Can't you read? As I have told you, the situation in Argentina...

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butcherboy

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02/05/19

11:36

Post #: 38371984
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Originally posted by micky78: ↑

You really need to study economics. Inflation or hyperinflation is the most deadly and will destroy the country. In Australia RBA (Reserve Bank) will do anything to keep inflation down even at expenses of destroy economy growth.

Look what happen with countries with hyperinflation eg Venezula and Zimbabwe... riots, coup to throw the government because people are poorer and poorer, your purchasing power diminishes. Right now 30% local people in Argentina are living below poverty line and 45% of young people are in poverty. If inflation continues at 50% for another year, IMHO at least 50% of local people will be in poverty. Of course people are angry.

Further, often people borrow money to start a business. Who will hire workers because wage will need to increase by 20% to keep up with inflation. You can get 21% term deposit in Argentina, I think a business loan in Argentina is super high interest rate. I think Argentina's central bank interest rate is something like 60% (vs Australia 1.5%).

21% term deposit sounds pretty good, but inflation is 51% so you get negative return of 30% in purchasing power.

IMHO I will stay away from any mining project in Argentina. It is politically unstable.

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Can't you read? As I have told you, the situation in Argentina has basically been the same since 1981 (and before in the 70s), they have high inflation and the population is used to it. It's not good, the people hate it, but it's not hyperinflation like Zimbabwe! You don't need to invest there, but stop making cr@p up! I wanted to dispel your misinformation that inflation and devaluation are somehow not linked when they are. Look at the chart! The devaluation offsets the inflation, yet you don't seem to understand that.
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