Just The News
The Argentinian national bank this week raised interest rates to 75% in a desperate bid to tamp down on the country’s still-spiraling consumer inflation rate.
The Banco de la Nación Argentina hiked the rates after national data indicated a year-over-year inflation rate of just under 80%, a crushing spike that has desperately squeezed consumers in the South American country. more
It has a one in a million chance of working. Slightly better than the Inflation Reduction Act.
Weimar Republic, South American Edition.
I don’t understand.
They’re PAYING 75% on deposits?
Or they’re CHARGING 75% on short-term loans?
mortem tyrannis
izlamo delenda est …
It looks like nobody wants to hold their money, so it’s being sold off by anyone who can find a buyer. To sell it means it has to be discounted or depreciated. A depreciating currency buys less or it takes more of that money to buy real things – inflation.
A nation jacks up interest rates to make it expensive to short their currency (borrow it today and sell it off then repay it in the future after it’s inflated and pocket the difference). It also tanks an economy because loans become so expensive. As the economy implodes there is less money circulating and that reduces inflation.
Hard to imagine how bad things are that even with interest rates jacked up 75% they still aren’t confident that inflation will slow. Other nations facing a crisis like this abandon their own money and do business in a more stable currency. In the past it would have been the US$, but that’s a sucker’s bet today, thanks to Biden and his party of spendthrifts.
Will the US next see a massive wave of asylum seekers from Argentina?
ee76
SEPTEMBER 18, 2022 AT 12:20 PM
“Will the US next see a massive wave of asylum seekers from Argentina?”
…only if Pedo Joe’s puppetmaster deems it bad for America.
how about you fucking learn to spend within your limits I know it’s a new idea but people should try it. you never know it might work.
It is only a matter of time now before they start moving the decimal point and we’ll be able to blow our collective noses into a dollar bill!!