guy about to be negotiated
Nah he’s safe. He promised to let the US Fed control Argentina’s monetary policy. He wanted to change the currency to bitcoin, but he’ll settle for USD.
Giving up the ability to set monetary policy and becoming economically dependent on the US is an insane move.
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.
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.
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.
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.
the initial outlay alone could cost as much as $100 billion, for a project that is likely to take years to complete
I guess the big question you have to ask is whether Biden holds Argentina in as high esteem as he holds Ukraine. My guess is that he does not.
Nah. Poppy Bush was a CIA creature. Obama was a CIA creature. Milei is some freakish hybrid of Birchers and Randroids. He doesn’t understand how any of the machines of government keep his constituencies in a position to support him.
Gutting the Argentinian bank might be superficially awesome for the US (assuming you squint and convince yourself cheap Argentinian exports are what Americans really hunger for). But its going to completely fuck over the domestic bourgeois. You’re going to have fascist riots under Milei inside two years, tops.
You’re going to have fascist riots under Milei inside two years, tops.
Between this and the rise of fascists everywhere I’m so concerned about our future as leftists.
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.
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
We’re soon going to see the first actually existing anarcho-capitalism
