Every inflationary cloud has a silver lining: Argentina Edition

Oh Argentina, where one of the few booming sectors is armored car services!

Why? Well it’s not mentioned in the article (which is a pretty confused piece), but Argentina is a pretty disintermediated country.  People don’t trust banks (gee I wonder why) and lots of business is done in cash. Add to that the fact that years of high inflation have rendered Argentina’s largest denominated currency to be worth only $10 (and this is at the official ER) and you can see that cash moves around and these days it takes a LOT of cash to purchase major items.

In other words, purchasing power that used to fit in a wallet, now fits in a suitcase.

What used to fit in a suitcase, now fits in a wheelbarrow…..

As a famous man once said, solve for the equilibrium.

Here’s some free CG investment advice: short wallets, long Brinks trucks!

Hat tip to the inimitable Boz.

One thought on “Every inflationary cloud has a silver lining: Argentina Edition

  1. This market situation sounds temporary to me…What happens when the truck is worth more than all the money that can be crammed inside it? At some point you’ll need an 18 wheeler, and ultimately a train load of money, to conduct your business.

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