Should Argentina just dollarise? \ stacker news ~econ

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812 sats \ 8 comments \ @stack_harder 13h econ

Ok, so i've been seeing the headlines about Milei and getting all those dollars to prop up the peso, and honestly, why waste the money propping up the piece of shit Peso?

I mean, really, is anything going to fix the peso at this point ? it just gives liberal media more fuel to shit on Milei and how much time and energy is being wasted on a fiat currency that has totally failed?

People aren't stupid and im pretty sure they are sick of having a currency that is just endlessly deflating.

Now I know dollarising has a ton of downsides, but it's been done before in latAM.

I'm interested to hear what any Argentine stackers think? Would you prefer to just be done with the peso already, or would it still be better than being on the dollar officially?

What's the local perspective when you see these massive sums of money being used to try and defend the peso?

or maybe the whole thing is more like a geopolitical bribe so China doesn't swoop in with their own gift?

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121 sats \ 6 replies \ @Undisciplined 11h

I recall something about dollarization being part of Milei's plan.

There's probably a really messy interim period, where you have to keep using pesos because so many contracts are made in those terms and the currency is too volatile to just peg directly to the dollar.

42 sats \ 5 replies \ @optimism 5h

I dont understand how one would be able to denominate any longer term contract in pesos. Someone will always get rekt?

100 sats \ 4 replies \ @Undisciplined 5h

I don't understand that either, but it's also hard to imagine there aren't any contracts denominated in the legal tender currency.

42 sats \ 3 replies \ @optimism 5h

What a former client did in Turkey, and this was between periods of high inflation, was basically to do every contract in 3 parts: USD, EUR and TRY, 1/3rd each. And then still get rekt on the TRY side over the course of 5 years.

100 sats \ 2 replies \ @Undisciplined 5h

That's interesting. I've been thinking about how to do that with dollars and bitcoin for long term contracts.

42 sats \ 1 reply \ @optimism 4h

I did a big contract (for a solo effort) in bitcoin denomination and it wasn't successful. The last milestone still isn't paid because the counterparty has to take out a massive loan now to pay me. So we're all waiting for the dip. lol.

Mixed denomination works better as long as it's volatile against your liabilities.

0 sats \ 0 replies \ @Undisciplined 4h

For a permanent salary situation, I was thinking of something where a future bitcoin value is anticipated ahead of time and there's a fixed fiat amount combined with a fixed bitcoin amount.

Over time, the fiat value shrinks and the bitcoin value rises. It should be possible to construct something that covers your fiat obligations while also gaining in value.

10 sats \ 0 replies \ @justin_shocknet 11h

WIP

The dollar props up every foreign currency, swap lines exist all over the globe already, fiats without their own security zone have no reason to exist except as a lever of control by globalist banks.

The globalists are trying to rug Milei accordingly by pulling that lever, nationalists are blocking it to facilitate commoditization (dollarization just a step in that)

Security zones are monetary zones, Argentina is the next US naval base to mitigate China blowing up the Panama canal.