Wednesday, February 5, 2014

Inflation in Argentina

This is the subject we learn in school at very early age. But here in Argentina.. It's totally different thing. Here we are living with it every day. So what you learn at school about this is nothing compered to living middle of it! I'm still a bit confused about this and I don't know much about it. It seems almost impossible that everything can be so messed up! In Finland we are really living so safe and stable life. Here you never know what's going to happen tomorrow! But I'm not saying it in negative way. It's extremely interesting!




When we came here, it was almost impossible to get Us Dollars from the country. If I wanted to change my money in USD, I had to pay extra 40%, so it was insane! Government tried to "change the way peoples mind works", and the main goal was (how I got it) that people wouldn't collect dollars anymore, and that Peso would become more stable. It didn't work. But now, this week everything changed again! People used to save dollars and buy everything bigger with dollars, like cars, houses and holidays. Everyone want's to have payment for renting apartment as USD. It's a bit hard 'cause there's no way we could get it in a way that isn't ridiculously expensive. But I get it. Of course they want the payment USD 'cause it doesn't change weekly or even daily like Peso does. It's the safe way to have and save money.

Put now, little over an week ago, government again changed everything. Completely out of the blue they decided that people can buy USD normally. WHAAT!? I mean in Finland this wouldn't be possible! Everything takes so much time, to decide something or put into practice. And here, they just did it! Put what does that mean. I'm not even sure :D! It seems so messy to me! But one Finnish boy said "now I know what it feels like having a bunch of money that looses it's value". So he had all his money as USD and when government released the "markets" his dollars wasn't that valuable anymore. And what about Peso? Is it really gonna be more stable because of this decision? The funny thing is that the government is telling to the rest of the world that the inflation level is much much less than the reality.


http://www.argentinaindependent.com/currentaffairs/analysis/inflation-when-a-picture-is-worth-1000-2210-3480-words/


For me this is so exiting and interesting! But I can only imagine how it feels for those who lives here! When the news came out last weekend, some shops were closed, because they didn't know anymore how much should they ask for the items they are selling. They didn't know how valuable those were anymore. And everything happened for the one night! What's going to happen? No one knows.


If you are interested, here's some links that tells more about facts:
http://www.economist.com/node/21548229
http://www.geocurrents.info/news-map/economics-news/argentinas-mounting-economic-troubles

http://www.zerohedge.com/news/2014-01-27/argentine-prices-soar-following-peso-devaluation-which-only-benefits-20-population

http://blogs.trb.com/news/opinion/chanlowe/blog/2009/04/

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