@@bopndop2347 the argentinian parliament is mostly dominated by the center right (pro-bullrich and Macri). So it will be somwehat of a buffer to milei's plans
@@vectorfox4782 where do you get your facts from? people couldn't possibly want change from the disastrous policies by the former winners, certainly not. 🙄
did you even watch the vid ? They are talking about what his presidency might look like and what he might acomplish. I think most of us can see why argentina would go this way when they have lived under such heavy inflation for so long.
Right, you wish the Argentinian people well with squandering their natural resources by privatizing their national oil company and with giving up their country's financial sovereignty by accepting a foreign currency as their own.
One of the biggest weakness of dollarisation is to get the USD, countries who do dollarisation need to borrow from other institution or other countries, mostly the USA. That's why if you see their debts are higher than other countries. This is good for the USA as all their lives styles are paid by the countries who use dollarisation. It is risky if Argentina is on another side of the USA politics.
At this point changing Argentinian inflation is like changing a national identity. Good luck, do truly hope it works out for them but wouldn't bet money on it. I think the thinking with these policies are correct in spirit but application of them is very risky and if done too fast could backfire dramatically.
It’s actually not that complicated. His platform is centered on cutting government - not only government spending but government itself. And he’s right. Cutting useless blood sucking government agencies will reduce inflation immediately. Government is printing money to pay their bills, money they do not have. Big Government is causing the inflation. We need the same approach in the US.
In the US, for example, the Federal Department of Education has 4,400 employees with a yearly budget of $68 Billion. This means every employee is worth $15.4 million in yearly budget. That is a grossly absurd amount of money. The employees are not adding this amount of value. The agency is overspending like mad. In a private business these numbers would make the company the most value in the entire world. It’s totally unrealistic. But the government agency has no customers or shareholders. Also, if you ask someone to tell you 3 things this agency has accomplished in last 20 years, no one can explain without extensive research.
@@Originalman144 lmaooo I have to believe 68 billion is not spent on the ministry's staff but on what's required to educate children. You know books and schools and stuff. That's also an investment in the most literal sense of the word. Even if it wasn't one and that money was a waste, take that away and what have you a state for? What's the point of organising ourselves in communities? "We need this "APPROACH" in the us" that's not even an approach, it's destruction. You can't see 2 steps ahead of you
@@Originalman144Your teachers are having to bring in supplies bought from their own money. Your colleges cost roughly 16k/year. In the flyover states there is an (comparatively to all else developed economies) alarmingly high number of illiterate people. The whole world laughs at videos of Americans being clueless about basic geography. Meanwhile the federal GOVERNMENT spends twice+ as much on it's "defense" budget as the next country. Funneling money to proxy wars around the globe to satisfy the gun companies on it's payroll. Amidst all this you're complaining about government expenditure on education and frankly so are a lot of Americans. What should that tell me, an outside observer?
This was probably the most pragmatic take on Milei, thanks for being sane and unbiased DW News. It is much appreciated in the current world we live in to have actual journalism.
@Agorila09 I didn't say it was perfect, I said it is the most unbiased, have you seen the articles and videos on other left-leaning mainstream news outlets? compared to that this actual journalism.
Unbiased means trying to be objective, not neutral The objective reality is that they elected a mentally ill person who wants to put forward disastrously bad policies that, if implemented, would sink Argentina to the depths Argentinians didn't know existed.
I'm skeptical, but I also respect and support his attempt. Hope Argentina can recover, but it will require patience. Don't do what Italians do. You can't expect anh government to fix a broken country in only 4 years.
“Money is gold and nothing else … Everything else is credit.” - J.P. Morgan, in testimony to Congress, 1912 True thousands of years ago and still true today. (Silver too.)
Argentina has borrowed monies from the EU many times and have never paid any of the loans back. As the speaker said Argentina also borrowed from China. If you don't make important changes to your economy, and don't pay back your loans. Nobody is going to want to give you further loans, because they're not loans if you don't pay them back.
Not just changes to the economy, the structure of government needs changing. This guy seems to have the balls to get it done. Abolishing bloated government agencies is a great thing.
International loans are never truly "not paid back" countries pay interest on those loans annualy, and for a country like argentina i can imagine they are paying a lot of interest.
It's logical to say that everyone holding a specific currency collectively 'pays' when the government prints more money. I know they need a solution, no matter if it's radical or not. But I wish Argentinians realize that they're going to pay for US bills. [ADDED] Please don't misunderstand; I am NOT arguing against this movement and, of course, NOT saying this cannot be done. I simply question if the benefit outweights the price Argentinians need to pay in long run, and am concerned that this would further reinforce the US hegemony.
We do, and no, dollarization is not exactly the proposal but a free competence of currencies. If by any chance the US dollar was to devaluate to the extent of harming us, we would just move to any other currency, including BTC, who knows.
The civil service budget has been at the heart of decades of deterioration. Seriously cutting that is a good idea. Central Bank set interest rates in an odd tolerance of price fixing. Doing away with that is an interesting idea. Doing away with its own country has never worked for any struggling country.
You think cutting the bribe to the middle class is a good idea in a underdeveloped colony with little prospects of beating the big economies? I don't think so. :)) When people go hungry on streats they don't care that you want to build the bases for a flying economy 70 years into the future, they riot and vote fascism or socialism.
@@eimisavageofficial9196 You think I’m woke? Boy, I’m more right-wing than you are (judging by the compass of course). It’s Trump that’s not as right as Milei and I. Trump increased government spending. Milei plans to cut spending by *50%*. Trump is a pacifist geopolitically. Milei is not. Socially speaking, it’s Trump who is mum about abortion and even had one himself. Milei, on the other hand, is anti-abortion. Just because you’re anti-Trump doesn’t make you woke. If you’re gonna go down that route, you might as well call pundits like Ben Shapiro and Matt Walsh along with Ron DeSantis and Elon Musk woke for opposing Trump. Sheesh!
@@timdixo As I just replied to the other guy, I’m not for the Peronists and I’m not for Trump. As of right now, I back Milei. You MAGAs always gotta come after people who say something wrong about Trump. (By the way, Trump increased spending, not reduced it.)
Not sure if it will work out . But, let's hope so. Argentina is suffering from hyperinflation and must change. Whether that's more change than the necessary, remains to be seen
@@paperinik69yes. one thing i'm sure is that the country is currently not working at all. he works with mainstream economic methods and it's willing to compromise, so it may work indeed
There has been no libertarian paradigm like this since the beginnings of the USA - and that is a dead memory. Where is you think this 'sort of thing' plays out?
@@MichaeldeSousaCruz I laugh so hard every time I see a leftie calling a libertarian a fascist, you people don't even know what any of those words means, for you is just an insult for anyone who disagrees with your politics.
@@AlbertoMurilloOcallaghan leftie? Huh? I’m an American. Read the Declaration of Independence. Read the U.S.Constitution. Read the Universal Declaration of Human Rights. You’ll know who I am. I’m an American. You?
Congratulations to President Milei. He will definitely experience massive resistance all through his presidency by the bloated bureaucracy so I am hoping he can turn things around in Argentina.
Bro really thinks the dude, straight out of a 70's porno, that wields a chainsaw like a mad man will fix an entire nation's economy. The only resistance he has is himself.
@MikeJones50911 Yes, the only difference is, that argentina remains as democratic as it was. You just don't like the outcome of an election. The the ones who have a problem with a democratic vote are not the argentines. It's you.
@MikeJones50911 Does that mean Argentina is about to become American puppet ? And without Cheap chinese products and Low Per Capita , people would suffer?
Annual inflation of 142.7% is equal to a daily inflation of 0.243%. That's insane. A 0.243% in one month is what the U.S. shoots for, which is about 3% annually. Don't expect Milei to fix this quickly. It will take time, but I think he has a lot of good ideas. We need much of his ideology in the U.S. to reduce our debt and cut out wasteful spending.
@@francismarion6400 Well yeah, the US Federal Reserve turned on the money printer and left it on for a while to stimulate the economy while most people stayed at home. Whenever you increase the money supply in your economy while not producing more goods, you devalue your currency making things far more expensive in the long term. Things are going to be tough and remain tough for years to come for EVERYONE but one advantage the US has over other countries is the $US is still the worlds reserve currency which give the US a lot more leverage over pretty much everything. The US can afford to print it's way out of trouble where's countries like Argentina cannot.
@@francismarion6400 According to some sources, the pandemic occurred from 1/21/2020 to 5/5/2023. The CPI went from 259.037 to 302.918, an increase of 16.94%, not 100%.
That woman passing on the fact Milei wants to abolish the ministry of culture, of education, of health, of environment, wants to deregulate organ trade and so on is just baffling. Like none of that matters
Not to forget he cloned his beloved dog which he supposedly met 2000 years ago as a gladiator at the colosseum in rome. The clone of his dog also, according to him, told him to run for president. What could possibly go wrong?
She is from a global asset management company (Natixis Investment Managers)... she is too excited about cashing in from the firesale of Argentinian's public institutions to care about anything else.
How can he be a populist while saying that he will slash public spending and the first 6 months will be extremelly tough? He's not fooling anybody, he said things straight-up and people voted for him. Stop being condescending, people made their vote KNOWING what Milei will do.
How can a libertarian be religiously conservative. How can a libertarian believe in god at all? He is simply another populist autocrat,who will use anything to grab power and never let go.
@@Carewolf No, anarcho Capitalism is the extreme wing of Libertarianism. He's a minarchist. But keeping in reality with the Argentine politics and his electorate, he even said that he wouldn't privatize Healthcare and Education.
Neoclassical economy never worked, because it is too simplistic. And in practice - most successful couthries by all metrics are strong social states with strong regulations like Germany and Scandinavia.
@@noldo3837 Scandinavia is home to some of the most neoliberal economies in the world. Eg Sweden privatized the school system, the public pension system, has been lowering taxes for 40 years every year, etc.
He’s not doing away with all central banks though. In fact his strategy is to tie his nation with the largest central bank on the planet, the federal reserve. This is what we call libertarian logic, it’s always a sleight of hands.
It will be dollarisation just to remove peso, from then, there will be free competence of currencies and every currency of the world will be legal to be use in contacts and for paying taxes.
@@fedeph665 ok and how does this go against anything I’ve said?? The only difference is Argentina will be wholly dependent on Eurodollars to support its new regime and will not be able to provide any social support to its citizens. It’s inflation was due to corruption, so well see if the money freeze will be the solution. Of course it will help with the deficit, but it’s going to get worse (austerity to the next level) and I’m not sure if it will get better. But that’s just my opinion, this is experimental, but no libertarian state, just like no communist state is successful anywhere on this planet.
@@crissd8283 yeah then don't act like central banks are evil lol. Isn't he the one talking about getting rid of all central banks? That is the only point I am making.
The thing that makes me stand back and think, "This Milei guy is nuts!" is that he wants to dollarize the Argentine peso again. When Argentina decided to dollarize in the 1990s, with a peg of 3 pesos to $1 USD, inflation went away. But then the huge budget deficits exploded to keep the peg stable. It reached unsustainable levels in 2001, when the peg broke, Argentina defaulted on $200 billion in sovereign debt, the economy was rammed into the ground and a crisis worse than the Great Depression exploded. Did Argentine voters COMPLETELY forget that this huge crisis in 2001 happened precisely because the peso was dollarized? Dollarization won't fix the problem that forever ails the Argentine government--spending way too much and not taking in enough tax revenues. This inflation they're suffering from is partly caused by the Argentine government printing paper money to keep paying for government expenditures. If that root problem--not enough taxes are being taken in--is not fixed, NOTHING will fix it. Including dollarization of the peso. These poor, deluded people. Less than 25 years later and they want to repeat the same damn mistake all over again...
Yes you are right and the problem is governments spending money they don't have and going over to the dollar may solve problems in the short term but in the long term.
Moving to the dollar is not a solution. The dollar is a Ponzi scheme imposed on the American public in 1913. The IRS in 1913 was created to pay down the national debt created by. The Federal Reserve is owed by the shareholders one of them is the U.S. government. For every dollar printed or created they want it back with interest. How do you pay back 5 dollars if only one is printed? You lend money to banks to lend to citizens so they can pay it back. It’s a debt that never can be paid off. America doesn’t run on federal taxes, it passes a budget and takes a loan from the federal reserve.
You are right! Dolarisation or btc will never solve their problem! First they must fix government spending! Second; trade deficit! Without fixing trade deficit and balanced government budget,they will run out of dollars or btc or gold or whatever they use instead of pesos! And will be much worse than now
It will be interesting to see if the economy functions better without a central bank (aka money printing machine), could be a model for other countries.
@@JRead0691 Not so. The plan is to allow for the free exchange of currencies. The reason it's often called "dollarization" is because argentine businesses already runs on and is desperately lacking USD.
Breaking relations with China and becoming friends with the USA is very tricky, as Kissinger once said: Being an enemy of the USA is dangerous, being a friend of the USA is fatal.
Going from a terrible currency you control to a bad currency **someone else** controls? To me, this sounds like moving the problem around instead of fixing it. But maybe it will be ok in the short run or medium run.
Ordinary Filipino here. I understand why it would be a great quick solution for a runaway inflation, but I also have no idea how a country can run in the long term without a central bank and a currency of its own. Nevertheless, I fervently hope this plan works out for the best for Argentina.
Milei understands economics. He is a bitcoiner. What the challenge is, is changing the power structure. There will be a lot of resistance from the people who benefit from the current structure. In addition to that. He is right central banks are thiefs.
Miele: "We will dollarize!" Xi: "That is nice, President-Elect Miele. Remember who owns most of the Argentine Economy? You won't dollarize, you will Yuan-ize your country!"
I don't think the new president cares much for China's opinion. China certainly isn't going to invade Argentina for not following through with agreements, and short of that, there isn't much they can do....maybe some trade restrictions. Argentina is essentially already locked out of global financial markets.
El tipo es economista y profesor, algo debe saber sobre economía internacional, es lo mejorcito que tienen los Argentinos a comparación de la clase político Argentino que son master en corrupción. Su moneda oficial el peso Argentino llegó a valer....nada, acá en Uruguay país que cuenta con fronteras con Argentina.
Utilising a stable major foreign currency in place of your own is a perfectly respectable approach to monetary policy, especially for a small economy with a history of instability. It has been successfully followed by countries such as Panama and Nauru. It is not so different from Hong Kong's Currency Board system, in which 100% of the HK mobey base is backed by foreign exchange. And it makes the central bank virtuslly redundant.
Good luck logistically getting dollars in circulation around one of the biggest countries in the world geographically. Will take a long time. Argentina is no El Salvador or Panama
WHERES YOUR VIDEO ON WHAT “DEMOCRACY” DID TO ARGENTINA AND CAUSED HUGE INFLATION RATES AND POVERTY FOR EVERYONE EXCEPT FOR POLITICIANS AND GOVERNMENT BUREAUCRATS??
Greece got a disruptor as well in 2015 and we all saw how that went, big players have many cards up their sleeves to subdue others. Best of luck to Argentina, hope it all works well for its people
@@realitykicksin8755 Nice to be optimist but you going to see the wakening by the end of the next year starting march. Crypto.....0 an 1 money will be good for the ones has control or the most of them.
The proposal to adopt USD is not new on this planet. In another form it was used with success in quite a few countries. Also other countries have used "currency board", which is basically the same - using the foreign currency and removing the capability of the local central bank to print money. For Germany information - EU member Bulgaria is in currency board to EUR (started to DEM) and has been for over 25 years. Effectively Bulgaria is using EUR, as each local banknote has the same amount in EUR assets in the central bank. The exchange rate in Bulgaria has been absolutely constant since the board was adopted. I guess somebody will suggest the currency board option to Argentina and there is a good probability the new president will accept it as a compromise to his idea. I guess based on other countries, IMF and WoldBank will assist in adopting a currency board in Argentina.
Milei is my age. We're GenX. However now in my 50s I'm a lot more cautious and tentative. I see this guy and I clutch at my pearls metaphorically. But I know 20 year old me would have been headbanging at his rallies! Soundtrack for today - Burning Down the House! 🤘
Has Milei even mentioned reducing the budgets of the military and police?? No. True libertarians reduce the military and police funding at least as much as, or best more than, reduction of all other public expenditures. True libertarians _actually_ reduce the punitive-state. No, Milie is more authoritarian than a libertarian at this point.
As an Argentinian, living many years outside of my country, and watching the decline of the country, I hope the best for Argentina. Milei's ideas are somewhat extreme, but I hope he moderates and works with everybody. The current government, was too way on the left and lied and bought the people, by keeping them poor and bringing disaster! It will be difficult, with so much bureaucracy and so many useless unions, full of thieves. Argentina has everything or most of the resources, you can think off. My country, has been blessed with so much, but politician, after politician could not of they are not interest to, get the country going in the right direction.
Well he's prez now, so I'd say he's officially a politician. He told people what they want to hear, and now he's gotta deliver or he'll just end up like Bolsonaro.
El Salvador changed its currency to the dollar and became the most expensive country in Latin America. Things cost the same as in the U.S. in ES but people earn around 10 dollars a day. I personally, I am seeking citizenship in Honduras where things are ten times cheaper than El Salvador.
that's not something caused by dollarization.the prices of everything, and salarys of everyone gets transformed from the original currency to dollars. if the prices are high and salrys low thats a problem of the economy, and would be the same with wathever currency they had. The point of dollarazing is having a more reliable currency and blocking the possibilty of further printing of money to overcome fiscal deficit. The last thing being the most important point, because the last goverment did nothing more than abuse the printing machine and freeze prices, burning companys and running the value of the peso to the ground, all to have a better image for the elections. They basically left a bomb, for whoever was going to be the next president, to deal with.
@@draconomega The problem is the reason they were money printing is because the GDP hasn't changed in 15 years. So in order to avoid not paying people, they made money out of thin air. But their debts are to other countries in dollars and Yuan etc. So how do they actually *get* the dollars to become dollarized, when they already owe basically their entire GDP in debt. If the entire country ate nothing, bought nothing, and built nothing but to pay off their debt, they'd have $0 USD each in a year. To get the dollars they will have to sell the country or default on their debts. If they default, who will trade with them? Do they have anything left to sell?
@@A.S.D442 Somalia has less than half the Debt to GDP ratio of Argentina. Basically, they're poorer than Somalia, and Somalia's economy is tiny compared to Argentina's, so debt forgiveness is a big component of how Somalia has not suffered in the same way, because there are much much smaller amounts to forgive. Argentina owes 100x as much money as Somalia, that means there's a lot more USD in Somalia compared to the size of the economy. Also, the USD isn't the official currency of Somalia, using it unofficially allows the government to manage parts of the economy in different ways, once you give up your own currency you lose that ability. Yes, you can mis-manage that ability as in Argentina, but that mis-management was less of the actual issue than the stagnant GDP which is the relevant metric regardless of which currency you use, Somalia's GDP has doubled in 10 years. Argentina's GDP hasn't gone anywhere in that time.
Of course the Natixis Investment Managers representative is salivating at the profit prospects for her company from the firesale of Argentinian's public institutions... couldn't you find an economist without conflicts of interest to analyze this?
Worked well for the people of Russia. I mean, Putin selling off the state assets to his cronies and being very right-wing has been a Godsend for the people of Russia.
"I hope we won't have the economic instability that we have right now" - Greece would like to have a word, about what's it like to be unable to regulate the base interest rates of a developing economy, because the currency is tuned to work best for a developed, slowly moving economy.
argentina already uses the dollar for everything more expensive than a coca cola bottle. do you think people buy houses with a literal truck worth of bills? no, everything is done in dollars already.
@@ultratronger you're only showing that you don't understand the economics of this, and additionally you're only reinforcing my point. You're showing that Argentina should be doing exactly the opposite of the dollar transition. In theory, and in practice, it is a really really bad idea for a developing country to use the same currency as a developed country. With no control over inflation and interest rates, there's no way to ensure a stable economic development. USD interest rates and monetary mass is controlled based on the US economy, not Argentina. Currency is far more than an exchange medium.
@@napillnik good thing its not actually gonna do a dollar transition, it will be a free use of currency, there will be no official currency and citizens will choose whichever one they like and accept. People only say dollarization because everyone already uses the dollar. Dude. I would rather have 5% inflation with the dollar than 150% with the peso. No one can do anything with the peso, its useless, it will never go up in value, there are trillions and trillions of worthless pieces of paper in circulation, it will never be worth more because that would make argentina the richest country in the world
@@ultratronger without a central bank you can't have a currency. Hyperinflation is bad. But inflation itself isn't the worst that can happen. Instead of destroying an economy, why not fix it? Has anyone looked at the causes of high inflation rates? This isn't something mysterious. It might be hard to pinpoint a 4% rise in inflation, but 100% has to have clear causes. Fix them and you'll have a healthy currency, that usually helps the economy to grow. It's probably corruption. You can't fight corruption by destroying an institution. It's a scapegoat. Corruption will still exist. IDK, it's like shooting yourself in the foot because your head hurts or something. It's just idiotic.
Fact.... if your currency is the dollar or the Euro ..... YOU DO NOT NEED A CENTRAL BANK.... the same for Argentina apply to Germany, France, Italy, Spain, Portugal, etc.... how many billions can be saved closing useless institutions
The only good thing of the Argentinian economy is that it is so bad, that the slightest change in policy or dettachment from old ways could be a significant improvement. I hope that is what happens and not that it switches from left leaning corruption to right leaning corruption
Doubt it with hints of privatization of the national airline and railways, doesn’t sounds like the right path when they had to renationalize those assets once again years ago, when it got privatized in the 1990s.
@@TheRandCrews The 1990s were probably the second best time in Argentina history since the late 1800s, they had a growing economy that was flourishing and Argentinian companies were soaring, and people had money and a better living standard, nationalizing companies only brought them down just like it happened in Venezuela.
@@TheRandCrews Argentine has a long history of privatization for cheap, and nationalization with a heavy dosage of debt and corruption, in the 90's menem threw the railroads and shook hands with the almighty truckers union, destroying the second cheapest way to move cargo creating a terrible overload of cost for goods transportation by roads only. Its a pendulum of disaster on every turn of events. The national retirement service was made optional and crappy private firms appeared to fill that role that ate the money without any return to contributors. Instead of making the basic national retirement mandatory and opening the market for extra retirements fund in a competitive environment of firms, they nationalized it and ravaged the coffers to fund free money to the growing unactive population. Its not about national or private, its about doing things properly.
@lif6737 Many libertarians are against abortion, but in favor in cases of rape. That is my case. But the line of argument is different from conservatives or other types.
The answer to Argentina's financial problems is getting people off the government paychecks and getting people to get private business paychecks. That will be the most important aspect to get a change in the financial woes. It will jumpstart the economy immediately. So he'll likely need a quick currency boost so that he can get that money into the hands of business creators and he'll need to be really smart about it.
They were going to far left, two bloated, too many social programs. not enough income. I can't say I'm surprised they took the more radical route. Hopefully it works out well for them
Dollarization means that their debt stays where it is. The only way to get rid of it is the actual inflation of their currency, thats economics 101. They will be in the same trap as Greece was with the Euro. They basically have to sell everything that they have and increase taxes to the sky to manage their economy.
@@francismarion6400 Would still require government regulation to avoid the economy quickly becoming an aristocracy of oligarchs. Besides gold is super unstable base for a currency. We tried it, and it SUCKED.
A lot of lefties here giving their opinions based on envy . I invite you to read about the economic history of countries like Sweden, Canada and New Zealand in the 80s and 90s. After years of socialist measures these economies were not doing well, as they had very big inneficent goverments, high taxes and lots of companies running away, which resulted in inflation and high unemployment. Same problems as Argentine has now, were they have giant bureaucracy, with millions of people on useless goverment jobs. The solution, cut down taxes, goverment expenses, privatize everything that loses money and is not efficient. This bring companies and capital, so that instead of having people doing nothing on useless goverment jobs, they would be producing services and goods.
Im a “soft” Ann Cap and I wish the man the best. Sometimes politics is about compromise though. Libertarians generally have a hard time balancing their bold (and accurate) policy ideas with the real on-the-ground political realities of the swamp.
1. If you abolish the central bank, there won't be any need to "slash government spending". 2. Replacing the peso with the USD with no central bank in Argentina, you'll be borrowing from the US central bank (the Fed). 2.1 The US will tell YOU how to spend their money.
Well, it is a libertarian nut-job after all. You are correct if it's the 90s, but the US itself is in turmoil, so Milei will likely end up selling of his country in pieces to the highest bidders.
WRONG! All EU countries don't have a central bank anymore that can print money... All of them still exist, are doing very well and the ECB doesn't tell them how, when and to whom they spend their money. Borrowing money has nothing to do with the central bank. That's why Argentina has loans with China and Qatar. You think China and Qatar gave them pessos? no...
@@FragLord 1. « he ECB doesn't tell them how, when and to whom they spend their money. » Once digital currency arrives, things will be quite different and not for the best. 2. I don't think china and Qatar give their money willingly. 3. « Borrowing money has nothing to do with the central bank. » Oh yes it is. Unless the countries have retained their national currencies (Japan, United Kingdom, USA...), they will borrow at the central bank. If not, States could seek their money on the "financial markets" (i.e. the banking sector and its subsidiaries). This is the case for all European states.
Hmm ? I wonder … when Greek swapped to another currency they ended up tanked because of corruption and overspending. I wonder how this will work out for Argentine … swapping without having done the legwork? I hope to be wrong but I think that train will crash fast… 😢
There was a book written on this: what happens is that dollar denominated profits flow out of Argentina into American banks looking for better returns. In turn American banks give loans to Argentinians with their national wealth as collateral, as well as opening prime opportunity for American firms to buy up whatever they want much easier. Also national debt becomes more expensive to finance, as profits can flow much easier into better return/lower risk us t-bonds. Very nice insight in your comment, look up janis vaurofakis for more. (Y I butchered his name)
argentina already uses the dollar for everything more expensive than a coca cola bottle. do you think people buy houses with a literal truck worth of bills? no, everything is done in dollars already. The use of the dollar by the citizens on a daily basis is already destroying the peso on it's own. Not to mention the constant printing of money for government spending. Also the entire EU swapped to the Euro. And all of them were a huge success, except for Greece. For the reasons you mentioned. Like you said. Greece didn't tank because of the Euro. It tanked for the same reasons Argentina is tanking. Spending, borrowing and printing... A country is like a company. If you spend more than you make, you loan. If you can't pay your loans, you default... Argentina has defaulted 3 times in the last 20 years with the peso...
Not sure why people are so fascinated with unhinged performative political clowns? If he is going to rule the way he is behaving, it will be very interesting. But maybe when he gets into the office he becomes smart, leveled and well balanced politico-economic genius 🤷🏻♀️
If he shuts down anything, or ends security, then he has people out of work or takes away their life support. Do that to too many, then what? People leave the country ?
Sometimes in life you have to make a BIG left turn. Let’s hope this ones works. Argentina Deserves Prosperity. There’s no Reason they shouldn’t be a Great Regional power
It will be dollarisation just to remove peso, from then, there will be free competence of currencies and every currency of the world will be legal to be use in contacts and for paying taxes. Furthermore, Argentinan politicians use Arg Central Bank as a money printer machine to fund social agenda and corruption, we have 150% inflation, i would rather have US inflation than argentinian inflation.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
The debts will be renegotiated and if it is done carefully and respectfully Argentina has to be very very careful and put labor at the base and create business from the ground up. Micro credits for small business will turn Argentina around when it is done with work projects that are well planned. This planning should be the only political debate and process delay. Engage in real infrastructure that is liberating versus creating strangulation.
I'm still dubious about Javier getting rid of the central bank, and get rid of their national currency? So I edited this comment now I've received updates. However, surely 'reform' would be better, rather than abolishing both of these?
The national bank helped cause the situation that they are in. It(central bank) prints like 2,000 pesos a day. Or at least what I heard. Might be wrong
To be fair, there's no point having a central bank, if you are using the USD... It's not like the Federal Reserve is going to defer to Argentina when managing the Dollar just because they use it too...
And corrupt politicians often look for others to blame@@Agent-lr4ez ? Our central bank a few decades we made independent for selecting interests rates rather than politicians and growth has been more steadier even since! What concerns me is that what you heard isn't true, and isn't really the cause the problems... it doesn't sound like it, but I could be wrong?
I just looked into this, and apparently you're right the central bank is part of the problem, but I would have thought reform rather than abolishment would be better@@Agent-lr4ez?
It coukd be. Milei proposes that any currency will be legal. But Argentina is already semi dollarized, so everybody assumes that they will chose the dollar in the end
Milei will most probably sit down for 4-5 years enjoying the status while doing nothing: “oh it’s the parliament that’s obstructing, it’s the civil service obstructing, it’s the judges, it’s….” In the meantime there’re still gains to cash in ( _sprinkling dust_ to distribute in exchange of “la plata”): Just look at Milei 1st travels right out of victory, to USA, to Israel. They’re _spiritual visits_ *wink *wink
@@biocapsule7311 There’s a video where he yanks ministries out of a white board: ministry of culture, ministry of health, ministry of social services, ministry of infrastructure, etc etc. That one I would like to see if he has the guts to do just like he campaigned.
Yes, he has won a 56:44 % victory, a 6% swing is the difference. If he plans on a radical agenda it will have the opposition of 44% which will increase if it does not work and will be a nation divided. I expect much effort from the US to welcome Argentina into the dollar empire, however. However, when it starts to go wrong and Argentina has no levers to control its own economy in the future it will be somebody else's problem. For ever.
Congratulations Argentina, I'm going to be investing there for sure, i wish you the best of luck, it's going to be rough for a couple of years to curb inflation, but in the long run you will be far better off. I can't wait to see the power of the Argantinian people unshackled, you will achieve great things i'm sure
Election talk is cheap, fixing things with 140% inflation is extremely hard.
It's desperation that drives people to make such choices .
@@jkardez4794if it’s change they want then good for them. But such radical decisions might come back to haunt Argentinian voters
@@bopndop2347 the argentinian parliament is mostly dominated by the center right (pro-bullrich and Macri). So it will be somwehat of a buffer to milei's plans
@@bopndop2347 as if it can be worse than being a leftard in a socialist government
Indeed 👍
He got 56 % people's vote so let the people of argentina decide .
@@vectorfox4782you know he is pro-ukraine and supports crushing russia? Why do uoy think russia would support a pro-ukrainian politican?
@vectorfox4782 Bolsonaro lost ,where was Russia in this?
@@vectorfox4782 where do you get your facts from? people couldn't possibly want change from the disastrous policies by the former winners, certainly not. 🙄
did you even watch the vid ? They are talking about what his presidency might look like and what he might acomplish. I think most of us can see why argentina would go this way when they have lived under such heavy inflation for so long.
Yes ofc, they'll also pay for the bill once this clown is out of office...
It will be very difficult, but changes need to be made. I wish the people of Argentina well.
Right, you wish the Argentinian people well with squandering their natural resources by privatizing their national oil company and with giving up their country's financial sovereignty by accepting a foreign currency as their own.
@AmericanTraitors-GOP time will tell. i hope you are wrong!
Ty
@AmericanTraitors-GOP jp Morgan is that you?
All the best to the Argentines, and hope it all goes great!
Will America lift the oil sanctions on Argentina. All Argentina problems are caused by Washington.
@@kenhoughton5476that's a stretch
@@kenhoughton5476 yup many countries who done dollarization have serious problems in debts and imports are more than exports.
@@MSDGroup-ez6zk i dont think they can get much worse from the sound of it
One of the biggest weakness of dollarisation is to get the USD, countries who do dollarisation need to borrow from other institution or other countries, mostly the USA. That's why if you see their debts are higher than other countries. This is good for the USA as all their lives styles are paid by the countries who use dollarisation. It is risky if Argentina is on another side of the USA politics.
God bless you my Argentinian brothers & sisters!...best of luck from your inflation brother in Zimbabwe 🇿🇼
Thanks Bro ❤😢
At this point changing Argentinian inflation is like changing a national identity. Good luck, do truly hope it works out for them but wouldn't bet money on it. I think the thinking with these policies are correct in spirit but application of them is very risky and if done too fast could backfire dramatically.
It’s actually not that complicated. His platform is centered on cutting government - not only government spending but government itself. And he’s right. Cutting useless blood sucking government agencies will reduce inflation immediately. Government is printing money to pay their bills, money they do not have. Big Government is causing the inflation. We need the same approach in the US.
@@Originalman144don't count your chickens
In the US, for example, the Federal Department of Education has 4,400 employees with a yearly budget of $68 Billion. This means every employee is worth $15.4 million in yearly budget. That is a grossly absurd amount of money. The employees are not adding this amount of value. The agency is overspending like mad.
In a private business these numbers would make the company the most value in the entire world. It’s totally unrealistic. But the government agency has no customers or shareholders.
Also, if you ask someone to tell you 3 things this agency has accomplished in last 20 years, no one can explain without extensive research.
@@Originalman144 lmaooo I have to believe 68 billion is not spent on the ministry's staff but on what's required to educate children. You know books and schools and stuff. That's also an investment in the most literal sense of the word. Even if it wasn't one and that money was a waste, take that away and what have you a state for? What's the point of organising ourselves in communities? "We need this "APPROACH" in the us" that's not even an approach, it's destruction. You can't see 2 steps ahead of you
@@Originalman144Your teachers are having to bring in supplies bought from their own money. Your colleges cost roughly 16k/year. In the flyover states there is an (comparatively to all else developed economies) alarmingly high number of illiterate people. The whole world laughs at videos of Americans being clueless about basic geography. Meanwhile the federal GOVERNMENT spends twice+ as much on it's "defense" budget as the next country. Funneling money to proxy wars around the globe to satisfy the gun companies on it's payroll. Amidst all this you're complaining about government expenditure on education and frankly so are a lot of Americans. What should that tell me, an outside observer?
This was probably the most pragmatic take on Milei, thanks for being sane and unbiased DW News. It is much appreciated in the current world we live in to have actual journalism.
Could you clarify what you are referring to?
@Agorila09 I didn't say it was perfect, I said it is the most unbiased, have you seen the articles and videos on other left-leaning mainstream news outlets? compared to that this actual journalism.
you do realise you have just voted for a "Hugo Chavez" of your own, right? SURELY you realise that....
Unbiased means trying to be objective, not neutral
The objective reality is that they elected a mentally ill person who wants to put forward disastrously bad policies that, if implemented, would sink Argentina to the depths Argentinians didn't know existed.
@@Don_PuparoWhy?
I'm skeptical, but I also respect and support his attempt. Hope Argentina can recover, but it will require patience. Don't do what Italians do. You can't expect anh government to fix a broken country in only 4 years.
Which policy do you respect?
@@Red1Green2Blue3 all of them, seeing as theyre all positive for everyone.
@@ultratronger name them and say how they'll benefit people
you respect and support his attempt to do what, exactly? Kill poor and marginalized people through malevolent policy?
@@tomslastname5560 yes
“Money is gold and nothing else … Everything else is credit.” - J.P. Morgan, in testimony to Congress, 1912
True thousands of years ago and still true today. (Silver too.)
I hope for great positive change for Argentina. Best wishes to Milei.
Thanks Bro!❤
Argentina has borrowed monies from the EU many times and have never paid any of the loans back. As the speaker said Argentina also borrowed from China. If you don't make important changes to your economy, and don't pay back your loans. Nobody is going to want to give you further loans, because they're not loans if you don't pay them back.
There's a group in Europe that kept refinancing their debt, I think for geopolitical reasons. I would've forced them to default a long time ago
Not just changes to the economy, the structure of government needs changing. This guy seems to have the balls to get it done. Abolishing bloated government agencies is a great thing.
International loans are never truly "not paid back" countries pay interest on those loans annualy, and for a country like argentina i can imagine they are paying a lot of interest.
And the consequences of trying to pull the wool over Chinas eyes aren't pretty.
@@Originalman144Will the parliament agree with this? We will see. 👀
It's logical to say that everyone holding a specific currency collectively 'pays' when the government prints more money. I know they need a solution, no matter if it's radical or not. But I wish Argentinians realize that they're going to pay for US bills.
[ADDED] Please don't misunderstand; I am NOT arguing against this movement and, of course, NOT saying this cannot be done. I simply question if the benefit outweights the price Argentinians need to pay in long run, and am concerned that this would further reinforce the US hegemony.
We do, and no, dollarization is not exactly the proposal but a free competence of currencies.
If by any chance the US dollar was to devaluate to the extent of harming us, we would just move to any other currency, including BTC, who knows.
@@Huszkyhow are you going to get US dollars though
@@HuszkyMajor countries central banks aren't going to want to let Argentina to use their currency if they're just going to devalue it.
@@sandworm9528 Beg as Ukraine doing
@@MrJonezy541 What? How are we going to devaluate currency that's not ours??
The civil service budget has been at the heart of decades of deterioration. Seriously cutting that is a good idea. Central Bank set interest rates in an odd tolerance of price fixing. Doing away with that is an interesting idea. Doing away with its own country has never worked for any struggling country.
It depends, I think it would dollarize and then try to transition out of it at a later date with a new peso.
Plenty of countries managed to dollarise just fine
oil rich gulf economies always used pegged currencies for around a century now. They are doing well.
You think cutting the bribe to the middle class is a good idea in a underdeveloped colony with little prospects of beating the big economies?
I don't think so. :)) When people go hungry on streats they don't care that you want to build the bases for a flying economy 70 years into the future, they riot and vote fascism or socialism.
@@mdkumarz Yes, compare Argentina with free money from ground Arabia
He is going to make Argentina great again 🎉
As Trump said lol
@@HappyGuy-cn9po
Sure, the current path of extravagant government spending is the way forward lol
@@HappyGuy-cn9poit's TRUE
Don't panicked no one is living in your small woke old world ..
@@eimisavageofficial9196 You think I’m woke? Boy, I’m more right-wing than you are (judging by the compass of course).
It’s Trump that’s not as right as Milei and I. Trump increased government spending. Milei plans to cut spending by *50%*. Trump is a pacifist geopolitically. Milei is not. Socially speaking, it’s Trump who is mum about abortion and even had one himself. Milei, on the other hand, is anti-abortion.
Just because you’re anti-Trump doesn’t make you woke. If you’re gonna go down that route, you might as well call pundits like Ben Shapiro and Matt Walsh along with Ron DeSantis and Elon Musk woke for opposing Trump. Sheesh!
@@timdixo As I just replied to the other guy, I’m not for the Peronists and I’m not for Trump. As of right now, I back Milei.
You MAGAs always gotta come after people who say something wrong about Trump.
(By the way, Trump increased spending, not reduced it.)
Not sure if it will work out . But, let's hope so. Argentina is suffering from hyperinflation and must change. Whether that's more change than the necessary, remains to be seen
He's an economist and will reform Argentina so it won't be such a unique economy anymore
It definitely won't work😂
@@Mon1moNbeing an economist means little. It's not like economists don't regularly direct Presidents to make bad decisions
Not sure really?😅
@@paperinik69yes. one thing i'm sure is that the country is currently not working at all. he works with mainstream economic methods and it's willing to compromise, so it may work indeed
Libertarian policies for the poor and socialist policies for the wealthy is usually the way this sort of thing works out.
Ripe for Fascism. The pipeline has been primed.
There has been no libertarian paradigm like this since the beginnings of the USA - and that is a dead memory.
Where is you think this 'sort of thing' plays out?
@@barkingbandicoot where did you come about your notion of the beginnings of the USA?
@@MichaeldeSousaCruz I laugh so hard every time I see a leftie calling a libertarian a fascist, you people don't even know what any of those words means, for you is just an insult for anyone who disagrees with your politics.
@@AlbertoMurilloOcallaghan leftie? Huh? I’m an American. Read the Declaration of Independence. Read the U.S.Constitution. Read the Universal Declaration of Human Rights. You’ll know who I am. I’m an American. You?
Congratulations to President Milei. He will definitely experience massive resistance all through his presidency by the bloated bureaucracy so I am hoping he can turn things around in Argentina.
Bro really thinks the dude, straight out of a 70's porno, that wields a chainsaw like a mad man will fix an entire nation's economy. The only resistance he has is himself.
@MikeJones50911 Yes, the only difference is, that argentina remains as democratic as it was. You just don't like the outcome of an election. The the ones who have a problem with a democratic vote are not the argentines. It's you.
@@tubaboytomSpot on about the 70s porn star look!!!
@MikeJones50911 So I was right, ok.
@MikeJones50911 Does that mean Argentina is about to become American puppet ? And without Cheap chinese products and Low Per Capita , people would suffer?
Secondly, the Euro could be the best option for Argentina, because many argentinan has EU citizens.
Annual inflation of 142.7% is equal to a daily inflation of 0.243%. That's insane. A 0.243% in one month is what the U.S. shoots for, which is about 3% annually. Don't expect Milei to fix this quickly. It will take time, but I think he has a lot of good ideas. We need much of his ideology in the U.S. to reduce our debt and cut out wasteful spending.
US inflation was 100% during the pandemic and never went down.
@@francismarion6400 Well yeah, the US Federal Reserve turned on the money printer and left it on for a while to stimulate the economy while most people stayed at home. Whenever you increase the money supply in your economy while not producing more goods, you devalue your currency making things far more expensive in the long term.
Things are going to be tough and remain tough for years to come for EVERYONE but one advantage the US has over other countries is the $US is still the worlds reserve currency which give the US a lot more leverage over pretty much everything. The US can afford to print it's way out of trouble where's countries like Argentina cannot.
@@francismarion6400 According to some sources, the pandemic occurred from 1/21/2020 to 5/5/2023. The CPI went from 259.037 to 302.918, an increase of 16.94%, not 100%.
С безнопилой😂
@frua97 Everything cost 100% more almost overnight as soon as those lockdowns started. Some things as much as 300% more. Prices never went down much.
Run the experiment! Argentinians are a great, hopeful people. Best of luck, from Canada. We're watching you! We're family.
Canadians said that to First Nation moments-before exterminating-them.
@@babblo1389guess they have something in common
You're also running an experiment aren't you?
He can't be any worse than what's been there. Get behind 💯 God Bless Argentina 🙏❤🇦🇷🇮🇪🇦🇷🇮🇪🇦🇷❤🙏
We said that with Trump once
@sergiosierra2422
Judging by the polls, I believe you meant to say "we said that with Biden once"
He WILL be way worse.
Read about his grandfather Ante Pavelic, and you'll see how it can easily get worse.
That woman passing on the fact Milei wants to abolish the ministry of culture, of education, of health, of environment, wants to deregulate organ trade and so on is just baffling.
Like none of that matters
Not to forget he cloned his beloved dog which he supposedly met 2000 years ago as a gladiator at the colosseum in rome. The clone of his dog also, according to him, told him to run for president.
What could possibly go wrong?
A smaller state is great.
She is from a global asset management company (Natixis Investment Managers)... she is too excited about cashing in from the firesale of Argentinian's public institutions to care about anything else.
According to whom? Ayn Rand?
None of that matters .
Argentina has made the right decision!
How can he be a populist while saying that he will slash public spending and the first 6 months will be extremelly tough? He's not fooling anybody, he said things straight-up and people voted for him. Stop being condescending, people made their vote KNOWING what Milei will do.
He's anarcho Capitalist only in theory, even he accepted that. In reality he's a Libertarian.
How can a libertarian be religiously conservative. How can a libertarian believe in god at all? He is simply another populist autocrat,who will use anything to grab power and never let go.
That is the same thing..
@@Carewolf No, anarcho Capitalism is the extreme wing of Libertarianism.
He's a minarchist.
But keeping in reality with the Argentine politics and his electorate, he even said that he wouldn't privatize Healthcare and Education.
Hayek would be very proud for him
Neoclassical economy never worked, because it is too simplistic. And in practice - most successful couthries by all metrics are strong social states with strong regulations like Germany and Scandinavia.
@@noldo3837 Their "success" is unwinding.
@@noldo3837 Scandinavia is home to some of the most neoliberal economies in the world. Eg Sweden privatized the school system, the public pension system, has been lowering taxes for 40 years every year, etc.
@@noldo3837If you don't have kids, you are not successful. Period.
Ah, yes, economies only work if you implement complex rules. People couldn’t simply be left to deal amongst themselves.
He’s not doing away with all central banks though. In fact his strategy is to tie his nation with the largest central bank on the planet, the federal reserve. This is what we call libertarian logic, it’s always a sleight of hands.
It will be dollarisation just to remove peso, from then, there will be free competence of currencies and every currency of the world will be legal to be use in contacts and for paying taxes.
@@fedeph665 ok and how does this go against anything I’ve said?? The only difference is Argentina will be wholly dependent on Eurodollars to support its new regime and will not be able to provide any social support to its citizens. It’s inflation was due to corruption, so well see if the money freeze will be the solution. Of course it will help with the deficit, but it’s going to get worse (austerity to the next level) and I’m not sure if it will get better. But that’s just my opinion, this is experimental, but no libertarian state, just like no communist state is successful anywhere on this planet.
If your solution is well lets just continue then you are mad 😮
I think being tied to a more stable central bank is certainly better than being tied to a horrible dumpster fire they have now.
@@crissd8283 yeah then don't act like central banks are evil lol. Isn't he the one talking about getting rid of all central banks? That is the only point I am making.
Switch to the US dollar and Argentina can’t print more money. That is one of the issues.
The thing that makes me stand back and think, "This Milei guy is nuts!" is that he wants to dollarize the Argentine peso again. When Argentina decided to dollarize in the 1990s, with a peg of 3 pesos to $1 USD, inflation went away. But then the huge budget deficits exploded to keep the peg stable. It reached unsustainable levels in 2001, when the peg broke, Argentina defaulted on $200 billion in sovereign debt, the economy was rammed into the ground and a crisis worse than the Great Depression exploded. Did Argentine voters COMPLETELY forget that this huge crisis in 2001 happened precisely because the peso was dollarized? Dollarization won't fix the problem that forever ails the Argentine government--spending way too much and not taking in enough tax revenues. This inflation they're suffering from is partly caused by the Argentine government printing paper money to keep paying for government expenditures. If that root problem--not enough taxes are being taken in--is not fixed, NOTHING will fix it. Including dollarization of the peso. These poor, deluded people. Less than 25 years later and they want to repeat the same damn mistake all over again...
Yes you are right and the problem is governments spending money they don't have and going over to the dollar may solve problems in the short term but in the long term.
You have more knowledge in this than the actual Professor of macro & micro economics?
Are you smarter than him?
Do you even Study Economics?
If not
Moving to the dollar is not a solution. The dollar is a Ponzi scheme imposed on the American public in 1913. The IRS in 1913 was created to pay down the national debt created by. The Federal Reserve is owed by the shareholders one of them is the U.S. government. For every dollar printed or created they want it back with interest. How do you pay back 5 dollars if only one is printed? You lend money to banks to lend to citizens so they can pay it back. It’s a debt that never can be paid off. America doesn’t run on federal taxes, it passes a budget and takes a loan from the federal reserve.
This time it will work because Milei will fire every government worker and cut every social benefit, what could go wrong?? 😵
You are right! Dolarisation or btc will never solve their problem! First they must fix government spending! Second; trade deficit!
Without fixing trade deficit and balanced government budget,they will run out of dollars or btc or gold or whatever they use instead of pesos!
And will be much worse than now
He's not an "anarcho capitalist". If you look at what he says about crime and policing, that's in stark contradiction with anarcho-capitalism
Anarcho capitalism can’t actually exist as its described. It’s just fascism
Anarcho-capitalism in its original context is meant an Austrian economic theory - not the internet memes of "you could buy a nuke hurr-durr".
the war on drags was inherited from the previous administrations, he just hasn't changed policing. separation of powers.
In the midst of "It's so over", I found there was, within me, an invincible "We're so back."
It will be interesting to see if the economy functions better without a central bank (aka money printing machine), could be a model for other countries.
Central banks only became a widespread thing in the 19th century with the rise of marxist ideas, so yes, an economy can operate without them.
lol, all they're doing is changing their central bank to the US central bank...
@@JRead0691 Not so. The plan is to allow for the free exchange of currencies. The reason it's often called "dollarization" is because argentine businesses already runs on and is desperately lacking USD.
@@JRead0691 the point of that is that the politician no longer can print money for them, they cant corrupt the US bank
I hope it works for them but outside influences, the oligarchy won't let them make it a success.
Breaking relations with China and becoming friends with the USA is very tricky, as Kissinger once said: Being an enemy of the USA is dangerous, being a friend of the USA is fatal.
That is democracy we pick who we want especially when Argentina 🇦🇷 is falling apart!! Well done the winner 🏆 👏
Your first mistake is believing another politician will change anything. You gotta change it yourselves folks.
Going from a terrible currency you control to a bad currency **someone else** controls?
To me, this sounds like moving the problem around instead of fixing it.
But maybe it will be ok in the short run or medium run.
Ordinary Filipino here. I understand why it would be a great quick solution for a runaway inflation, but I also have no idea how a country can run in the long term without a central bank and a currency of its own. Nevertheless, I fervently hope this plan works out for the best for Argentina.
Milei understands economics. He is a bitcoiner. What the challenge is, is changing the power structure. There will be a lot of resistance from the people who benefit from the current structure.
In addition to that. He is right central banks are thiefs.
@@WhistleRgv You haven't a clue about what a Central Bank does, don't you?
@@andraspeter1114 sadly I do. I work in finance for the regulator fraud & AML.
So yes I do know that I'm talking about
Sadly, that 56% believes we need to be US puppets
@@WhistleRgv A bitcoiner? As if he wasn't enough of a nut job already..
He can hardly do worse with their economy than the government has been for years.
indeed he can.sold the whole country to USA
Wait and see Argentina will look like Venuezuela
Argentina suddenly became a destination hot spot.
Freedom to Argentina through a great patriot like Milei!!
Miele: "We will dollarize!"
Xi: "That is nice, President-Elect Miele. Remember who owns most of the Argentine Economy? You won't dollarize, you will Yuan-ize your country!"
I don't think the new president cares much for China's opinion. China certainly isn't going to invade Argentina for not following through with agreements, and short of that, there isn't much they can do....maybe some trade restrictions. Argentina is essentially already locked out of global financial markets.
Like the yuan is available anywhere. Go try find some.
El tipo es economista y profesor, algo debe saber sobre economía internacional, es lo mejorcito que tienen los Argentinos a comparación de la clase político Argentino que son master en corrupción. Su moneda oficial el peso Argentino llegó a valer....nada, acá en Uruguay país que cuenta con fronteras con Argentina.
Es lo mejor 😂.Que dios los agarre confesados
Pero si no le Joden los socialistas en la asamblea. Lo mismo paso aquí en Ecuador con el ex president Lasso.
Economists are cultists
Argentina doesn't have enough capital to buy enough dollars and drop the peso.
@@Atite_Lometen Argentinians have approximately 300 billion dollars "under the mattress" (outside the banking system).
Utilising a stable major foreign currency in place of your own is a perfectly respectable approach to monetary policy, especially for a small economy with a history of instability. It has been successfully followed by countries such as Panama and Nauru.
It is not so different from Hong Kong's Currency Board system, in which 100% of the HK mobey base is backed by foreign exchange.
And it makes the central bank virtuslly redundant.
Good luck logistically getting dollars in circulation around one of the biggest countries in the world geographically. Will take a long time. Argentina is no El Salvador or Panama
Arg is #22 in GDP, not a small economy by any means. Thats kinda the issue, getting enough foreign currency to fuel such economy may be a pipe dream.
Milei is a man with guts and a true leader
Why not just start a new currency the 'Argentina Dollar" that is gold-backed.
I hope for Argentina and Milei. I'm from Brazil and I hate to say Brazilian President is sucks 😢
🤡🙄
This guy will have to be the real deal to resist the temptations that will be laid out in front of him
Yeah. Let's all use the dollar. Than the Fed can have even more power and print how much money they want. That won't cause any issues at all
Argentina is NOT the 2nd largest economy in Latin America.
WHERES YOUR VIDEO ON WHAT “DEMOCRACY” DID TO ARGENTINA AND CAUSED HUGE INFLATION RATES AND POVERTY FOR EVERYONE EXCEPT FOR POLITICIANS AND GOVERNMENT BUREAUCRATS??
Greece got a disruptor as well in 2015 and we all saw how that went, big players have many cards up their sleeves to subdue others. Best of luck to Argentina, hope it all works well for its people
Making me laugh ... they have nothing to lose. Things can only go up. This is a normal reaction after massive inflation ... people elect a strongman.
@@realitykicksin8755 Nice to be optimist but you going to see the wakening by the end of the next year starting march. Crypto.....0 an 1 money will be good for the ones has control or the most of them.
The proposal to adopt USD is not new on this planet. In another form it was used with success in quite a few countries. Also other countries have used "currency board", which is basically the same - using the foreign currency and removing the capability of the local central bank to print money.
For Germany information - EU member Bulgaria is in currency board to EUR (started to DEM) and has been for over 25 years. Effectively Bulgaria is using EUR, as each local banknote has the same amount in EUR assets in the central bank. The exchange rate in Bulgaria has been absolutely constant since the board was adopted.
I guess somebody will suggest the currency board option to Argentina and there is a good probability the new president will accept it as a compromise to his idea. I guess based on other countries, IMF and WoldBank will assist in adopting a currency board in Argentina.
I think the same thing.
Yes! The bulgarian leva has been tied to half a german mark for like 30 years now. 1 leva = 0.5 euro. This is why Bulgaria switching to Euro is easy.
Yes, argentina has triet it in the 90s...
Changing your pesos to dollars with the amount of US debt is a ticking time bomb.
Milei is my age. We're GenX. However now in my 50s I'm a lot more cautious and tentative. I see this guy and I clutch at my pearls metaphorically. But I know 20 year old me would have been headbanging at his rallies! Soundtrack for today - Burning Down the House! 🤘
Has Milei even mentioned reducing the budgets of the military and police?? No.
True libertarians reduce the military and police funding at least as much as, or best more than, reduction of all other public expenditures. True libertarians _actually_ reduce the punitive-state.
No, Milie is more authoritarian than a libertarian at this point.
As an Argentinian, living many years outside of my country, and watching the decline of the country, I hope the best for Argentina. Milei's ideas are somewhat extreme, but I hope he moderates and works with everybody. The current government, was too way on the left and lied and bought the people, by keeping them poor and bringing disaster! It will be difficult, with so much bureaucracy and so many useless unions, full of thieves. Argentina has everything or most of the resources, you can think off. My country, has been blessed with so much, but politician, after politician could not of they are not interest to, get the country going in the right direction.
Well he's prez now, so I'd say he's officially a politician. He told people what they want to hear, and now he's gotta deliver or he'll just end up like Bolsonaro.
He is extreme because he comes from the family of extremes. Learn about his grandfather Ante Pavelic.
You're not anything "anarcho" If you are a president lol
AnarchoFreedom
Anarchists are a contradiction unto themselves.
This is why "An"caps are a meme.
Got a point there
It is a multidecade project.
He seems like the right man in the right mindset for Argentina. Hopes are high!
If nothing else I say salute to Argentina for trying something new.
probably another bankruptcy
El Salvador changed its currency to the dollar and became the most expensive country in Latin America. Things cost the same as in the U.S. in ES but people earn around 10 dollars a day. I personally, I am seeking citizenship in Honduras where things are ten times cheaper than El Salvador.
Can you explain please cause in my country Somalia they also use the dollar but things don’t cost the same as the US
Tihis is not true
that's not something caused by dollarization.the prices of everything, and salarys of everyone gets transformed from the original currency to dollars. if the prices are high and salrys low thats a problem of the economy, and would be the same with wathever currency they had.
The point of dollarazing is having a more reliable currency and blocking the possibilty of further printing of money to overcome fiscal deficit. The last thing being the most important point, because the last goverment did nothing more than abuse the printing machine and freeze prices, burning companys and running the value of the peso to the ground, all to have a better image for the elections. They basically left a bomb, for whoever was going to be the next president, to deal with.
@@draconomega The problem is the reason they were money printing is because the GDP hasn't changed in 15 years. So in order to avoid not paying people, they made money out of thin air. But their debts are to other countries in dollars and Yuan etc. So how do they actually *get* the dollars to become dollarized, when they already owe basically their entire GDP in debt. If the entire country ate nothing, bought nothing, and built nothing but to pay off their debt, they'd have $0 USD each in a year. To get the dollars they will have to sell the country or default on their debts. If they default, who will trade with them? Do they have anything left to sell?
@@A.S.D442 Somalia has less than half the Debt to GDP ratio of Argentina. Basically, they're poorer than Somalia, and Somalia's economy is tiny compared to Argentina's, so debt forgiveness is a big component of how Somalia has not suffered in the same way, because there are much much smaller amounts to forgive. Argentina owes 100x as much money as Somalia, that means there's a lot more USD in Somalia compared to the size of the economy. Also, the USD isn't the official currency of Somalia, using it unofficially allows the government to manage parts of the economy in different ways, once you give up your own currency you lose that ability. Yes, you can mis-manage that ability as in Argentina, but that mis-management was less of the actual issue than the stagnant GDP which is the relevant metric regardless of which currency you use, Somalia's GDP has doubled in 10 years. Argentina's GDP hasn't gone anywhere in that time.
Of course the Natixis Investment Managers representative is salivating at the profit prospects for her company from the firesale of Argentinian's public institutions... couldn't you find an economist without conflicts of interest to analyze this?
Worked well for the people of Russia. I mean, Putin selling off the state assets to his cronies and being very right-wing has been a Godsend for the people of Russia.
"I hope we won't have the economic instability that we have right now" - Greece would like to have a word, about what's it like to be unable to regulate the base interest rates of a developing economy, because the currency is tuned to work best for a developed, slowly moving economy.
argentina already uses the dollar for everything more expensive than a coca cola bottle. do you think people buy houses with a literal truck worth of bills? no, everything is done in dollars already.
@@ultratronger you're only showing that you don't understand the economics of this, and additionally you're only reinforcing my point. You're showing that Argentina should be doing exactly the opposite of the dollar transition.
In theory, and in practice, it is a really really bad idea for a developing country to use the same currency as a developed country. With no control over inflation and interest rates, there's no way to ensure a stable economic development.
USD interest rates and monetary mass is controlled based on the US economy, not Argentina.
Currency is far more than an exchange medium.
@@napillnik good thing its not actually gonna do a dollar transition, it will be a free use of currency, there will be no official currency and citizens will choose whichever one they like and accept. People only say dollarization because everyone already uses the dollar.
Dude. I would rather have 5% inflation with the dollar than 150% with the peso. No one can do anything with the peso, its useless, it will never go up in value, there are trillions and trillions of worthless pieces of paper in circulation, it will never be worth more because that would make argentina the richest country in the world
@@ultratronger without a central bank you can't have a currency.
Hyperinflation is bad. But inflation itself isn't the worst that can happen.
Instead of destroying an economy, why not fix it? Has anyone looked at the causes of high inflation rates? This isn't something mysterious. It might be hard to pinpoint a 4% rise in inflation, but 100% has to have clear causes. Fix them and you'll have a healthy currency, that usually helps the economy to grow.
It's probably corruption. You can't fight corruption by destroying an institution. It's a scapegoat. Corruption will still exist.
IDK, it's like shooting yourself in the foot because your head hurts or something. It's just idiotic.
Dude, you should listen to the original commenter. He's right and you just really have no idea of how economics work.
Fact.... if your currency is the dollar or the Euro ..... YOU DO NOT NEED A CENTRAL BANK.... the same for Argentina apply to Germany, France, Italy, Spain, Portugal, etc.... how many billions can be saved closing useless institutions
Yeah, if your institutions are incompetent, you might as well borrow a working solution.
The country is so fked, let him play maybe it works. There is not much room for a more bad situation.
The only good thing of the Argentinian economy is that it is so bad, that the slightest change in policy or dettachment from old ways could be a significant improvement.
I hope that is what happens and not that it switches from left leaning corruption to right leaning corruption
Doubt it with hints of privatization of the national airline and railways, doesn’t sounds like the right path when they had to renationalize those assets once again years ago, when it got privatized in the 1990s.
@@TheRandCrews The 1990s were probably the second best time in Argentina history since the late 1800s, they had a growing economy that was flourishing and Argentinian companies were soaring, and people had money and a better living standard, nationalizing companies only brought them down just like it happened in Venezuela.
@@TheRandCrews Argentine has a long history of privatization for cheap, and nationalization with a heavy dosage of debt and corruption, in the 90's menem threw the railroads and shook hands with the almighty truckers union, destroying the second cheapest way to move cargo creating a terrible overload of cost for goods transportation by roads only. Its a pendulum of disaster on every turn of events. The national retirement service was made optional and crappy private firms appeared to fill that role that ate the money without any return to contributors. Instead of making the basic national retirement mandatory and opening the market for extra retirements fund in a competitive environment of firms, they nationalized it and ravaged the coffers to fund free money to the growing unactive population. Its not about national or private, its about doing things properly.
Gran Bretagne te apoya.
No nos importa cuanto nos odies.
Queremos que te vaya bien.
This libertarian will turn into a moralist in a couple weeks I bet
Real Libertarians supported anything that doesn't hurt others is acceptable. Not like Conservatives that are moralists.
@lif6737good joke
@lif6737 Many libertarians are against abortion, but in favor in cases of rape. That is my case. But the line of argument is different from conservatives or other types.
@@hoppingrabbit9849 No. I do think the argument against abortion in cases other than rape very sound. I can change my mind. Moralists don't do that.
@lif6737libertarians are divided on that issue
They were circling the drain and now they are going down the drain.
i'm still crying for this, soo happy for Milei!
Cry for Argentina
@@larryc1616 cry but for HAPPINEEESSSS.
@@daxarias896 I will in a year! 😢
The answer to Argentina's financial problems is getting people off the government paychecks and getting people to get private business paychecks. That will be the most important aspect to get a change in the financial woes. It will jumpstart the economy immediately. So he'll likely need a quick currency boost so that he can get that money into the hands of business creators and he'll need to be really smart about it.
They should rent out government services to private contractors who bid for the privilege. Like what US states do with Medicaid HMOs.
The guy has clearly extreme thoughts on culture, ethics and civil rights, and the Germans focus on money
Money is all that matters, that's how he won
They were going to far left, two bloated, too many social programs. not enough income. I can't say I'm surprised they took the more radical route. Hopefully it works out well for them
Not great at using to, too or two are we?
It seems that they can’t or don’t want to take any other route that isn’t profoundly radical.
I'm curious, where do you learn so much about political theory without learning how to spell "two" and "too" correctly?
In 1933 The Germany People had high hopes for their new "Leader". That went well, DIDN'T IT?
Dollarization means that their debt stays where it is. The only way to get rid of it is the actual inflation of their currency, thats economics 101. They will be in the same trap as Greece was with the Euro. They basically have to sell everything that they have and increase taxes to the sky to manage their economy.
When you have a managed by the government economy, you don't have a free market or nation.
@@mik72el It is _impossible_ to have a free market economy without a government controlling it. The alternative to government management is oligarchy.
They're going to sell their whole country. Maybe it works, but I wouldn't want to live somewhere owned by hedge funds.
@@CarewolfWhy can't currency be based on gold?
@@francismarion6400 Would still require government regulation to avoid the economy quickly becoming an aristocracy of oligarchs. Besides gold is super unstable base for a currency. We tried it, and it SUCKED.
A lot of lefties here giving their opinions based on envy . I invite you to read about the economic history of countries like Sweden, Canada and New Zealand in the 80s and 90s. After years of socialist measures these economies were not doing well, as they had very big inneficent goverments, high taxes and lots of companies running away, which resulted in inflation and high unemployment. Same problems as Argentine has now, were they have giant bureaucracy, with millions of people on useless goverment jobs. The solution, cut down taxes, goverment expenses, privatize everything that loses money and is not efficient. This bring companies and capital, so that instead of having people doing nothing on useless goverment jobs, they would be producing services and goods.
Im a “soft” Ann Cap and I wish the man the best. Sometimes politics is about compromise though. Libertarians generally have a hard time balancing their bold (and accurate) policy ideas with the real on-the-ground political realities of the swamp.
You don’t say bye bye to the central bank. The central bank says bye bye to you.
At least he is trying something different.
1. If you abolish the central bank, there won't be any need to "slash government spending".
2. Replacing the peso with the USD with no central bank in Argentina, you'll be borrowing from the US central bank (the Fed).
2.1 The US will tell YOU how to spend their money.
Well, it is a libertarian nut-job after all. You are correct if it's the 90s, but the US itself is in turmoil, so Milei will likely end up selling of his country in pieces to the highest bidders.
WRONG! All EU countries don't have a central bank anymore that can print money... All of them still exist, are doing very well and the ECB doesn't tell them how, when and to whom they spend their money.
Borrowing money has nothing to do with the central bank. That's why Argentina has loans with China and Qatar. You think China and Qatar gave them pessos? no...
@@FragLord 1. « he ECB doesn't tell them how, when and to whom they spend their money. »
Once digital currency arrives, things will be quite different and not for the best.
2. I don't think china and Qatar give their money willingly.
3. « Borrowing money has nothing to do with the central bank. »
Oh yes it is. Unless the countries have retained their national currencies (Japan, United Kingdom, USA...), they will borrow at the central bank. If not, States could seek their money on the "financial markets" (i.e. the banking sector and its subsidiaries). This is the case for all European states.
Hmm ? I wonder … when Greek swapped to another currency they ended up tanked because of corruption and overspending. I wonder how this will work out for Argentine … swapping without having done the legwork? I hope to be wrong but I think that train will crash fast… 😢
There was a book written on this: what happens is that dollar denominated profits flow out of Argentina into American banks looking for better returns. In turn American banks give loans to Argentinians with their national wealth as collateral, as well as opening prime opportunity for American firms to buy up whatever they want much easier. Also national debt becomes more expensive to finance, as profits can flow much easier into better return/lower risk us t-bonds.
Very nice insight in your comment, look up janis vaurofakis for more. (Y I butchered his name)
We already are tanked because of corruption and overspending. The legwork has to be done beforehand, Milei knows that.
argentina already uses the dollar for everything more expensive than a coca cola bottle. do you think people buy houses with a literal truck worth of bills? no, everything is done in dollars already.
The use of the dollar by the citizens on a daily basis is already destroying the peso on it's own. Not to mention the constant printing of money for government spending.
Also the entire EU swapped to the Euro. And all of them were a huge success, except for Greece. For the reasons you mentioned. Like you said. Greece didn't tank because of the Euro. It tanked for the same reasons Argentina is tanking. Spending, borrowing and printing...
A country is like a company. If you spend more than you make, you loan. If you can't pay your loans, you default... Argentina has defaulted 3 times in the last 20 years with the peso...
Looks like a madman,sounds like a puppet for corporate and private sector. 🤑
Not sure why people are so fascinated with unhinged performative political clowns? If he is going to rule the way he is behaving, it will be very interesting. But maybe when he gets into the office he becomes smart, leveled and well balanced politico-economic genius 🤷🏻♀️
If he shuts down anything, or ends security, then he has people out of work or takes away their life support. Do that to too many, then what? People leave the country ?
Sometimes in life you have to make a BIG left turn. Let’s hope this ones works. Argentina Deserves Prosperity. There’s no Reason they shouldn’t be a Great Regional power
Replacing your national bank with the FED is hilarious.
It will be dollarisation just to remove peso, from then, there will be free competence of currencies and every currency of the world will be legal to be use in contacts and for paying taxes. Furthermore, Argentinan politicians use Arg Central Bank as a money printer machine to fund social agenda and corruption, we have 150% inflation, i would rather have US inflation than argentinian inflation.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
PRIVATE as opposed to PUBLIC (Central)
Milei is positive for Argentina. Period. Don’t criticize at this stage. Let him work and see what happens.
Good for Milei!
This is not going to end well for Argentina.
¡VIVA MILEI! ¡VIVA ARGENTINA! RESPETO POR ARGENTINA.
The debts will be renegotiated and if it is done carefully and respectfully Argentina has to be very very careful and put labor at the base and create business from the ground up. Micro credits for small business will turn Argentina around when it is done with work projects that are well planned. This planning should be the only political debate and process delay. Engage in real infrastructure that is liberating versus creating strangulation.
And if the debt issuers are not interested in negotiating?
@@Tugela60 Then they get nothing. I guess this is the rule of business. See you in court. I am a quick learner
Awesome job Milei. Keep going. Full steam ahead. Its not an Argetinian thing..... its a global fight for GOOD living.
Rip Argentina
Nah
@@notsosuavemate Do you not think all money leaving Argentina and going to the US will have a negative effect?
I'm still dubious about Javier getting rid of the central bank, and get rid of their national currency?
So I edited this comment now I've received updates.
However, surely 'reform' would be better, rather than abolishing both of these?
The national bank helped cause the situation that they are in. It(central bank) prints like 2,000 pesos a day. Or at least what I heard. Might be wrong
To be fair, there's no point having a central bank, if you are using the USD...
It's not like the Federal Reserve is going to defer to Argentina when managing the Dollar just because they use it too...
@@csuporj they have soybeans and meat. More likely it'll be like this: if you want to buy meat from us you'll have to pay in dollars
And corrupt politicians often look for others to blame@@Agent-lr4ez ?
Our central bank a few decades we made independent for selecting interests rates rather than politicians and growth has been more steadier even since!
What concerns me is that what you heard isn't true, and isn't really the cause the problems... it doesn't sound like it, but I could be wrong?
I just looked into this, and apparently you're right the central bank is part of the problem, but I would have thought reform rather than abolishment would be better@@Agent-lr4ez?
why use USD and not something better like Euro?
? Ruble ? ;
Whatever the initial choice, it will still end with the ¥.
Why better? USD is widely used in ARG already as "shadow currency" and the USD is by far the dominating currency.
It coukd be. Milei proposes that any currency will be legal. But Argentina is already semi dollarized, so everybody assumes that they will chose the dollar in the end
nearly all commodities are quoted in dollar.
Milei will most probably sit down for 4-5 years enjoying the status while doing nothing: “oh it’s the parliament that’s obstructing, it’s the civil service obstructing, it’s the judges, it’s….”
In the meantime there’re still gains to cash in ( _sprinkling dust_ to distribute in exchange of “la plata”):
Just look at Milei 1st travels right out of victory, to USA, to Israel.
They’re _spiritual visits_ *wink *wink
Paying-tribute to his-masters.
@@babblo1389 and talking to his dead dog
If that is all he does, they should count their blessings. He does give the feeling that it's going to be much worst.
@@biocapsule7311
There’s a video where he yanks ministries out of a white board: ministry of culture, ministry of health, ministry of social services, ministry of infrastructure, etc etc.
That one I would like to see if he has the guts to do just like he campaigned.
Yes, he has won a 56:44 % victory, a 6% swing is the difference. If he plans on a radical agenda it will have the opposition of 44% which will increase if it does not work and will be a nation divided. I expect much effort from the US to welcome Argentina into the dollar empire, however.
However, when it starts to go wrong and Argentina has no levers to control its own economy in the future it will be somebody else's problem. For ever.
Congratulations Argentina, I'm going to be investing there for sure, i wish you the best of luck, it's going to be rough for a couple of years to curb inflation, but in the long run you will be far better off. I can't wait to see the power of the Argantinian people unshackled, you will achieve great things i'm sure
I love seeing word of anarcho-capitalist in a positive light on a mainstream news site! Well done DW!