Answering to the last issue of the Bricks of Gold e-zine:

>Argentine Inflation

There's still no inflation! 1 Peso = 1 US$ yet.

>They have devalued their currency and are waiting for large loans from
the IMF.

ALL loans coming from abroad (Including the $1.26 billions) have been
denied last night. According to the Clarin newspaper (www.clarin.com) it's
a total of US$ 5 billion that we won't get thanks to our minister Cavallo.

On the other hand, I think this is good, because Argentina would have been
even more indebted.

>They have also passed rulings that limit the amount of money which can be
withdrawn from bank accounts and the amount which may be taken out of the
country.

That's true. People is still used to pay for everything in cash and that
has been a sudden violent change, because we will have to pay for most
things with a debit card, which most people doesn't have yet. The
government says they want to control tax evasion and money laundring.

Anyway, half of the working class earns 400 pesos (= US$ 400) or less; so
withwrawing 250 per week is more than enough (If you can survive with
that!). But of course many people who need to make large transactions in
cash are largely affected.

Cavallo established those withdrawal restrictions because all people was
suddenly taking all money out of the banks because they feared
devaluation.

But it really looks like the most probable thing to happen will be
dolarization, NOT devaluation. Just read the news (If you understand
Spanish :)

Regards,
Alexis.

http://www.RestYourEyes.com -> Just Rest Your Eyes...
http://www.GoldenRaffle.com -> Still looking for sponsors...

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