Bitcoin is urgent. Argentina is printing free money too

[tenakha]

Such a good solution. Everyone can print as much money as they want, but not everyone can stand. US and China are the biggest powers in the economy and they can do it based on something. Can Argentina do it? Do they ignore inflation? 

[TheHas]

America, for now, gets away with printing money  as they are a Reserve currency. The world does business in USD and this partially ensures that their money printing  (cough quantitative easing) can continue. The currency is used by everyone. Obviously this has limits as people start using Euro and others but we haven't hit that floor on the house of cards yet.

Argentina though... well I've visited the country and it is an awesome place, but no one, except aregentina would use their currency to do business. They are putting themselves at risk of very high inflation and recession at this rate.

[okala]

Many banks are in deficit lately and the entire banking system is suffering economic depression at the moment, many of them are in dept and the government have to.safe the day by ordering the central bank to.print new currency to avoid a total economic crisis in the financial system.

[Sithara007]

I am not surprised. Typical Latin American country with Socialist government, and as usual they have run out of money. The people in that part of the world have a tendency to vote for governments that offer freebies. No one wants to work hard and if someone has the balls to stop the freebies and subsidies, then he'll lose the elections.

Wow make some more baseless assumptions. Those so called capitalistic paradises like United States has a lot of homeless people living in tents and eating out of trash cans.  This isn't the fault of socialism, its because of corrupt people in power.  No matter how good a system is in place if corrupt or stupid people are in charge it will fail.

What this has to do with the homeless people? Do you think that the percentage of people living under poverty line is higher in the United States when compared to these Latin American countries? Socialism is a failed ideology and examples are out there for everyone to see. And when there is a combination of corruption and socialism, it gets even worse.

[magneto]

Why does the US get to print money to save their banks? Why does China pump their stock market by printing more money whenever the stocks dip?

This may be the beginning of the new crash: every country out there decides they want to do quantitative easing too.

US banks got bailed out, why can't governments get bailed out?

The thing wth bailing out these institutions is that at the end of the day, the monetary base is increased and that ultimately depreciates the value of money in the long run. Same with quantitative easing, you are literally inflating the money supply to artificially stimulate the economy. Perhaps this is useful in the short run as a countercyclical mechanism, but I don't think it'll do any good in the long term.

As you said, it's not necessarily just Argentina either - it's many countries around the world doing this. Banks who are too big to fail.

To a lot of people, this fiat system is not sustainable and will eventually collapse. I guess it's why people look at bitcoin as a hedge against the fiat monetary system right now, and a store of value, since it can't simply be manipulated or debased by the government the way QE can be carried out. I doubt though that a paradigm shift will come until after a major collapse in some country.

[Yakamoto]

Why does the US get to print money to save their banks? Why does China pump their stock market by printing more money whenever the stocks dip?

This may be the beginning of the new crash: every country out there decides they want to do quantitative easing too.

US banks got bailed out, why can't governments get bailed out?

The thing wth bailing out these institutions is that at the end of the day, the monetary base is increased and that ultimately depreciates the value of money in the long run. Same with quantitative easing, you are literally inflating the money supply to artificially stimulate the economy. Perhaps this is useful in the short run as a countercyclical mechanism, but I don't think it'll do any good in the long term.

As you said, it's not necessarily just Argentina either - it's many countries around the world doing this. Banks who are too big to fail.

To a lot of people, this fiat system is not sustainable and will eventually collapse. I guess it's why people look at bitcoin as a hedge against the fiat monetary system right now, and a store of value, since it can't simply be manipulated or debased by the government the way QE can be carried out. I doubt though that a paradigm shift will come until after a major collapse in some country.

I've heard it described like this: quantitative easing was the fail-safe which we would only use if the economy was going to be totally screwed without it. Well, we burned that plan already and we have absolutely nothing to protect us from a scenario that is just as bad as 2008/09 again. If we get round 2, the fiat economy is almost guaranteed to collapse, and in a really bad way which will take tons of people down with it.

But I could be wrong, who knows if they'll just inflate it all away again and everyone is just left poorer. That may happen, and if it does, you know that the entire economy is scuffed. Everyone towards the lower half will get completely screwed and anyone holding assets will just sit back with the same purchasing power as before. Can't say that it'll be a good time to have any savings in fiat since all that value will be inflated away. Bitcoin and precious metals will actually be one of the best stores of value in one of those scenarios for the common man.


Just as a note, the only reason that banks are too big to fail is that we've created an oligarchy of banks and too many people rely entirely on them. If we had proper competition with smaller banking groups, we wouldn't have this crap happen.

[Incodium Coin]

America, for now, gets away with printing money  as they are a Reserve currency. The world does business in USD and this partially ensures that their money printing  (cough quantitative easing) can continue. The currency is used by everyone. Obviously this has limits as people start using Euro and others but we haven't hit that floor on the house of cards yet.

Argentina though... well I've visited the country and it is an awesome place, but no one, except aregentina would use their currency to do business. They are putting themselves at risk of very high inflation and recession at this rate.

You're spot on mate, really good explanation. May l add that the risk for the USD is increasing lately as we are witnessing an increasing trend of 'money swabs'. China and Japan, and a few other countries. this will allow these countries to trade without using the USD.

[loopes]

After the Fed, ECB, BoJ and PBoC printed over U$ 300 trillion in debt (free money because this debt will never get paid) now non-reserve currency countries want to join the party too.

Argentina is printing free money for their own purposes: https://twitter.com/dlacalle_IA/status/1119660655005634565

"The big guys are doing it, why can't we do it too?"

Why does the US get to print money to save their banks? Why does China pump their stock market by printing more money whenever the stocks dip?

This may be the beginning of the new crash: every country out there decides they want to do quantitative easing too.

US banks got bailed out, why can't governments get bailed out?

See where this is going?

If this keep happens then the world economy will be crash. In this game, the strongest country will be win. The price of national currency is depend on the economic strength, military strength and political strength of the the country it self. In this case if USA print money regardless the amount of gold that it has then it's not a problem for USA but it will not always like that because there are many countries which always competting against USA in Economics sector such as Russia and China. However this system is unfair, maybe all of us will use gold again as medium of exchange. Who know?.

[Artemis3]

Many banks are in deficit lately and the entire banking system is suffering economic depression at the moment, many of them are in dept and the government have to.safe the day by ordering the central bank to.print new currency to avoid a total economic crisis in the financial system.

Doing this is the same to declaring default. You must never do this. Now there will be a stampede of people wanting to get rid of the Peso, and the situation will quickly spiral out of hand, unless you abandon socialist ideas of "control" and embrace the (truly) free market.

Your banks are failing because of the fractional reserve system. With full reserve banking, banks can hardly ever ever go broke, and if it does, all the money in saving accounts remain there for withdrawing, only money that was lent voluntarily by the account holders could be lost.

Unfortunately this is not what you are doing, as most countries keep following the flawed Chicago school of economy, instead of following the Austrian school. If you follow Austrian economics, you can fix the situation. If you go socialism, you can only make it worse.

It is tragic that you cannot see Venezuela's mistake, where the (de-facto) government has been doing that since at least 2014.

"Printing" money is the worst of taxes, and the most hurt are ironically the poor. The very reason people want bitcoin, is to make governments forever lose the ability to pick wrong decisions like this. There is zero justification for "printing" money, believe me, letting the banks go broke would have caused less problems, as you will see...

Indeed, in the 90ies Venezuela had half of its banks go bankrupt, but things recovered a couple of years later. Now Maduro in the 10ies threw the country to the spiral of hyperinflation and we have now are in the worst crisis of her history. Why did you not learn from others mistakes? What IDIOT advised Macri to print money? This must never be allowed occur, you declared your fiat the death sentence. Run for the hills (neighbor countries), while you still can... Now instead of some people losing all their money in the banks, the entire country has been condemned to misery.

I can't believe this is the same Argentina that had the corralito and that crisis of 2001, still making those mistakes...

[andriarto]

After the Fed, ECB, BoJ and PBoC printed over U$ 300 trillion in debt (free money because this debt will never get paid) now non-reserve currency countries want to join the party too.

Argentina is printing free money for their own purposes: https://twitter.com/dlacalle_IA/status/1119660655005634565

"The big guys are doing it, why can't we do it too?"

Why does the US get to print money to save their banks? Why does China pump their stock market by printing more money whenever the stocks dip?

This may be the beginning of the new crash: every country out there decides they want to do quantitative easing too.

US banks got bailed out, why can't governments get bailed out?

See where this is going?

If this keep happens then the world economy will be crash. In this game, the strongest country will be win. The price of national currency is depend on the economic strength, military strength and political strength of the the country it self. In this case if USA print money regardless the amount of gold that it has then it's not a problem for USA but it will not always like that because there are many countries which always competting against USA in Economics sector such as Russia and China. However this system is unfair, maybe all of us will use gold again as medium of exchange. Who know?.

I don't think like that for now. indeed in our teachings, later we will return to gold, but not for now. the superpower countries are as if they want to control the economic sector, especially with the presence of bitcoin. this differs from the background with Venezuela and Argentina

[marcelocoin]

the bitcoin and many altcoins are anti-inflationary, I do not understand how good the unlimited printing of money generating inflation!

[Crypdon]

This is exactly why bitcoin was created in the first place. Good luck to any government who will try to convince the bitcoin team to create more bitcoin. 21 million max, several million already lost!

[Script]

Printing new money can help in the short run, but in the long run, this will inevitably lead to a depreciation of money and inflation. Bitcoin can act as a store of value, on a par with, for example, precious metals, but can the broad masses of Argentines afford it?

[moynul2050]

It is crazy how government just manipulate the currency as they want, but does not this lead to their currency going down since they are printing it out, but obviously this is one of the cases where we knew about it, but for sure they have been doing it for years under the table the same as the other countries where money is being printed and put to banks, if this keeps going it will lead to a finical crisis, the same as the case of zimbabwae where they have a currency of 1 trillion dollar worth only 0.4 actual us dollar.

yes, I also do not really understand why a country's government can manipulate and manipulate their own currency, isn't that bad for their economy?
although I don't really understand about economic problems because of printing too many currencies, but I'm sure if that happens then the economy of their country will not run well.

[dothebeats]

Printing excessive amounts of money without any economical progress is certainly putting the country's economy in peril. For a short time, this could have saved banks but the government would have to pay a hefty price since by that time, I'm sure their currency would be so undervalued and has been hit by inflation pretty hard. Bitcoin and crypto can only do so much, but in order to really help the people and the country as well in the long run, they should take it easy on QE or perhaps limit their budget in order to not get huge debts at all.

But then again, they won't listen, and their economic and financial advisers would have urged the QE to commence for sure.

[Hardtolife]

Print more free money can cause of their own currency to reduce its value. We may not notice many of the countries today are doing that especially Venezuela, Bitcoin can be the best solution in this problem because government can't control it and it can be their digital assets.

I agree with you, maybe if more money is printed, it will damage the currency itself and surely the price will go down. maybe it's really a way to save the bank by using bitcin because of bitcoin digital, it doesn't require requirements and has no effect on its own currency. Now there are also many who are drowning in bitcoin and over time, more and more people are exploring bitcoin and there is no longer the term free money printing.

[Sithara007]

Printing new money can help in the short run, but in the long run, this will inevitably lead to a depreciation of money and inflation. Bitcoin can act as a store of value, on a par with, for example, precious metals, but can the broad masses of Argentines afford it?

The question of affordability doesn't arise with Bitcoin. Because, unlike the fiat currencies, Bitcoin is infinitely divisible. If you want to go for investment in Bitcoin, then there is no minimum threshold on the amount that you can invest. You can go for $1,000 or $10,000. Or you can even go for $10.

[livingfree]

Can Argentina do it? Do they ignore inflation? 

They can do it but they don't have much influence like the superpowers, US and China.

the bitcoin and many altcoins are anti-inflationary, I do not understand how good the unlimited printing of money generating inflation!

As said, it can be a good short term solution for a country that experiences a crisis but it's no good for long term. Supply over demand and that's how you depreciate the money by printing a lot of it. Just take the example of Venezuela, they are in hyper inflation and too much supply of money made them nothing. 

[Artemis3]

Printing new money can help in the short run, but in the long run, this will inevitably lead to a depreciation of money and inflation. Bitcoin can act as a store of value, on a par with, for example, precious metals, but can the broad masses of Argentines afford it?

The question of affordability doesn't arise with Bitcoin. Because, unlike the fiat currencies, Bitcoin is infinitely divisible. If you want to go for investment in Bitcoin, then there is no minimum threshold on the amount that you can invest. You can go for $1,000 or $10,000. Or you can even go for $10.

Wait, its not infinite, there are 8 decimals. Compare it with my country's money and you will see this is not trivial. 1 bolivar (VES) currently buys 3 satoshis. Soon we would need 2 for 1 satoshi, etc.

Of course Bitcoin could be soft-forked for extra decimals, but i think the need for that might be decades away, if ever.

[wuvdoll]

When will these people understand that printing money is never the solution. This is not about third world country issues, USA literally printed about 800 billion dollars just to save couple of banks from their own greed that would have collapsed the whole economy. How could you think that would solve the issue once and for all ? It didn't and they never really put any regulations so that wouldn't happen again neither, they just told bankers "you saw what happened, you are wise enough to not repeat it" and just let them go.

Many smaller countries do this sort of thing as well but it never really works out for any of them and I really think that crypto since it can't be printed more and more is the only way we can get away from inflation. Anyone that has any money that bought bitcoin is now rich in Argentina and that shows the difference.