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To: DeaconBenjamin
They should just adopt the US dollar as their official currency.
6 posted on 05/20/2012 12:56:01 PM PDT by Uncle Slayton
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To: Uncle Slayton

They should just adopt the US dollar as their official currency.

Argentinian government wants to retain the power to print their own currency so that they can fund their bureaucracy and crony capital enterprises with an inflated currency. Inflation robs savers and profitable enterprises, and that’s just the way the statists want it.


14 posted on 05/20/2012 1:37:35 PM PDT by grumpygresh (Democrats delenda est; zero sera dans l'enfer bientot.)
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To: Uncle Slayton
Argentina effectively did that when they pegged their previous currency,the Austral,to the dollar at a 1:1 exchange rate.

The Argentine economy could not match the productivity gains of the US economy. Argentine exporters found in increasingly difficult to sell in international markets. In other words it failed.

As the Europeans are finding out you have to not only match economic policy but all policies that affect economic performance for a single currency to work.

Obama is turning us more into a banana republic everyday and if the rest of South America can match and improve on the performance of Chile and Brazil we might meet in the middle some day.

15 posted on 05/20/2012 1:44:36 PM PDT by Reaganez
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To: Uncle Slayton
They should just adopt the US dollar as their official currency.

I wish that were true, but they'd be no better off if they don't fix their fiscal and regulatory mess. Argentina found that out about a decade ago.

Until gold is accepted as the universal standard, countries will have to go it on their own with their fake, fiat currencies.

23 posted on 05/20/2012 3:53:13 PM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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