear out the muk
Messi should solve the problem. He should become President of Argentina. He is educated
Why don't you put prices in usd? In Romania houses, rents, cars are priced in euro since many years.
That's because Romania is in the EU. Argentina is not a united state 😉
@@deanosaur808 Romania does not use the Euro officially, and it won't use it in the next few years.
@@deanosaur808 Argentina has the prices of houses, cars and departaments in usd
@@csuporj correct answer! Learn something new everyday 👍
@@mfsalatino I understand that, just got a bit confused 😅
Formula for doubling time (in years): ln(2)/annual rate of inflation. Do the math: ln(2)/1.09 = 0.6359, slightly less than 2/3 of a year. At 109% annual inflation, prices in Argentina double in a little less than 8 months. But hey, at least it won the World Cup.
So prices doubled in 12 months. But you somehow calculated they double in 8 months?
No, the formula is T = t_d*ln(2)/ln(1+annual rate of inflation), e.g. here: T=1yr*ln(2)/ln(2.09) which is just a little less than 1yr.
@@juergenbubeckGood point. The formula varies depending on the compounding. I should have mentioned ln(2)/r is for continuous compounding. For annual compounding your formula and result are correct. I don't know which compounding formula was used by Argentina (or others) in calculating the inflation for the year, although it's more likely a single period was used. At either 0.635 years or 0.94 years, Argentina is in the toilet.
-12% real interest rate on deposits in exchange for investing in a collapsing currency??? Really?
Their leather goods look lovely 🤩🌹 I will buy if I travel to Argentina.
They ain't battling it, they're feeding it.
You mean rising interest rate alone does not stop inflation?
Why do central banks in north America think they can stop inflation with just rising rates???
Government: 99% for your money is for me and 0.01% is for us.
If government screw up with your currency, why still allow them to manage it.
Bitcoin has a low inflation of 1.74 % (and that will be cut in half next year ❤).
Goddamn 109%
Supply - demand.
Sounds like there is Supply so inflation is created artificially.
What's the real problem?
I don't see the Argentina steaks/meat getting cheaper tho, so why? Shouldn't they?
Export controls
How did it get to this point?
How has this country not collapsed yet?
Very well reported
97% interest?? How is anyone paying their mortgage there????
What a world...and some ran to Argentina for the same and now where do those souls must go🤦🏿♂️
It's like a bus driver already swinging around when driving, then you change another bus driver who is a lunatic to driver and the bus goes into a ditch....
not just there its the UK too, less weight in the food, and 100% mark up on most food items people being tricked here with numbers
They will get another loand from IMF. A friend of mine works in the local government, he is quite high up in the management level ... he said he gets load of money from the government when the IMF loan goes through. He have 3 holiday homes with swimming pools, 3 cars and holiday 4 times abroad a year. He is like Lionell Messi. He also said that money from the IMF will not trickle down to the poorest.
🙄 inflation is due to corporate greed and price gouging
No. It's due to political greed and overspending while killing local productivity.
If only Argentine businesses were not as greedy as Swiss businesses.
Just wondered why Argentina's economy high inflation is spattering like an old steam engine train. Years ago, I heard on the news of great same inflation problem coming from this country. Why can't their Government hire a good economic expert to see what the problem is. One thing though why a country gets suffocated with problem other than inflation is corruption in the government. That's all.
Argentina has no dearth of experts to analyze what are the problems in their economy. They know the problem. The people know the problem. But nobody wants to tackle the problem head-on. All the government does are band-aid solutions. More loans. More debts. They got the biggest bailout in IMF history at 57 billion dollars which should be enough to stabilize the peso, cover short-term debts, and help distressed businesses and industries recover. Have you ever heard of what became of the loan?
Paid too much for the world cup!
@@SegFault69 Qatar
They said hike interest rates the inflation gonna come down
Wish he could talk more about how the country is accepting cryptocurrency as an alternative to the corrupt local fiat notes.
Cryptocurrency isn't a viable option to fiat notes because their value is in constant fluctuation. The FED know this and they'll never let the crypto value stabilize, don't think they don't have the power to do so. They do as always, making the assets value artificially high or low (And cryptos are assets, like it or not). However, crypto do serve a lot as a weapon against them if people know when to get in and out in time. What politicians can't touch is gold/silver, that's why they hoard more of it as time passes.
Argentina appears to be grappling with issues related to asset allocation. Thought?
Your information is mistaken! You report interest rates being raised to 97%. Not so. The given value is interest rate per year, but not total financial cost. With interest rates at 5% (per year) both a essentially very similar. The difference lies whether interest is accrued per month or per year. In this case that amounts to 8%... per month. And when interest is compounded monthly total financial cost is.... 154%.
It's literally on the front page of the Argentine Central Bank's website: monetary policy rate was raised 600 basis points to 97% APR
@@hand587 yes, but for non-Argentines the clarification is due
It won't be the last currency to go down the flush...there is much more darkness at the horizon
USA is a rich and powerful country. They should help Argentina.
No they shouldn't. Argentina made its bed and now it must lie in it.
The only way out is to export everything you make.
"La emision no genera inflacion" - Mercedes Marco Del Pont, Ministra de Economia durante el gobierno nefasto de Cristina Kiirchner.
*Leave the dollar system.*
But why?!?! Why is inflation rising so badly. Why cant they get their shiet together ?
What we want to know is WHY is the inflation occurring!
Because of j*ws, that's why.
Because there is a taboo anomaly at work that falsifies money, THE VIRUS.
They should increase interest rates like the American Federal Reserve.
are you blind....the report said just that ..interest rate is at 97percent
@@bugsy791 uuuh sarcasm?
What is it like today?
Thank your central bank directly for inflation
Increasing wages to combat inflation....
LOL.
Argentina in 1970 = 45% of the south America PNB
Argentina in 2023 = 12% of the south America PNB
no comment ...
How can a country possess so many resources fall down to such situation ?
Barbarian politicians and barbarian politics/policy. When you mess with private property at such a level is game over, just like Zimbabwe and Venezuela. No country in the world can prosper if it's always flirting with 'social justice'.
communism and spanish cancerus culture
Corruption and mismanagement.
Left-wing populist politics.
how bad is it in Argentina? I want to hear from ppl who live there
Very bad
The fact is people are the one who dictate anything it's value.
But the question is who are this people who dictate the value of anything?
South American continent need to change their international trade policy internationally.
Mistakes were made and no one made them.
No problem. Brazilian government is coming in Argentina's defense with lots of love and hard earned money from the suffered brazilian people.
Cuántos pesos tenés?
Why Argentina is always doing this nonsense? The leaders there need to be serious and not let this crazy inflation happen anymore.
They need to consider pegging the currency to a euro or usd. Maybe even de facto adapting euro/usd.
They did it in the past and the economy went upside down with riots and dead people in 2001. Be careful about what you suggest.
Probably USD. Euro is really only used amongst EU countries
Don't peg it, just use it already
@@tylerclayton6081 No it isn't. There are countries that unilaterally use it as a currency. Like Montenegro and Albania
That's what they did and what caused the problems.
Move to the dollar or Euro or Yuan
Don’t worry they have Messi and the World Cup
They should have another go at taking the Falkland’s, that worked out well last time things were terrible on the home front… 🙃
🤡
3:50 inflated rich belly
LMAO I AINT PAYING 100 USD FOR SHOES
It's not made in China
Thays what happens when you try to replace the dollar with the yuan. 😂😂😂😂😂😂
Where is messi
This just bursts the bubble of the myth, that raising interest rates controls inflation. It clearly doesn't. The issue is productive capacity and efficiency of production.
Depends on the country. In the U.S. where so much of the capital floating around is actually just debt, raising interest rates will reduce the supply of money.
Yeah I accept that, however it will also increase costs of finance that could be used to build new industrial capacity to help increase supply, so its a double edge sword. It's a very blunt instrument with a boom bust impact. The increased cost of finance also adversely impacts business that already operating under financed debt and can result in them having to raise prices to cover that cost, hence also adding to inflationary pressures. That's why I think the interest rate approach is over relied upon, when dealing with a rising price environment. The COVID pandemic resulted in a massive production drop and increase in cash circulating in the economy and when it ended, the consumer demand surged, however productive capacity had not recovered to meet that surge in demand. This created a whiplash effect in the economy, driven by shortages of goods and services and more cash circulating adding to inflationary pressures. I think it's better to create new productive capacity at higher efficiency, in order to help fill demand relative to supply at reduced cost. I see it as the perfect opportunity for that and whilst also moving industry forward to the next level of automated technology, resulting in lower production costs. I think sending your economy into boom bust via manipulating interest rates is destructive towards economies and populations that rely upon them.
Then what is the solution you would implement? You have the complaint part, whats the solution? Interest rates seem to work everywhere else in the world. The only other system I have seen is Singapore, which conducts monetary policy vis-a-vis the exchange rate, instead of primarily the interest rate.
The rates manipulation approach works to an extent, however not without significant detrimental cost and to limited effect and in some aspects are inflationary themselves. I already outlined part of my solution above, however I like Singapore's approach, as I think it could better help protect the local economy, than boom bust of interest rate manipulation, which in itself benefits the wealthy when they rise and when they fall, well the wealthy are better placed to absorb the impact. I just think too much reliance is placed on rate manipulation. Seems like a lazy approach to managing the complexities of an economy.
Central banks target interest rates. They don't raise them, except their own lending rate.
Uncle Milton showed is that inflation is always induced
Milton Friedman was proven wrong in 2008. Also inflation in Argentina is tied to their dependency on dollars which have become more expensive to get since the Fed keeps raising interest rates for whatever reason instead of strengthing anti trust laws, increasing taxes on corporations n billionares, and breaking up the various monopolies that control production, transport, and distribution.