Shuttering their central bank and converting to dollars... Meaning they aren't actually getting rid of a central bank, but are rather converting to a foreign central bank.
this post was submitted on 25 Nov 2023
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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.
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.
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".
It seems the whole point is adopting a currency they can't print more of. Because of the 'print more money' thing doesn't seem to be solving their inflation issues.
For some context, during the last 4 years the quantity of money our governemnt needed to print* was so high that our printers weren't enough and we had to pay other countries to print more pesos.
For some context, during the last 4 years the quantity of money our governemnt needed to print* was so high that our printers weren’t enough and we had to pay other countries to print more pesos.
Usually in modern language "printing money" is simply the central bank moving a numbers on a spreadsheet, not necessarily creating new currency notes. This is especially true if the newly "printing money" is being used to repay foreign debts.
Are you saying Argentina is actually running out of currency? If so, where is it all going?
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It's not like the fed dosen't print money as crazy too.
I wonder how long it will be before I can point to this as yet another example of why libertarian policy is absolute bullshit.
My guess is not long.
From the moment he opened his mouth
Have to wait for the bears first.
i can usually understand most political views, but libertarians just make me confused
You are still not half as confused as the average libertarian.
I can almost understand the Personal Liberties Libertarian, which I think is what the philosophy was originally supposed to be about. But we often see Corpo-National Libertarians or Totally-Not-An-Anarchist-I-Swear Libertarians, and both of those are baffling to me.
Yea, the only brand I ever sympathized with was the "Hey man, just let me smoke weed"-bertarians... but all those guys jumped ship a long time ago.
Now it's mostly just "I don't want to pay for schools"-bertarians... and that's ironic because those assholes really need an education.
I've meet way too many libertarians who don't want their taxes to go fund cycle lanes because they don't ride a bicycle. "it does not benefit me" they say while they fail to see that people in bicycles mean fewer people in cars clogging up traffic.
Libertarian world view cannot even see past their nose
confused
You've understood.
It always seems like "common sense" (short-sighted and moronically simplistic) solutions to problems they don't understand but waffle on about something tangentally related to make it sound like they do.
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it's like I'm always with them for the first few seconds, then they just go way off base out of knowhere at some unexpected point in time
just make me confused
It's very simple. They incorporate as a superperson. You're a human, somewhat rich. You get a corporation. You put it on like a magic suit and you have super-immunity (impunity) from laws, you can do anything.
The freedom that they want is the freedom to exercise their power (money) with no bad consequences for them.
It's a simple theology: "Me first. Fuck you. Every man for himself."
While it fits great on a bumper sticker, it's a suboptimal strategy to build an economy, nation-state, or anything really.
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Trust me. I'm an economist from Facebook University
Oh yeah, a bank shutdown turned out great for Argentina the last time they did it.
I missed that previous time, I did a quick Google search but I'm not getting results. Would you know roughly when that happened?
In 2002, there was a major bank freeze overnight in Argentina. They reopened months later, and because of how they now pegged to the dollar, the value of the accounts were functionally cut in half. In those months, many local neighborhoods invented their own bartering systems and it was a whole mess.
This was around the time the USA invaded Afghanistan, which explains why most people don't know about it, but it was obviously a major event for Argentina.
That was a freeze of citizen's personal accounts, not a shutdown. People were not allowed to access and retrieve their own money from their personal bank accounts. This is different. This is the Central (National) Bank, and a shutdown at it. Not individuals bank accounts, if I understand what's going on correctly.
El Corralito
This is false, the Central Bank has not stopped running ever since it was opened and the event you are talking about is also not due to "it closing"
I don't think it's False, just you interpreted the reply to be related to the central bank.
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Argentina just activated Fuck Around And Find Out protocol.
Bruh weve been. The world is just paying attention for the first time.
Nos estamos cayendo a pedazos hace décadas y recién ahora se enteran. Me da algo de gracia, arriba alguien confundió el corralito con el cierre del central
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I'm really interested to see how this plays out. If history plays out that country is headed almost immediately for a recession that may or not be purposefully engineered.
Never attribute to malice what can be explained by dumbass political philosophy.
Oscar Wilde
“Regulate money? Amid out of control inflation? Nonsense!”
The market will regulate itself /s
They should just declare inflation illegal like Zimbabwe
Wait so also the Falklands was non-negotiable?
This is the best summary I could come up with:
BUENOS AIRES, Nov 24 (Reuters) - 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.
The comments, in response to what he called "false rumors", come as the outsider libertarian economist races to put together his team ahead of taking office on Dec. 10, with some signs that he is picking a more moderate Cabinet that expected.
That marks a shift from a previous plan that Milei would appoint a close ally to lead the administration.
Horacio Marin, a private energy sector executive, was also confirmed as the incoming chief of state oil company YPF.
Milei faces major hurdles to implement his more radical reform plans, which include dollarizing the economy, shutting the central bank and privatizing state companies like YPF, which will take time if they can be done at all.
Milei also has to juggle demands from the more mainstream conservative bloc, whose public backing was key to him winning the run-off election last week.
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