Argentina crisis as exchange rate slides 50% against dollar

Discussion in 'Economics & Trade' started by kazenatsu, Jan 25, 2019.

  1. kazenatsu

    kazenatsu Well-Known Member Donor

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    https://www.cnbc.com/2018/08/31/arg...cent-against-the-dollar-so-far-this-year.html

    Argentina is in a crisis as the exchange rate of the peso has slid more than 50 percent against the value of the US dollar. Some of the crisis has been driven by a run on the Argentina peso as people ran to trade out pesos for dollars before exchange rates slid further.

    The problem is that Argentina owes its foreign debt in US dollars, not pesos, so this poses a crisis for the government in being able to maintain and pay interest on the debt it owes.

    Investors hold concern that the country might go into default as it struggles to repay its heavy debts. (Argentina has gone through several economic crisis in the past)
     
  2. Reiver

    Reiver Well-Known Member

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    Shouldn't you be talking about Brazil?
     
  3. kazenatsu

    kazenatsu Well-Known Member Donor

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    No, isn't Argentina a more indicative picture of what the U.S. could be turning into?
     
  4. Reiver

    Reiver Well-Known Member

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    Given your politics, why not celebrate Brazil?
     
  5. kazenatsu

    kazenatsu Well-Known Member Donor

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    This happened in recent history. Many people still alive today grew up when these things were going on in Argentina.
    Notice any similarity between what happened in Argentina and the things that are going on in the United States today?

    History Lessons from Argentina:

     

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