What experts think of ‘anarcho-capitalist’ Milei’s plan to dollarize the Argentinian economy?
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- čas přidán 3. 12. 2023
- Replacing the Peso with US dollars and getting rid of the central bank, that’s what Javier Milei, Argentina’s recently elected president, has proposed as part of his radical economic agenda. We speak to two experts who give us details on what could be Argentina’s road ahead.
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#Argentina #Milei #dollarization
Goldman Sachs calling for fiscal responsibility must be the most hilarious thing i've heard since 2008...
Libertarian Paradise?
lol, some experts 😂
Considering what happened on 2008...you are right on all accounts.
Bailing out the banks is more of that socialism for the rich.
@@tabo01 I will point out that bailing out the banks was the first major step of President Roosevelt's New Deal.
I keep hearing that dollarization is a 'radical' policy. I think that is true. But not nearly as radical as an inflation rate of 130 percent and growing.
Exactly, if Milei could control the peso printing and prevent a reversal of his policies in the future, it would probably be best to stick with the peso.
But there’s the chance he won’t be able to keep control of the central bank, and even if he does, there’s a high chance the peronists take back control in the future and restart the machine.
Dollarization is the only way to permanently shut the peronists down.
@@J7Handle Well said. There is a considerable degree of dollarization that has already occurred. There are two ways to do dollarization. One is the Ecuadorean method of just abandoning the sucre. The other is the Salvadirian method of allowing the two currencies to coexist and allow people to decide on their own which to use. I don't think Argentina has the money to buy up all the pesos, so the Salvadirian method seems the most likely. It is amazing how these 'experts' just ignore the damage done by the socialists/peromistas and attack Milei as a radical. It will be interesting to see how he will negotiate all this, given he has so few supporters in Congress. It will also be interesting to see how his support holds up given the tough times ahead in the country.
@@dennisweidner288 he said in interveiws that he strives to go the salvadorian way ( i think a spanish interview with bloomberg if i recall correctly)
@@jewhunterbiden Thanks. There is little reporting in the American press on Milei, only his surprise election victory, and because he likes Trump much of what is reported is negative.
Argentine American here…the country is practically already dolarized in every except on the books. If you want to buy real estate, you have to have physical dollars. Most large purchases and investments require everything to be done in the USD. Pesos are used for everyday purchases only and even then, the prices reflect the equivalent dollar value.
"Expert" : Someone who got us into this mess.
They are the same exeperts that said there was NO WAY Trump would win in his first election lol
Sooooo true!
Corrupt politicians did…
@@rubenssilva6902
No, they are actually different experts from a different field.
@@Ninjaananas its a comparison made to show how engenius experts are
Im from brazil and if you look at our economy you can tell "truly are experts"
In both Ecuador and El Salvador, which dollarized in 2000 and 2001 respectively, dollarization involved parallel processes. In both countries, the most straightforward process was the dollarization of all existing deposits, which can be converted into dollars at the determined exchange rate instantly.
And both countries are success stories 😂😂😂
@@silotxmore sucessful than the other countries of LaTam for sure, just look how much is the basic salary of those country vs. The rest
@@Robert-pi9lvin which metric?
@@silotx without dollarization Ecuador would not exist anymore. Ecuador has another problems now that does not have to do with inflation, or better to say, the inflation existing is the result of other sources of economical crisis. Dollarization is a guarantee to put end to inflation, period. Ecuador dollarized with $1=25.000 sucres, which was terrible but Ecuador was 2 much worst than Argentina. Milei offers to dollarize under 1.000 pesos, wow. For what the panorama is, that sounds a good deal to start build on. I am not familiarized with El Salvador economy but it seems it came as the Ave Fénix from the ashes thanks to Bukele´s policies. So do not laugh, instead, research. Instrúyete.
Milei - Chabad puppet
I think it is unbelievably outrageous how a fair and rich country can be so badly governed that it has ended up with inflation and interests in the class of 140 %. I wish mr Milei all luck in the world!
Argentina is going to be like idiocracy the movie with this new president.
@SG_DesertFoxX97 so more of the same but worse.
Fair and rich for who?
Milei doesn't need luck, he needs political skills and the ability to pick good advisors
@@spiritualauthority1568The huge socialist momenclatura.
Even though other countries have dollarized this will be one of the most exciting economic experiments in history.
Argentina is very different from the other dollarized countries. It is one of the largest exporters in South America. Around half of Argentina’s exports are crops and one third manufactured goods. Most of the manufactured goods are sold to neighboring countries.
Really looking forward to see how it changes Argentina and their neighbors.
If they weren't so far in debt, they might be able to do it, but I don't think they could right now.
The word 'exciting' is definitely not the word that comes to my mind with these radical efforts being pushed Melei.
Exciting for You looking this from outside. Buy bonds if You want live the real experience
He is 🇮🇱 🐶
That's how desperately the country is to get out of its' continuous recession and hyper inflation.
Its always hilarious to watch bureaucrats and "experts" say you can't shut down an institution once it is in place.
What is an expert to you?
And what makes an “expert” on the shutdown of an institution like a central bank ? Oh wise exalted Rando of CZcams.
Agreed. Institutions are started by people, and can be shut down by people.
They Say You can't not because is impossible. But because Across the world ,Across history ,Across cultures, Across currencies. Is suicide and civil war
It's like saying : You can't chew your on hand off to stop having SO much fingers....... Not because it's impossible. But because it could kill You and cause pain. Also it's crazy on so many levels
Why should we care what the Experts say. They got us into the mess.
In Argentina's case, they got themselves in that mess by constantly ignoring the experts and enacting policy mainly based on Ideology and populism. That was the whole problem with Peronism in the first place (as well as the authoritarian-lite attitude)
Unless youre the expert is guess
Ecuador's conversion to the dollar helped to stabilize inflation but was a painful transition. But policies can't overcome corruption and division.
A smaller bureacracy helps. It's easier to hide corruption in large bloated government than in a small government.
As an Ecuadoran who experienced the dollarization process first hand, I can tell you that nothing is as painful as being constantly swindled by the state. The dollar was already a safeguard to prevent the vaporisation of our meagre economies. When it was declared that we will no longer be paid in sucres, it was a major relief in spite of the tremendous devaluation that the government announced with the dolarization decree. It took a couple of years until nobody complained. If there is something that our people are not willing to relinquish that is the value of our incomes and the introduction of a "Venezuelan or Argentinian" experiment. We've got thousands and thousands of Venezuelans in our streets who remind us the price and doom of socialism.
@@bastiatintheandes4958 Your username suggests that you have good foundation in economic literacy! Viva l' Austrian school of economics and Bastiat (a precursor to the Austrian school). Good luck!
If you close the tool ( the central bank) that can be use for corruption (printing money out of control) yes, you can overcome corruption.
It's always a painful process to reverse bad monetary policy. It was painful for Greece. It was painful for Germany. It will be painful for the United States. Ripping off the band-aid like what happened in El Salvador, Ecuador, and Venezuela brings about the pain quicker and more noticeably. But it turns around quicker.
Now what is dumb is what Zimbabwe did. They also dollarized. They saw massive year over year growth. Then they reintroduced their currency with the same policy that got it in trouble in the first place.
Argentina is a perfect example of the government printing money unchecked. Dollarization without cutting austerity is useless. People in Argentina must understand what they’re asking for to make an informed decision. Argentina is definitely heading towards an interesting crossroads.
Case study for the whole world for most pity the world isn't allowed to print fiat from thinair thou
It’s very NOT useless, with local currency the government just prints money and steals it (partly by handouts to voters) and the inflation change occurs months later, so when you know it’s too late. With dollarization if the government steals people know it in the same instance, and they can’t steal through emitting and raising inflation, so they’ve got to steal from somewhere else, so it’s not unhinged, and there’s a price to pay, besides, it’s a democracy, they don’t steal if the people notice it.
at least money printing will cease and force austerity, this is all the point
They can’t print money if they dollarise. The whole point is Milei (and most others) think corrupt Latam politicians can’t be trusted with monetary policy.
The institution was never built correctly. You cant put the printing press in the hands of politicians. Especially socialists but anyone who promises to spend when there is no tax money coming in. It has been done in many countries before either through malicious actors or ignorance.
It appears that Goldman Sachs was not closely involved when Ecuador adopted the US dollar as its currency. At that time, Ecuador was among the nations with the poorest fiscal responsibility. However, it was the implementation of dollarization that effectively curbed the previously irresponsible fiscal behavior in our country.
U are diluded 😂😭
@@wilmanflores5772 well since then Ecuador is one of the lowest inflation economies in the region with Panama (who is also dollarized)
@@miguelcastaneda8944 Yeah, and now fully narco-capitalist!
@@wilmanflores5772 don't use words you don't understand. Go read a book.
Milei's plan is very similar to Ludwig Erhard's. End price controls, remove limits to importing, reduce debt and make a monetary reform.
It worked for Germany, it can work for Argentina
Germany is an industrial power, Argentina is not. it is pure dumbest to recommend policies of country like germany, US and china with no understanding how powerful those economies are that they can operate on rules completely different from other countries.
It's not the same. Germany is much more advanced and years ahead of Argentina. Like the other comment they are an industrial power. Not Argentina.
It absolutely can...if it's ALLOWED to. Many South American countries (in particular) have a strange fascination with leftist/socialist/communist forms of government. Likely due to the massive gap between the wealthy and ABSOLUTE poverty. 3rd WORLD POVERTY. Not what the West thinks of as "poverty". I HOPE that most of their citizens...after DECADES of FAILED, socialist "experiments" are willing to give something else a fair go.
Si, de lujo, funciona tan bien que ni siquiera tienen soberanía para decidir si el Nord Stream 2 comenzara su funcionamiento.... vaya ingenuo típico
@scottbaron121 Couldn't be all the dictators and foreign lobbyists ploting coups undemocraticly outing socialist presidents, surely.
I remember studying Anarchist ideologies, such as Anarcho-Capitalism, when I was a teenager. Not only is Milei Argentina's first Anarcho-Capitalist president, but probably world's first self-declared Anarcho-Capitalist head of state and government. Now, Milei talks a big game, but there is a boundary between fantasy and reality, his ideas may be worthwhile, but enacting his policies will be an uphill battle.
The entire left on Planet Earth will fight him and his ideas. If he is successful, bye bye the Welfare state and Socialism in economics... 😉
There is no such thing as anarchy under capitalism, since the only accepted metric in this context is money - an money under capitalism is a tool for domination... This just code for radical deregulation, cheered on by people how don't have the first idea how anything works.
Argentina also is very US like in how it’s political system is structured, the President does not have unlimited power to pass laws. It will be very interesting to see what happens
I have seeen all financial statements and balance sheet from countries who use dollarisation. One thing that those countries have the 2nd same mistakes, rely on a country. When they have decided to use dollar, they have to generate the dollar that they dont produce their own. Hence they have to borrow money and generate their own from their markets. As the USD is one of the most expensive currencies and mostly it is manipulated, it will mostly create troubles for export. That's why their import mostly higher than exports, their debts are higher than others and the bad thing is if they fight with the USA, the USA can play on the USD supply.
Stable? Their data doesnt show the impact of the fed interest rates.
If there are other world currencies sell cheaper than the USD, why does Argentina use dollar? Argentina can also look at ASEAN who mostly use local currencies to imports goods and borrow money in their own currencies. Hence they see USD is just like other world expensive currencies like Pound. No matter how expensive the USD is, it won't broke them. When the USD is going down, their GDP automatically increase like today as all goods, income etc thanks to Breyton wood are measured in USD. If the USD drops in value, all countries in the world who don't use USD can pay debts faster and be rich.
I can't find where he says that he is an An-Cap, just people saysing that he is "self described". From what I see of him, he doesn't look like one. A libertarian, sure, but not a An-Cap
I wonder if they are the same "experts" that advised in the past and watched Argentina tank simultaneously...
Funny that. It seems they are.
Most likely
They are the same.
It’s doesn’t sound so crazy when you consider that argentine economy is deeply influenced by the dollar, salaries may not, but prices of goods are mostly set on USD, even more if you are a business. Cars, real state, rent, are all set on dollar, even if you sign the contract in pesos, the price is set on USD, so we are not that far off really.
lol
Tl;dr: the guy interviewed said Argentina's economy is already de facto dollarized. I was in Ecuador when it went through dollarization. It had a major stabilizing effect, though there was a brief period of inflation as people figured out what a dollar was actually worth.
Terrible. This reminds me Greece and the other PIGS losing control over their currency and relying on Germany/Euro.
Yes, good example, because Argentina is great with 140% inflation.
There is economics and then there is Argentina lol.
"There are four kinds of countries in the world: developed countries, undeveloped countries, Japan and Argentina" - Simon Kuznets
It was 14th richest country in the world at the beginning of the 20th Century... Socialism and Welfare state destroyed Argentina...
@@jfm148 "Socialism and Welfare state destroyed Argentina." That's a very bad take to have. Argentina is poor not because of a welfare state or Socialism, it is poor because never recovered and adapted its economy after the 1929 stock crash. It continued to focus on low productivity industries, failed to invest in it's human capital and adopted autarkic policies that hurt it's international exports. As a mirror, the US immediate a welfare state right after the 1929 crash, invested in infrastructure and education (especially after 1945) and remained strong. All of the EU remained wealthy by instituting that welfare state and social democracy. Argentina had a head start in the 1890s that is squandered, over and over and over again.
Argentina failed because it's political elites were and are able to placate the populace, both poor and crony business with worthless short term platitudes that kick these structural issues to someone else.
@@serebii666 "US immediate a welfare state right after the 1929 crash, invested in infrastructure and education (especially after 1945) and remained strong" - No, the US grew strong by winning a global war while keeping its own industry intact. Not by building random lighthouses in the middle of the wilderness with government money so unemployment stats look good on paper.
"All of the EU remained wealthy by instituting that welfare state and social democracy" - That's how Europe stagnated. The welfare state we have in Norway would be impossible without oil & gas money. The welfare state is also what ruined Sweden by handing out free money and housing to half the Syrian, Afghan and Somali populations.
@@serebii666 So basically, developed countries have many good things that work, developing countries have many bad things that don't work, Japan runs on nothing, and then, The Argentina has everything (mostly good things) and has everything screw up.
We are constantly bombarded by the opinions of experts, across every aspect of our lives, yet here we are, living in a world of turmoil.
Our world is is SIGNIFICANTLY less turmoil than ever before.
Even in the richest countries people used to be starving not very long ago.
The industrial revolution and capitalism has basically ended poverty in a large part of the world, and the only thing holding the rest back is corruption.
@@carlpanzram7081 indeed, but the experts continuously influence large parts of the population to follow the very corrupt. They use science and social issues to push phony agendas so the elite can keep stealing and then the so-called experts get funding in their fields of study. It’s a perpetual cycle that won’t end until people reject academia and it’s agents of chaos.
So the talking heads tell us.. the same ones profiting off drumming up drama.
Next time you get on a plane or get surgery, just say no to “experts”. Get someone who has never flown a plane or performed surgery 👍
There were probably a number experts who agreed with the policies that got Argentina where it is today.
"anarcho-capitalist" oh boy, I didnt know cutting and saving up is anarchy lmao
But he calls himself anarcho-capitalist.
I wonder how the dollarization will affect Argentina’s competativeness on exports
Our exports are mostly soybeans, corn, beef and such. All of these are usually expressed in USD. It shouldnt change anything.
In a sinister way, I could make a joke out of it: since most of Argentinian exports are grains and edibles, then there isn't so much to lose...
all the pricing is control by comex and listed in dollars. thrrefore dont need a middleman to convert to pesos.
Their economy has been stagnant for sooo long. At this point, if someone breaks the Argentine economy, it will be good.
Exports will be easier to fulfil.
For Brazil the dolarization of Argentina is good news, exports will be booming (again)
Won't be long & the USA will demand their vassel states boycott BRICS countries.
Lol
You can't just magically dolarize your entire economy. You have to actually buy us dollar, but with what?
with goods? there are things they have that other countries would want.
@@RoseNZieg YES. This!! Argentina has resources that others will buy. And so Global Corporations e.g. BlackRock will move in & take the business from Argentinians. This is the reality of bankrupt countries. And Argentinians voted to take the businesses out of Govt hands & give it to foreign businesses for a few pennies.
Anytime i hear "EXPERTS" i roll my eyes.
Technically, Milei *is* an expert on this topic. Check out his creds.
As an American that has lived in Argentina before, I think Milei has all the right ideas. He is very transparent about his ideas not being a quick fix. He knows it will take decades of work to reverse what other corrupt politicians have done. I truly believe Argentina is one of the best countries in the world with some of the best people in the world. Wish him all the luck in the world, he will definitely need it. Hope to see Argentina rise as a world power one day.
You're right but here, the people who want a change want it quickly and without sacrifice, and let's no forget what the dominant and increasingly powerful opposition party has always done with governments that aren't one of their own: destabilize, generate disturbances and, if it's possible, overthrow.
He is being very real to and very honest by saying that they are going to have a period of pain to get the country healed. I wish that US politicians had the guts to say and do what he is doing.
@@robvog8134 I thank you on behalf of those who voted for him with full awareness of our reality and the reality that the change ha proposes implies. However, and as I anticipated in my previous answer, complaints have already begin about his "apocalytic announcement"... they don't want to understand that they've been subjected to tremendous sacrifices by the same party for 80 years (even bl00d sacrifices brought by that party subv3rsive t3rror1st ranks, responsible for the return of military dict4torships with more bl00d sacrifices) and that, the only way to cut this vicious circle is to endure a great effort al all cost if we want our descendants to one day inhabit a dignified Argentina... as it once was.
You are right muy guy, the problem is most of the population here cannot see more than 2-4 years into the future 😢. And lets not start on how most of the population vote thinking on their own and not in what will benefit the most people.
@@RockBrentwoodHe's talking about continuing that project, wich would really need more than uninterrupted 30 years (in wich someone can emerge to continue his ideas) to recover Argentina growth. It would be ideal for him to have a second term because not all the necessary bases can be established in 4 years... but, sadly, we must first hope that, in what would be a strange event in our country, that powerful opposition let him govern.
Argentines are incredible people. They have maintained a decent society despite their currency completely failing. It must be very tough for many, especially the poorest.
In regards to what is legal tender, the ideal situation is to not have legal tender. People should be free to use what is mutually agreeable. In this age of smartphones and high speed mobile data networks this isn’t too hard. Allowing central bankers and politicians to decide what is legal tender is like allowing convicted murderers to make judgement in courts of laws.
It should be bitcoin, of course.
Thanks for your appreciation. Many of us have maintained our dignity and made big efforts imposed by the same party/people that governed for 30 of these 40 years in democracy, but our society didn't emerge unscathed. From the government itself, through national television, they've installed h4tr3d towards those of us who don't agree with their policies, they've said that we're the enemy to fight and that we should fear our twice President and still today Vice President (who was tried and sentenced for corruption acts and is prosecuted in many other cases). That same government unleashed the crime until it has us living in terror because every day there are deaths just for a cell phone or a pair of sneackers, it opened the door to drVg cartels, it has co-opted every institution that should be independent, it has degraded essential system and kept millions living exclusively on state benefits in exchange for votes... it has stolen from us even what we don't have and has multiplied poverty like never before in our history as a nation. No, our society is wounded.
@@Dan1elAndrade if they want to use bitcoin that is fine. However I think bitcoin has a huge fault as money. Bitcoin is designed to appreciate in value over time. As a result if you have bitcoin it is in your interest to hold and not spend it. We have all heard the tale of a pizza being bought for 200 or 2000 bitcoin or whatever it was back in 2009. I know someone who bought a lawn mower in 2011 with bitcoin. If they had bought the lawnmower with dollars they could have sold the bitcoin used to buy the lawnmower and retired. Also bitcoin will fall off a huge cliff in the end as the incentive to mine will evaporate after the last bitcoin is produced. The mining of bitcoin will cease as there will be no incentive to mine. The network supporting bitcoin will disappear.
We need some form of currency that is out of the hands of politicians and central bankers as they cannot resist the temptation to create more money to make up for their failures. This currency needs to be relatively stable in value, possibly gradually appreciating in value. Fiat currency has done the opposite, gradually decreasing in value.
As an Argentinian, I strongly want to push back against the qualifier “decent” 😂
@@Snap_Crackle_Pop_Grock Well.. in any case, he should have that many Argentines are decent, because some of us are (I don't know how many 😁)
Why they just not default on the debt and start all over again , they have done that in the past
Why not summon the heads of the central bank and tell them : from now on your mission is to fight inflation ?
They will fight it
By printintg more money
Argentina has an interest rate of 133% which is crazy (though understandable with inflation at 150%). It must make borrowing money next to impossible if the loan value more than doubles every year.
I think the Latin American countries should try to create a currency similar to the Euro. It would give them a say over monetary policy and unlike with dollarisation, they wouldn't be relying on the USA Central Bank to make decisions in their interest. But it would be backed by the entire economy of Latin America.
Best of luck to Argentinians.
yeah argentina should probably float the currency since inflation is so high
Naw they should dollarize.
Your idea would be great if it wasn't because Latinos are messy, corrupt and oftenly treasonous. I know what I'm talking about, I'm from Costa Rica and it amazes me how much my own country is idolized. Just take a look at our depressing reality, Venezuela has large deposits of oil and can't have a stable currency, Bolivia has more minerals than it can extract and is poor, Brazil is the biggest economy but also the most unequal. And that's just the start.
Latin America is a basket case.
The Latino would be the worst currency in the world…😂😂
Toilet paper would be more valuable and stable, not to mention useful…😂
Nobody in South America wants to share a currency with Argentina because we would have to share their inflation.
I want to know how many people in the world actually understand real world macro economics, central banking and currency circulation
Not me, that's why I'm reading the comments lmao
honestly probably only a couple of thousand. I am an economics master's student with a GPA above 1,5. And I don't consider myself among that number. It's super complicated, I don't even think most of my Profs really get it.
not in the world. Just Argentina. Central bank has been used for populsim the last 20 years
Fascism cronies seem unhappy
Politicians dont care about economy, grabbing power is all for them. Consequences? only economists proponants of increasing governements power have any meaningfull access to mass media
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'A desperate situation require an extra ordinary measure' in order to place a badly managed nation back to its right path. 🤗🤗¡Viva la Argentina!
This doesn't make sense on so many levels...
yeah but libertarians are getting excited as long as he wears the an cap costume 🎉
Don't tell that to libertarians 😂
Dollarization for a country that is MINIMALLY integrated with the US economy means you're taking whatever monetary policy is being applied in the US to your country regardless of whether it makes any sense at all.
THAT was what destroyed the LAST Argentine attempt to "dollarize" under a "currency board" regime. The country had the bad luck of hitching itself to the US dollar just as the Fed was tightening money supply: the US dollar promptly rose relative to other currencies, making Argentina's exports hopelessly uncompetitive.
If you don't allow your exchange rate to fluctuate, you're condemned to have to adjust to economic shocks through changes (often DOWNWARD changes) in wages and prices.
Argentina's problem is that its central bank has never been independent (or at the very least hadn't been in a VERY LONG time), making it a partner (willing or not) to decades upon decades of fiscal profligacy on the part of its national/federal government.
the BCRA was nationalized in Peronist times, it was independent for a period of time
@@randomstuff-yo4qzEven though it was independent, it was a scam.
You're wrong. Dollarization is a wonderful thing for fighting extreme inflation. A good case study is Ecuador, which dollarized in the year 2000. Please google the Ecuadorian inflation rate prior to dollarization.
Kind of like adopting the Euro. An individual member will not get a perfectly tailored interest rate for their circumstances.
@@SirHargreeves Absolutely: Greece (and southern Europe generally) have paid a very steep price for the price stability that the Euro has brought them after decades of lax fiscal and monetary policy (though admittedly nothing like what Argentina has been through for much longer...)
The experiment already happened.
In 1889, Puerto Rico suffered a 40% currency devaluation, crippling the Puerto Rican economy. This was caused by the United States setting up the American Colonial Bank and declaring the U.S. dollar as legal tender (the official money) of Puerto Rico, changing it from the peso.
However, in 1899, one peso was only worth 60 cents, meaning the local businesses of Puerto Rico and its citizens lost 40% of their net worths overnight from causes totally outside of their control. This resulted in Puerto Ricans, attempting to save their net worths, borrowing money from the American Colonial Bank. However, high interest rates made it very unlikely that locals were going to be able to pay back their loans, causing many Puerto Ricans to default on their debt. The result was that the bank seized their assets (in these days, typically their land).
They are wrong about it never being done before. What is normally done is capitalism the services of the bank, leaving reserve bank centralised leaving 3-4 private banks acting as the centre of economic growth. This model has worked well in countries like Australia.
Government spending is the problem. The central bank prints money to finance Argentina’s out of control spending, and inflation roars ever higher. It’s a cycle on repeat.
Exactly, if it changed to usd, they would lose control to print miney when they dont have enough@ The u.s barrows money, but which it can not Argentina it has zero credit worthiness! Hood luck! 😂
And the big corruption, those billions that were stolen from us by the same people who'll be in power (and will continue to be from the shadows) until December 10.
@@ezragonzalez8936That is why the first step of the plan is to pay the debts and eliminate the deficit, but it is obvious that we cannot now.
@@Cabeza_de_termowhy don't you pay the debts and eliminate the deficit now, without dollarisation? 👀 It only takes fiscal discipline and thoughtful apendic to curtail inflation
@@Diegallo90 First step is to do so, second step is dollarization, third step is abolishing the central bank. You're right on, it's just hard to find unbiased information out there.
"Put your faith in the USA Fed!" Says those who own lots of dollars.
this will just make all those privileged even more powerful in AR and controlled it even more. Hard to see how's that gonna be better for the arg people ..they certainly will not just starting caring about their people now
4% is better than 140%
Even worst case US inflation (i think it reached somewhere between 8-12 % is still a magnitude better than Argentin'as current inflation of 1143%...)
Which fits the bill for the Argentine population. Argentinians save in USD already, not pesos. There is more USD per capita in the country held privately than almost anywhere else in the world.
Argentinians using the dollar isn't going to increase the value of the dollar except infinitesimally.
Considering El salvador in Central America went to “dollarization” in 2001. The country does not print its own money. While short term, Salvadorians felt a depreciation of assets, you have to be optimistic in the long term. El Salvador use the dollar as national currency. And while previous to 2001, the dollar to colones rate was 1:8.50.
El Salvador went trough the same thing many decades ago... DOLARIZATION DOES NOT WORK!
When you depend on another country for you currency then you have no control over it. A very bad idea.
It is government control over the peso that resulted in 140% inflation rate
When you're a toddler it may be beneficial to have someone else pressing the buttons for you.
Choosing the US FED over the Argentinian national bank may be the lesser of two evils here....
lmao euro absolutely saved small kleptocracies such as slovakia
At least someone understands this.
The challenge of dollarizing a country in crisis because it doesn’t have dollars.
Argentina does have large amounts of USD held privately, such as peoples' savings since USD is more stable than Argentinian peso, which is why this could work.
@@theonlycaulfield "which is why this could work." Yea... by nationalizing and confiscating everyone's savings just like the Soviet Union did. You are insane to even propose that. That large amount of PRIVATELY HELD funds is good for only 1 thing in this situation - adding liquidity, nothing more.
Yeah, but they have A LOT of natural resources which are best sold in USD.
@@serebii666 What are you talking about? I never said anything about confiscation. I'm saying it could work as the note of exchange as people have USD on hand.
@@theonlycaulfield You said " does have large amounts of USD held privately" So how are those funds supposed to become held publicly, i.e. by the government? The government would need to confiscate them to use them, since those funds do not belong to the State, they belong to the private individuals who have them stored.
"I'm saying it could work"... only if the government confiscated people's private property (i.e. their savings) to use for itself as public funds, like how the Soviet Union confiscated all the property of the bourgeoisie, including their savings in the various Russian local banks. Are you starting to see the basic picture?
The government cannot otherwise touch that money, that is not theirs, certainly they cannot use it to finance public works, the budget etc. The only use that private money has, is as liquidity in the market itself. Argentina's budget is currently 98.6B. They have less than 18B USD in reserve. So unless they confiscate their own citizens' private property to increase that reserve, they are broke, since they cannot issue new debt after dollarization.
So you saying Argentina can dollarize because of the huge amount of private savings literally means proposing confiscating those private savings.
Its not like the USD isn't inflated either.
I'd hate to be the one that tells him the US fed prints dollars like confetti.
The good news is it’s still much less confetti than the Argentine government. While we can be critical of the US government, we shouldn’t lose perspective.
But USD is still the highest demanded currency in the world. Nobody wants Argentinian peso, so printing money is totally different in both cases.
Ty
Exactly. They should use real gold and silver nothing else. The dollar is washed up.😢
So, you avoid dependency on the own central bank to depend on the central bank of America... I am not economist but I don't see the solution will be depending completely on America's economy...
Sounds dumb but it means Argentine governments can't print money to afford unrealistic public spending and makes embezzling harder, thus weakening the left-wing parties who rely on such for their votes and in the process destroy the economy here. The fed is awful, yes, but they seem downright benevolent compared to the BCRA.
The problem has been that the Argentine central bank was never independent enough to resist the politicians’ calls for more money.
The American central bank will resist Argentina’s politicians.
Dollarization is the modern equivalent of returning to the gold standard.
You are right it’s not ideal but it’s much less bad than the fiscal policy they’ve had. As others have pointed out, the inflation rate being over 100%, and these types of issues have been issues for Argentina for a long time.
@@SonnyBubba Sticking with a inflated currency definitely has nothing to do with returning to gold standard. Dollars are VERY overinflated at this point and the USA is not a reliable country anymore.
Yes, you are right
Because argentinians are saving in dollars and not in pesos, we exchange very much these currencies, and this generates a pyschological/economical effect on our peso, it devaluates because we keep selling it for dollars…
So the president will give us dollars to stop panicking for a moment, and stabilize this effect
You got several things wrong. He dont want to move to the dollar to lower the inflation , he wants to move to the dollar and abolish the central bank so in that way other governments cant use the central bank to get the country into debts and with that force the country always have a balanced book. You can see that because he first wants to lower the inflation to single digits by very harsh austerity and then he wants to move to the dollar and close the central bank. So again he dont want it to lower inflation. Other thing this is not the worst crisis , the 2001 was worse and that was provoked by a period that is almost identical of what Millei wants , the Menem period was when the peso was pegged to the dollar in a 1 to 1 ratio and it destroyed the Argentinian industry and it had crazy high unemployment numbers and very high poor %.
@chaoticmind176 A stable currency has a positive impact on poverty, employment, investment, and economic growth.
check what happend to argentina when ity had a stable currency in the 90's unemployment skyrocked and poverty grow like crazy because it destroyed the national industry and economy , the only way they could keep the lie go on was by borrowing money from the IMF that all exploded in 2001 bc lots of people were so poor they needed to exchange goods for other goods like a barter system its called trueque here . For a big economy like Argentina it doesnt make sense to swap to a currency you dont have control over. The only thing that does make sense in his program is making the government smaller so you have your budget under control @@dennisweidner288
@@dennisweidner288 But dollars won't be stable if USA is facing a brick wall in the future.
You have to wonder why all these offshoot MSM companies are trying to portray this guy as a villian! 🥴
i guess most haven't seen all the declarations of milei. everytime he's asked what would the common citizen do, he says "he doesn't know". He even declared he doesn't look at the micro-economy of the household, he just cares about the big numbers and aggregates.
This week, in a couple of days, he removed the tax exemption to the basic consumption items. The arg/usd rate climbed around 50% (in a couple of days). And he announced the return of tax for income (affecting everyone). So he capped acquisition power of the average citizen by around half, in a couple of days.
I don't think he'll be able to end his term. He must have the presidential helicopter on hold.
I couldnt imagine this scenario here in my country philippines which also has the peso currency. I was very surprised by this move and to know that other latin american countries are also doing this. Pretty bold move.
The "peso" was its value in gold, meaning weight. Now the Fiat currency called the Argentine peso is rubbish that is not even useful for making fertilizer. It is so absurd that when the central bank talks about reserves, it refers to dollars. Milei is just being honest about what they do but don't admit.
Its crazy. I always hoped it latAm would get a common market like EU. It'd be funny if it ends up with the dollar as that instead of some original currency.
Jeez, what a gullible comment, just because the peso has the same name it doesn't mean it's the same thing 😆
The Philippines is poverty stricken with a kleptocrat as President. The Philippines is hardly an example to be held up as an economic success.
@@DSan-kl2ycisn't there comunidad andina??
The problem with anarcho/libertarian types in government:
It's very difficult to distinguish between power abdication and negligence.
Ultimately, where did the power that was abdicated here end up? With the people of Argentina?
No, the power is going to Washington.
There's some forms of power that are essential, arrived at by democratic consent. They can't be liberated, only abdicated.
I favor democratization of power, personally.
It's ironic how often the libertarian types just end up creating the conditions for larger scale organization, isn't it?
No, it isn't like that. He never mentioned abolishing the state system, rather reducing it because it's the one who has been robbing and indebting us internally and externally (with huge corruption) for decades. Therefore, much less did he talk about dethroning democracy! He's a libertarian, and he regnizes that his tendency is anarcho-capitalist but that Argentina isn't even remotely a country to apply measures even close to that given that the dominant V3nezu3la style populism for 30 years have left us with our elementary institutions absolutely corroded.
Libertarian types ALWAYS end up either creating CHAOS or just trying everything but actually governing and then suddenly they come to the realization government must govern, which everyone told them.
@@thomashagg8574 I'm more concerned with power. Argentina's going to lose a level of autonomy if it uses the dollar.
Probably part of the solution is political activism in the wealthier countries.
It looks to me like global financial capital is turning Argentina into a permanent debtor country. This is not necessarily in the will or the best interests of the American people. I'm not sure I want the Federal Reserve to have that much power over the Argentine economy, and conversely, I'm not sure I want the Fed to have to consider Argentina's economy when setting interest rates!
It will likely take working with a sympathetic American administration to actually get anywhere with global debt restructuring.
Maybe it seems hopeless, but if it's the only way to resolve the issue, there should probably be more trying that first.
Using the dollar is a sub optimal long term strategy.
@@ywtcc Dollarization has been a net positive for nearly every country that has done so long term. And no, the Fed will not consider Argentina (or any other dollarized nation for that matter) when it comes to intrest rates. The current currency of Argentina is famously awful in large part due to mixing a socialist-leaning government with economics (which has been an issue for lots of south American nation). You can't really print more money to fund government projects with a dollarized currency, which is a long term play when eventually other parties that want to start spending again get elected.
Or to quote Thatcher: "Socialism works until you run out of other people's money"
@@relo999 The Fed does have to consider all the American money, wherever it is, when setting interest rates.
Thatcher was against giving up the Pound in favor of the Euro, for pretty much the same reasons I'm against Argentina losing the Peso.
As you observed, she didn't like using other people's money.
Money is a method of social control. All your markets are being regulated when government sets interest rates. It's completely necessary. Argentina is just getting another country to do it for them.
Once a country looses its currency, game over. Whoever owns the currency own the country.
It cannot get worse, so I hope it will get better for Argentina
This is the first report that mentions the dollarization of Ecuador which did immense good for the economy. Now Ecuador is one of the most expensive countries in South America which forced salaries to increase too. It didn't solve all issues but certainly helped.
Ecuador biggest revenue streams are oil exports and ex-pats transferring money back to relatives in Ecuador.
dollarization also made Ecuador a ripe spot for transnational organized crime - money laundering is easier - and they're now the most violent country in the continent. Argentina, with its corruption culture but also their huge ports facing the Atlantic, would also be very tempting for that "industry" if they dollarice.
@@franug Indeed and very sad to see that people took advantage of this to make the worse violence but for more than the first decade after dollarization things were much better. So, I would say it is not a direct result of dollarization alone but a combination of regional events. We moved away a few years ago back when it was much less violent but the economy was making jobs scarce.
@@franugThe statement that Ecuador is "the most violent country in the continent" is so blatantly wrong. Ecuador is literally one of the safest South American countries. Venezuela and Mexico have extreme levels of violence, and Brazil has an insane murder rate. Is there a source to your data?
@@Rammstom2
mentioning Mexico while speaking of South American countries is crazy
Beware anyone that offers easy solutions to complex problems.
Is it complex?
Like blaming everyone but yourself?
Easy solutions to complex problems is socialism. Javier Milei says you have to take accountability for your own decisions and nothing is free. Also, our economy problem is not complex, it is actually very simple: POLITICIANS SPEND MORE THAN THEY GET AND FINANCE THE DEFICIT PRINTING MONEY.
@@tsacripanti. He says many things... 😅 one totally opposite to the other.... during his campaign that just depended on the day....
I have seeen all financial statements and balance sheet from countries who use dollarisation. One thing that those countries have the 2nd same mistakes, rely on a country. When they have decided to use dollar, they have to generate the dollar that they dont produce their own. Hence they have to borrow money and generate their own from their markets. As the USD is one of the most expensive currencies and mostly it is manipulated, it will mostly create troubles for export. That's why their import mostly higher than exports, their debts are higher than others and the bad thing is if they fight with the USA, the USA can play on the USD supply.
Stable? Their data doesnt show the impact of the fed interest rates.
If there are other world currencies sell cheaper than the USD, why does Argentina use dollar? Argentina can also look at ASEAN who mostly use local currencies to imports goods and borrow money in their own currencies. Hence they see USD is just like other world expensive currencies like Pound. No matter how expensive the USD is, it won't broke them. When the USD is going down, their GDP automatically increase like today as all goods, income etc thanks to Breyton wood are measured in USD. If the USD drops in value, all countries in the world who don't use USD can pay debts faster and be rich.
experts say its a bad idea, trust the science . never fails
😂 is it just me or when someone says "experts" do you just roll your eyes. 😅 2020 seems to have corrected our vision on "experts."
As a wise man once wrote, "the world has 4 kinds of countries: developed, developing, Japan and Argentina". So those who call dollarization (or other proposed policies by Milei) "a dangerous experiment" need to explain what peronists have done with a country that in 1900 was more powerful than the US or Germany. Isnt that an experiment?
Argentina never was more powerful nor richer than either Germany or the USA. Laughable
argentina was never even close to germany or the USA what are you even talking about XDDDD
And today, Japan is an ultra-developed country, while Argentina is underdeveloped.
@deutschspanier8752 Absolutely correct. Milei did not create this problem. The Pernostas did.
Argentina was on par with the German Empire and France (The Third Republic) at the turn of the century (around 1900) in economic terms.
Argentina is between a rock and a hard place. If the reforms will succeed a significant number of Argentinians will pay an high price but with prospective for better days in the future. If the reforms will fail the situation would be even more difficult than now and the nation could turn in a dangerous and unpredictable state of chaos. Good luck argentinians.
We've been through the most horrendous, truly horrendous chaos for almost 8 decades thanks to the same party/kind of people who leave the government within hours. We know what's coming, and that it'll hard... but no more of those people, please. Thank you for your good wishes.
He's so weak in Congress and Senate just to make quorom his party has to negotiate + so for bills to pass they'll have to be somewhat moderated.
I think the fear is exaggerated considering he's really just a Paper Lion g
@@josemrodriguez3080 I don't like those "labels" like lion, cat, whatever... He's a person with an ideal that he knows is far from being implemented now, in a reality like the one Argentina suffers from. I'd want from him to take deastic measures from the beginning (even knowing that it'll cost me a lot since I don't even consider myself middle class) but... there're too many risk factors -some very dangerous- for him that could prevent him from taking jus a couple of steps within his government.
@@user-by9dr5fl4q He said, want make people lions, but lions need pray in order to survive.
@@Brancaalice Metaphor...
So... instead of having the Peso inflate because of the Argentinian national bank, he's gonna have the dollar which inflates because of the Fed?
I’m sick of ‘experts’.
He's 100% correct. Argentina simply doesn't have the institutions in place that allow them to manage their own currency.
@ChiefsFanInSC I don't think it is institutions. It is the large number of people who think that socialism is an economic solution.
@@dennisweidner288 Socialism only works on paper. The issue is people always want more than they already have.
@@Mp57navy And socialism gives them a lot less.
@@dennisweidner288 Well capitalism also gives a lot less. Putting your eggs into the dollar basket when you have absolutely no certainty about the dollar in 10, 15, 20 years when USA is a country with no future with how it is now.
@@Cyiel568 Capitalism is an economic system. America is a country. And countries can choose capitalism or socialism or whatever blend they want. Argentina chose to create an economy with a substantial socialist element and like all countries choosing socialism has failed. America has been a success in large measure because it had a largely capitalist economy. Now I agree with you that America's future is in doubt, but it is largely because many Americans like Argentines have gotten it into their heads that socialism will bring prosperity.
but like why dollarize? Why not just stop printing too much money? Wouldn’t the same problems caused from austerity happen in both cases?
Dollarization is the way to future-proof the austerity for when the thieves inevitably get back into power
because it is a good way to prevent populist governments (or current governments) from printing money and generating inflation.
They’re taking money printing control out of the hands of anyone in Argentina. No politician in Argentina will be able to print money. They’ll have to borrow money and pay back the debt.
keep away the corrupts to do werever they want with economy, but also is the fastest way to figth the inflation, stop printing is more like temporary solution becuase always can come other greddy politician and start printing again, but dollarice is almost irreversible, thats why dollarise is the better choice.. also stop printing will take a lot to due the effect on economy and time is what we dont have, time is very important on this situation, also dollarice create a shock of trust that argentina is not playing around, is going seriously, thats the main message that libertarians whant to sent to world, Argentina will change forever and is not going back his decition
@@rabsim3365 They will borrow instead of printing. Not that much of a difference.
Argentina should learn from its past. Last time the country did try for a time to peg the peso to the value of the dollar it was a catastrophe. Ditching the peso altogether would be even worse and irreversible.
I had no idea of the facts
Taking the ridiculous inflation numbers into account, his idea of dollarization into USD and closing down of central bank makes quite a bit of sense really
Essentially this is pressing the red panic button to stop everything at once and kind of start over for a while, it takes away the country's economic autonomy but can potentially greatly stabilise its economy
This is a very radical and last resort solution to an economic turbulence that is completely and utterly out of control and i certainly dont think it would be justified outside of this context because its that radical
Mr Milei is gonna be a very busy man for the next few years if he manages to press the hard reset button
He sometimes looks a bit like Benny Hill
As an Expat in Argentina since 1990, this is great news for one of the most beautiful countries in the world. GO MILEI!!!
Expat? You mean inmigrant?
It will be a disaster...........
@@EddieDrayton As opposed to run away inflation, corrupt leftists ruining a beautiful country. What are you smoking?
@@EddieDraytonit’s already a disaster. Thats what socialist garbage policies produce. Every single time
What and become another colony of the US be careful what you wish for
Funny how the people getting them into this mess have the balls to try and tell Milei how to fix it.
But that means that it has to export to countries that have dollars. If the dollar appreciates which happens when the US raises rates it becomes a mess.
That’s such idiocy. The interest rates only impact U.S since it restricts the availability of dollars in the U.S, thus lowering inflation in the U.S. it doesn’t affect dollars circulating outside U.S (which is circulating in massive volume). And almost all exports of countries that have their own currency are traded in dollar, which is then exchanged by the locals for their currency. That’s such nonsense.
@@FreedomVoice365 You can read all about it. Eurodollars are impacted since the 1980s. What do you think brought in the Mexican crisis of 1982 it was perfectly timed with Reaganomics end of stagflation. Anyhow there is no USD stamped "only to circulate outside of the US". If you are not an economist you are excused this can be complex, if you are one I'd like to know from which crappy university this ignorance comes from.
You talk like a lot of countries have peso!!🤣🤣🤣
I am an economics student here in Argentina. I think that if the dollarization plan is not carried out, plan B would still insist on a radical proposal, since we were able to reverse a successful program such as the convertibility plan. Argentina's economic conditions are ripe for experimenting with a new type of monetary regime. In that sense, my colleagues and I are thinking (although probably expensive to implement) of adopting an exchange rate linked to a basket of currencies, among which the dollar, a stablecoin, some commodities are weighted, and the issuance of money is decentralized between private banks from a conversion box. The idea is to import stability as long as the dollar is capable of guaranteeing it, and when it does not, let it float. There will be a monetary authority, but no longer a money-issuing monopoly that competes through the devaluation of the currency.
I have seeen all financial statements and balance sheet from countries who use dollarisation. One thing that those countries have the 2nd same mistakes, rely on a country. When they have decided to use dollar, they have to generate the dollar that they dont produce their own. Hence they have to borrow money and generate their own from their markets. As the USD is one of the most expensive currencies and mostly it is manipulated, it will mostly create troubles for export. That's why their import mostly higher than exports, their debts are higher than others and the bad thing is if they fight with the USA, the USA can play on the USD supply.
Stable? Their data doesnt show the impact of the fed interest rates.
If there are other world currencies sell cheaper than the USD, why does Argentina use dollar? Argentina can also look at ASEAN who mostly use local currencies to imports goods and borrow money in their own currencies. Hence they see USD is just like other world expensive currencies like Pound. No matter how expensive the USD is, it won't broke them. When the USD is going down, their GDP automatically increase like today as all goods, income etc thanks to Breyton wood are measured in USD. If the USD drops in value, all countries in the world who don't use USD can pay debts faster and be rich.
do you think the Argentinian people will be able to deal with the short term hurt from reforms? I just wonder considering Macri's modest reforms didn't get enough time.
@@MSDGroup-ez6zk This funny considering you have to compare is dollar manipulated yes but which large currency pool is not Euro? Yen? Yuan? Rubel?
@@davidmasaka6547 Bro that's what Mahatir has found bro. That's why Malaysia has reduced debts from USD into their local currency and import goods using currency swap.
@@davidmasaka6547 According to the fed, majority of Asia countries only have 2% of their debts in the USD.
They just stay away from the trouble maker.
The minimum wage in Argentina is ~120,000 Argentine Pesos per month.
The USD is worth 800 Argentine Pesos.
That's only $150 USD per month ... good luck Argentina - you'll need it!
Surely having no say as to the policies of central bank in a country with a completely different economic outlook is a disaster waiting to happen? Shared currencies such as the Euro only work due to the wider political and regulatory union, and one only needs to look at the Euro crisis to see sketchy outcomes due to the discrepancies in economies in the Eurozone.
The discrepancy between the US and Argentina is so massive that decisions by the Fed that could have a fairly minor impact on the US economy could cause havoc in Argentina.
I get that the status quo is not working, but dollarisation would cede a vast amount of self-determination to a country that has no obligation or imperative to compromise their own fiscal responsibilities for that of a country they have no treaty of union with.
Except that it has worked out just fine for the other three countries in Latin America. I don't know why everybody is freaking out just because another country wants to do it.
what is the point on selfdetermination if your economy is bankrupt?
@@rowannixon3180 The Argentine economy is substantially larger than any other country that has dollarised.
@@rowannixon3180 I seem to remember "the other three countries in Latin America" not exactly choosing to adopt the US$, but being "incentivized" to do so by the IWF as a lender of last resort (foreign money in exchange for giving up control over national budget and currency) after going bancrupt. Why any nation would willfully go that way is beyond me.
@nsxkkxlnmiyo8722 I can understand the desperation of the voters, but the question is - can things get worse? The answer is 'yes'. If you lose all macro-economic policy tools without doing all the other economic reforms required, then you're truly screwed. If you do all the reform required, then you probably don't need to dollarise or get rid of the central bank.
the way the woman says, in the beginning, "Where is Argentina . . . . . . . . . . . . . . . . . . . . . . . Heading" made it sound like a geography question. GG 😆😂
People need to learn through pain and hardship that making retarded decisions leads to bad outcomes.
So give up control of your currency for a different currency which is controlled by a central bank.? Ok?
As bad as the Fed is, it's no Argentina Central Bank.
Politicians should not be able to manipulate the central bank to ensure their reelection (and therefore causing huge problems in the long run).
Central bank should be separated from the government like churches.
What does to do this POTENTIAL measure with a re-election? Especially in the case, where I doubt even that he can finish his term (that's what those who are now leaving the Presidency have done or tried to do with a government that isn't one of their own, through their inmense power in the Chambers and the streets).
@@user-by9dr5fl4q It's not about him only. Everywhere should the currency be separated from the government.
Trumps for example tries to pressure the FED regarding the interest rates. Left politicians promise free money for their electors. And so on...
There are two determining factors in dollarization. First, Argentina is the third country in the world with the most dollars in cash (after Russia and China), since people have been saving in dollars for decades because they know their politicians. Second, internationally they are unaware of the gigantic degree of political corruption in Argentina, if the Central Bank is not closed, they would continue issuing to finance their populism (and their wallet)
You're 100 % correct.
Argentina isn't even in the top 10 with the most USD reserves, what's your source?
@@rishwhoo7258 No habla de reservas bancarias. En Argentina la gente guarda el dinero en sus casas o en cajas de seguridad.
Create a stable tax shelter haven for international investors... money will fly in as soon as investors are confident their money will be safe...
I know nothing about Argentina but I was in Russia during the early 1990's when the authorities believed that economic
"shock therapy" was needed to transition to a free market economy. The problem was it was more shock than therapy and many Russians lost their entire life's savings. That created a politics of resentment that gave us the Putin of today. I am skeptical that economic models stemming from very different cultures will work any better in Argentina. But one thing is certain. The ideas of Libertarianism will now be given something they have sorely lacked: a test of their validity in real world circumstances. I'll be watching the results with interest.
Thanks for the report. I think you have forgotten one of the solutions and that is the "national unity". If he can convince the Argentinians to retrun thier cash dollars to a body as an investment, he would have enough money and time to repair the economy.
The banks, private and public are very famous for taking savings in dollars and not returning it. In fact the Supreme Court Justice in Argentina support this actions twice. There is not confidence in the legal protection in Argentina. Maybe introducing the dollar as currency can solve it. I think that Argentinian middle classes has enough dollars hide in the houses (Yes, they keep it in the houses. Wonder how much crime is trigger by this). Also, the upper classes will start to return some of they dollars hide in foreign bank accounts.
😂😂😂 Good luck with that,
JAJAJAJAJAJAJAJAJA
Especially the billions of dollars taken by those who still in power and their associates.
😂😂😂 "let's privatize profits and socialize debts" people don't like that
So even though the CIA has historically had significant impact on South American countries, there's no mention of potential American influence on Javier Milei? It would seem that Dollarization significantly benefits the US government, especially considering the massive inflation we've faced the past year, as higher demand for US dollars helps to lower the flood of USDs generated in the last 4 years.
Thoughts?
Argentinian's economy is around 2% of the USA's economy and smaller than Ireland's. Americans couldn't care less. OPEC countries are way more important. They should use USD so the american economy can be stable and prosperous. The day they abandon the USD there will be consequences.
It sounds bad to make Argentina dependent on the US for its monetary policy, because it is. That's not what dollarization is - the point is to allow for the free exchange of currencies, it's just that the US dollar is the most widely used foreign currency in the country, it's what people keep their savings on, what they buy houses with, what they export grains for - dollarization has already happened in Argentina, what's going to happen is a deregulation of the currency exchange market.
On the other hand, were Argentina to adopt the US dollar as legal tender, co-existing with the no longer government controlled argentine peso (as Milei wants to abolish the central bank), money printing would be out of the hands of argentine politicians, especially those on the left, who use this inflation to embezzle funds and finance deficitary public spending to secure votes. It really would not be that bad for us, as if the US dollar fails the argentine peso will soar in relative value, and we can still use it.
I think you're hitting the nail on the head, not much is being talked about this
It might be or it might not, but EVEN IF IT IS TRUE (personally i don't think so), it is still the best alternative, what i do know is that peronists and kirchnerists (basically socialists) already pledged submission to China, the outgoing government sold lands to the chinese, we have a chinese military base in the south which nobody knows what the heck they are doing there because it's technically their land for 50 years and therefore confidential, no need to add that our almost virgin Argenine Sea is being highly exploited by hundreads of chinese fishing ships without any control or regulation, so they are in OUR sea exploiting OUR natural resources as they please.
By the way, the monetary alternatives the peronists/kirchnerists wants are one of three: first one is basically don't change anything and have more "responsability" although their candidate Massa spent/printed 2 points of our GDP in his political campaign against Milei (i'm not kidding), second one is the use of the Yuan as new currency even though every argentinian saves in dollars and have dollars under the matress, and the third one is the adoption of CBDC to make it even more Orwellian.
Every dollar in circulation outside of the US is a beautiful loan to the US.
Milei translated into Chinese meant "don't come" please "don't come"
When they call in the experts to criticize what an expert is doing… the man’s an economist this is his job
Dollarization has worked in Panama, El Salvador & other countries.
Panama is a special case. The Canal and Canal Zone were American territory for nearly a century. It was a retirement spot for Americans, and they brought huge amounts of dollars with them. No matter what the Panamanian government wished to do, the dollar dominated their economy.
Where Argentina is heading is determined by continental drift, something no addressed here.
As for the policies, undoubtedly they will serve to undermine its own economy as well as those linked, such as US dollar based ones……
Poorer countries seek dollarisation as a means of rescuing their economies, as such, they lose their sovereignty to the US. Richer countries began a dedollarisation process, such as some of BRICS countries as well as Saudi Arabia and UAE who had agreement with China to use Chinese Yuan in the trade between each other.
Argentina has such a low national income that it can only afford a small share of the world’s gold supply. That should give you a good picture of what is going on.
The US would have to finance what the country needs in gold reserves to be an active partner in trade. Industries will work their people to death so the nation’s output can exceed what the nation owes.
This is interesting. I think the problems could be soved with or without the dollar, by way of good economic management.
The reality is that our politicians are trash, they're like addicts who won't quit printing pesos.
They've been doing that for most part of our history
You are asking an alcoholic to stop drinking.
@@cieloabatidothey've been doing good economic management? Almost never.
This comment is adding none to the table. Wdym good economic management? It's impossible to implement one with rampant corruption, nepotism, and other leadership issues.
The problem is how do they get the dollar
That's is what I was thinking.
Selling off their natural resources for pennies on the dollar. Literally.
By spending less than what you earn 👀
@@PeterPan30000no, by exporting more than import in value.
@@Terrorkarel No, that doesn't work if government spending is growing uncontrolled& outpacing productivity.
Especially when you make it hard to export& import and tax people to death.
Most of Europe changed their currency to Euro. It can be done
The same experts that got us 100 trillion in debt and to this level of inflation ?? 😮😅
As an Ecuadoran who experienced the dollarization process first hand, I can tell you that nothing is as painful as being constantly swindled by the state. The dollar was already a safeguard to prevent the vaporisation of our meagre economies. When it was declared that we will no longer be paid in sucres, it was a major relief in spite of the tremendous devaluation that the government announced with the dolarization decree. It took a couple of years until nobody complained. If there is something that our people are not willing to relinquish that is the value of our incomes and the introduction of a "Venezuelan or Argentinian" experiments. We've got thousands and thousands of Venezuelans in our streets to remind us the price and doom of socialism.
Oh dear. Clearly not very well educated
And yet they voted for Rafael Correa in the past who was Socialist with Movimiento Revolución Ciudadana which is a Socialist party still commanding allot of popularity, but you could've simply said "Chavismo" was the failure.
Wouldn't it be a good idea to begin with an analysis of how Argentina got to where it is in the first place?
The experts say: don't trust the experts.
Hes right get rid of the central bank. The US dollar is not the answer. Gold is the only answer if you agree with Austrian economics.
BRICS is done. Dollar is still King
Your comment makes no sense. There's no BRICS currency.
How can something be done when it never started. BRICS is just a dream in people heads
YES! Argentina, give all your money to America! Buy dollars and make us richer!! Thanks! Good Luck!
based on the fact that your writing comments on a youtube video I think your in the same boat as me (you will not be made richer by this change) 😂
The only way I see it benefiting them is for the dollar to increase in value if Argentina adopts it.
I have not seen the video. I won’t watch it either. Just here to say, when media quotes „experts“ and doesn’t use the name for the title, the „experts“ could literally be people they found outside their office walking by.
Trusting Goldman Sachs is like trusting the fox with your chickens
The reason for why economies continually fail is very obvious and yet the people are blind.
In order for a currency to be effective it has to be circulated, especially if it is a fiat currency which is the case with virtually all world currencies.
Tax policies need to be in line with achieving this circulation of the currency, but in the USA that no longer happens. Remember that all the infrastructure that is decaying was built at a time when the extremely wealthy were taxed extremely. Now the politicians and bankers just electronically create more money while electronically charging it to the us taxpayer's. All while billionaires chime in on this or that issue and buy off politicians...
Tax the rich and eliminate their ability to buy congress and other world governments and the world will start moving in the right direction.
Lust for material wealth is what is killing the environment. If you can't stop this behavior you can't change anything else.
It's sad how most of our people believes that "social justice" equals "robbery", and mixes the meanings of "freedom" with "free market"
Wasn't argentina socialist to start with? Taxing the few wealthy even more would probably be useless, or even add fuel to the fire over there
The Congress might stop him from doing what he wants.
He will pay them. Also, the inclination from almost every government in Argentina to use illegal phone jacking. The secret service, or private players will collect information to intimidate them.
@@LehgIII. The secret service in Argentina doesn't work that way
Its all about money and the police is a joke. This is not Africa.
Of course it will, since the majority belongs to the terrible government we had during 30 years of the 40 in this democratic stage. And it won't stop there; that party/kind of people has always done the most vile things to destabilize or even overthrown the few governments that weren't one of their own... and they've thousands of militants to the streets willing to strengthen that destabilization with disturbances and boycotts (many of us have seen it before... with horrible results).
@@Deonara I am Argentinian. The phone jacking did not start with the last government. Is an old problem. I am not talking about physical intimidation, just remember the case of Borocoto and his son. Also, the "Banelco" during De La Rua government, this last one was about buying politicians.