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0 sats \ 1 reply \ @SwapMarket 3h \ on: Debunking Saifedean recent Slander against Milei Politics_And_Law
Please explain what "existing debt monetization" is in plain English. How can one pay 69% interest and refinance only 61% of maturing debt without new borrowing and no currency emission?
Please explain what "existing debt monetization"
Just what's mentioned in that paragraph: when the central bank transfers money to the government treasury to pay for debts.
How can one pay 69% interest
Money was already printed by the previous regime.
and refinance only 61% of maturing debt
The rollover wasn't final. As stated in the first part, the low rollover was expected and, has stated in the linked article, it will be repeated by the end of the month, where it's expected to be allocated entirely.
without new borrowing and no currency emission
As mentioned in the post, adding to the money transferred by the central bank are the IMF and BID funds which are refinanced debts (negotiated at lower rate than before, not higher, ence the great accomplishment). Hence no currency emission is needed.
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