For the economy to restart, investors say the government must lift a cobweb of currency controls that’s discouraged companies from investing and even driven some away from South America’s second-largest economy. But the administration argues a disorderly exit without enough central bank foreign reserves could fan inflation further.
In order to cut on inflation, the Central Bank basically shut down cash withdraws. Some equivalent to $100 a week. The Austerity has been rough, there's no doubt about it.
The Globalists definitely want Milei to fail, and they were hoping the Austerity would put him under 50%, but it hasn't.
Argentina needs foreign investment, but he's right that increasing the velocity of his currency would spike inflation; and there's a real danger that opening the flood gates to foreign investment would probably get Leftist allies to have additional funding, and make Argentina dependent upon other states.
Milei probably needs Trump to win as badly as most Americans do so he can get some proper trade agreements going. It's good to see that the farmers are leading production, that should drive down food costs, and I'm sure they have some food exports that can really bring home the bacon.
To his horror, BitCoin and Gold DID NOT get adopted as an alternative, basically by anyone. Instead, people keep trying to use US Dollars if they can't get the Argentinian currency. Basically, no one can take BitCoin for trade. You can't really use gold either because gold is to expensive to be used for trading purposes. Silver could be, but no one has enough silver either, and nobody still knows how to trade with it (or confirm it's purity). What ends up happening is that people are getting direct deposits to their accounts, but when they were at 25% interest rate, they couldn't take their money out to move it, so it just sat in the accounts losing value.
If there was going to be a strong, valid, criticism of Milei it would be letting this happen; because these people were basically just being robbed blind. But I know why he let it happen: Reduce velocity to prevent inflation increase, while still trying to stay away from a Bank Run, or a full collapse of the currency.
But the reason that Gold and Bitcoin couldn't be used as alternative, or even as a store of value is because the banking system actually destroyed liquidity itself. If George's video is too long, I'll cut to the analogy:
By destroying liquidity, they've made gold and bitcoin worthless. An illiquid asset that stores value is just as worthless as a liquid asset that stores no value. If you DO find a liquid asset that stores value (like a USD by comparison), then people start hording them, making them too expensive to use, just like gold.
Once I realized this, I actually started hoarding cash, in addition to gold and silver. If they fuck around in the next recession with withdraw amounts, that cash is going to be a life line that everyone else will be struggling to use.
The only good news is that the Argentineans should be getting around this problem soon enough if their inflation is only 4.5% now instead of 25%.
I don't agree with sections of this article, but it is disappointing Milei isn't doing everything reasonably within his power to promote right-libertarian principles and policy.
I'm surprised most of the conclusion is dedicated to his relationship with Israel.
On a geo-political standpoint, he needs to befriend the US, and that is just going to dictate his stance on Israel. It's not like Argentina is gonna send weapons or soldiers to Gaza. For the most part, it's all talk in order to curry favor with the American right-wing hegemon (which is pretty favorable to Israel). Certainly better that then China. And if you don't want to go that route? Welp, Argentina doesn't have enough nuclear weapons to hold it's own.
I get the complaints about issues with foreign investment, but if he doesn't pay those debts, the IMF will turn the country into a pariah state and see him shot.
I also get the complaints about the welfare state, but you can't just yeet the thing that makes people dependent upon the Peronists. You can't just cut off the money and do nothing else. Thatcher pulled that stunt and Wales never forgave her. Now they're so locked in with Labour that they are banning cars from driving more than 20 mph.
Nice. I can never understand how things work in economics aside from supply and demand, so anything past that I don't really understand, thanks to you all for posting periodic updates.
Glad to see it, not just because I like seeing the left being proven wrong or that Argentina may move up on my 'places to escape to' list
But also I REALLY fancy Argentinian steak places making a comeback, used to have one that KNEW how to give great portion sizes for price!
Asados as far as the eye can see.
In order to cut on inflation, the Central Bank basically shut down cash withdraws. Some equivalent to $100 a week. The Austerity has been rough, there's no doubt about it.
The Globalists definitely want Milei to fail, and they were hoping the Austerity would put him under 50%, but it hasn't.
Argentina needs foreign investment, but he's right that increasing the velocity of his currency would spike inflation; and there's a real danger that opening the flood gates to foreign investment would probably get Leftist allies to have additional funding, and make Argentina dependent upon other states.
Milei probably needs Trump to win as badly as most Americans do so he can get some proper trade agreements going. It's good to see that the farmers are leading production, that should drive down food costs, and I'm sure they have some food exports that can really bring home the bacon.
Ranchers are basically the symbol of Argentina. The Gaucho is a national symbol of independence and bravery.
He fuckin' looks like it.
Someone shit this man a lever gun!
I assure you, this man has Bolos.
I heard that from George Gammon going down to Argentina. Btw, it was $40 a day.
To his horror, BitCoin and Gold DID NOT get adopted as an alternative, basically by anyone. Instead, people keep trying to use US Dollars if they can't get the Argentinian currency. Basically, no one can take BitCoin for trade. You can't really use gold either because gold is to expensive to be used for trading purposes. Silver could be, but no one has enough silver either, and nobody still knows how to trade with it (or confirm it's purity). What ends up happening is that people are getting direct deposits to their accounts, but when they were at 25% interest rate, they couldn't take their money out to move it, so it just sat in the accounts losing value.
If there was going to be a strong, valid, criticism of Milei it would be letting this happen; because these people were basically just being robbed blind. But I know why he let it happen: Reduce velocity to prevent inflation increase, while still trying to stay away from a Bank Run, or a full collapse of the currency.
But the reason that Gold and Bitcoin couldn't be used as alternative, or even as a store of value is because the banking system actually destroyed liquidity itself. If George's video is too long, I'll cut to the analogy:
If no one in America has a bank account, and you have $50,000 in gold, and you want to sell it. Who are you going to sell it to? The gold dealer. But why would he have $50,000 in cash laying around. In fact, let's say he does... why would he willingly give it to you?
By destroying liquidity, they've made gold and bitcoin worthless. An illiquid asset that stores value is just as worthless as a liquid asset that stores no value. If you DO find a liquid asset that stores value (like a USD by comparison), then people start hording them, making them too expensive to use, just like gold.
Once I realized this, I actually started hoarding cash, in addition to gold and silver. If they fuck around in the next recession with withdraw amounts, that cash is going to be a life line that everyone else will be struggling to use.
The only good news is that the Argentineans should be getting around this problem soon enough if their inflation is only 4.5% now instead of 25%.
It won't take a decade of hardship. It's not that the country is foundationally unsound, it's that everything on top of it is crippling it.
Most of his problems are dealing with the remaining Peronists, and the Globalists allies who'd like to keep foreign investment out.
Cutting spending isn't enough to attract investment on it's own. He has to pay his debts and he has to cut the regulations that are syphoning funds.
There will be some hard times. I rather have a few bad times spaced over a few years than to have 1 catastrophic bad tim ethat is every 100 year.
I don't agree with sections of this article, but it is disappointing Milei isn't doing everything reasonably within his power to promote right-libertarian principles and policy.
https://www.lewrockwell.com/2024/06/no_author/a-hoppean-dissection-of-javier-milei/
I'm surprised most of the conclusion is dedicated to his relationship with Israel.
On a geo-political standpoint, he needs to befriend the US, and that is just going to dictate his stance on Israel. It's not like Argentina is gonna send weapons or soldiers to Gaza. For the most part, it's all talk in order to curry favor with the American right-wing hegemon (which is pretty favorable to Israel). Certainly better that then China. And if you don't want to go that route? Welp, Argentina doesn't have enough nuclear weapons to hold it's own.
I get the complaints about issues with foreign investment, but if he doesn't pay those debts, the IMF will turn the country into a pariah state and see him shot.
I also get the complaints about the welfare state, but you can't just yeet the thing that makes people dependent upon the Peronists. You can't just cut off the money and do nothing else. Thatcher pulled that stunt and Wales never forgave her. Now they're so locked in with Labour that they are banning cars from driving more than 20 mph.
Practical considerations must be made here.
Nice. I can never understand how things work in economics aside from supply and demand, so anything past that I don't really understand, thanks to you all for posting periodic updates.
It would be really weird to flee back to Argentina.
They also just won the two major national soccer tournaments (World Cup and Copa America ) without importing niggers, unlike the "European" teams.
Even the Swiss had niggers in their team.