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The only people who will benefit from this are the financial elite in Argentina who are selling pesos and getting dollars as quickly as they can, and the hedge

The only people who will benefit from this are the financial elite in Argentina who are selling pesos and getting dollars as quickly as they can, and the hedge funds who invested in Argentina and need a way out. The current government, which is a bad joke, will never win anything else. The economy will continue to go south because this plan doesn't work even in the short term.

lezojeda 1y ago
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donavanm 1y ago
I personally think milei the politician is a clown. And many of his statements are just offensive to anyone who can spark two braincells together. I also thought he was going to burn it all down in a blaze of hubris after his election. But its hard to argue with arresting the inflation, gdp, and budget surplus numbers. Im not sure how the economy is “going south.” Generously the policies have arrested the slide? I dont imagine the typical argentine is better off with 200% inflation, 50% unemployment, and a 57% poverty rate. Avoiding that return seems to be quite a benefit for just about everyone?
- Daishiman 1y ago
  > But its hard to argue with arresting the inflation, gdp, and budget surplus numbers. Im not sure how the economy is “going south.” Generously the policies have arrested the slide? Sure it is. Public education and science funding is at a historic minimum that is destroying tons of long term scientific and educational initiatives. Roads are falling apart in a gigantic country and what’s left of rail is being scrapped for parts and sold to private entities that will let rails decay just like everywhere else where it was privatized. Consumer spending continues to go down, industry is not competitive with this fake exchange rate causing a loss of high quality jobs and forcing everyone to take a second job as an Uber driver. We’ve seen this play out again and again. The government will default, then hyperinflation and social crises until the low prices of everything make the economy competitive again. This has played out again and again with far more competent governments and we keep being right about it.
  - nradov 1y ago
    The Argentinian government was literally out of cash. There was nothing left and no ability to borrow. So complaining about cuts to education, science, and transportation seems a little silly. How exactly were they supposed to pay for it? In the long run there are things they can do to raise revenue and cut waste. But when you're stuck in a deep hole the first thing you need to do is stop digging.
    - deleted 1y ago
      [deleted]
    - rightbyte 1y ago
      One way to cover expenses is to raise income. The dude running the gov is a libertarian. I don't think he sees running out of other peoples money as a problem. It might be the point. "Big gov".
      - nradov 1y ago
        I don't think you understand the severity of the cash crunch they were facing. How exactly could they raise government revenue fast? Tax rates were already high and compliance was low. Can't get blood from a stone. Longer term they could maybe sell off some state assets but it takes time to bring in any cash that way.
        Daishiman 1y ago
        The severity of the cash crunch has been seen time and time again with the difference being that loans were used to fund a functioning government instead of being used by rich people to buy cheap US dollars to fund their vacations in Europe.
        nradov 1y ago
        What's your point? Regardless of what was done before there were no more loans available in the short term. Seriously, what was the alternative? If you have no money and no one will lend you any money then the only remaining options are to run the printing presses (hyperinflation) or stop spending.
- watwut 1y ago
  It is easy to arguw with those. The plan of artificially keeping currency is not a new one and was tried multiple times before. Each time, you have initial seeming success and then crash.

lezojeda 1y ago

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donavanm 1y ago

I personally think milei the politician is a clown. And many of his statements are just offensive to anyone who can spark two braincells together. I also thought he was going to burn it all down in a blaze of hubris after his election. But its hard to argue with arresting the inflation, gdp, and budget surplus numbers. Im not sure how the economy is “going south.” Generously the policies have arrested the slide? I dont imagine the typical argentine is better off with 200% inflation, 50% unemployment, and a 57% poverty rate. Avoiding that return seems to be quite a benefit for just about everyone?

Daishiman 1y ago
> But its hard to argue with arresting the inflation, gdp, and budget surplus numbers. Im not sure how the economy is “going south.” Generously the policies have arrested the slide? Sure it is. Public education and science funding is at a historic minimum that is destroying tons of long term scientific and educational initiatives. Roads are falling apart in a gigantic country and what’s left of rail is being scrapped for parts and sold to private entities that will let rails decay just like everywhere else where it was privatized. Consumer spending continues to go down, industry is not competitive with this fake exchange rate causing a loss of high quality jobs and forcing everyone to take a second job as an Uber driver. We’ve seen this play out again and again. The government will default, then hyperinflation and social crises until the low prices of everything make the economy competitive again. This has played out again and again with far more competent governments and we keep being right about it.
- nradov 1y ago
  The Argentinian government was literally out of cash. There was nothing left and no ability to borrow. So complaining about cuts to education, science, and transportation seems a little silly. How exactly were they supposed to pay for it? In the long run there are things they can do to raise revenue and cut waste. But when you're stuck in a deep hole the first thing you need to do is stop digging.
  - deleted 1y ago
    [deleted]
  - rightbyte 1y ago
    One way to cover expenses is to raise income. The dude running the gov is a libertarian. I don't think he sees running out of other peoples money as a problem. It might be the point. "Big gov".
    - nradov 1y ago
      I don't think you understand the severity of the cash crunch they were facing. How exactly could they raise government revenue fast? Tax rates were already high and compliance was low. Can't get blood from a stone. Longer term they could maybe sell off some state assets but it takes time to bring in any cash that way.
      - Daishiman 1y ago
        The severity of the cash crunch has been seen time and time again with the difference being that loans were used to fund a functioning government instead of being used by rich people to buy cheap US dollars to fund their vacations in Europe.
        nradov 1y ago
        What's your point? Regardless of what was done before there were no more loans available in the short term. Seriously, what was the alternative? If you have no money and no one will lend you any money then the only remaining options are to run the printing presses (hyperinflation) or stop spending.
watwut 1y ago
It is easy to arguw with those. The plan of artificially keeping currency is not a new one and was tried multiple times before. Each time, you have initial seeming success and then crash.