Argentina Inflation Causing A "Run on Coins"

[SevenEyedJeff]

I wonder how long until it happens here.

http://www.newsday.com/news/nationworld/ny-world175886786oct17,0,4370318.story

World in brief: Inflation creates run on Argentine coins

Compiled from news dispatches
October 17, 2008

Argentines are scrambling to get their hands on pocket change as soaring inflation makes the copper and aluminum that coins are made of worth more than their face value. Many suspect profit-seeking hoarders are scooping them up to stow away. Argentine annual inflation officially hit 8.7 percent in September, but independent economists say the rate is closer to 25 percent. One peso, worth about US $0.31, now buys so little, it makes more sense to melt down its metal, an economist said. Some officials suggest the scarcity of coins has triggered a black market, with dealers collecting and illegally reselling them at a hefty markup. That only takes more coins out of circulation, and the government is struggling to keep up with demand. On the Buenos Aires subway system last weekend attendants ran out of change, forcing them to let passengers ride free for two days.

 

[bill50]

Damn greedy people attempting to maintain their wealth! Don't they know that government sponsored inflation is what's best for them?

 

[jonahtrainer]

I wonder how long until it happens here.

It has been happening in the US.

 

[fj45lvr]

Argentina needs to do like Panama and have the US mint make their coin.....to GUARANTEE it's WORTHLESS!!!!!


Why would they continue using value???

 

[SevenEyedJeff]

It has been happening in the US.

I see that link Jonahtrainer is referring to mainly talks about gold and silver shortages, but what the Argentina article is talking about is - regular coins currently in circulation being hoarded. It would be like if in America it became difficult to find nickels, dimes, or quarters for change at the store. The Argentina coins we are talking about are made of Aluminum and Copper for example, not precious metals. But the currency is so debased even the base metals are making the coins worth way more than face value.

 

[jonahtrainer]

I see that link Jonahtrainer is referring to mainly talks about gold and silver shortages, but what the Argentina article is talking about is - regular coins currently in circulation being hoarded. It would be like if in America it became difficult to find nickels, dimes, or quarters for change at the store. The Argentina coins we are talking about are made of Aluminum and Copper for example, not precious metals. But the currency is so debased even the base metals are making the coins worth way more than face value.

Same difference; the legal tender coins are being hoarded because of the devaluation of the currency. The same thing is happening in the US with pennies (1909-1982 mintage) and nickels (1946-2008 mintage). The US Mint has even said they will throw people in jail if they take $5.00 of pennies and nickels the individuals own out of the US.

 

[tmosley]

They're melting them down for ALUMINUM?

Good God. That's really, REALLY bad. Aluminum is hardly worth more than the dirt it is made of (aluminum oxides)

 

[Dr.3D]

Argentina needs to do like Panama and have the US mint make their coin.....to GUARANTEE it's WORTHLESS!!!!!


Why would they continue using value???

Well, even using plastic poker chips in place of metal coins would not be cost effective. The plastic would cost more than the currency is worth.

 

[RideTheDirt]

http://mises.org/story/3069

were living in loony land.
crazy ass bankers....
I don't know how many times I can ask...Why are these men not in prison?!?!