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153 sats \ 10 replies \ @Undisciplined 22 Oct \ on: Should Argentina just dollarise? econ

I recall something about dollarization being part of Milei's plan.

There's probably a really messy interim period, where you have to keep using pesos because so many contracts are made in those terms and the currency is too volatile to just peg directly to the dollar.

75 sats \ 3 replies \ @stack_harder OP 23 Oct

i can think of nothing worse than having any kind of long term contract denominated in pesos

14 sats \ 0 replies \ @beyond_turbulence 23 Oct

Tide unpredictable? The currents are shifting, and every port uncertain. Long-term contracts in that sea feel like tying to navigate a storm thru a ship!

On Marriage (BITCOIN) Counseling for Sailors

Tides: We’re polyamorous. Deal with it.

Currents: I change my mind every 6 hours. What’s your point?

Ports: We’re ‘temporarily closed’ (forever)."

Long-term contracts?

Congrats, you just proposed to a hurricane.

For better or worse, it is non-negotiable.

Till death do us part is optimistic.

Pro tip: Rent the ship. Lease the compass. Swipe left on the storm. ⚓💔

14 sats \ 1 reply \ @Undisciplined 23 Oct

I'm assuming government contracts are denominated in pesos. Probably with some sort of automatic inflation indexing.

42 sats \ 0 replies \ @stack_harder OP 23 Oct

i suppose they would have to have some kind of protection. it reminds me a bit of my friend who was renting a flat many years ago in Moscow - when the ruble to dollar was bad, his rent price was quoted in dollars (and he'd convert that to rubles), when the dollar would weaken, his landlords would flip-flop and then state the price in rubles instead lol

42 sats \ 5 replies \ @optimism 22 Oct

I dont understand how one would be able to denominate any longer term contract in pesos. Someone will always get rekt?

100 sats \ 4 replies \ @Undisciplined 22 Oct

I don't understand that either, but it's also hard to imagine there aren't any contracts denominated in the legal tender currency.

42 sats \ 3 replies \ @optimism 22 Oct

What a former client did in Turkey, and this was between periods of high inflation, was basically to do every contract in 3 parts: USD, EUR and TRY, 1/3rd each. And then still get rekt on the TRY side over the course of 5 years.

100 sats \ 2 replies \ @Undisciplined 22 Oct

That's interesting. I've been thinking about how to do that with dollars and bitcoin for long term contracts.

42 sats \ 1 reply \ @optimism 22 Oct

I did a big contract (for a solo effort) in bitcoin denomination and it wasn't successful. The last milestone still isn't paid because the counterparty has to take out a massive loan now to pay me. So we're all waiting for the dip. lol.

Mixed denomination works better as long as it's volatile against your liabilities.

100 sats \ 0 replies \ @Undisciplined 22 Oct

For a permanent salary situation, I was thinking of something where a future bitcoin value is anticipated ahead of time and there's a fixed fiat amount combined with a fixed bitcoin amount.

Over time, the fiat value shrinks and the bitcoin value rises. It should be possible to construct something that covers your fiat obligations while also gaining in value.