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That's what always happened in Argentina. Government prints money so they have more to spend, but it's not without consequences. Then they blame businessmen for
by argentinian 3y ago
That's what always happened in Argentina. Government prints money so they have more to spend, but it's not without consequences. Then they blame businessmen for the rising prices, and uneducated voters believe them.
And now with the US media promoting insane ideas like 'modern monetary theory' it may become more common.
- ptero 3y agoI believe this setup works (until it does not, but does work for a very long time) in Argentina in large part due to currency controls making it hard to purchase dollars. Should the same high-inflation state come to the US it would be a very interesting state (technically interesting, not meaning this in a nasty "I plan to watch this show from the outside" way). With current opportunities to easily move between the dollar, other currencies, gold, BTC, etc. should the high (20+%) inflation expectation become entrenched the government will find it hard to force people to buy dollars. When anyone can move a large hedging sum from dollar to Swiss franc or Norwegian krone, forcing the local citizenry to buy rapidly depreciated fiat is virtually impossible. My 2c.
- argentinian 3y agoDemoctrats may be already evaluating the benefits of currency controls.
- ptero 3y agoI am sure they are, but with the options built up during the globalization it will be much, much harder than in Argentina (Cuba, Soviet Union, etc.) in the last century. Not impossible, but very hard. Also, after three decades of globalization currency controls will hit virtually every business, so this will likely be broadly unpopular. Again, not impossible, but I personally view it as very unlikely without dictatorial powers held by one, or a very few, strong individuals. But we shall see...