Argentine province to have its own currency

Thursday, January 18th 2024 - 10:34 UTC

Full article 6 comments

The Argentine province of La Rioja's legislature Wednesday approved the issuance of a quasi-monetary unit to pay the public workers' salaries as budgetary restrictions from the federal government begin to be felt. Read full article

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Brasileiro
This is a disaster! Argentina must be very careful so that the policies that Milei wants to adopt regarding the Minimum State do not lead to the fragmentation of the country.

It would be a very serious historical error that would have repercussions for centuries.

Remembering that this Minimum State is only valid for social policies, because the ruling class uses and abuses the State whenever it wants and wishes.
Jan 18th, 2024 - 10:53 am - Link - Report abuse -2
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Chicureo
Brasileiro

Perhaps Milie's proposal of drastic cutting public service is the logical solution of Argentine problems.

“The province will start by issuing AR$ 15 billion worth of ...... It remains to be determined whether there will be actual chachos printed or if they will only consist of digital entries into the workers' bank accounts. Chachos will be legal tender within the province.”

This stupidity is why Argentines need to adopt the US Dollar as their legal currency.

¡Saludos de Panquehue!
Jan 18th, 2024 - 11:55 am - Link - Report abuse 0
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Pugol-H
Doubt that another ‘currency/bond' backed by nothing is going to help in Argentina, how many exchange rates do they have already? Worthless is still worthless.

With a government actually controlling spending, a new approach in Argentina, everyone was always going to feel the pinch, but trying to get more money like this, by creating it out of thin air will never work.

At some point they were always going to have to ‘bite the bullet’ and have more pain to get out of the current situation. A hard sell to people already suffering hardship.

There is no silver bullet or magic wand to make a deficit this size just disappear, at some point it has to be paid off or defaulted and that has never worked or even helped in the past.

And this is just the beginning.
Jan 18th, 2024 - 02:16 pm - Link - Report abuse 0
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Chicureo
Pugol

This morning I attended a conference call with the Chilean Exporters Association.

For the 2023 export report, they are certainly seeing that China's economy is in a severely depressed market, and avising careful caution regarding credit.

China seems to be in an economic free-fall.

¡Saludos de Panquehue!
Jan 18th, 2024 - 02:47 pm - Link - Report abuse 0
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Pugol-H
Chicureo
And it looks like it is going to get worse, the effects of the property market debt crisis are yet to kick in and that is likely to be big, despite their best efforts.

Never mind a conflict across the Taiwan Strait or in the S. China Sea.

You have to laugh at poor old Braz and his master plan for the global south led by China and the BRICSGHJKLZXCV group to soar to economic, military and political dominance, while the West quietly withers away into poverty and obscurity.

Where Brazil as a big exporter of commodities to China will be badly hit by this, a double whammy as what they do manage to sell they will be paid for in un-spendable and therefore worthless Yuan.

Mostly what the global south needs is aid of one sort or another, not exports from Brazil they can’t pay for.

Saludos de Colonia Nervia Glevensium.
Jan 18th, 2024 - 03:21 pm - Link - Report abuse 0
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imoyaro
Gee, the provinces are back to issuing bonds again?

https://www.nber.org/system/files/working_papers/w13403/w13403.pdf
Jan 19th, 2024 - 06:34 pm - Link - Report abuse 0
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