• markr [he/him, any]@hexbear.net
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      7 months ago

      but as it is already, peripheral countries have almost zero ability to set monetary policies. Basically only the US, the EU, Japan and China can do that. The rest of the world is effectively managed by the central banks of the bigs, and even then it is really the US Fed that is in control. He’s just ceding what little control the argentine central bank had.

    • aaaaaaadjsf [he/him, comrade/them]@hexbear.net
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      7 months ago

      The reason this kind of thinking is popular among the masses is often because the local currency is worthless and subject to hyperinflation. So people see a stable currency in the US dollar, and the central bank of their country constantly failing to curb runaway inflation, and think oh lets just use the USD. Without considering any of the macroeconomic consequences of essentially having no domestic economic policy or economic sovereignty.

      In Zimbabwe it’s basically all South African Rands and US dollars for instance.

  • zifnab25 [he/him, any]@hexbear.net
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    7 months ago

    Dude is going to commit suicide by stabbing himself multiple times in the heart. There’s no way he lives out his term by pulling stunts like this.

    They’ll find a nice boring buttoned-up CIA sponsored conservative to replace him.

      • PKMKII [none/use name]@hexbear.net
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        7 months ago

        Naked Capitalism laid out why Milei’s dollarization plan is likely to fail:

        What’s more, Argentina, on its own, is not in a position to undertake dollarization since for two simple reasons. As Alejandro Werner, former director of the Western Hemisphere Department of the International Monetary Fund (IMF), told America Quarterly, “Argentina does not have the dollars to dollarize, and it does not have access to the financial market to obtain dollars.”…

        But will Washington be prepared to pour significant funds into [Argentinian dollarization]; according to estimates from the Spanish financial daily Expansión, the initial outlay alone could cost as much as $100 billion, for a project that is likely to take years to complete, and what’s more with a government that still owes the IMF $44 billion as well as billions to China. And that is a lot of money to the Biden Administration, especially with Congress blanching at providing more funds for the Zelensky government in Ukraine.

  • GarbageShoot [he/him]@hexbear.net
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    7 months ago

    Isn’t he functionally having the US replace the central bank? That might be what other commenters are missing when they are talking about coups. If he gets overthrown, surely it would be by Argentinian nationalists of some kind for basically trying to proactively make Argentina a colonial holding of the US.

    • footfaults [none/use name]@hexbear.net
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      7 months ago

      You are correct he’s trying to dollarize their economy on purpose, which is nuts because most of the time dollarization happens when people don’t trust the local currency and keep importing dollars to use, and it fucks up the economy usually because the government has no ability to influence the economy anymore if everyone is transacting in a foreign currency

    • Egon [they/them]@hexbear.netOP
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      7 months ago

      You’re the second to say this. Why do you think so?
      If you mean he gets couped by his internal minister, I can see it, but if you think it’ll be some kinda CIA thing I kinda doubt it.

  • Torenico [he/him]@hexbear.net
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    7 months ago

    Unsurprising, considering the ancaps believe the Central Bank is literally communism. Why? Fuck if I know, the Central Bank controls currency so that must be authoritarian and communistic.

    • There are English subtitled interviews of Milei where he tried to rationalise his desire to dollarise the Argentinian economy. He tries to use economic jargon but mostly makes insane moralistic arguments (“central banks are thieves”). He is clearly doing this to benefit his masters whoever they may be and knows what he is doing.

      Ironically the YouTube comments called him a clear headed visionary. Not sure if stupid or op.