Argentina.3: Pesos

The fact that Argentina's name comes from the Latin argentum, or silver, is ironic considering that half the population lives below the poverty line.

It was something that was on my mind but seemed almost incredible as Jessie and I wandered through the gardens in Palermo, the barrio where she lives.

The Rosedal and the Jardin de los Poetas are the typical idyllic city respites -- remarkably quiet and peaceful in contrast to the honking cars cruising by on the nearby aviendas. Inside these parks, rich portenos (what Buenos Aires residents are called) strolled around or sat on the grass drinking from their ever-present mugs of mate, the popular tea.

In the midst of all this is the American embassy, some kind of bizarre architectural refuge from 1970s Soviet Russia. I tried to take a picture of this monstrosity, but a nearby cop shouted, "Tsh, tsh, tsh!" which I am learning is actually an acceptable way of getting someone's attention here.

But all of this urban beauty belies the diverse socioeconomic makeup and complicated fiscal history of this fascinating nation.

In the decades after Argentina achieved independence in 1816, Argentina slowly developed strong economic ties with Europe and eventually became one of the ten richest countries in the world. Some of that fortune came as the Argentine government systematically exterminated thousands of aborigines.

The economy ran strong through the 1970s, with poverty below 7% and a strong export trade. Unfortunately, a military junta took power after overthrowing Isabel, the third wife of Juan Peron, and greatly increased the country's foreign debt.

After democracy was restored in 1983, hyperinflation soon plagued the country. President Carlos Menem, a poster child of the IMF, set a fixed-dollar exchange rate and implemented a number of privatizations and monetary reforms. While his policies made many rich, they also killed local industry and eventually slid the country into numerous fiscal crises. Poverty and unemployment skyrocketed.

In 2002, Argentina -- again, once one of the richest countries in the world -- defaulted on a massive international loan and ended its fixed-dollar exchange rate. Overnight, the value of the peso crashed and countless Argentinians saw their debts triple in value.

Since then, more comptetive exchange rates have stabilized the economy -- and made it an incredibly affordable country for Americans. At three pesos per dollar, dinners have averaged $7 each on the high end for us. Even in the swank restaurants, entrees seem to be no more than $12.

We continued to see the high class side of Argentina as we visited the Recoleta, the incredibly ornate cemetary that houses piles upon piles of dead portenos. Ornate mausoleums were all packed in to a walled section of the city, right next to the area where Jessie said, "You'll see more tourists here than anywhere else in the country."

Overhearing conversations in English was the easiest way to play the spot-the-American game, which I also won when I saw a guy in the Recoleta dressed entirely in Carhartt clothes.

We left the cemetary and headed over to the feria artesenal, the weekly fair that seemed to be a combination of impressive crafts and colorful hippies. The jewelry might not have held much for me, but we enjoyed an Argentine garage band until their generator ran out of gas, ending the show.

Across the sidewalk was an even more impressive show -- Capoeria. This incredible dance-fighting routine takes place in the midst of a roda, a circle where people sing and play instruments. In time with the music, participants square off in short, fake fights where they roundhouse kick over each other's heads, spin, and do incredible flips.