I live in the most inflationary economy you can fathom.
Ask me anything
I live in the most inflationary economy you can fathom.
Ask me anything
What has gone up the most?
Hard to tell... because cantilion effect is such a cascade. It starts with fuel prices you know. That is a measure. Then it spreads to goods.
What's gone up the most is the dollar priced imported goods.
For example cars are going up and up. You can easily make goood differences buying cheap cars and selling high. Because lots of folks need the money and would sell at a low price not even knowing. Because prices are really blurred in people's minds you know. You don't really know what's expensive or cheap no more . Nothing can surprise you.
Cars, motorcycles I think...
They part from basic needs foods and stuff prices a lot because those are stepped by government boots to keep low prices. But cars bikes trucks and car parts are high demand, unregulated and dollar priced so it's giving large strides up in prices.
what about the farmers and rural areas, how is inflation impacting them?
Farmers are destroyed by regulations. The state takes the dolars they make selling on the international marjets at the "oficialx rate and gives them Pesos (ARS) then if the farmers want to save thye have to re-buy the dollars at the black market rate wich is double the official one.
So the state steals at least half of what the producer makes and that is not even counting any other tax or the effect of the inflation tax.
Thanks for this answer.
As for my region which produces apples and pears the story is known for decades. And a bit different
There are two or three main exporters living under those rules explained by my co patriot. They export so they get dollars ruled by government. It is still somewhat profitable for a few.
But for medium and small apple producers, costs of production have gone up yet prices of apples cannot pair because of government boots stepping them and people not being able to pay those prices.
I mean if government would release apple price to go up to find its true level . People wouldn't demand it because it would go crazy high.
So we have this situation here.
Abandoned apple and pear farms. So high offer of virtually free fruits
Apple and pears harvested and thrown away to make juice or cider or sold at a cheap cheap prices.
(All this in internal market)
Some producers just survive out of subsidiary money.
And the few of them associated with a large exporter company complying to international regulations and such... they make a living. No more no less....
So the whole immense vast apple and pear producing valley here is changing to produce maybe feed for cattle or just making big residential land for real state speculation.
What are people storing their savings in?
Whatβs the biggest impact to the people living in this high inflation environment, other than debasement of currency?
People employed formally can save buying dollars in the black market.
Paper fiat notes. You go to "the cave" and just buy. I warn them all dollars are depreciating aswell.
Yet cantilion effect makes them a bit richer because of delayed loss of purchasing power of the dollar here.
I've seen people buying stuff to "save". Like a cheap motorbike knowing they can hold value better with it.
People buying bricks or cement bags for projects they didn't even conceive.
"Crypto" might be another option for few tech savvy folks.
And regarding your second question I would say the time preference. I mean high time preference is exponential high here I assume (I don't know much people from places with sounder money)
So the people who "saves" or behaves as growth mindset or future projects is few. The smell of a general state of despair and hurry is something thay I can sense and conceive because I am orange pilled.
Yet now the loudness of it is so strong that Javier Milei is strongest candidate to be president.
Old folk went through one or two hyperinflation themselves. So they seem to think it's normal, cyclical and should be like that.
When I say state of despair or hurry I feel like most young people take refuge in such self destructive behaviour like drugs and alcohol unrestricted, porn and just a general apathy for life. Or complete fanatism for some form of football. So the whole place is a weird Feng Shui of badly and cheaply constructed houses and public places with layers of fixes and a bit of steampunk with filth and garbage around, who cares....
Anti-stoicism . Dionisiac survive mode.
Do it cheap work fast.
Complain complain, celebrate or be angry at football, watch tv, zombie scroll, fap, drink, go to work do it badly because it's always going to be badly paid. Be in debt. Be corrupt, steal snatch otherwise you are dumb because everyone does it. "Vivo" is the word we use for corruption meaning "alive" or "living"
The first thing our current president said when he was elected was "the Argentina of the "living ones" is over"
"La argentina de los vivos se terminΓ³" meaning something weird and twisted.
The welladapted beings just love the present moment and are kind of happy. Others try to figure things out like me, I like deep shit and Bitcoin y'know.