I feel particularly bad for people of Argentina because IMF/World Bank kept lending money to the government despite the country’s inability to pay the interest on these loans. Yet the loans and bigger interest rates kept coming. In the light of these bigger problems though, I am not sure that the arrival of foreign capital which the article refers to will make a significant impact. It might cause value of housing to go up which is not an inflation as there was an increase in the actual value. Theoretically speaking, If some of this capital starts making profits it will mean more labor will be needed and the wages will increase which will then leave people with the same amount of purchasing power for the housing they weren’t able to afford in the first place.

I really liked the old man in this video. He has a good attitude towards learning. Hopefully this can trickle down to younger generations. We all need to understand the basics of monetary theory, taxation, and some of economic and political history so that we can be better equipped to form our own beliefs and make decisions that will benefit rather than hurt us.

“Then came the financial crisis of late 2001. The Argentine peso, which was once pegged to the United States dollar, plunged to a low of nearly 4 to 1 in the face of mounting debt and runaway inflation. (It holds steadily today at about 3 to 1.) Overnight, Buenos Aires went from being among the priciest cities to one of the world’s great bargain spots.”

That last sentence - he words it as if the crisis was a good thing. Makes me shake my head sadly. He doesn’t get it.

This is not a discount outlet mall, it’s a country with real people.

So maybe I am just not sensitive enough, but even after being on the other side of it, I do not see what is so insilting about the article when it just represents a point of view of some foreigners. You probably do not like this point of view, but it exists. I know people who think just like this and criticising the article will not change anything. In the grand scheme, there are places in the world where a similar problem is much much worse then in Buenos Aires, like Thailand… and unlike Buenos Aires, there is no chance that anything will change anytime soon there, sadly.

But in Buenos Aires… the road is not easy, but things will change for the better. Perhaps not as quick as some Eastern European countries in the 90s, but it will change.

Also to see our paychecks get eaten up by 30% inflation or more in one year, really really makes me ill!