I don’t know about Argentina in any specific way, so I’m only speculating. When national banks start printing money and causing runaway inflation, it’s almost always because they have to service debt denominated in a foreign currency, and have no possibility of doing so. Dollar debt will fucking kill you if the US Fed raises rates which they’ve been doing a whole lot of the last couple years.
Bottom line, you can’t elect your way out that sort of a crisis. Sooner or later you have to pay or default. No magic bullet. No anarcho Capitalist, secret third way. It’s snake oil.
I’m no expert either, but as far as I know american investors have been making millions of profit in Argentina thanks to the local inflation.
They may have debt to pay, but they will have even more to if they continue printing to pay. If you understand inflation and investors taking advantage of it, printing is bread for today, hunger for tomorrow.
Also: they have tried the printing money politics for about forty years already and it’s only getting worse. There also empirical fact.
I don’t know about Argentina in any specific way, so I’m only speculating. When national banks start printing money and causing runaway inflation, it’s almost always because they have to service debt denominated in a foreign currency, and have no possibility of doing so. Dollar debt will fucking kill you if the US Fed raises rates which they’ve been doing a whole lot of the last couple years.
Bottom line, you can’t elect your way out that sort of a crisis. Sooner or later you have to pay or default. No magic bullet. No anarcho Capitalist, secret third way. It’s snake oil.
I’m no expert either, but as far as I know american investors have been making millions of profit in Argentina thanks to the local inflation.
They may have debt to pay, but they will have even more to if they continue printing to pay. If you understand inflation and investors taking advantage of it, printing is bread for today, hunger for tomorrow.
Also: they have tried the printing money politics for about forty years already and it’s only getting worse. There also empirical fact.