Anxious Argentines tighten their purse strings

It seems that a lot of the news these days is focused on the ongoing farmer’s strike in Buenos Aires and it’s effect on consumer confidence. Guardian.co.uk is reporting on Argentines putting the brakes on spending due to rising inflation, the continued dispute with farmers and lack of confidence in the president. Many sources dispute the government’s numbers on inflation and suspect the real numbers to be much higher. Argentines also seem to be wary of the possibility of another financial crisis with many of them reported to be putting their money into US dollars.

There is no doubt that the 3-to-1 peso to dollar ratio was a strong consideration in my decision to move to Buenos Aires. Coming from NYC, the cost of living is considerably lower and my savings alone should be enough to support me for at least a year. While things may not be as cheap as they were immediately following the 2001 crash, for a New Yorker, things are still very cheap.  While I do not fully understand what effect these latest crises may have on the local economy, I’ll do my best to keep on top of the news and detail my experiences once I get there.

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