Argentina's President-elect Javier Milei said on Friday that the closure of the country's central bank, a signature campaign pledge, was a "non-negotiable matter", according to a statement from his office posted on social media platform X.
No it’s worse than that. How are they going to purchase enough dollars to replace their own currency? No one is going to give Argentina a loan to do this.
You don’t get it! Whenever they need Dollars, they just buy them with their old currency and without a central bank, the government can just decide how much Pesos they have.
The idea is that since the government can’t run a surplus by itself, he will break the capacity of running into deficit and making it so they don’t have any other choice.
It’s a nice-looking, simple idea that some countries try here and there and never work on practice.
No it’s worse than that. How are they going to purchase enough dollars to replace their own currency? No one is going to give Argentina a loan to do this.
This project is doomed before it starts.
You don’t get it! Whenever they need Dollars, they just buy them with their old currency and without a central bank, the government can just decide how much Pesos they have.
It’s a self sustaining economy!
The gang solved the Argentinian inflation… music starts
Also, Bitcoin!
Good ol’ Mac with the plan!
The idea is that since the government can’t run a surplus by itself, he will break the capacity of running into deficit and making it so they don’t have any other choice.
It’s a nice-looking, simple idea that some countries try here and there and never work on practice.
There are several countries that use the dollar, including, in Latin America, Ecuador and Panama. They are doing fine.
More pertinently, Zimbabwe’s famous hyperinflation was ended by dollarizing.
So it’s not an outright crazy idea. I think the doomposting is mainly due to “right-wing therefore bad”.