The 2014 Argentine Financial Default: Here's What the Headlines Got Wrong

Some of you may have heard about the vulture funds and the so called “DEFAULT” situation that Argentina has been facing in 2014. Unfortunately, there are plenty of news reports and websites out there, each offering their own version of what’s true and what’s a lie, but they seem to have no idea what they’re talking about.

What I will talk about is the fact that while popular world news media continue to report the situation as dire, Argentina doesn’t appear to be collapsing economically. You won’t find riots or mass suicides in the streets or any of the nonsense that people might report due to the supposed looming threat of the “DEFAULT”.

People continue to go about their day. Children go to school, and grown ups go to work or go shopping.

As far as Cordoba City is concerned, businesses are still making money. People are still going to malls to buy clothes, DVDs, books, and perfume. They also spend money on nice meals at restaurants and in food courts with their families or friends.

Economists were predicting that the value of the dollar would rise in Argentina, but I’ve been monitoring the rate at which the U.S. dollar has climbed, and the increase is negligible. Over the last few days, it’s gone from 8.09 Argentine pesos to 8.23 Argentine pesos per 1 USD as of August 4th, 2014. Now I’m not saying that won’t change. It may very well change, but for the time being there are no signs of a major collapse or chaos here in Argentina.

In addition, Argentine president Cristina Fernandez de Kirchner has once again increased the monthly benefits that retired elderly people receive from 2,700 to 3,200 Argentine pesos. From what I’ve observed over the last two years, growing old here seems like a pretty sweet deal.

For those fortunate enough to find legal work here, in other words not me, the minimum wage is about to jump once again.

I did some price checking on three items that I took photos of a year ago, and then again this year to see if there have been any changes. There have been, but it’s definitely not as crazy as you would expect… well, except maybe for the bag of Doritos.

BEFORE IN 2013: 20.19 Argentine Pesos

NOW IN 2014: 28.49 Argentine Pesos

BEFORE IN 2013: 9.60 Argentine Pesos

NOW IN 2014: 11.99 Argentine Pesos

BEFORE IN 2013: 329 Argentine Pesos

NOW IN 2014: 239 and 399 Argentine Pesos Range

I’ll be creating a price comparison entry with more products soon, so stay tuned. Prices have an insane way of fluctuating here in Argentina, and what seems stable today can look completely different tomorrow. For now, though, the reality feels way less dramatic than the online headlines are suggesting.