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I have yet to read about a proposed solution to Argentina's economy. It's not that complicated. The government needs to balance its budget. Continually borro

I have yet to read about a proposed solution to Argentina's economy. It's not that complicated. The government needs to balance its budget. Continually borrowing money -- from the central bank when nobody else wants to lend any -- is inevitably going to inflate the currency. Unfortunately, while this is the only economically feasible solution, it's not a politically feasible solution.

gtirloni 3y ago
> it's not a politically feasible solution. You mean in terms of winning the next re-election? Or because other politicians will not approve new laws to control that? If the people have to starve for X years, I doubt it's a good solution but I don't know if that's what you mean by politically.
- Magnusmaster 3y ago
  Both. Lots of people live from welfare or cushy government jobs where nobody does any work. And lots of politicians give money or food to win elections.
jasmer 3y ago
Balanced books unfortunately is not a solution. A state needs money in circulation to operate (which comes from debt usually), and, it needs money to pay for stuff while it's in distress. 'Balanced Books' is like asking a cancer patient to leave the hospital and 'get a job!'. Something needs to be done for 'full restoration of confidence' - and while 'balanced books' will do that, it will kill the economy in the meantime. Probably getting rid of corruption, then getting rid of obvious waste, then having maybe a period of 'dollar pegging' and outside observance of the Central Bank and maybe some economic oversight as well from Europe and USA ... might help. Sort of like a giant 'drug rehab program' with observers and transparency etc. I suggest a lot of the system is broken and a lot of pieces within it need to be fixed. It's very hard to pull a drug addict off of a drug, the entire body is addicted down to the cellular level.

gtirloni 3y ago

> it's not a politically feasible solution. You mean in terms of winning the next re-election? Or because other politicians will not approve new laws to control that? If the people have to starve for X years, I doubt it's a good solution but I don't know if that's what you mean by politically.

Magnusmaster 3y ago
Both. Lots of people live from welfare or cushy government jobs where nobody does any work. And lots of politicians give money or food to win elections.

jasmer 3y ago

Balanced books unfortunately is not a solution. A state needs money in circulation to operate (which comes from debt usually), and, it needs money to pay for stuff while it's in distress. 'Balanced Books' is like asking a cancer patient to leave the hospital and 'get a job!'. Something needs to be done for 'full restoration of confidence' - and while 'balanced books' will do that, it will kill the economy in the meantime. Probably getting rid of corruption, then getting rid of obvious waste, then having maybe a period of 'dollar pegging' and outside observance of the Central Bank and maybe some economic oversight as well from Europe and USA ... might help. Sort of like a giant 'drug rehab program' with observers and transparency etc. I suggest a lot of the system is broken and a lot of pieces within it need to be fixed. It's very hard to pull a drug addict off of a drug, the entire body is addicted down to the cellular level.