By Joseph T. Salerno
The concrete effects of the destruction of money and property on human personality are demonstrated most vividly in the historical episode of the German hyperinflation of 1923.
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By Joseph T. Salerno
The concrete effects of the destruction of money and property on human personality are demonstrated most vividly in the historical episode of the German hyperinflation of 1923.
Allow me to speak from first hand experience...
In the eve of the hyperinflation that was starting last year, every merchant started to stutter to clients, out of catharsis, "I don't know any more if I'm making or losing money, I can't tell if things are expensive or not, I'm just moving blindly by inertia, begging I don't hit a wall". Confusion was such that people came back and forth from cynical attitudes, for not even being cynical alone was as a stable attitude.
But, from all of those consequences, none was so cruel and damaging has this: absolutely unable to understand what was going on, pristinely oblivious on economy fundamentals, and plundered by a decades long seemingly unmovable tendency to ever accelerating decadence, with time people assimilated with religious strength the idea that everything was caused by a sub-humane nature of "the argentinian". "Being argentinian" became, for our own people, an indiscernible synonym of being low in virtue, mediocre, crappy, and treacherous. None uses "argentinian" as a serious insult anywhere else as argentinians do to themselves. It's not used in humor but in a seriously (self)despective manner. That's the demise of a nation, right there.
One of the reasons Milei's speech also caught the youth was that he made the case that that's not how we are, but what socialism had reduced us to.
Socialists, on the other hand, keep feeding the self attrition cycle by treating argentinians as poor little animals that need the state to survive, as cows need the stable.
Here's a similar story from Zimbabwe (from the book Hard-Boiled Egg Index: Surviving Zimbabwe's Hyperinflation). Very interesting book, by the way. The main lesson appears to be - leave the country early.
It sends shivers down to my spine how accurate this is. Not only this has happened here already up to the last detail (and this is how indeed many stores with unaware owners broke in the past), but even the numbers are the same as current prices here.
And yes, the decades long decadence made it a cultural standard for fathers to instruct their sons right from childhood to leave the country as soon as finishing studies (despite how disheartening that is always for them, not really wanting that to happen, but feeling guilty to force their sons to bear decadence only to keep them close). Mine did, all did.
One of the eye widening feats Milei's team has achieved is to start reverting all of those deep structural socialist traits from the roots. It's all changing very fast now.
It's really heartbreaking to read about. While we aren't yet descending into hyperinflation in America, we are starting to learn what it means to live in a low-trust society.
Hopefully, the fiat nightmare will be over soon. I think the wheels are beginning to come off.
One reason I started lurking english-speaking sites as this so recently is because I'm not worried any more about Argentina but USA itself. No indicator shows signs of a slowdown but all the contrary. A storm is in the horizon my friend, we know very well how this works and what will ensue, and my greatest hope is reduced to ensure that the correct lessons will be learnt so that not that much time is wasted. I have been trying to humbly add my voice as a warning for months now. I even had a couple of interviews with Austin Petersen, both in twitter space and as podcast. Will keep trying to rise the message.