Rediscovering PRICES when Legal Tender Laws Have Been Abolished – The RECONSTRUCTION of The Argentine Peso – April 13, 2024

 

Javier Milei is attempting to STOMP out Peronism, which is a far left Socialist ideal, Argentinians have been living with since one can argue about 1895. So REDISCOVERING prices for people used to having the GOVERNMENT do their FINANCIAL thinking for them is going to take some time.

However this is where the entrepreneurs come into play, and how the Argentine people deal with this DISCOMFORT, will be interesting, because I’d argue it takes about a year and half before, MARKETS, start popping up, because you have to understand how CAPITAL works.

Although some like to imagine a Gold or Bitcoin standard as the be all end all, true is ANYTHING can be money, money is merely the common MEDIUM of exchange, and if you’re DEADSET on the Argentine PESO recovering, well, you’re going to have to deal with the SHORTAGES of PRINTING that currency.

People tend to forget that SOCIALISM is a PRICE CONTROL mechanism, when you start talking about Karl Marx, who I like to remind people wrote the FIRST COMMUNIST MANIFESTO at 16, was IMAGINING a world in which a CENTRAL POWER could FIX prices.

Communism is an EXTREME form of SOCIALISM, and socialism seeks to REWARD people EVEN IF they’re not PRODUCTIVE. In many parts of Latin America, OBESISTY is a problem.

Anyone paying attention to all the illegal aliens Joe Biden let into the country, should be noticing the amount of OBESE women, waddle themselves across the border.

If you’re Javier Milei, and you’re having to work within the CONFINES of the Argentine constitution, how do you deal with this? The answer is YOU DON’T, you let the market figure out, Javier Milei can’t fix over 100+ years of damage in less than a year.

The main reason Javier Milei was elected was that Peronism kept failing, and unlike in prior times, the Argentines could PREDICT the Argentine peso would crash, HOWEVER, many still wanted to be paid in it.

If you think that’s a lie, you’re wrong, business people, wanted DOLLARS, but you see the Argentine bank doesn’t have the ability to PRINT U.S. dollars. If you’re not following me, then you’re not comprehending what the WELFARE STATE does to the mind.

Imagine for a moment, the the purchasing power of the U.S. dollar went to shit, MAJORITY of UNPRODUCTIVE Americans, wouldn’t know what to do with themselves. In that environment, an environment where the WELFARE STATE, is no longer a VIABLE option, it means you now have to be PRODUCIVE in the FREE MARKET.

When most people look at people in the world world working for less than a dollar a day, they say to themselves, I would never do that, and that’s the truth of the matter.

A lot of people are UNWILLING to do hard work, they want COMFORTABLE jobs, or they don’t want to have to work at all, and if the TRADEOFF for not working at all is HYPERINFLATION every 10 years, SO BE IT! That’s how SOCIALISM spreads.

Truth be told, there are hardworking and highly intelligent people in Argentina, but it’s not the MAJORITY. Poke fun at the Argentinians all you want, this reality will hit the other western nations in due time.

I remind people that EURO, was designed primarily because the purchasing power of most European nations currencies, went to shit. The realities of the FREE MARKET, equate to HARDWORK paying off for people WHO WORK HARD.

If you want to be RICH in the free market, you don’t only work hard, you work SMART. Now, the SOCIALIST model, revolves around SQUATTERS, or people who DO NOT want to be productive, but want to be TREATED like like they are.

Socialism REDISTRUTES capital to unproductive people, and in time these UNPRODUCTIVE people come to realize they can lie, manipulate, and VOTE THEMSELVES wealth, into perpetuity, at least so they think.

Capital is still FLEEING, Argentina, however it’s returning to PRODUCTIVE sectors of the economy, and because there are no LEGAL TENDER laws in Argentina, they’re going through a PRICE DISCOVERY phase, via the Argentine constitution, Javier Milei is limited to what he can do.

But I do commend him for what he’s done so far. Because there aren’t enough DOLLARS floating around Argentina, and because a lot of Argentines are still working for or receiving PESOS, this entire process of transition, will take some time, but I do expect, a period in which capital starts to flood Argentina.

I have to remind people that idiots like Joe Biden are the leaders of the free world. The GLOBAL economy is actually DEFLATING right now, and Argentinians, don’t have a lot of purchasing power.

Argentina has a lot of UNIONIZED laborers, who were getting INFLATED paychecks. Unionized labor GLOBALLY, is a SCAM, the purchasing power of unionized labor is a scam, I remind you that labor unions fight for GOVERNMENT PRICE CONTROLS, meaning that the unionized labor contribution to Argentines ECONOMY, was all FAKE.

PRODUCTIVITY can’t be based on GOVERNMENT wages, you’re distorting the market when you do that, and Peronism revolved around GOVERNMENT PRICE CONTROLS, and PROTECTIONISM for labor that likely wouldn’t even be NEEDED if Argentine had a MARKET economy.

So Javier Milei is FLUSHING all of that waste out of Argentina and obviously is going to take some time to get rid of. How this story ends, is anyone’s best guess, but if you ask me, about 1.5 years.

Because I expect capital is going to start finding pockets of Argentines PRODUCTIVE economy, to rediscover prices.

Interesting times ahead