WEEKLY WHINE

Pesos y preguntas

Tired of your country's immense debt? Don't know what your wages will be next month? Impatiently waiting to find out who your new president will be? Wary of floating exchange rates or somebody else's currency?

It's tough to live in Argentina these days. Indeed, some would call it annoying. Nobody knows the best way out of this debt predicament. So we here at GoobNet are going to offer our help. We don't know why, but we will. Here are some moves that Argentina's government might consider to escape from their quandary.

Decision: Float the peso
Details: Currently the peso argentino is fixed at a value of exactly US$1. But Argentina could go back to a floating exchange rate, in which the value of the peso would become whatever people think it is.
Plus: People don't think the peso is worth much - consequently, its value would fall, and exporters would benefit.
Minus: People don't think the peso is worth much - consequently, rampant inflation would devalue any savings based upon the peso rather than the dollar, which would most affect ordinary Argentinos.
Bottom line: Ordinary Argentinos are ticked off enough as it is. Who's going to let hyperinflation be added to their bitch list?

Decision: Yank the peso
Details: Many would like Argentina to adopt the US dollar as its official currency. This is effectively a cosmetic change: pulling pesos out of circulation and replacing them with greenbacks.
Plus: It works for Ecuador, and Argentina might find it easier to get aid from the US.
Minus: It's expensive, and Argentina might not find it easier to get aid from the US.
Bottom line: The US is kind of busy with this whole coalition against terrorism business. George W Bush probably doesn't care enough about Argentina to commit to a massive project to bail it out.

Decision: Get more money
Details: Argentina's debt currently stands at US$132,000,000,000. That's a lot. Unless Argentina can continue to pay its interest, it will default on the debt, a move that won't make anybody happy.
Plus: If it got US$132,000,000,000, Argentina could pay off its debt.
Minus: Where are you going to get US$132,000,000,000 this time of day?
Bottom line: Great idea, if you can get it to work.

Decision: Force the president out
Details: Fernando de la Rua ran Argentina for about two years but resigned a couple of days ago after riots started and bipartisanship stopped.
Plus: It's a great way to stop doing something that isn't working.
Minus: They tried that already.
Bottom line: If it's broke, fix it. If it breaks again, fix it better.