Monday, August 4, 2014

How The Looming Risk Of Default Affects Cordoba Argentina

Some of you may have heard about the vulture funds and the “DEFAULT” that Argentina is in danger of facing. This blog entry won’t help you to explain why it’s happening or what it’s about. There are plenty of news reports and websites out there and each have their own version of what’s the truth and what’s a lie ... though they seem to have no idea what they're talking about.

What I will talk about is the fact that while world news media report the situation as dire; Argentina does not appear to be collapsing economically. You won’t find riots or mass suicides on the streets or any of the nonsense that people might report due to the supposed looming threat of the “DEFAULT”.

People continue to go about their day. Children go to school while the grown-ups go to work or go shopping.

I can also report, at least as far as the province of Cordoba is concerned, that businesses are still making money. People are still going to malls to buy clothes, DVDs, books, perfume, or enjoy a nice meal at the food court with family or friends.
 Economists were predicting that the value of the dollar would rise in Argentina but I’ve been monitoring the rate by which the U.S. dollar has climbed and the amount is negligible. Over the last few days it’s gone from 8.09 Argentine pesos to 8.23 Argentine pesos per 1 USD as of August 4th. Now I’m not saying that won’t change. It may very well change, but for the time being there are no signs of a major collapse or chaos.

In addition, Argentine president Christina Fernandez Kirchner has once again increased the monthly benefits that the retired elderly receive from 2700 to 3200 Argentine pesos. From what I've observed of the last two years, growing old here seems like a pretty sweet deal.

For those fortunate enough to find legal work here, the minimum wage is about to jump once again.

Below are three items that I priced checked a year ago and then again this year to see if there have been any changes and there have been but it’s definitely not as crazy as you would expect … well except maybe for the bag of Doritos.
BEFORE: 20.19 Argentine Pesos
NOW: 28.49 Argentine Pesos

BEFORE: 9.60 Argentine Pesos
NOW: 11.99 Argentine Pesos

BEFORE: 329 Argentine Pesos
NOW: 239 and 399 Argentine Pesos Range
I’ll be creating a price comparison entry with more products soon. So stay tuned.

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