Good news for the fiat credit system from argentina: thanks to the anti-inflationary policies of the new president Javier Miley, the mortgage market, which has been dead for many years, now seems to be recovering. The argentinians can hardly wait to plunge back into debt to start the next interest rate cycle. If interest rates rise again at some point in the future, which is to be expected since the fiat fraud system works this way, hundreds of thousands if not millions of families will be trapped in the interest rate trap again. Nice to see that good traditions never change, no matter what people experience!
From January to April, inflation is slowing and decreasing constantly under fiscal and financial surplus and monetary contraction. Expecting 5% in May.
The interest rate fall from 110% to 40% in 4 months and continue decreasing.
In a couple of month there will be no more financial speculation and investment will go to capital and workfare.
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I believe you before I believe Bloomberg
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I'm a little confused about the situation down there. Wasn't Millei dollarizing the economy?
Are they saying inflation was 288% in dollars or in the old currency that's being abandoned?
And then, which currency are those interest rates in?
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PS: Miliei is a nice asset of the Fed
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If they can convince other countries with failing currencies to dollarize, that could keep this bubble going for quite a while.
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Yep. New areas to dump the treasury's garbage. A bit like Tether
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21 sats \ 1 reply \ @TomK OP 14 May
Inflation was in Peso. And I assume that 99% of the mortgage market works on the Dollar.
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Ok, 3.5 - 8.5% mortgage interest rates make a lot more sense in dollars than in Pesos.
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It sounds like you think debt is a bad thing. I don't think that is true. Debt is a valuable tool in any economy. However, the high finance and lack of transparency that comes with it are problematic. Fractional banking is also problematic, as is money printing.
Debt can help house a family or a business grow.
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All depends on Your collateral.
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Sounds similar to america.
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Sad
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Yep. Next level fiat would be Milei selling gov bonds to the people by using the media propaganda machine
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They are going the right way? I don't think so. Millei was so open about Bitcoin before the elections but now he doesn't even say a single word about it.
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11 sats \ 1 reply \ @TomK OP 14 May
Well, I didn't want to evoke this
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I know but he is doing all the same things that others did before him. He is trapping people into the debt cycle, as it is. Bitcoin must have been the way to come out for Argentinians but they find themselves on the same path full of fiat ghosts.
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