Dollarization

[argeiCanuck]

100 peso notes you see from time to time used to be worth US$100 until ,,,,,,,,,,,, they decided ,,,,,,,,,,, one day to the next it was worth US$70

You proving my point.

If there's no peso doesn't mean they will be prevented from taking your Dollar ,,,, or your house ,,, or ,,,,
They decide anything ,,,, Dollarization will not stop or prevent nothing ,,,, if they decide.

Wish I can upload Harrison Ford video clip. Just a straight bullet right between the eyes. It is that simple. No Rocket Science needed.

 

[antipodean]

You proving my point.

If there's no peso doesn't mean they will be prevented from taking your Dollar ,,,, or your house ,,, or ,,,,
They decide anything

No one is suggesting that it would prevent taxes or expropriations. If anything it will improve tax efficiency since its expenses (and debts) will be covered in the same currency as collected without the distortion factor (e.g. if you have paid Argentine taxes on foreign assets or income you will know that for many years now that 30% tax rate is really only 15%-20% once its time to actually pay it in pesos... meaning the government is always caught with its d*** in its hands when it comes to matching actual expenditure with projected income, contributing to the never ending cycle).

It is just one less tool for subsequent Argentine governments to screw people out of their money as they always have done.

 

[argeiCanuck]

Though we talking Dollarization.
What taxes?

 

[antipodean]

Though we talking Dollarization.
What taxes?

Your question.

If there's no peso doesn't mean they will be prevented from taking your Dollar ,,,, or your house ,,, or ,,,,

Your answer.

You're welcome.

 

[argeiCanuck]

Your question.

Your answer.

You're welcome.

The whole thread I wanted to understand what is Dollarization.

But all of a sudden you introduced taxes. So I asked you what taxes?

I was surprised.

 

[Reply Guy]

The whole thread I wanted to understand what is Dollarization.

But all of a sudden you introduced taxes. So I asked you what taxes?

I was surprised.

We seem to agree that the main and only purpose of Dollarization is to prevent the government from printing pesos. (nothing to do with earning growth productivity .....). Fair enough. I will buy that.

You understand it. That's it. Government can't print pesos, which can help reduce inflation.

A stable currency and monetary environment brings benefits. Google "benefits of a stable currency" and you'll see there are many. Antipodean started to discuss one of the benefits, that's why taxes were brought up.

Not having control of your country's monetary policy can bring disadvantages too.

That is the debate, do the benefits outweigh the disadvantages. No one is arguing that dollarization fixes everything.

 

[malandro]

I never knew what it meant.

Finally my recent understanding is that the Argentine Currency will be the Dollar. $pesos will cease to exist. (Following suit countries like Zimbabwe Ecuador El Salvador Panama Somalia Guam ...). Argei Government will buy all currently circulating $pesos at their own self declared $offecial rate. I.e. government will buy the peso barato cheap. They will pay 1$USD for every existing currently circulating $800 pesos. (not $400 pesos ,,, magic ,,,). (amazing that everyone else is/was a thief but not me)

This is why all commerce now is being conducted at the new magical official rate $1USD=$800ARS. No more commerce at previous official rate $1USD=$400ARS.

Any Argentine with peso got robbed.

Did I get it now. Or am I still missing it?

Missing it I’d say when at the start you think Somalia has dollarized (it hasn’t). And Guam? News update. It’s an American possession, so yes it uses dollars.

 

[malandro]

I never knew what it meant.

Finally my recent understanding is that the Argentine Currency will be the Dollar. $pesos will cease to exist. (Following suit countries like Zimbabwe Ecuador El Salvador Panama Somalia Guam ...). Argei Government will buy all currently circulating $pesos at their own self declared $offecial rate. I.e. government will buy the peso barato cheap. They will pay 1$USD for every existing currently circulating $800 pesos. (not $400 pesos ,,, magic ,,,). (amazing that everyone else is/was a thief but not me)

This is why all commerce now is being conducted at the new magical official rate $1USD=$800ARS. No more commerce at previous official rate $1USD=$400ARS.

Any Argentine with peso got robbed.

Did I get it now. Or am I still missing it?

At the start Somalia isn’t dollarized. And Guam is an American possession so yes it does use dollars. But from those gaffs it’s pretty much downhill. Bottom line is Argentina does not have and has no excess to the amount of dollars required. EOS.

 

[argeiCanuck]

You understand it. That's it. Government can't print pesos, which can help reduce inflation.

A stable currency and monetary environment brings benefits. Google "benefits of a stable currency" and you'll see there are many. Antipodean started to discuss one of the benefits, that's why taxes were brought up.

Not having control of your country's monetary policy can bring disadvantages too.

That is the debate, do the benefits outweigh the disadvantages. No one is arguing that dollarization fixes everything.

Much appreciated y'all for taking the time.

I learned a lot about the topic of which I had no idea when I started. I try to stick and focus and Sift through and filter only this topic. (The many other Argentine economic topics deserve their own separate threads).

A stable currency in unstable Argentine bank ,,,,, unstable Argentine culture ,,,,, I don't see any benefit Googling that.