The eccentric far-right populist Javier Milei has failed to win the first round of Argentina’s presidential election, with the centrist finance minister Sergio Massa unexpectedly beating his radical challenger.
Supporters of Milei, a potty-mouthed political outsider described as an Argentinian mashup of Donald Trump, Jair Bolsonaro and Boris Johnson, had hoped he was heading for a sensational outright victory similar to Bolsonaro’s shock triumph in Brazil in 2018.
I know nothing about economy, but isn’t a bad idea to put all your chips into a currency that you do not hold any control over?
As Vis mentioned, it is the better option if the government can’t stop itself from printing money and fucks everyone over.
This is the inflation rate of Ecuador before and after they adopted the dollar in 2000.
Milei now wants to do the same. At least this way people will be able to save (and spend their savings), and the government will have to be fiscally responsible.
The world has run directly or indirectly on gold (which can’t be printed) until 1973, so it’s definitely possible for an economy to work with a currency you can’t print.
Ecuador and Puerto Rico already did it. Panamá did something similar.
I totally understand the initiative. Corruption can be so damn high, that you trust gringo central bank more than any institution of your own country.
edit: typos
Did you conflate Puerto Rico with Costa Rica? Puerto Rico uses USD, and has since the late 1800s when they became a territory of the US.
Puerto Rico has been using the United States dollar as its official currency since 1898. This change occurred when the United States took control of Puerto Rico as a result of the Treaty of Paris, ending the Spanish-American War. Since then, the U.S. dollar has been the official and only legal tender in Puerto Rico, and the island’s monetary system is fully integrated with that of the United States. Puerto Rico did not choose USD. It was chosen for them when Spain ceded their American colony to the US.
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Puerto Rico is a literal colony. Not the best example
Puerto Ricans are (admittedly disenfranchised on the federal level) full USA citizens – they’re Americans. They have self-rule insofar as any other state does, freedom of movement in the USA, etc.
The USA has had colonies in even the “recent” past, but nothing that can really be called that these days.
Nope, Puerto Rico is a colony. They lack many rights US citizens have, have nothing to do culturally with the rest of the country and have been so since 1898, with many attempts by the government to erase Hispanic culture. The USA should leave Puerto Rico immediately, just like the UK left India
About that …
I’ve spoken to actual Puerto Ricans and many of them think pro-US parties are being paid and boosted for obvious reasons
I think they may have confused Puerto Rico with Costa Rica? Costa Rica devalued their currency around 2013-2014 IIRC, and they don’t use USD the way PR does.
Excelent example as it implies the damage to sovereignty it takes.
You know. Pros and cons…
Not really. Puerto Rico’s use of USD is much closer tied to the fact that it’s citizens are full US citizens. It’s not like we bought them or they collapsed and eventually fell under our control. No we went to war with Spain, mostly to get Cuba, and they were one of the islands we got when we won. They became a territory that’s capable of statehood while other winnings like Cuba and the Philippines were released and as they became sovereign states adopted their own currency. The only states we purchased were in the middle of the mainland, under the gold standard, and because Napoleon was broke.
Well we also bought Alaska from Russia for dirt cheap and Putin made some butthurt comment about it recently.
El Salvador was the other one aside from Ecuador and Panamá.
Puerto Rico is a us Territory and uses USD. Costa Rica has their own currency with cute sloths and monkeys on their notes.
Trusting the central bank of a country that gave permission, founding and training to the military juntas all over South America to commit crimes against humanity is pretty darn stupid if you ask me…
we have problems with governments over printing. this shit has happened again and again for decades and it won’t stop.
Yes, but the alternative is what we have now.
A few nations of this: Ecuador, El Salvador, East Timor, Zimbabwe, etc
Normal people have zero control over the US Dollar, but also have zero control over the Argentinian Peso… and the Argentinian Peso has 140% inflation per year.