4 ms·

Given that knowledge, why does any business use Pesos? Why not use USD only? If someone buys in Pesos because the state forces acceptance of it, charge price fo

by jasmer 3y ago

Given that knowledge, why does any business use Pesos? Why not use USD only? If someone buys in Pesos because the state forces acceptance of it, charge price for it and immediately convert to USD. Touch pesos only momentarily. This is bad because Argentina loses monetary control to a foreign state, but that's a much better solution than using toilet paper. The thing I find odd, is that even greedy capitalists know that, and powerful greedy self serving capitalists (I'm being overly cynical here to make a point) will want a 'stable currency' because these shenanigans do not benefit anyone. The only people that can survive money printing are a very, very small number of politicians, how is there not a revolution backed by all sorts of groups? I find this odd.

Jtsummers 3y ago
The Argentine government has severely restricted the rate at which people can convert ARS to USD. I'm not sure the current limit, but a while back it was something like $200/month for most individuals. Not sure about the restrictions on businesses. Greatly messed up my mother-in-laws plans to visit us in the US.
bluepoint 3y ago
Because most people get paid in pesos and access to USD is controlled by the government. And probably because US banks would not give loans in dollars to argentine businesses.
qerqe32452 3y ago
"how is there not a revolution backed by all sorts of groups?" This already happened across the decades by different groups inside and outside the law, but the cabal of private and state actors that thrives on inflation cycles controls the outcome of those movements and takes back the ownership of the government eventually (even few months after some groups got "decisive success" influencing the change of pro-inflation policies). Social control make the rest of the work. Most of the citizens are just used to live in poverty - likewise some Africa countries in the 70s,80s - and have no will to organize themselves, nor to embrace any kind of overthrowing of the cabal. Some even got to the government, like Macri, but didn't get much farther, eventually becoming just another puppet of the cabal, effectively sustaining - albeit conceived from the general population by extensive use of propaganda and disinformation campaigns- the policies and measures required to continue and/or make the cycle of inflation continue towards the hyperinflation goal (the "cash out moment" for many of the cabal's long term "investors" and/or members).
frankreyes 3y ago
Businesses do use USD whenever they can. There's some mechanisms available to get USD, but that involves shady suppliers or very expensive market rates. But the issue is that everyday expenses are in pesos, so, it's usually not practical.

by jasmer 3y ago

Jtsummers 3y ago

The Argentine government has severely restricted the rate at which people can convert ARS to USD. I'm not sure the current limit, but a while back it was something like $200/month for most individuals. Not sure about the restrictions on businesses. Greatly messed up my mother-in-laws plans to visit us in the US.

bluepoint 3y ago

Because most people get paid in pesos and access to USD is controlled by the government. And probably because US banks would not give loans in dollars to argentine businesses.

qerqe32452 3y ago

"how is there not a revolution backed by all sorts of groups?" This already happened across the decades by different groups inside and outside the law, but the cabal of private and state actors that thrives on inflation cycles controls the outcome of those movements and takes back the ownership of the government eventually (even few months after some groups got "decisive success" influencing the change of pro-inflation policies). Social control make the rest of the work. Most of the citizens are just used to live in poverty - likewise some Africa countries in the 70s,80s - and have no will to organize themselves, nor to embrace any kind of overthrowing of the cabal. Some even got to the government, like Macri, but didn't get much farther, eventually becoming just another puppet of the cabal, effectively sustaining - albeit conceived from the general population by extensive use of propaganda and disinformation campaigns- the policies and measures required to continue and/or make the cycle of inflation continue towards the hyperinflation goal (the "cash out moment" for many of the cabal's long term "investors" and/or members).

frankreyes 3y ago

Businesses do use USD whenever they can. There's some mechanisms available to get USD, but that involves shady suppliers or very expensive market rates. But the issue is that everyday expenses are in pesos, so, it's usually not practical.