The Spanish version of the book is done,
so back to the blog. Personal reasons bring me to the States for a spell, which allows me some time to again appreciate the contrasts between the US and Argentina. It has always been crazy to me that things like clothes are more expensive in Argentina than here. I had to get a new phone recently and paid nearly twice as much as I would have back home. That is just one part of Peronism, mostly based on an ideology of a former two-time President (1946 and way later in 1973), Juan Peron; protecting domestic companies and workers. The talk is now that the Argentines that usually travel to NYC or Miami to load up on stuff now have to pay a 30% tax on the purchases, oh, and also for their plane tickets depending upon when they made their reservations. You see there is a 30% “Tourist Dollar” tax making its way into the system. You buy something foreign, even Netflix, or travel outside of the country and you get hit. Plata, which means silver in Spanish, and is the slang term for money here, is in short supply. In fact, the country is $100 billion in debt, with annual inflation around 50%, and a 40 percent poverty rate. Recessions are just normal here. In fact, the economy shrank by 3% last year. The peso was at 18 to the $USD three years ago, and is now in the 70’s in the black (called blue, not too illegal here) market and the 60’s in the official (nobody believes you) market. Yikes. Plata is also badly needed for the other parts of Peronism, a huge welfare state and a gigantic public sector. Throw in corruption and organized crime and we are off and running, such as running after the motorbike who just stole your purse. It is happening more often. Major Latin American cities can, I said can, be a mess. They do not have the level of shootings nor the amount of guns as found in the US. It is more economic, in my opinion. From Buenos Aires to Bogota, the bandits on bikes are around. These “motochorros” as they are known here face light punishment if caught, another weird part of Peronism, which doesn’t help. Many tourists around the world wear their back pack as a front pack. My barometer of the danger level in Latin America has always been what percentage of the locals are doing the same (hint, more). Obviously the new President, Fernández has a tough road ahead, and more Presidents than not have not finished their whole term in office. He seems to be off to a good start, and many of the debt holders are saying good things. With Latin America very volatile right now in a range of places, it may be even harder. Given that the new administration has started tilting away from the US and in favor of China, Venezuela, Cuba, Russia, and Iran, and that Argentina is beyond broke, some of these countries (China!) will be making even more moves here at fire sale prices.