Milei is pledging economic shock therapy, including shutting the central bank, ditching the peso and slashing spending. His challenges will be enormous: Empty coffers, a $44 billion debt program with the IMF, 150% inflation and more.
Bitcoin does present a possible solution to the monetary woes of Argentina.
Mileis election signals a growing awareness that central bankers are just scammers and getting off the gold standard was one of the biggest mistakes humanity ever made.
The value of a State’s fiat money comes from them requiring that taxes be paid in that same money. Yes they can print as much money as they want, but they don’t, and they can regulate its value by destroying some of it through taxation.
Second Thought: Why The Government Has Infinite Money
Furthermore, the government doesn’t need to borrow money in the first place, because again, it can print as much as it wants.
So you might ask, why does our government create these treasury securities in the first place? I think the answer is largely twofold. Firstly as another tool for managing inflation. By giving the wealthy a safe place to profitably park their money, that money is temporarily removed from the real economy. Secondly because those same wealthy capitalists are the ones calling the shots in the first place, and they want a safe place to profitably park their money.
This is good for Bitcoin 📈
Bitcoin does present a possible solution to the monetary woes of Argentina.
Mileis election signals a growing awareness that central bankers are just scammers and getting off the gold standard was one of the biggest mistakes humanity ever made.
Ahahah. No. Cryptocurrency is for rubes to get rubed, and tying a State’s sovereign fiat money to a commodity belongs in the dustbin of history.
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The value of a State’s fiat money comes from them requiring that taxes be paid in that same money. Yes they can print as much money as they want, but they don’t, and they can regulate its value by destroying some of it through taxation.
Second Thought: Why The Government Has Infinite Money
Here is an alternative Piped link(s):
Why The Government Has Infinite Money
Piped is a privacy-respecting open-source alternative frontend to YouTube.
I'm open-source; check me out at GitHub.
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If they can print as much money as they like then they obviously they can always make any interest payment, as former Fed. Chair Alan Greenspan himself has plainly stated.
Furthermore, the government doesn’t need to borrow money in the first place, because again, it can print as much as it wants.
So you might ask, why does our government create these treasury securities in the first place? I think the answer is largely twofold. Firstly as another tool for managing inflation. By giving the wealthy a safe place to profitably park their money, that money is temporarily removed from the real economy. Secondly because those same wealthy capitalists are the ones calling the shots in the first place, and they want a safe place to profitably park their money.
Here is an alternative Piped link(s):
former Fed. Chair Alan Greenspan himself has plainly stated
Piped is a privacy-respecting open-source alternative frontend to YouTube.
I'm open-source; check me out at GitHub.
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It’s a good reason to end capitalism. Until we abolish private ownership of the means of production, the capitalist class will control the State.