looks like someone needs to take econ 101Yes, you.
You can’t just keep printing money unless you’re the USA.
The REAL exchange rate was wayyyyyy different as the official one.
GASOLINE IS IMPORTED AND WAS SOLD WITH SUBSIDIES. that can’t last, as your teacher will explain in econ 101
Diaper prices have doubled
I hate to defend the libertarian, but nobody could have forseen the IDF suddenly buying up the world’s supply of diapers for their troops in Gaza.
Why would they do that? Already wearing the brown pants
They like the feeling of it
The highest concentration of adult babies in the world
Helps with cum collection later
offtopic: A bit of advice on your nickname - it’s “desantnik” in Russian.
death to america
sorry, it’s been a bit since i’ve been to the news mega
what?
There’s a meme subtitle of a Hamas statement which says IDF soldiers wear diapers into battle. I speak zero Arabic, so I assume that it’s just a funny subtitle and not a real statement idk.
no he actually said that
Wtf extremely based.
It’s beginning to look like Venezuela but with libertarians. It’s quicker than I thought.
No it isn’t. Venezuela is one of the most sanctioned nations in the world.
And they are doing it all by themselves, no sanctions required.
I lived in Argentina for five years. I’ve spent much time since then trying to convince people in the US that you have more rights and freedoms in Argentina. This might be changing now.
Argentina isn’t sanctioned at all lmao. Thinking Venezuela is a failure is exactly what the US and its allies want you to think with the ridiculous amount of sanctions. Can’t have people see Socialism succeeding.
Venezuela’s economic crisis really began after oil prices fell drastically in 2014 and the west used Chavez’s death/Maduro’s election to increase pressure on the country via sanctions which for example made buying parts to maintain oil refineries difficult. Before that, it was doing about as well, or better (of course, failing to become independent from oil exports) compared to the other countries in Latin America.
Argentina was already in a crisis for the last …20 years-ish, but this acceleration of the crisis happened in a week even as Milei backpedaled on some potentially damaging promises like cutting trade with China.
Venezueal is a locked country that’s sanctioned to hell, Argentina is about to break incompetence records not ever seen before
Picture me surprised, he looked like a calm and rationale person
Those actually sound like good things, but not because this guy is good
Ffs stop trying to spread hate on this guy, at least try harder, biased articles and no context titles are not helping your dumb agenda either
He genuinelly is not a good person. He’s a glorified US fanboy anti lgbtq+ “anarcho capitalist.” He also is against abortion. Where is this hopeful wiggleroom you have?
Idgf he’s a good person or not, he’s supposed to rule a country and stabilize the economy for the argentinian people. Since he’s not aligned with the popular party of the Internet he’s getting so much hate and from people that haven’t even been to south America.
I don’t think people on Lemmy like Peronistas very much, but the vast majority of things Milei stands for and has proposed are very sus at the very best.
Oh please, if we go by Lemmy’s standard, they would gobble Peron’s cock
The previous leftist government had used complicated currency controls, consumer subsidies and other measures to inflate the peso’s official value and keep several key prices artificially low, including for gas, transportation and electricity.
Yea devaluing peso from 360 for a dollar to 790 for a dollar instantly meanwhile is such a big brain play.
there is no such thing as a ‘natural’ price. every price is artificial. OPEC is literally a cartel ffs. The concept of ‘artificial’ pricing is so libertarian brained.
The invisible hand of Chicago School pseudoscience.
Every time I see that phrase it makes my eye twitch. ALL pricing is artificial. Always. No exceptions.
There’s a meaningful difference between a government arbitrarily mandating a price and buyers and sellers reaching an equilibrium, whatever you want to label it.
You can say that price controls are worth it in some cases, and plenty of economists would agree with that, but they do come with consequences compared to raw market prices, and we shouldn’t ignore that, whatever label we want to use.
A Mileista friend of mine keep complaining about 140% of inflation a year for the past government, but now that yhey had like 300% in a week suddenly is ok and is just the true price of everything. Of course he dosen’t live in Argentina and dosen’t has his salary cut by a third in a week so it’s ok.
Always the gusanos living outside their countries that back their right-wing nutcases the hardest
I think in his bigbrain libertarian mind, the money market pricing of the peso to usd is what defined the value previously and he decided that the market’s pricing is not correct for that of the Argentinian currency.
By devaluing the currency, it makes Argentinian labor and goods comparatively cheaper on the international market. This is a similar move to how China grew at such a tremendous rate in the 90’s - they intentionally devalued their currency in order to use foreign investment in their relatively cheap labor pool to fund the creation of their manufacturing industries.
That solution probably won’t work here, though. Corporations are scared of investing in countries with unstable political leadership that performs brash actions like his. (Libertarian economics cannot account for such beliefs though since everyone must be a perfectly rational actor that chooses price above all). They are afraid that he may unilaterally nationalize certain industries and claim all assets for the state. Or he may rugpull outside investments and say that all profits must go to the state for some amount of time. Whatever flavor of stupid chainsaw wielding antics he comes up with one day is what they will see and use as a justifiable rationalization for not investing in the devalued market of Argentina.
I think in his bigbrain libertarian mind, the money market pricing of the peso to usd is what defined the value previously and he decided that the market’s pricing is not correct for that of the Argentinian currency.
You’re half right here. The idea is that the black market Peso:USD price represents the actual real value of the Peso, while the government’s official rate was miles away from this and completely divorced from reality and only remotely sustainable by endless amounts of borrowing, price controls, and money printing, which just contributes to worsening the problem. The hope is that a necessary but painful adjustment to the actual economic reality will eventually provide the stability necessary for real growth.
A smart government will know that, if you want to actually pull this kind of thing off, you need to do everything possible to make the transition as minimally painful as possible and do what you can to help protect the most vulnerable. We’ll see how Millei does, but I can’t say I’m exactly confident.
also China was handpicked by the American capitalists to be the manufacturing hub (cheap currency was a cherry on top). Countries recently forced to devalue currencies haven’t had a similar manufacturing boom especially because global economy is doing kinda shit.
also back then there was western industry that could be offshored to china. whose industry’s gonna move to argentina now? nobody else with a significant manufacturing sector is stupid enough to do it, after watching the west shoot itself in the foot. or so one would hope…
there is no such thing as a ‘natural’ price.
Have you seen a middle-eastern market? Of the kind where they bargain. Like in fairy-tales.
That’s how markets actually look in the wild.
And the natural price is the mathematical expectation of the price you get by bargaining.
It’s very simple and in this particular case “mainstream” economics and libertarian economics get along pretty well.
no. because the prices are influenced by external factors. i live in a country where markets like these exist and the price is not ‘natural’ in any way, in an idealized world maybe but not in reality.
firstly, transporting any commodity (and inputs such as fertilizers) requires fuel and fuel prices aren’t determined by such idealized markets you mentioned, its determined by what cartels and oligopolies want it to be. you are also ignoring subsides, not just by the national governments but foreign governments. for example, developed countries provide a shit ton of subsidies which pull down prices in the international markets, without restrictions and tariffs these displace local production.
i dont really get the middle eastern market you are mentioning because in reality there is absolutely price discrimination going on.
OK. Natural prices exist as an unreachable ideal point, but there are no absolutely natural prices in real world. I agree, and, BTW, no ancap would argue with that.
natural prices can only exist in an environment where every consumer and producer has all the information and is completely rational.
if you are rich and a vegetable seller who typically charges $5 for a vegetable charges you $10 you are unlikely to bargain as you would consider it a waste of your time and energy and just buy it. is this person being rational by not wanting to waste their time or irrational because they aren’t squeezing more out of the seller.
My two comments combined do not contradict what you say.
Thx for the link, I’ll look at it
Have you seen a middle-eastern market? Of the kind where they bargain. Like in fairy-tales
imagine citing a fantasy trope to justify economic policy jfc
I don’t need to justify anything to you. It’s an example for educational purposes.
EDIT: And if you think it’s just a fantasy trope, then you probably haven’t been out of your state.
you called it a fairy tale, genius
I wonder what’s the longest text you’ve read in your life and understood anything at all.
Hey aren’t you that guy from like a week ago who refused to read a two paragraph article someone linked you?
I remember no such thing, but if you link me the thread, we’ll see.
He did say he would apply shock therapy to the economy. He never mentioned if the economy would come out alive.
Tankie much?
Well, I suppose it is technically a change
For the better, since obviously the REAL EXCHANGE RATE was already around a thousand for a while.
ALL HE DID WAS MAKE THE OFFICIAL AND UNOFFICIAL RATE MORE SIMILAR. so effectively making the illegal money changers obsolete! (and telling people to start buying food for next fw months and use the money changers to start saving in usd.
THE PESO WAS ALREADY DEAD.
ALL MILEI IS DOING IS PREPARING TO KILL IT COMPLETELY.
I LIVE IN ECUADOR. WE USE SOLELY USD.
NO INFLATION HERE!
ARGENTINA HAS HUNDREDS OF PERCENT OF INFLATION EACH YEAR!!
I knew he was going to hurt Argentina badly, but I didn’t expect him to be this quick
I’m so glad Argentina pulled out from BRICS+, it would have been a drain on it
Brics hahahahhahahahahahahahahahahahahahaha Where nobody trusts each other enough to even talk about one single deal.
China and India are almost at war. China will invade Russia as soon as they can to take back kamtsjatska (and they should) Etc
I’m glad you are underestimating them, for a moment I was worried the G7 might take them seriously and do something
It’s clear you do not understand geo politics… Who is in the g7 with veto power? Which letters of brics?
The Security Council is made up of former Allied Powers, so the US, UK, France, Russia (successor to USSR), and PRC (successor to ROC). So 3 in the G7 and 2 in BRICS.
I’m not sure what’s the point of this question.
Now my turn: Name the bloc that just exceeded the G7 as the largest economies in the world.
Here’s the answer:
Not even one brics country trusts one other brics country. Nuf said. Hahaha you lost Argentina?
He has been in office for 2 weeks I can’t imagine this is a result of his policies yet.
Makes sense, if stuff is subsidized, the government has to pay for it. If the government doesn’t have money to pay for it, they’ll just print it out of thin air, devaluing the currency (and thus taxing the working class).
There’s gonna be a lot of pain for Argentinians in the months and years to come, hopefully it’ll all be worth it…
Austerity measures and privatization are basically never worth it.
No, you’re right, let’s better keep our ruler class’ pockets full. That won’t bite us in the ass.
Then tax or seize their wealth. The loss of subsidies will specifically hurt the poorer much harder than the wealthy. The wealthy will just push their increased burden from loss of subsidies off onto the poor like they always do.
hopefully circumstances worsen quickly enough that it’ll be noticable for everybody so that the general public can clearly identify it as a direct consequence of this maniac being elected. If its deteriorating to slowly people might just not notice it as much and might go along with all the coming explanations ( probably immigrants, leftists, blahblah). If there’s a quick look into the abyss people might wake up and get into action.
If there’s a quick look into the abyss people might wake up and get into action.
And vote for the politicians that gave them slow decline again…
Who would’ve known, the man that made it so people can get their salary in jugs of milk is a complete idiot.
Not correct. He’s trying to undo fifteen years of lunatic tankies stealing money. The country is BANKRUPT. two times over. He’s doing his best. Even tho he has old fashioned dumb religious ideas, you do NOT know what one hundred percent inflation EACH YEAR FOR A DECADE does to people. Argentinians are now waiters in Mexico and Ecuador… They fled because of Kirchner making the country into a mud pool of corruption and freeloaders
Don’t be so quick to judge. The people who wisely chose to get paid in diapers just had their wages doubled.
Only if they can find idiots willing to trade with them
Who could’ve guessed that a rightwing government wouldn’t solve their issues (which were originally caused by rightwing policies)?
No, you are lying. Argentinas problems do not originate from right wing policies but from over protectionism
which were originally caused by rightwing policies
Such as…
The implosion of Argentina is a very complex issue, but, essentially, the country allowed itself to be informally dollarized and ceded control over most of its industries to international (read corporativist) interests. When Perón restructured the country, it was done with a limited scope and with relatively short term changes, causing their economy to collapse again later (it doesn’t help that Brazil, a powerful potential ally, had undergone a rightwing U.S.-backed coup at the time). Then, the whole Falklands/Malvinas war happened, all rightwing bullshit, and the country still hasn’t bounced back.
