This will be interesting to follow.

There are some obvious problems with Milei’s economic experiment. The first is that Argentina and the US are very different economies, and so what might be the right monetary policy for the latter may be the wrong one for the former. Countries have to be careful about giving up the freedom to set their own interest rates and devalue their currencies.

The second problem is more practical: where would Argentina get its dollars from? At present, the central bank has almost no US dollar reserves to speak of, and lacks the access to global capital markets to obtain the stocks that would be required to keep the economy going. In theory, Milei could apply to the International Monetary Fund for a loan, but the chances of success would not be high. Argentina is already the biggest borrower from the IMF and owes it $44bn (£35bn).

Third, even if a solution can be found to the technical problems associated with abandoning the peso, Milei’s shock treatment could blow up in his face relatively quickly. Dollarisation is a one-way street – a policy gamble with no exit that could lock Argentina into an unsustainable course and crash land the economy.

Watched video on Javier Milei:

Guest Liz Wolfe(Libertarian) mentions:

• free trade, drug legalization, some ways hardcore libertarian

• worried of rhetoric foregrounding election claims, election integrity before he won, from Trump playbook

• younger generation wants change, media misses

• Not like Trump, due to not being a populist

• Javier has no allies/coaltion in politics, he is a political outsider, so policies will be watered down and gridlocked

• Seems like a classical liberal: slashing central bank, dollarization, cutting public spending

• legalizing selling organs on the markets, regulated

Milei WINS Argentina Election, 1st Libertarian President Compared UNFAIRLY To Donald Trump: Wolfe [8:49 | Guest Liz Wolfe(Libertarian) Associate Editor, Reason | Nov 20 2023 | Briahna Joy Gray and Robby Soave | Rising on The Hill] https://www.youtube.com/watch?v=sxNVqHLrj4M

Pegging currencies fails like, what, 95% of the time? How would a country just replace all their money if they can’t afford so many dollars?

Inflation is running at 140% and a three-year drought has led to a sharp fall in agricultural production. Two out of five people live in poverty and the currency has lost 90% of its value in four years.

With where they’re at any plan that prevents them from printing more money is worth entertaining.

What a surprise, another populist with violent rhetoric who has all the solutions and none of the expertise or resources to actually understand and deal with the actual problems