i can usually understand most political views, but libertarians just make me confused
This move is a necessity in Argentina’s Political and Economical situation, by shutting down the Central Bank (and subsequently moving to Dollars) Milei is killing the Politicians’ (long standing and abused) Ability to finance themselves with monetary emissions (their Agendas and Deficient governments just to not say corrupt money laundering), which is the cause of inflation, which makes all Argentines poorer by the hour.
It is if not his biggest, one of the major promises on his campaign and the one most people voted him for, Argentines understand (as seen trough Random Street interviews) that this will create major hiccup on Economy while they transition to dollar, but given it’s long tern effects are willing to put up with it
The long term effects are going to be serious whiplash. The monetary regime would go from severe inflation to super low inflation (below what Argentina needs). They will essentially be using Argentinian Government funds to buy US dollars, thereby helping the US keep its inflation under control.
That’s good for the US, but Argentina may fall into a recession. Growing economies need a growing money supply or businesses will not be able to borrow money to expand. By essentially hitching their economy to the slower growing US economy, Argentina is ensuring that their businesses pay high interest rates to borrow money. The US government is paying you 5%, risk free. Why tf would anyone loan money to Argentina less than 10-15%?
Remember how US tech companies all fired people at the same time when the Federal Reserve increased interest rates (it happened)? That’s what will happen to many companies in Argentina at the same time.
Edit: lol, he was just lying about “dollarization” for votes because it’s nuts:
He added no dollarization was planned in the short-term, as fiscal and monetary stabilization were need, the first source said.
https://news.yahoo.com/finance/news/milei-economic-team-led-former-175214678.html
Yes, its gonna be serious and difficult, but like said they are willing to put up with it… with they I mean the 55% that voted him of course…
And no, the dollarization was not a lie, like he said (his whole campaign…) it’s for the long term, first comes solving the gigantic Economical Deficit the State currently generates, then it’s Public Organization’s and then cutting taxes, only then he’ll move forward with it obviously because otherwise is suicide.
And this is very important to remark: News Outlets other than Javier Milei’s Official Twitter Account or the Government’s Official Channel (after December 10) ARE NOT TO BE TRUSTED. You may think this is just him shielding against media “calling him out” but there is a serious issue with Argentina’s News outlets: They are funded by the current government and are VERY functional to it. Other International Media arent necessarily but yeah it’s obviously more profitable to report “Argentina’s new president is A NAZI” than “Argentina’s New President Denies the Made up Number of Dictatorship deaths” (which just in case, the authorities that made up the number did confess to making it up in national TV)
Hell, its even as bad he’s been putting “Official Communication” posts to clarify that what the media is saying about his proposals or plans is false, including those claims of him backing down on Dollarization.
Oh yeah, a bank shutdown turned out great for Argentina the last time they did it.
I missed that previous time, I did a quick Google search but I’m not getting results. Would you know roughly when that happened?
In 2002, there was a major bank freeze overnight in Argentina. They reopened months later, and because of how they now pegged to the dollar, the value of the accounts were functionally cut in half. In those months, many local neighborhoods invented their own bartering systems and it was a whole mess.
This was around the time the USA invaded Afghanistan, which explains why most people don’t know about it, but it was obviously a major event for Argentina.
This is false, the Central Bank has not stopped running ever since it was opened and the event you are talking about is also not due to “it closing”
I don’t think it’s False, just you interpreted the reply to be related to the central bank.
Thats fair, however they are from the same person. Cohesion was to be expected
