Argentina’s political landscape is clearing now that Cristina Kirchner has withdrawn from the presidential race. Bitcoin pro candidate Javier Milei may well win.
Javier Milei at the Pink House?
Sentenced at first instance to six years in prison for “fraudulent administration to the detriment of public administration”Vice-President Cristina Kirchner announced in early December that she “wouldn’t be a candidate for anything” in 2023.
The “jefa” will not attempt to run for the presidency again. Farewell to the traditional battle between the Peronist-Kirchnerians and the right-wing anti-Peronists. Outsiders will be able to enter the arena.
And in particular the deputy Javier Milei who oversees the Liberal party. HSBC Argentina’s chief economist joined the top three with polls giving him between 20% and 30% of the vote. He is now neck and neck with Horacio Rodríguez Larreta, the mayor of Buenos Aires.
Javier Milei describes himself as an anarcho-capitalist who wants “kick the ass of Keynesians and collectivists”. The presidential candidate proposes “free competition of currencies” which, according to him, will encourage “very likely the Argentines to choose the dollar [américain] “.
The World Cup was only a short respite for an Argentina still plagued by hyperinflation. Prices have jumped 90% over the past year… One of the highest inflation rates in the world with Turkey, Lebanon, Venezuela, Syria, Sri Lanka, etc.
Things are so bad that the government introduced capital controls last year. The exchange rate was salty for the Argentines who wanted to see Lionel Messi play. the Qatari dollarmocked the Argentinians.
Faced with economic disaster, Javier Milei counts “eradicate the privileges of politicians”he said on the microphone of Reuters during his monthly lottery which he organizes to distribute his salary as an MP (350,000 pesos, or about $1,900).
A Pro Bitcoin Banker?
Javier Milei recently braided bitcoin laurels:
Javier Milei is running for President of Argentina.
He appears to understand money, and that inflation is an unfair mechanism that advantages elites over the people and slowly robs people of their means of survival. pic.twitter.com/tj0KEztUzI
— Alex Stanczyk ∞/21m (@alexstanczyk) January 5, 2023
“Javier Milei is a candidate for the presidency of Argentina.
He seems to understand money and knows that inflation is an unfair mechanism that benefits the elites at the expense of the people. »
Asked if Argentina should have a discussion about Bitcoin, J. Milei wanted to be rave:
“You have to start by understanding that the central bank is a scam. It’s a mechanism by which politicians rip off the little people via a tax in disguise: inflation. Bitcoin represents the return of money to its original creator, the private sector. […] Today, the state has appropriated the right to impose a currency. This allows him to rip everyone off with inflation. The Bitcoin protocol causes its money supply to eventually peak. […] He is the natural reaction to these central banker hustlers. »
For the MP, his country’s ongoing disputes with the IMF and capital controls can be resolved easily. Just abolish the central bank and dollarize the economy:
“The first thing we are going to do is reform the monetary system. I will organize a referendum if necessary. And when 70% or 80% of the population wants to eliminate the peso, I will bring them to Congress, and those who oppose it, I will put them against the Argentines. »
In short, US banks will be rolling out the red carpet. The second largest economy in Latin America would then find itself in a situation similar to that of El Salvador. That is to say without national currency, but with large international banks (HSBC, Citibank, Scotiabank) making loans in dollars.
Argentines will go to the polls on October 29. They will elect their next president as well as a large part of the deputies. There will be 130 seats out of 247 to be filled in the Chamber of Deputies, and 24 out of 72 in the Senate.
Michael Saylor’s prophecy comes true
The CEO of Microstrategy predicted in 2021 that most countries will end up dollarizing:
“I think in the developed world, in Europe and the United States, bitcoin will demonetize risky debt, low-yield debt and commercial real estate. It will also replace savings accounts. In developing countries […], the possibility of having a savings account in dollars does not even exist. Their currencies are much worse than the dollar.
What is going to happen is that out of about 180 countries, 15 or 20 will retain their coinage privilege. The last 100 countries will lose it. I think they will adopt the dollar. But how to do it ?
The best way to dollarize is the El Salvador strategy which offers a mobile app with dollars and bitcoins on the lightning network. We need a currency unit of account as a medium of exchange, the dollar. And a currency that will retain its value over time, Bitcoin. »
Argentina could prove Michael Saylor right. It should also be noted that some thirty countries currently have inflation above 20%.
And let it be said, the creation of CBDC will not change this situation. Nigeria tries to impose it by force, but it is finally towards bitcoin that the population turns…
While waiting for the Argentine political coalitions to officially announce their candidates, there is hope that a new country in America will make bitcoin a currency in its own right.
As expected, bitcoin is on the rise in countries where it has become impossible for ordinary people to save. At the rate things are going, Europeans will soon end up asking questions…
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Journalist reporting on the Bitcoin revolution. My papers deal with bitcoin through geopolitical, economic, and libertarian prisms.