Areas of reform

[Jeremias]

That raises a question that has often crossed my mind: where do people stow their money? When I change dollars for pesos, various contacts show up with stacks of what appear to be freshly minted $1.000 pesos bills. They’re not keeping their money in a bank, so where? I would guess in their homes but that is very risky (but less so than in the bank).

"Bajo el colchon"

So many Argentines and Argentinian families have cash money hidden in their house, that it generates security issues (with burglars). Argentines in any case are very skilled at hiding cash throughout their house.

 

[Jim Prideaux]

Argentines in any case are very skilled at hiding cash throughout their house.

Maybe I’m more Argentinian than I thought.

 

[Dougie]

The USA has the largest fiscal deficit in the world yet the gringos on here would never say that 'stunted its growth'.

So does Japan, and they have a very advanced economy.

Running deficits and borrowing in your own currency does not cause problems for sovereign states. That is why the US, Japan, UK can borrow like crazy and run deficits without it stunting their growth.

However, if you run deficits while borrowing in a foreign currency you get screwed because you can't inflate your way out of the debt. Inflating actually makes the debt even more expensive to pay back.

Japan, US, etc who borrow in their own currency vs Argentina who borrows in a foreign currency is not comparable.