6/14/2022 - Economy and Finance


By horacio gustavo ammaturo


When I was a child, I felt great curiosity and fascination with the spjismos.

I remember old films with their protagonists in the middle of the desert who saw distant lakes with crystal clear waters, but as they accelerated the step to approach they did not shorten distance.

Even abound the cartoons in which the characters plunge head in beautiful fictitious pools, with sand, land or hirvent cement blocks.

In fact, visual specjis are light effect products reflected in some environments when passing through air layers of different densities and at certain distances.

Maybe that's why, I relate to spjismos as something that, although unreal, produces real effects, because at least in the spirit of those who perceive them, generate false expectations.The same vocabulary, associated with the mirror word, refers to a deceptive deformation of the imágen, but there are other types of speciism represented in different forms of visuals, as false and deceptive as those of the desert or asphalt.

The economy of our country is fertile land for the proliferation of this type of phenomena.It is usual that many of the things that seem not to be, except that in this case illusion is product of what, who we are closer, we create what we see, hear and feel.

The specjis of the Argentine economy, unlike the films, which promise freshness in the face of the desert sun, can be pleasant as these or frustrating and decadent.

Let's see in the recent past both cases.

Convertibility Law

On March 27, 1.991 the Congress of the Nation passed Law 23,928, known as the Law of Convertibility. The same implied the change in the denomination of the currency, Australes to Pesos, the fixing of a new exchange rate, the result of a phenomenal devaluation, the reduction of four zeros in our currency, the replacement of bank deposits by sovereign debt and the fixing of the exchange rate in which each of the new weights would have a dollar of support in the Central Bank, that is, that Argentina would have a convertible weight to dollars.The economy became bimonetary, as banks could offer accounts in both denominations and move from one to another with low costs, in fact there were checks issued in weights and dollars.

This model quickly resolved the hyperinflationary process in which Argentina was at least two years ago, 1.989 and 1.990.

During the early days, the country grew exponentially. The emergence of credit, the income of foreign funds that sought better profitability than those offered in other markets, along with a strong policy of reducing public spending through the sale of service companies, such as telephony companies, gas distribution, water, energy, even the same YPF, main producer and distributor of fuels in the country, generated a double positive impact on the demand for weights, since the government had ceased to issue and the dollars.

Argentina had tied its monetary policy with the income of a currency which obviously did not produce. The only possible paths to solving public cash issues were:

  • Tax solvency, i.e. spending less or the same as it enters;
  • Exchange income through the sale of public assets;
  • Indebtedness.
For obvious reasons, politics remained very well while the last two options existed.When the vendable assets were exhausted, called in those times by the opponents “grandma’s jewels”, and the international credit was agonized, because the indicators showed an over-addressed country, the model collapsed.However, For almost ten years, the Argentines enjoy the oasis that offered the dollars equivalent to a weight The purchase of wholesale products abroad, the change in the car park of imported modern cars, or even to help our European family members who suffered from the devaluations of the peseta or the lira, before the implementation of the euro.

The scum of weight overevaluation is perhaps the most fun as it invites you to enjoy the fictitious purchasing power which has the currency anywhere in the world, allows us to participate in equal to the international jet set and, for those who can, to assail hard currency for the moments of reality or other less appreciable specjis like what comes next.

2001 crisis

In the style of prophetic catastrophes the exit The illusion of convertibility led to total uncertainty as to the value of our currency.After maintaining a pseudo-parity would change, they were tested monetary piruetas super creative, so unrealistic, fictitious and needy projection as the reflections of the nonexistent charcoals at the bottom of the routes.

Corralito, capoeira, almostmonedas, exchange controls, restrictions, and other erbas that once again ended with the replacement of deposits in dollars by public bonds within ten years and a brutal devaluation that led to the dollar from one to almost five pesos in a short time.

The new spike was much more unpleasant, the Argentines were mostly poor, were indebted, their assets were worth almost nothing and the salaries were from the highest in the region to the lowest.The shock lasted a few years, until it was understood that so brutal loss of purchasing power in the currency was also not real. The low in labor costs, in the public services that were frozen to the values prior to devaluation, the properties that lost up to 80% of their value and the product shots given in guarantees by the credits of the past learned a green light so that first local investors and then some more risk-prone funds brought their currencies to produce in the country.

Public investment in the first place and the private, then, led to an engine of the economy that managed to reduce very high poverty and unemployment rates, allowing us to get out of this another spike, in which we believe the worst of all, the poorest and fingers, creating a new spike within this, now the Argentines were efficient and productive, something that was also not sustainable in time.However, this article far from pretending to be an account of our contemporary history, seeks to leave as a message to generations who have not lived so closely these avatars, that, as in films and cartoons, Those who believe in the spjis suffer and lose. That when the economy smiles we know that this laughter may eventually end. That we should be prepared for when that happens. Also that in the worst moments, if we had the possibility of planting in the past, the effects of crises are better supported.

It is also a message for all Argentines, particularly for politicians who are those who play with their decisions the fates of the rest.

A country that lives on spikeism for many years ceases to be fertile land to finally confirm that it is a desert in which all that is seen far away is unreal, something that inhibits any projection, planning and investment.

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horacio gustavo ammaturo

horacio gustavo ammaturo

I am Gustavo Ammaturo. I have a degree in Economics. CEO and Director of infrastructure, energy and telecommunications companies. Founder and mentor of Fintech, DeFi and software development companies. Blockchain Product Designer.


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