Big news last week was the Presidential Election in Argentina which was won by self-proclaimed Anarcho-Capitalist Javier Milei. It’s the sort of election result that sends shockwaves around the world because his policy platform is extremely anti-establishment and his rise could easily be a precursor to similar political earthquakes elsewhere around the world.
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A few months ago I asked the question Could Argentina Abolish its Central Bank? because the Argentine Peso has been in a state of Hyperinflation and the incoming President was campaigning on a promise of abolishing the Central Bank of Argentina. So the first question I have is whether he can actually DO this, and it is yet to be seen if he can. However, the next question that I would ask is WHY?
That might seem like a simpletons question, but if we delve into the new Presidents campaign he was wanting to abolish the Central Bank and the Argentine Peso….to replace it with the US Dollar. Wait, WHAT? When you think about it, that’s really just swapping one Central Bank with a Fiat Currency….for another one. This is at a point in history where the US itself has fiscally irresponsible Leftists in power and has been playing shenanigans with printing it’s OWN currency. I know that the US Dollar is supposed to be the Worlds Reserve Currency, but why would the new Argentine President do this when there might be a better option?
Why not KEEP the Central Bank and back the local currency (or a new one) with Gold in a true return to Sound Money? Yes, that sounds pretty difficult and if the Central Bank is currently insolvent – with no Gold in the vaults – then how does one go about introducing a Gold Standard? Is it really that different though to adopting a foreign countries currency where undoubtedly there isn’t much in the way of reserves of US Dollars in the vault either?
Seems to me that the election of Javier Milei is an interesting, disruptive and potentially positive development globally. He has the capacity to really shake up the Failed Financial System to force some much needed reform and a lot of people around the world are taking notice. We will have to see how it plays out, but I can’t help but wonder that by adopting the US Dollar instead of a New Gold Standard that Argentina might be just jumping from the frying pan into the fire….
I like this guy! He has “thrown down” against the establishment and appears to be motivated not by money or power but by his own theory of sound governance, rock n roll, and philosophical asskickery. Can hardly wait for Dec 10th! ⚡️👊😎⚡️
…as far as going with the dollar, I believe it to be a GREAT decision: there will be no transition time. Just boom! We’re spending dollars now — (everybody) judge accordingly. Going fwd they could do BTC, gold or whatever, but this guy is coming fast with chainsaws and an agenda.
It's going to be fun to watch. I'm expecting him to meet very stiff resistance from the bureaucrats and deep state that are going to be very much in his cross-hairs. Probably even worse shit-fuckery than what Trump faced. I hope he takes his chainsaw with him wherever he goes! LOL
They could adopt BTC that would be interesting
Absolutely. That's the El Salvador road. The jury is still out on that experiment but it's another interesting one to watch.
Argentina is 109th in gold reserves at 61.4 tonnes. No way they could back a currency with it. While the US isn’t a great choice, it is still used globally. If the US dollar fails everyone is fucked not just Argentina.
Perhaps. Zimbabwe attempted it with far less gold reserves. Considering there are people here on HIVE who have created metals backed currencies (Ahem, the Welshy...plus others I won't name) it's not impossible - just a question of how much can be in circulation and how far reaching throughout the economy it would be.
Their country is broke, so it's not going to be like flicking a switch to fix it. But they could take steps in the right direction. Any rebuild there is going to be hard, long and painful.
I guess we will see what happens.
Using the USD would be a short termed bandaid job until Argentina can prepare the more permanent currency solution. By the way, Isn't Argentina on the BRICS short list of new member states. Like I said, a short termed fix. You can bet the BRICS countires would help the Argentines some help.
“…was”
Mofo has come right out and said he won’t do biz with commies, and that USA and Israel are two closest allies. ‘cue the shitstorm!
Yes, I would call it a band-aid too. The relationship with BRICS will be interesting to see. I personally think BRICS are the most likely to start using Gold again in a significant way.
He is a weird nut that's for sure. Here's the fun thing though, most of the everyday peeps I know supporting him are:
He is the exact opposite 😂
Fun times
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I think the USD may be their best choice, Ecuador had done well using the USD.
Looks like precious metals may be making a comeback as money
I'm sure "We the People" will love shipping "Staggering" amounts of U.S. Silver and Gold Coins to Argentina... Hopefully, in the Very Near Future... Keep in mind that the Spending Power of our Silver and Gold Coins will be 100 Times their Face Values, "if" measured in today's Fiat USD's...
I'm personally in favor of anything that upsets the globalists and elitists. 😁
I believe as well this one to be a bad move. He could do better with Tether 😀
Anti-establishment? In a country like Pakistan, a person with an anti-establishment approach can't be successful.
hopefully, he will be good for Argentina and it's public.
I guess they won’t later settle for any of the two
Confusion everywhere, lol
They should settle for cryptocurrency then
Very informative. Newly winner of this election hopefully proves to be good in such conditions.
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