Re: Javier Milei triumphantly pulls Argentina out of financial ruin.

On Thu, 14 Mar 2024, JAB wrote:

On Thu, 14 Mar 2024 22:24:29 +0100, D <nospam@example.net> wrote:
>

Too many leaders have applied austerity instead of currency
stabilization--often under pressure from the financial community. In
Nigeria, Egypt, Ethiopia, Haiti, Argentina and many other poor
countries, financiers and central bankers profit from devaluations
even as poverty worsens.
>
https://www.wsj.com/articles/javier-milei-must-dollarize-to-raise-argentina-incomes-6767fbcd

>
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He's like a dream come true!

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Show-time politicians are nothing new under the sun.  I would like to
think the opinion in WSJ above speaks the truth.
================
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Steve Hanke, professor of applied economics at Johns Hopkins
University, described the move as a "kick the can down the road type
of operation."
>
"They don't need to buy any time, if they dollarized the economy and
got rid of the central bank - something that Milei promised during his
campaign, the thing would be fixed. And it is feasible to do that, and
I think it is totally desirable," Hanke told CNBC's "Squawk Box Asia"
on Thursday.
...
...
"We wouldn't be talking about this, and they wouldn't have defaulted
over and over again if they would have dollarized way back in 1999.
But at any rate, it looks like Milei has put the dollarization thing
on the shelf and I think that will end Milei. This is a fatal
mistake," Hanke said.
>
https://www.cnbc.com/2024/03/15/argentina-must-dollarize-and-abolish-the-central-bank-economist-says.html
>

I agree with Hanke, but the problem is that Milei is being fought by the political class who's very livelihoods are at stake. He cannot, as far as I know, as president just abolish the central bank. There are many checks and balances which work against him. So yes, he does what he can, right now, and the goal is to abolish the currency and go dollar.