Argentina and Brazil Look to Establish a Common Currency | Marcos Falcone \ stacker news ~bitcoin

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Argentina and Brazil Look to Establish a Common Currency | Marcos Falcone mises.org/wire/argentina-and-brazil-look-establish-common-currency

50 sats \ 5 comments \ @Undisciplined 4 Feb 2023 bitcoin

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32 sats \ 4 replies \ @botsforcash 4 Feb 2023

Hello again. Argentinian living in Argentina here. This news is populist vaporware to distract the public opinion.

Argentinian inflation was 100% in 2022 and it will be 100% again in 2023. So the government conceded and will release a new 2000 Peso bank note around Q2/Q3, the highest bank note so far. But that's worth just 5 USD today.

We also have presidential elections come December. And this current government is not getting a second term.

Can you imagine releasing a "common currency" along a willing, supporting Brazil in this context? Certainly most argentinians cannot.

So, no. This is not happening. This is just socialist, populist propaganda.

0 sats \ 3 replies \ @Undisciplined OP 4 Feb 2023

Thanks for the update. We have lots of similar speculation about a shared North American currency.

I don't quite follow your explanation, though. If your currency is such a disaster, why is there extra resistance to the shared currency idea?

11 sats \ 2 replies \ @botsforcash 4 Feb 2023

Think of the EU and the years-long painful road to fiscal sanity needed to birth the Euro. Yet arguably still not as good as expected.

Now do you really believe Argentina and Brazil are able to muster similar levels of discipline long enough to produce a "common currency"?

To answer that question just look up the basket case that is "Mercosur".

0 sats \ 1 reply \ @Undisciplined OP 4 Feb 2023

I get why it won't work, but it seems like politicians would be able to get people on board for something different after the monetary roller coaster you've been on for the past 50 years, especially when you'd be entering the arrangement with the worse monetary situation.

0 sats \ 0 replies \ @botsforcash 5 Feb 2023

I see. You're looking at this third-world problems offering sensible first-world solutions. Thet won't work here. At least not top-down. Too much political corruption (current Brazilian president Lula served jailtime on curruption charges and current Argetinian Vice-President Cristina Kirchner was just sentened for corruption past December).

Only the people can educate themselves out of this mess. But that might be a bridge too far for many.