Topic: Argentina's Central Bank running out of dollars as inflation hits 100% (Read 347 times)

There is something similar in Cuba. But there is generally a "country of victorious socialism", and nonsense has no boundaries. Food for the population - on cards, the slogan "we don't need a dollar", but for a tourist with a dollar - everything is there, a lot of food, any services, even completely "capitalist" and unlimited )) But they continue to "heroically and every day defeat the United States ", which ultimately manifests itself as an increasing degradation of the local population, the economy, everything! But populism and propaganda gives its result - the people, in fact, vote for the deterioration of their lives, with their own hands and from the heart .... Having visited Cuba, I had very mixed impressions

When I first heard about Argentina's numerous dollar rates for different markets (from tourism to meat etc) my jaw dropped. Its definitely absurd with them. Their inflation is probably the most sticky inflation ever in the world now. I am not surprised they are still having issues. Their national currency is literally having heart crisis. I feel like sometimes states should move on to financial systems that fixes their economy to reserve currencies like Swiss Franc. At least it could be better in long run.

Nice to hear a sound, logical approach and assessment!
For some reason, many have decided that if they change the financial instrument, then immediately, as if by waving a magic wand, everything will be fixed. But the problem is not the currency. The problem is in the heads and hands of those who run the country, the economy. If they are fools, then whatever you don’t give them instead of today’s currency, they still won’t succeed in anything sensible! They will always have someone or something to blame for their stupidity. And they will always look for populist solutions that divert attention but make things worse for lack of a real solution.

I am not a resident of the USA, 100%, so you are trying in vain to pull on my words what you personally want to hear
I have hatred only for Nazism, and racism and rashizm, and for other human-hating systems.

In relation to the USA - I like their intelligence, dexterity, sometimes cunning, and deliberate moves. And the stupid attempts of other world players to make populist moves, in anticipation of some positive results, are very funny. Regarding this situation, I have already written, and once again I will personally repeat to you - the fact that now a wave of hysteria has begun (and there is no other way to call it) is not connected with the FIGHT WITH the USA, but WITH THE SALVATION OF CHINA. You cannot catch this in any way, being blinkered by the "fight against the USA."
And all these "slogans" - "you are going to suck", "you don't know how to manage", "we don't need a dollar" and other not very smart things, only prove my case

PS What, you didn't like the example of Sri Lanka? Can you give another explanation of the situation? Only with arguments and with love for China? I'll listen to you with pleasure - I'm waiting!

Bitcoin cannot provide water for their crops to grow, so NO....it cannot help with that. It can also not force politicians to change their mind to replace their reserve currency to Bitcoin... that has to come from the voters.

The citizens of a country have their voting power to bring change and most of them do not even go to the voting stations when it is time for them to vote. They should vote for a government that will bring change.... a government that will embrace Bitcoin. 

Of course worongly abusing FIAT money help derail the economy and send to rubble an entire economy. Yet, the dollarisation of an economy, as the adoption of Yuan is not magical recipe.

I have to agree with the FT this time:

Dollarisation would not save Argentina

And yet again, you talk with American mindset at your heart and hate everything that does hurt america. You are right about the fact that yuan and following China is a terrible move, but you think dollar and america was any better? Look at the state of Argentina right now, look at the inflation, look at how terrible they are at the moment and they did not use Yuan AT ALL so far, they used dollars.

This is 100% proof that using dollar does not make you better, in fact if you use dollar and mismanage your economy that means you are going to suck, they did, so dollar is no good to anyone at all, it is all about economy. If you have a good economy, but you can use dollars euros yuans whatever you want, if you have bad economy then you could use anything and still be bad.

Some considerations about this.

First of all Argentina have in the reserves of the central bank a "swap" with China in yuan/peso since 2014.
Second this movement its more because the central bank its again run out of dollars to pay more than for the geopolitical thing.
Third, and more important, Argentina its playing really really good in this scenario like we always do historically in this geopolitical conjuncture.

In the USA China economic war, Argentina its been extorting both of them , with the last run of the usd dollar Argentina intervened in the markets with reserves, and this its prohibited by the IMF also we dont reach any of the goals put by the IMF. We keep printing money , etc.

But here comes the thing, after made this, we talk with china and make this other thing, so now the viceminister its in Washington talking with IMF board, and they have now 2 big problems, if Argentina fall again, they fall with us, because they keep sending money in 5 years when Argentina never acomplished any of the goals, in the past goverment and in this one. So or are they corrupted and the debt its totally a extortion to the country who in 5 years the politicians steal the money and they do nothing to prevent or they keep sending more money...(yes its more debt).

So here Argentina plays his other card, IMF its a puppet of white house, so Argentina its gonna say, ok no problem im gonna join China side if you dont give me the money.

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The economic/geopolitical  war its on fire in the last travel of the president to Washington , he comes back with the order of USA to stop a lot of chinese investments here in change to keep supporting us with the IMF.

We received in the last 4 months 2 visit of the southern command commander of the USA, because they see us talking a lot with chinesse and rusia counterparties to buy armament.

But the reality its Argentina its not gonna buy anything, if its not low or free, but again we are trying to extort them, in this time of weakness.

USA knows Brasil its in the BRICS and Lula its left side, so they need one ally in souther america, his historical allie was/its Chile and COlombia, but they are not so big and important than Argentina.

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Argentina was always more third position, with goverments pro USA and other no pro USA. But Argentina politics are a world appart.

The last few years have done a lot of stupid things. It seemed not enough, they decided to do a frankly idiotic act ...
It's a pity, I was hoping that the government of Argnetina would prevail over populism. Now just watch as the economy of Argentina, and so not in the best state, will be destroyed by the yuan, and "new rules of the game from China." And before that, carefully read the history of Sri Lanka over the past 5-7 years, its current situation, and most importantly, about the causes of these problems and China's place in them.
You will learn a lot of new things, and understand that this step will be fatal. Understand one thing - the so-called "de-dollarization" is nothing more than a Chinese project to save its economy by degrading the economies of the countries participating in this "project" ...

Maybe unrelated news, but apparently Argentina is joining the forces of the de-dollarisation:

Argentina to pay for Chinese imports in yuan rather than dollars



I guess this time IMF will be pissed off by this. Not that is necessarily a bad thing for Argentina.

Yes, I agree that a large influx of migrants, no offense is not the best - this is a problem.
This is a social program for "neighbors", this is drug trafficking, robbery and a decrease in social norms "on average in the country." Plus, many migrants are ready to work "for food", which dampens the job market.
But it seems to me that there are real problems a little further than this social side. I suppose - not quite skillful management as a whole, and populist decisions. Trying to "be everyone's boyfriend" very often ends badly.

SOURCE--

Previously, President Fernandez had discussed the possibility that Argentina would adopt bitcoin, but until now it was still just talk. but if Argentina really wants to get out of the current inflation, adopting Bitcoin will have a more positive impact on the country, coupled with providing social assistance to the poor, will boost people's purchasing power and surely the economy will move up again.

The economy of Argentina? It's nuts ! It has weathered economic downturns and inflation. Bitcoin? While it may seem like a panacea to some, it is not.

There are potential downsides to utilizing Bitcoin because of its infancy. No guidelines? Bang! The city of deceit. How about those unexpectedly large price increases? They can potentially make matters worse for the company.

That's why Argentines shouldn't put all their eggs in the Bitcoin basket. Instead, it should investigate thoroughly, confront the unpleasant facts, and address the issue where it originates. Restore economic prosperity through updating our legislation and government agencies. Stop spreading false alarms about the state of the economy.

It's hard to figure out why Argentina seems to struggle so much with monetary crisis after crisis. Ultimately it is a failure in there governance and like many countries it would appear their politicians are more interested in self enrichment than looking after their people. They have had debt forgiven in the past yet managed to rack it up again, which is so very strange because they used to be the highest educated and richest country within South America. It appears the drug money of their northern neighbors has probably disrupted their more honest prosperity of the past. Whatever currency they use, including bitcoin, would not help to solve the deeper rooted issues that cause this trouble to repeat.

Not really a shocking news to me as a Turkish person. We just had a %100+ year in 2022, and not like 2023 will be back to %10 or something. Even our regular period was like %20 anyway. Sometimes you just have to ask yourself if this is even intended, because it does look like it could very well be intended but I have to be honest and say that I am not certain about it. Why? Because if inflation keeps going up, people will constantly spend their money and that is a big issue obviously because if you keep spending and keep being in debt, that will result with you having nothing, and that means you will depend on seeing a good news about anything. That is a risky move but could be pulled off, or maybe its just a bad move overall. Whereas when you do not let inflation get there, and drop that, there will be recession, which does fix the economy in the long run, but makes people lack money and jobs and employment for a while, and that's a risky governments are afraid to take.

Yeah, just as what I've watched with a traveler that went there and interviewed locals and said the same thing. They don't know what's in it for the next weeks to come and that's why they are quick in spending their salaries because of the inflation is coping up so fast.

Wow, I didn't know this fact.

That's sad, most of the people have contingency plans if they see that the economy on their country is no longer viable to have some positive impact very soon. Those that can migrate and apply for other better countries residency or citizenship visas, they'll apply for it.

With the criminality that's happening there, I guess there's really something to be blamed for the government in terms of leadership and things that's impacting these matters.

Yes that lead to degradation of society, but im not gonna be the coward who blame them for our economic collapse/disaster(that its on our responsabilitie). The mayority of drugdealers are from other countries for example.


Yes they have acces to a ton of socials programs, but its not the main problem, Argentina was always and it was a pride of us to being generosity with all the so called " brothers of latinamerica" we give them all, but the problem with that its, if the country its experiencing really big economics trouble, we need to cut that helps and focus in our population.

About the last question also NO, in the past all the workers were Argentinian im talking about constructions workers, steel workers, etc, but Argentina its a country with a huge social ascent so most of the sons of them now have a degree and they work on "better jobs" so we have to replenish that workforce, and here comes all this people, right now if you pass in front of a building under construction i a lot of them the mayority of workers are Paraguayan.

So..... yes first world problem with the work force..... like europe and USA who depends for the hard/bad jobs of the migrants because nobody want to do.

Very interesting, thank you very much, I did not know much.
The question is - can we conclude that one of the problems is "poor-quality migration" and migrants from countries where the standard of living, the legislative framework is noticeably lower. What leads to the "degradation" of society? Maybe a little rude and harsh, but ... I can’t find other words?

And a related question - how does this migration affect the economy? For example - a large "influx" of migrants led to a high increase in the costs of social programs?

What is this question for? In order to collapse the economy, a rather serious problem is needed. I'm not sure that the influx of migrants who are "degrading" social norms are unlikely to have a strong negative impact on the economy.
Perhaps the economic problems are elsewhere?

Thank you @darxiaomi for this firsthand information. It is always great to hear from bitcoiner that are located in the country of discussion. We also have the same condition in my country where the young are attracted to Bitcoin while the elderly see it as something strange or sometimes a fraud. Our currency is also losing value every day and people are desperately changing their money to other currencies like Bitcoin. The wide acceptance of bitcoin by the younger generation globally is a sign that when this generation takes over both political and economic governance from the older generation, Bitcoin might be treated in a more friendly manner. All that is needed is intensive Bitcoin awareness and education.

Very soon there will be no doctors, nurses, teachers, engineers, etc, because the depreciation of the pesos will attract them to migrate to countries where the can earn h dollars.

Not really! Unless they scrap their own currency system and completely move to bitcoin, there no way bitcoin can help. Adopting bitcoin as a legal tender in Argentina, is not a solution to their hyper inflation issue. It might help a little bit largely it won't have any impact on their economy to be honest.

They will have to eradicate their entire currency supply if they want to come out of this and then the government needs to start sharing bitcoin as per the net worth of their citizens. This entire task is impossible so Bitcoin can't help here.