Watching Milei's "dollarization" approach appears weird to someone who is into monetary theories.
Discussion
First thing he did was devalue their currency by 50%. WTF is that? π€·π»ββοΈ
Donβt hold your breath, likely another chump
That is to correct the mistake regarding the current valorization of the Argentinian peso.
Now they are going to work around that for the proper adjustment of the currency.
that's an interesting point. so the peso, which was already in a very weak spot thanks to the inflation etc, requires an additional 50% value cut to reflect more appropriate value? I know the peso wasn't looking good but I didn't know that it was that bad. I wonder what the immediate impact of this value adjustment means for the people in terms of purchase power.
Does this mean everything will go up by 100% . Half the value = 2x the purchase price for a product. No?
Yes.
And also that tourists (Brazilians for example) will flood Argentina for vacation and holidays. Also, that means all foreigner business will adjust so the infrastructure they invest in will also give them better returns in the future.
Correct by making people 50% poorer? Doesnβt make any sense
He is clearly going to put Argentina in a situation that the only possible outcome will be turning to decentralized cryptocurrency.
I would say that going into a tour around Argentina right now promoting small businesses to shift their financial system would work for great opportunities. What do you think nostr:npub1aftmyhm62lrp6lwsha3yzyjy5kqdvuy7g23qg28a8q0cnmudv0ds0sdcke ?
I don't know Ser but will follow closely as the story unfolds.