Expats Found it Easier to Move to Uruguay than to Argentina
“I faced the same choice 2 years ago, Uruguay or Argentina. I already had an apartment in Buenos Aires, wanted to relocate from coastal Brazil and did not want to live in a big city. We ended up near Punta del Este (but a world away in many respects) in Uruguay. The political and financial situation in Argentina is impossible. A few months ago it was impossible to get dollars (by decree of the President) and no one outside of Argentina wants their pesos. Inflation is 25-30%. I gave up trying to get residency. We still have our apartment in BA and enjoy the 35 minute flight from Punta to be in a great city every month. Since you mentioned you need to be near an airport there is one (Laguna del Sauce) 5 minutes from our house. And Uruguay seems very stable, the people are friendly, inflation is 7% and banking is easy. Both countries have winters and August is particularly gloomy. If you are visiting in July and August you will see the worst of the weather. I thought I would share my experiences with both countries,” explained one expat in Punta del Este.……….You will have to have a car anywhere outside of Montevideo, whereas in the city you won’t need one. (Frankly…I wouldn’t DRIVE in Argentina, much less own a car. I’ve lived in Mediteranean Europe, Mexico, etc…and Argentina is BY FAR the most dangerous place to drive I have ever seen. Noone stops…EVER. Uruguay by contrast is simply ‘sort of bad’, comparable to many other places outside the U.S.”
Hi Ferfal,Interesting article: http://www.zerohedge.com/news/2013-09-14/dare-question-argentinas-inflation-data-prepare-go-jailJeff
Argentina is trying again to criminally prosecute people who publish independent inflation data, just as Congress opens debate on a 2014 budget that assumes economic good times next year.The government is predicting strong annual economic growth of 6.2 percent, inflation of just 10.4 percent and a peso dropping only 10 percent against the dollar.Independent economists call these numbers wildly optimistic, and say that Argentina’s growth prospects are troubling and inflation is actually running more than twice as high. They maintain that illegal currency trading reflects much greater pressure to formally devalue the currency than the government has acknowledged.As Economy Minister Hernan Lorenzino proposed the budget to Congress, Commerce Secretary Guillermo Moreno went to court, accusing four different consulting firms of criminal “speculation” for publishing inflation data that contradicts official reports.Among those Moreno targeted Thursday was economist Orlando Ferreres, who estimates inflation is rising by 23.8 percent annually. He called the accusations against him “ridiculous” in an interview with Radio La Red on Friday, and said they only make sense in “an upside-down world.”Moreno also asked the judge to approve similar charges against economists with M&S, Buenos Aires City and Finsoport SA consultancies. If charged, tried and convicted of “speculation,” they could face two years in prison.
Truck Carrying Dog Food got attacked in Berazategui, Buenos Aires this Friday.
|Many stores have poorly stocked shelves. Rationing of certain products like flour and sugar is common.|
Argentina’s inflation keeps soaring. Its worth noticing some of these events because there’s a good chance we’ll see some of these being similarly implemented elsewhere to a degree, if not downright done the exact same way.
One of the many problems with statistics and numbers in Argentina is that its hard to come by reliable data since the government controls the statistics institute known as INDEC and it refuses to publish any numbers or statistics that could be perceived as a failure of the ruling party. That’s how what should be the most accurate agency often shows inflation numbers that are ten times less of what independent agencies come up with. To make matters worse those independent agencies get fined or shut down by the government if they don’t play ball.
Still, there are many ways in which people can ballpark a general idea of how bad its getting. How much of your shopping cart you fill with a given amount of money would be one of them. The price of bread, milk, those are clear indicators of the cost of basic supplies linked to the cost of living.
Another interesting thing to observe is the feeling of irrelevancy of the $100 bill.
You see, a 100USD bill is considered a big bill to break down. Buying say 10c of candy with a 100USD bill may be frowned upon by most store clerks in USA. A 100 USD bill is still considered “big” money. 100USD buys you stuff. It buys you a pizza or meals for four in most fast food joints. 100USD is respectable money in the world of daily expenses and cash kept in wallets.
As prices keep soaring in Argentina, the 100 peso bill is seen more and used around more up to the point where lots of ordinary things bought on the average day cost 100 pesos. Its not considered “big” money any more. There’s been an increasing demand for a 500 peso bill, and this would no doubt help matters a lot, it sure would be used. But the government considers this a way of acknowledging inflation, so they refuse to make a 500 note. So what happens? A)You have to walk around with a big fat wallet full of bills. B) The government is printing 100 peso bills like crazy.
Here’s a chart showing in red, how many 100bills are in circulation today in comparison to the last 10 years.
Wacky / Nutty facts about the Argentine Economy
*Argentina has two, hour-based prices for bread. Scratching your head? Lost in translation? Nope. Here’s the deal: A kilo of bread sells for 10 pesos before 10 AM and it doubles in price after that. Insanity? Well, yes, for most people it is. But for the Argentine government it’s a way of saying bread costs only 10 pesos, while on realistic terms the price is at least 20. Good luck finding any bread before 10 am, most bakeries just happen to “run out” and don’t restock until 10 AM, or they have two qualities of bread. The before 10 AM one probably being mostly sawdust mixed with expired flour.
*A liter of gasoline in Argentina costs as much as a litter of the milk, about 1.49 per liter. This is for the cheapest milk you can find. Other than being white, it tastes just like water.