Update: Chhilean peso has declined to 450 to dollar as of 1/10
---------- Forwarded message ----------
Date: Fri, 9 Jan 1998 13:32:56 -0800 (PST)
From: Earl Gilman <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]
Subject: Re: Updated Analysis of Economic situation
In relation to the crisis in Asia: it is having an immediate affect in Chile.
The world price of copper has declined to 74 cents a pound. When I was in
Chile in Sept-Oct it was hovering between 90 cents a pound.(40% of
Chilean exports depend on copper.) At that time
the Chilean peso was 414-417 to the dollar. As of today it is 440 to the
dollar. Devaluation of currency always leads to a lowering of real wages,
which have never been very high in the "miracle economy" of Chile. (Wages
average $100-$300 a month.) The "miracle" is the extention of consumer
credit in Chile to practically everybody: it has succeeded in creating a
"consumerism" in the culture useful to the governing Christian Democrats
and so-called "Socialists.".
Earl Gilman
El Nuevo Topo magazine
