What Would Dollarization Mean for Expats?

[Alby]

Probably JxC will cease to exist after losing this election (after not even reaching the ballotaje, which is what I'm tipping). Milei will have usurped the concept of "change" and with it their reason for being and reason for remaining in coalition. Macri will control Pro deputies, but the other Juntos parties will probably go their own way on various matters.

 

[gracielle]

16 August 2023

Bloomberg en Español: Exclusive interview with Javier Milei

 

[steveinbsas]

What Would Dollarization Mean for Expats?

Who is John Galt?

 

[Redpossum]

It would be tough but Menem made dramatic changes. Milei would not be able to implement a libertarian programme however, like Menem, he might be able to effect some reforms. Change has to start at some point, no matter how evolutionary.

FFS, Menem was an utter disaster in the long run. He robbed Peter to pay Paul, and just kicked the can down the road. The crisis of 2001 was the direct result. And many of Argentina's problems today stem from the Menem era, mostly obviously the way he sold the sovereignty over the Rio de la Plata, and the way he gave provincial governments authority to regulate mineral extraction. Also, the way in which the ag giants like Cargill are trusted to simply tell the government how much they export, rather than being under direct supervision as in any developed country.

Menem was a disaster as President, except only in the very most short term sense.

 

[Ronnie Hotdogs]

FFS, Menem was an utter disaster in the long run. He robbed Peter to pay Paul, and just kicked the can down the road. The crisis of 2001 was the direct result. And many of Argentina's problems today stem from the Menem era, mostly obviously the way he sold the sovereignty over the Rio de la Plata, and the way he gave provincial governments authority to regulate mineral extraction. Also, the way in which the ag giants like Cargill are trusted to simply tell the government how much they export, rather than being under direct supervision as in any developed country.

Menem was a disaster as President, except only in the very most short term sense.

same for mineral extraction, the company declares what they export but no oversight from any government authority.

 

[barbablanca]

@Reply Guy , maybe we'll see the Iran scenario next month! Peso prediction seems to be a solid bet at the moment.

View attachment 8936

totally unrelated nevertheless just as important... how did you enable dark mode on this site? I've been looking for this option ever since but all I have is a header and footer in dark mode, the rest is glaring white...

 

[sergio]

FFS, Menem was an utter disaster in the long run. He robbed Peter to pay Paul, and just kicked the can down the road. The crisis of 2001 was the direct result. And many of Argentina's problems today stem from the Menem era, mostly obviously the way he sold the sovereignty over the Rio de la Plata, and the way he gave provincial governments authority to regulate mineral extraction. Also, the way in which the ag giants like Cargill are trusted to simply tell the government how much they export, rather than being under direct supervision as in any developed country.

Menem was a disaster as President, except only in the very most short term sense

FFS, Menem was an utter disaster in the long run. He robbed Peter to pay Paul, and just kicked the can down the road. The crisis of 2001 was the direct result. And many of Argentina's problems today stem from the Menem era, mostly obviously the way he sold the sovereignty over the Rio de la Plata, and the way he gave provincial governments authority to regulate mineral extraction. Also, the way in which the ag giants like Cargill are trusted to simply tell the government how much they export, rather than being under direct supervision as in any developed country.

Menem was a disaster as President, except only in the very most short term sense.

I don't see any sense in debating the strengths and weaknesses of the Menem government. The point I was making was that Menem made some fundamental changes that were clearly in opposition to Peronist philosophy. Argentina is at a crossroads and I would not rule out the possibility that Milei could effect some change.

 

[Ries]

Much like trump, macri, bolsonaro and putin effected change. They crashed their respective economies, installed criminals and grifters in positions of power, and screwed pretty much everybody. And, with the exception of putin (so far), they got promptly rejected by voters at the next opportunity.
all my argentine friends are sick at the prospect…

 

[Quilombo]

Would salaries remain at the current dollar value? I think that unlikely. I remember U$S 500 as a common salary for unskilled workers during the Menem years. That is a VERY good salary nowadays.

I don't see the average salary returning anything close to this, maybe in a decade if things improved somehow, but I'm honestly guessing people's salaries will be dollarized at ~1K = $1 but costs of everything will double in even dollar terms compared to now.

I said it before and I'll say it again, there's no dollarized world in Argentine where milk is 40¢ a L like now, or 11¢ for the subway, but there also is no dollarized Argentina where is minimum wage is higher than it is now at $140/month.

Also, this sort of shit is great for Argentine businesses:

Two of our main trading partners and you're just going to antagonize the only countries who've been keeping the shit from hitting the fan?



Finally, regarding other peoples' comments regarding not having a congress that supports him, there's many things he can do to go around it. Alberto has proved that DNUs are kosher for everything from raising taxes by fiat to regulating the stock market, so while I think he'll have a hard time completely dismantling say education and healthcare (the later which is a fundamental right in the constitution, and he'll get buried in Amparo claims) he can still reform a ton without Congress' blessing, and even then, the projections have been a JxC plurality which, if partnered with LLA on some key issues they both support could legalize many changes, even if Milei calls the UCR a bunch of communists (lol)

 

[Quilombo]

Probably JxC will cease to exist after losing this election (after not even reaching the ballotaje, which is what I'm tipping). Milei will have usurped the concept of "change" and with it their reason for being and reason for remaining in coalition. Macri will control Pro deputies, but the other Juntos parties will probably go their own way on various matters.

How? The projections for Congress show a JxC plurality right now, beating both the Peronists and LLA