Thursday, May 2, 2013

Coming to a country near you

Question: In principle, how is America any different than Argentina?

Answer: In principle, there's no difference. It is only a matter of degree.

Published on Zero Hedge (http://www.zerohedge.com)

How Much Is The Argentinian Peso Worth? That Depends

By Tyler Durden

Created 05/02/2013 - 15:43

While last week saw the economy minister of Argentina [1] fumble, stumble, and finally crumble over the difficult question of what Argentinian inflation rates were (11% official versus 26% estimated), it seems the nation has another Schrodinger-like problem. While officially the exchange rate is around 5.15 Pesos to the US Dollar, in reality the black market exchange rate (or so-called Blue-Dollar purchase rate) is more like 9.6 Pesos to the US Dollar... An 86% devaluation priced into the local economy's desire to NOT hold Pesos and demand for USD liquidity. Oh, and as a side note as the S&P 500 pushes towards 1,600, think of the wealth creation... Argentina's stock market, one of the best performing in the world, is up 72% since November - that must be good, right?