I am not in any way qualified to ask this question, but wouldn’t devaluing your currency by half cause 100% inflation on all imports, and effectively double all foreign denominated debts?
Yes in normal countries. But Argentina has an official fixed rates that is unrelated to reality. This means there are two exchange rates, the official one and the real one. Thie measure just puts the official one closer to the real one. And as Argentina uses gov money to pay the official rate thus this reduces the gov expenses and in the long term it stabilises the currency. Yes, in the short term its a shock to the economy making some thins more expensive (for those that had access to the gov rate) but its just bc before the gov subsidised those things indirectly.
Most of the ideas of this president are actually good. Its just a shame that he has to insult and act to apply them. He’s just doing what the IMF has proposed for years and telling everyone it’s a revolution.
He’s just doing what the IMF has proposed for years
So he’s just throwing Argentina to the neoliberal wolves?
Isn’t that like his whole thing to do unregulated capitalism?
Pretty much. This is not just going to be an Argentinian thing… capitalists desperately funding politicians into power that makes no secret of their willingness to sabotage economies for the benefit of the rich is something we’re probably going to be seeing more and more of in the future.
He’s just doing what the IMF has proposed for years and telling everyone it’s a revolution.
Because after a decade of socialist assholes, it is.
It was the corruption, not the socialism, what little of that there actually was anyway. At no point did the workers own any of the production. You are pretending the definition of socialism is subsidies. It isn’t.
They call themselves socialist.
They promote socialism.
They were praised as being fine examples of socialism and progress when things were going well
Get out of the cope copter.
Outside of having socialist as an adjective, none of that is true.
You’ll be shocked to discover the Democratic Peoples Republic of North Korea is a dictatorship and neither democratic nor a republic.
Oh, and the insurrectionists that attacked the Capital who call themselves Patriots, aren’t that either.
Words have definitions. When you ignore the definitions it shows you’ve no idea what you are talking about.
N Korea doesn’t have real elections.
Argentina did actually seize the means of the means of production, (oil fields).
This is yet another case of passing the buck on socialist unsustainability.
This is yet another case of passing the buck on socialist unsustainability.
Oh, look… the Capitalist Bootlicker Brigade is pretending to know what socialism is again.
Yawn.
and neither did Argentina. What was your point supposed to be?
I’m a capitalist and I’ll prove it, just send me cash and I’ll provide you access to proof with a receipt, (access for verified accounts available for the duration of your subscription. Not available in all areas.).
They call themselves socialist.
So… which part of Argentina’s production was owned by the workers?
Sure, but the fact that no one knows what socialism is doesn’t mean that the definition of socialism changes. Argentina is an example of socialdemocracy with too much interventionist, nothing to do with socialism.
But again, even if the new guy has good ideas nobody should support him insulting to make a campaign, this just makes discussion counterproductive, and its the base of a democratic society
Yes, but, it looks good on a certain internal report so no matter how much damage it does to poor People, go go austerity!
But never fear, the wealthy are already protected from any loss.More and more I notice these economic failings only occur because a nation’s ruling class is desperate to keep up with other nation’s ruling classes.
Adding to the other answers, there is also a 100% or so tax on any purchases done outside of the country, this tax is meant to push the cost when using official dollar to match the actual value.
The main problem here is that the tax is not going away so official dollar is going from 365(actually 730) to 800(actually 1600) when the street value is around 1000.
I just read on a Spanish headline that with this little trick (and aid cuts) he just multiplied Argentinians electric bill by 6x
Nobody tell this guy who brought us up to this point then
magic!
Oh, “shock therapy,” eh?
That worked so great for Russia in the 90s… just ask any Russian oligarch!
