The eccentric far-right populist Javier Milei has failed to win the first round of Argentina’s presidential election, with the centrist finance minister Sergio Massa unexpectedly beating his radical challenger.
Supporters of Milei, a potty-mouthed political outsider described as an Argentinian mashup of Donald Trump, Jair Bolsonaro and Boris Johnson, had hoped he was heading for a sensational outright victory similar to Bolsonaro’s shock triumph in Brazil in 2018.
I know nothing about economy, but isn’t a bad idea to put all your chips into a currency that you do not hold any control over?
As Vis mentioned, it is the better option if the government can’t stop itself from printing money and fucks everyone over.
This is the inflation rate of Ecuador before and after they adopted the dollar in 2000.
Milei now wants to do the same. At least this way people will be able to save (and spend their savings), and the government will have to be fiscally responsible.
The world has run directly or indirectly on gold (which can’t be printed) until 1973, so it’s definitely possible for an economy to work with a currency you can’t print.
Ecuador and Puerto Rico already did it. Panamá did something similar.
I totally understand the initiative. Corruption can be so damn high, that you trust gringo central bank more than any institution of your own country.
edit: typos
Did you conflate Puerto Rico with Costa Rica? Puerto Rico uses USD, and has since the late 1800s when they became a territory of the US.
Puerto Rico has been using the United States dollar as its official currency since 1898. This change occurred when the United States took control of Puerto Rico as a result of the Treaty of Paris, ending the Spanish-American War. Since then, the U.S. dollar has been the official and only legal tender in Puerto Rico, and the island’s monetary system is fully integrated with that of the United States. Puerto Rico did not choose USD. It was chosen for them when Spain ceded their American colony to the US.
deleted by creator
El Salvador was the other one aside from Ecuador and Panamá.
Puerto Rico is a us Territory and uses USD. Costa Rica has their own currency with cute sloths and monkeys on their notes.
Trusting the central bank of a country that gave permission, founding and training to the military juntas all over South America to commit crimes against humanity is pretty darn stupid if you ask me…
we have problems with governments over printing. this shit has happened again and again for decades and it won’t stop.
Yes, but the alternative is what we have now.
Normal people have zero control over the US Dollar, but also have zero control over the Argentinian Peso… and the Argentinian Peso has 140% inflation per year.
A few nations of this: Ecuador, El Salvador, East Timor, Zimbabwe, etc