How to fix Argentina's economy
Argentina attaching itself to the U.S. dollars is like throwing an anchor to a drowning man. When the U.S. dollar is dethroned as the world’s reserve currency and all those counterfeit dollars used to buy real products created by others come flooding back to the U.S., you don’t want to be connected in any way to the best fiat horse in the glu factory.
If he really tied the peso to gold, that would win. By contrast, the dollar would keep inflationg. But can he do it? That's the question. My guess is not.
I found your article extremely interesting.
What I could understand from listening directly to Milei interviews, is that the dollar would be used only as a tool to close the central bank and transition to a system of free competition of currencies, where people freely from any state coercion will be able to transact on any mean of exchange that they chose. Could be gold, oil or else.
Isn’t it his real proposal?
Please, if posible, explain.
Thank you and keep your great work!
In a regime of free competition for currencies; peso on gold; probably would end up being the choice of people or natural outcome. I still think that this is the aspiration of Milei.
My question to you, could that be implemented in this world of so much constant state intervention?
This whole thing was managed......
Earning His Keep
It’s not hard to figure out why the election of WEF creature Javier Milei was arranged in Argentina: -
Gold-backed bonds are a very interesting idea, but I see one huge drawback: acquiring the gold. Argentina will need to print even more Pesos to purchase a significant amount of gold. As a small percentage of a small economy, it might be doable, but for full conversion it will require most of Argentina's export surplus. Bottom line: no one wants Argentinian Pesos so how will the Argentinian government purchase the required amount of gold? This would be the case for any country wishing to Implement a new gold standard.