If you want to gain a good understanding of what is going on with regard to the Political and Economic situation in Argentina following the recent election of Javier Milei, then I would highly recommend watching a video on David Lin’s YouTube channe…
If you want to gain a good understanding of what is going on with regard to the Political and Economic situation in Argentina following the recent election of Javier Milei, then I would highly recommend watching a video on David Lin’s YouTube channel where he interviews Steve Hanke, Professor of Applied Economics at John Hopkins University. The video is entitled “FED will pivot big in 2024s Economic Tornado”. He talks about Argentina from about 32 minutes in.
One thing that I find bemusing about the whole situation in Argentina is … I can’t understand why the new President Javier Milei would want to Dollarise. In my opinion, the Dollar is just another crap currency and it’s going to fail sometime fairly soon.
An idiom springs to mind … “Out of the frying pan into the fire”.
There would have been a good case to argue in support of this move if Argentina had Dollarised twenty years ago. Then Argentina wouldn’t have the problems that they have now. But that didn’t happen so … it’s something of a mute point.
The other thing to say is I really don’t know why Argentina didn’t stick with the BRICS. It seemed like a better option especially as a BRICS gold back currency has been proposed and Argentina joining BRICS would have meant that they would be part of this and that would have stabilized their currency which would have been good for their Economy.
China isn’t best pleased with their decision to switch and have shown their displeasure by suspending a huge currency swap agreement worth some $6.5 Billion. It’s a form of financial punishment and it’s going to hit Argentina hard. Maybe America will step in and fill the breech.
Nor can I understand why Steve Hanke would be in support of Argentina Dollarising. Someone of his calibre should surely understand that the Dollar as we know it today is doomed. In his defence, I could say that we all have our psychological “blind spots” and maybe that is his. He’s an Academic who might have a more normative view of the world and so can’t see what someone like me sees. Or perhaps the Death of the Dollar has been designated as a taboo subject by our Overlords. So maybe he’s only allowed to say so much and no more.
But anyway … I recommend listening to Professor Hanke … He is, in my opinion, a very smart man and someone worth paying attention to.
Wise up and rise up.
