Government Systems

[ianben]

I thought Argentia had trouble paying dollar debts.
If they have devalued by 40% must they now export 40% more to pay this debt.

If they do this with ag products for every 100tonnes they sold last year this year they must sell 140tonnes.

Driving prices down for us all and meaning they must sell even more next year.

A vicious circle leading to too much cheap food in the 1st world and poor hungry people in the third.

Would higher commodity prices help the third world and farmers everywhere??

Regards Ian

[cowman]

I am sure not up on how international monetary systems work but I would expect Argentina farmers would need to export more of their produce. Sort of like how it is in Russia where you need foreign currency to buy foreign inputs(machinery etc.). I would expect the average Joe in Argentina is going to find food becoming very expensive as their money becomes worthless and food being exported. Sort of like here but on a bigger scale.
I remember in 1992 when calf prices peaked how we all thought we were rolling in clover, until we actually went to spend that money on a tractor or truck....then the check didn't look so sweet! When our dollar has fallen from 89% to 62-63% in a little over a decade, and we produce almost none of our own hi-tech goods, we just can't be surprized at all when we go buy parts or equipment. This is a sure way to go broke as a country eventually.