What will happen to Argentina if it gets rid of the shackles of ** banks?Will the Argentines carry a lot of fresh dollars, or even gold coins, while the former bankers polish their shoes?In just over a week, Cavill Malaya has achieved a shocking victory in the Argentine elections, promising to close ** banks and throw away the national currency. So, what will this look like?
In short, this will significantly reduce inflation, which is currently 143% in Argentina, depending on the implementation of monetization in other countries. This will lead to faster economic growth and increasing prosperity, as well as stronger banks in Argentina and reduce the risk of financial collapse. Overall, Argentina will go from a perennial economic hot potato to a booming road.
The next question, of course, is whether or not this will happen there. The answer is that monetization is not as difficult as it seems, which means that Argentina may inspire many other countries to follow suit, many of which have inflation rates of 40% or more.
First, let's understand what a bank does, and what it would mean to get rid of it. Two of the most important functions are currency manipulation**, primarily through interest rates and banking regulation, which in this context means saving failed banks. Together, they create a banking cycle of booms, recessions, and bailouts. Of course, Argentina's ** banks have been one of the worst in the world, with at least 5 superinflations since 1975.
So, what happens if you close your **bank?If you get rid of it completely and go back, it's easy, and you'll get steady growth, stable prices, and growing prosperity. However, a return to ** is a radical prospect for most voters, so Javier Malaya is actually proposing a scenario in between – monetization, which is Argentina's adoption of the dollar. From a monetary point of view, this will allow Argentina to move from that country that has had an economic spoiler, at least on a monetary level, no worse than the Fed.
So, what would happen if he really closed the ** bank and adopted the dollar?Some trivial regulatory functions may be taken over by the Ministry of Finance, such as the supervision of payment systems and inter-bank payments, etc. But by outsourcing real money, these two important ** banking functions – rescue and manipulation – will be raised from the Argentine level to the level of Washington, still exist but have been greatly improved. The final question is whether he will be able to do it. Despite the fact that Malaya has a majority in Congress, monetization is actually not as radical as it seems. In fact, both Ecuador and El Salvador have recently implemented monetization without the need for hardcore fans with lion's mane and chainsaws like Ron Paul. In both countries, monetization has been remarkably successful, with inflation falling from between 15% and 40% to 15%。In comparison, inflation in Argentina is as high as 143%. While the dollar itself is problematic, and it is getting worse, it will give the Argentine people a respite from the poor monetary governance they have suffered for almost a century. AI assistant creation season