Walking past the Capitol in Congreso
Today seems fit to post this photo that I snapped around back of the building the other day. This is where they vote on new laws that everyone will soon ignore. The nation of Argentina just voted in a new President.
Meet the new boss. The same as the old boss.
Literally! The old boss was was Cristina Kirchner. Now she is the Vice President and back in The Pink House again.
I really don't know that much about politics here where I live, but friends say that this Kirchner lady stole a portion of the country when she left. People are upset about this.
Markets React
People here save in dollars. This chart shows the price to buy one dollar.
The primaries caused a $20 jump in the cost of a dollar. Forty to sixty on the chart. Today's election is causing another big move. It looks like i twill be from sixty-ish to eighty or so.
In reality, the amount of dollars you can buy with your orange, green, and blue paper pesos has dropped.
The dollar is never worth more than it was yesterday, so I flipped the chart. Today you will spend about One Orange 1,000 peso bill if you grab eggs, milk, and bread on the way home.
The food and milk is not more expensive, but rather, the money that your are using is nearly worthless. Cross out two zeros and you have a $10 note. Eighteen years ago, you could get bread (0.23) milk (0.39) and eggs (0.35) for a $10 note. The only difference now are the extra pair of zeros.
One week ago I traded u$s 1,000 for ar$ 64,500
Today the same trade: u$s 1,000 for ar$ 77,000
Wow! That's $12,500 profit!!
Yes. You might think it is profit if your chart is the other way around. But, a gallon of milk just went up to $300
Crazy politicians! Every country thinks it is so cool to print paper money and spend it as necessary. Then times like this come. The non-Federal Reserve with no reserves is having to cough up about 104 x 1,000 x 1,000,000 every night to lend liquidity to the "Repo Market"
If you have trouble wrapping your head around that, just remember, "One Trillion every Ten Days."
I think it is getting really expensive to keep the banks open. Don't you?
In closing. It is not smart to buy paper using paper.
Not smart to hold paper really. It is a losing proposition if you hold it, bank it, or invest it. Crypto on the other hand, cha-ching!
I will leave you with a couple of other photos I took at the Capitol ...
The south-west corner of the building is not a corner at all.
This one was taken on the north side. I was standing at the base of the glass building that reflected the dome (cover photo).
I could not care less who is elected in the country where I live. The laws here are all backwards and optionally enforced. Only hold enough pesos or dollars to get a coffee. When you accept that truth, you are free indeed.