Argentina Currency Crisis Pain Is Spreading

By Bloomberg – Re-Blogged From Newsmax

Tommy Samson is explaining why he’s been forced to scale back business amid Argentina’s financial-market rout. His Buenos Aires firm imports surgical equipment such as sutures for stitching wounds, paying in foreign currency. Then he sells them to local customers in pesos.

The last link in that chain is breaking down — because Argentina’s currency is in freefall. It’s lost half its value this year, and some 20 percent this week alone. The slump threatens to spread havoc through the $640 billion economy, rupturing supply chains for businesses and straining the finances of households.

And it’s casting a shadow over President Mauricio Macri’s prospects of winning re-election next year. Even Argentina’s most market-friendly leader in more than a decade has struggled to restore investor confidence.

Image: Argentina Currency Crisis Pain Is Spreading
(Dreamstime/Siempreverde22)

“There’s no clear price reference after the peso plunge.”

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Daily Use of Silver Coins

cropped-bob-shapiro.jpg   By Bob Shapiro

I was in Mexico a dozen years ago, trying to interest the three parties’ leaders to institute a Silver Backed Peso. The country was ideally situated at the time, with a National Debt and GDP that were significant but small enough to allow a reasonably large amount of Silver coinage to solve their problems. And, Mexico was – and is – the world leading country in the production of Silver.

My suggestion was simple:

  • Amass a Silver stockpile of a couple of billion ounces

  • Allow purchases to increase the price of the metal – then at the low price of $4.50 an ounce – to perhaps $100 an ounce

  • Use the knowledge of the program to gain price advantage and profits in related markets, such as Silver stocks

  • When the time was right, introduce a Peso Monetary Coin system, letting the rest of the world know that the previous purchases would NOT be unwound as Silver bullion sales – with Silver Coins bearing a specific Peso denomination

  • Continue Silver purchases so long as the Price of Silver was below the foreign exchange value of the Silver-backed Peso

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