Argentina has gold backed currency

[onepence]

Hi Guys,

I read under the petro dollar article

"Argentina has since defied the IMF with a gold backed new peso currency."

I have not found anything to back up that statement.

Any ideas ???

[commander]

No idea where that notion came from.
The Arg Central Bank has been buying gold in recent months
but I have never heard of any gold backing to the peso.

The ACB has a loose target of 3pesos =1USD and is
currently trading around 2.92, the slippage being attributable
to the downside volatility of the dollar

[onepence]

wrote an email

jw@goldenjackass.com < jw@goldenjackass.com>

Dear Sir,

In a recent article

PETRO-DOLLAR & PROTECTION RACKET
Jim Willie CB April 6, 2005



It was written "Argentina has since defied the IMF with a gold backed new peso currency."

can you prove that statement?

Does this mean that if I buy an Argentina new peso and I then go to Argentina I can then cash in the paper for gold?

tia for answering my questions

a person of oneness

Dean Hedges
<!-- / message -->

[onepence]

No idea where that notion came from.
The Arg Central Bank has been buying gold in recent months
but I have never heard of any gold backing to the peso.

The ACB has a loose target of 3pesos =1USD and is
currently trading around 2.92, the slippage being attributable
to the downside volatility of the dollar


So far I too have not been able to verify that statement.
I checked the Bank of America site and I can buy the Argentina peso for about what you quote ... would consider dropping a few frns on the argentina peso if they indeed are backing there currency in gold.

oneness
dh

[commander]

So far I too have not been able to verify that statement.
I checked the Bank of America site and I can buy the Argentina peso for about what you quote ... would consider dropping a few frns on the argentina peso if they indeed are backing there currency in gold.

oneness
dh


I cannot imagine the ACB adopting gold backing while they are a major commodity exporter.( priced in USD)
The last thing the ACB would want is a hard currency.
I might add that while the ACB is lead be some very good guys, it is not independant of the Fedural Gov.

[onepence]

I cannot imagine the ACB adopting gold backing while they are a major commodity exporter.( priced in USD)
The last thing the ACB would want is a hard currency.
I might add that while the ACB is lead be some very good guys, it is not independant of the Fedural Gov.

Hi commander,

Thanks for the input.

I really no nothing about the ACB ... I just thought it was an interesting statement in the petro-dollar article and I was surprised that no one picked up on it or challenged the statement ... I think it is probable like you state ... ACB buying gold .... interesting ...

oneness
dh

[commander]

Onepence
I tried e mailing the Author of the article, but for some reason my
Server does not like his address ... maybe you might have more luck

[wulfgar60]

If Argentina is buying gold, then it adopted the prime technique of the 19th century merchantile policy. They print pesos and buy gold, this is an inflationary policy. With added feature that with the pile of gold you can reverse policy when ever it suits. It the same as printing your national currency to buy foreign currency on Forex. Except in this case, you are not at mercy of the other guy's printing press.
The companies that wind up with peso, pass through the market, which uses them to purchase Argie goods.
Hard currency means offering gold at a fixed rate, in return for your paper. The Argies are doing the reverse, offering their unfixed paper for gold. This leads to a devaluation of the peso. Yet locked away in your vaults is the ultimate currency should it be needed.

[commander]

If Argentina is buying gold, then it adopted the prime technique of the 19th century merchantile policy. They print pesos and buy gold, this is an inflationary policy. With added feature that with the pile of gold you can reverse policy when ever it suits. It the same as printing your national currency to buy foreign currency on Forex. Except in this case, you are not at mercy of the other guy's printing press.
The companies that wind up with peso, pass through the market, which uses them to purchase Argie goods.
Hard currency means offering gold at a fixed rate, in return for your paper. The Argies are doing the reverse, offering their unfixed paper for gold. This leads to a devaluation of the peso. Yet locked away in your vaults is the ultimate currency should it be needed.


WULFGAR60

Do you care to expand on these comments ....
Where do you think that the Argies are heading with this?

[wulfgar60]

The key to fiat value is the rate of the printing press. The Argies "money" is made of paper or the modern electronic blip.
Buying gold is one thing! But how do they buy it? If the Argies weren't printing more fiat and simply purchasing gold from revenue, then that would be deflationary. However the modern CB doesn't opperate this way. Most CB allow them to print money to acquire foreign currency or gold for their reserves. They can also print money to purchase gilt edged bonds like government securities.
Typically this is inflationary, because the quantity of legal tender fiat has risen. Most CB's are stuck with printing their own currency to acquire greenbacks which currently are the most essential foreign reserve. They are always forced to buy ever more greenbacks as the purchase power declines. This is how America passes on its inflation to the rest of the world. America prints the rest of the world pays the bill.
The Fed malnipulated gold off the market as a competator. Around 1980 the Fed was filling its basement with more gold reserves. Fiat was being printed to buy gold. Gold is significant portion of the world GDP. So this policy is very inflationary. In 1980 they were crying crocodile tears about all the terrible inflation. Then it could bleed gold the the market to keep the POG static with fiat. Hence bonds provide a better return than gold, than would be the case otherwise.
However the gold malnipulation game is running out of gold to dump. So gold is starting to appear as a real competator for bonds.
The Argies position is gold is now a better buy than US treasuries. And its really great that suckers will sell their gold for the Argies printed iou's. The Argies are trading something less valuable for something which is a few years will be the most solid value if not already.
The Argie CB is building the best monetary reserve around, they certainly need it. Because anybody with half a brain will be loathe to invest in Argie paper.
But my point is that buying gold is not deflationary if the purchase is made with a printing press on overtime! This does not mean the peso is gold backed, that is the peso is traded at a fixed rate to gold. More Argies will be spread around and Argies will wind up puchasing Argie products keeping the Argie peasants in work. The sad part is the peasants get payed in Argies, so the purchase return is not worth their labour. Still, it keeps them quiet!
If more CB's follow suit and decide gold is a better reserve than treasuries. Pyramidic buying will ensue and the POG will wind up around $15,000. After all if you wish to devalue your currency for merchantile reasons. Why buy other CB's liabilities, when you can do it with gold. And then you've got something tucked away in your vaults which has real purchase power when required. Why be the Fed's fool, when their control of gold is diminishing?
The question is, how soon does the bond market crack?

[Spacecat]

The Rape and Distruction of Argentina

This is Disgusting,

First they Distroy Argentina , now they sell it off at discount prices. b@st@rdo, Disgusting!!!!!!

Why Buy a Second Home...

When You Can Own
an Entire City


It's a way for you to own nearly all of this city's choice real estate--5-star hotels, glass-sheathed skyscrapers, golf courses, and posh apartments--with one simple investment. And without the typical hassles of real estate.



Yes, this country has had its share of problems in recent years. The government defaulted on a massive debt. And the currency lost nearly two-thirds of its value. But the worst is behind Argentina now.


http://www.agora-inc.com/reports/TRW/WTRWF306/

Evil Vampires


So is this a look into our future

[onepence]

..


http://www.agora-inc.com/reports/TRW/WTRWF306/

..

So is this a look into our future



Na ... I see something like third world Africa

75 people crammed unto a bus meant for 40

[Sturdly]

Na ... I see something like third world Africa

75 people crammed unto a bus meant for 40

Getting a ride or living in it?

[onepence]

Getting a ride or living in it?

getting a ride
funny enough everyone seems happy

oneness
dh

[onepence]

Argentina Refuses to Reopen Foreign Debt Exchange

http://www.plenglish.com/article.as...%7D&language=EN (http://www.plenglish.com/article.asp?ID=%7B6E093181-8D70-4A08-B289-3822EA6885B4%7D&language=EN)

Speaking to a local radio station, Anibal Fernandez said the administration of President Nestor Kirchner had a firm and clear position on the issue, and the exchange operation gave bond-holders sufficient time to exchange defaulted bonds.



Fernandez criticized International Monetary Fund (IMF) and Group of Seven pressures on Buenos Aires to support the holders who rejected the offer.



He said their priority is to meet obligations with the financial entities and bondholders who joined the debt exchange, and he played down the IMF claims by saying Argentina had faced a difficult situation since it suspended foreign debt repayments in 2001.



Argentine President Nestor Kirchner, who is on an official visit to Germany, slammed the stance of IMF Managing Director Rodrigo Rato, who demanded that creditors who did not participate in the debt restructuring be provided with a solution.



Kirchner criticized the multilateral credit bodies´ lack of understanding on the issue and considered "their technocracy makes additional demands to the measures we have taken to resolve our problems."
<!-- / message -->