>

Inflation is a tool to keep poor people poor.
Don't be fooled. High inflation is a good thing. It means that any gains poor people made are being recouped by the wealthy, with interest.
“There are four kinds of countries: Developed countries, underdeveloped countries, Japan, and Argentina.” -Economist Simon Kuznets >

Why is Japan a standout? Is it a quote from the 80s? >

Huge amount of debt, low growth, low inflation. Yet things seem to work out. >

Because that debt is owned to their own citizens and not foreign countries. This is very common in places where there are lot of natural disasters and you need to rebuild. >

It's not much about who's holding the debt (about 20% of US debt is foreign held, compared to 15% of Japan's debt) but on what currency is it issued. Japan, like the US, has almost all of its debt issued on its own currency. That's not common, and that's why they can get away with it. >

This is the MMT view right? There are other, more well established schools of thought if I understand correctly. >

No, not at all. MMT views are completely trash. This view just takes US debt and currency realities for what they're worth. It's not an advocacy for infinite debt (that's not going to work), but it does explain why big deficits in the US in recent history are not that important. >

I think you’re mischaracterizing what MMT implies. The general idea is that with a sovereign currency, a country can spend (with debt) up to what its labor force at full employment & resources allow for. As the country approaches that limit, there is inflationary pressure. The opposite mechanism here to taking out debt being taxation, which reduces the money supply and relieves inflationary pressure. So in other words, MMT does not claim that you can have “infinite debt”. 
Although, I’m an engineer not an economist, so take this with a grain of salt lol >

I think the problem is less what the theory says (in theory) and what advocates use it for in practice.
MMT says basically, spend until you get inflation.... and that's your cap or "fiscal cliff."  But no one really agrees upon what that is and so MMT advocates will keep saying SPEND SPEND SPEND and there never really seems to be a concern for what is being spent on.
And then you get inflationary pressures and now instead of proclaiming that we have to cut government spending to reduce inflation they start yelling NO WE HAVE TO SPEND MORE.  Why?  Well people are suffering and we need money to jump start the economy!
Oh.
Like we're in hyperinflation right now.  Hypothetically the swarms of MMT enthusiasts from 2 years ago should be screaming at the top of their lungs to make cuts.  But all the politicians who claimed MMT as a basis for their spending just continue to advocate for more spending. >


MMT advocates will keep saying SPEND SPEND SPEND and there never really seems to be a concern for what is being spent on.
And then you get inflationary pressures

Inflation didn't happen after the great round of QE that happened post 2008 crash. It seems like the causes of inflation are a bit more complex than simply government spending. >

Why is it this so common in Argentina and not in neighboring countries? >

i call the deseas Socialism Argentinians call it “kirchnerismo” or “Peronismo” with that been say my own father guarantees me that Socialism is actually “good” its just that 50 years of Peronismo n 20 years of kirchnerismo where too corrupted,… i am telling you one thing the cure is no where to been seen in the next decades >

At this point I think the government just has a problem. Socialism or Capitalism almost every government in the last 40 years has had issues with controlling inflation. >

one thing is inflation another is almost 40 decades of inflation, comparing Socialism to Capitalism is not smart, since 1 cares about the Economy of the country the other about it “people” and just so happens that Argentina care so much about the people that 50% of the population leaves from the state,.. pls don’t speak without knowing what’s Actually going on, if anything i would compare Socialism with Communism >


if anything i would compare Socialism with Communism 

Galaxy brain analysis >

if you guys are happy and enjoy paying the taxes of those who doesn’t work what so ever, then dont came out crying and whining like bitching when the economy is shit. And yes i stand on the ground Socialism is just a softer Communism, and by softer i mean that countries that tends to be Socialist doesnt have any militarypower nor need it, instead they brainwash people, and instead of killing them, they just bury them into taxes that are plain out stupid so people doesn’t have a chance to live with out the support of the government. open your eyes, and use the “Galaxy Brain” for something else than making an stupid “came back” >

You should write a political sciences paper man this shit genius. Don't think I've ever seen a sharper political mind since idk Dick Cheney or something. >

i came here with a train of thought but didn’t realize i end up stepping with shit in my way, go and be cringe elsewhere >

Argentina never stopped being Argentina. Always currency collapse. >

Can't think of something more Argentinian than inflation >

Eating steak while an old Argentinian man talks about how great Argentina is despite not having been back in decades? >

I see you've sat at my family dinner table >

At 100%, Messi will level up. >

I was there when a buddy of mine got me the Messi dollar when the officially rate was like 6-1. Lived like a king for 2 weeks >

Yeah, it’s Argentina, that happens a lot there. >

Their voters are completely stupid and choose this over and over again >

Argentina has had massive inflation for decades 
I'm no expert at all... but it's clear that the economic direction they've taken is not good . Can't they change it completely? >

Too much goverment employees + third world country economy = inflation. To finance a big goverment Argentina has to print money which they don't have. Inflation is a taxation of the poor, since they're the last ones to spend the money on goods and by that time the prices have already increased. To fix the problem, they have to decrease the goverment size and freeze the money in the banks. This will crash the consumer economy and stabilize the currency while bringing massive unimployment. Brazil did exacly that in the 90s and since then inflation has never skyrocketed again. >

Argentines don’t keep their money in banks, they hoard it physically. >


they hoard it physically.

I go even further and say: they hoard DOLLARS, not their currency.
Right now, Argentinean economy is a de facto dollarized nation. Anything that cost more than grocery in Argentina, the purchase is done in dollars: cars, properties, large home appliances, investments... everything. And all physically, pure craziness.
Argentina is a very hard conundrum to solve: 40% of their people are right now living in poverty. Still, their very large public sector and their lobby groups sabotage any attempt to really solve their issues (excessively large public sector + public retirement system full of privileges), and their own population has a very wrong idea of what a government should do (they believe that their government must directly provide jobs and sustain them instead to create conditions for people to create their own opportunities). This creates an environment that populists of all kinds since Perón are preying into for a century.
Argentina is not a economical problem, is a political-social problem. No economic theory can fix that. >

There's no easy solution for Argentina. Even if they did the necessary reforms, their country would still suffer a great recession. I would just recommend to anyone interested in this topic to search for "Plano Real" which was the transition from a very poor brazilian currency to a dollar equivalent one. >

Put Messi on a new large domination bill and watch the Argentinian Peso demand go up. >

Call it the Argentinian Pessi >

Portugal should also put Penaldo face in their own currency. >

so euro coins >

Didn't matter, they won the World Cup >

Tom Brady prefers deflated balls, while Messi prefers his inflated. >

That's so high... I do not think I can afford to even live there. Anyway, why has inflation peaked so much? Is it because of the public debt or are there corrupted things going on? >

People with fixed salaries will be the ones who will suffer so bad from this... >

I feel bad for the Argentinians... you all deserve a better government. >

Turkey be like: hold my beer >

More like “hold my rakı” >

Sorry raki is too expensive now, we will stick to beer >

I don’t even know how to comprehend this. However, eggs are up 200%….so there’s that. >

If the avian flu strain going around hit Argentina too, imagine the egg prices there! >

What a horrific event in their lives... I hope it gets better for them as soon as possible. I do not think it's even possible to maintain their usual lifestyle when the inflation has went far high. >

In 1992 we made a full Spanish-version monopoly game with real cash. It was worthless. I remember we ran it through the washing machine, then ironed out the bills. We still have that board "game."
We left Argentina in 1994, plenty of extended family left behind. All these years later, same old shit. My father (visiting family)  just got a haircut down there for like $1.75ish US. People are desperate. Failed state, no jobs, no money, barely enough food. >

Asking the real questions >

This will definitely affect many people if the value of money won't rise. >

Time to invade the Falklands again. >

Didn’t work out so well last time. >

The difference is that the UK might not be willing participate in/be able to afford a military operation if Argentina invades because of both brexit and because they've sent a decent ammount of military assets to Ukraine. >

Lmao, it's 6.30am and hopefully this is the dumbest thing I'll read today >

Get up, honey! A new financial crisis has hit Argentina! >

"This is Biden's fault" - some dumb American. >

-Many dumb Americans. >

Who cares they won the World Cup! That makes everything ok right? Plus lots of free Budweiser ! >

it’s ok, they brought the world cup home. that’s all it matters to them >

Just dolarize the country. Like Ecuador
I know its humiliating, but its effective >

It’s already effectively dollarized. Pesos are used for daily transactions but people save in USD >

Isn't this what we call hyperinflation? >

That's some USSR style inflation right there. After the fall i mean. >

Courage! Only 5% more! >

I don't know how I would cope if my grocery bill suddenly doubled >

Must really suck to live there... the government should've been more responsible with finances. >

I feel bad for them... there are far more problems and grocery should be the last thing they would worry about. >

And yet they have some superiority complex compared to other Latin American nations that I will never understand. I can’t think of a time their government wasn’t in shambles or what the hell is there to do there other than look at a trophy or go out to the jungle for the national parks. >

superiority complex? wtf? we are one of the most open countrys in the world >

No, those went to the US >

Operation Paperclip >

It matches their egos >

I’d pack up and leave! That’s just completely insane. >

Most of us are trying, but it's not that easy :( >

I understand it is absolutely hard. 
I was born in the Philippines. Many Filipinos overseas were economic “refugees,”people who tried to escape poverty and succeeded.
About you: Your English proficiency is high. No kidding, that short sentence you wrote has correct  punctuations. That’s a good indication of a high level of literacy.
Perhaps you’d want to apply for work in the Arab States (not as a labourer, that would be a death sentence.) You can then move to another country from there.
Many Filipino nurses, architects, teachers, engineers have followed this path.
A few have been lucky to find places in their first country of choice, but the majority have had to use stepping stones. >

There's a 102% tax on airplane tickets, which even before the tax are extremely expensive. Tell me how someone struggling in Argentina can afford to fly over  there >

Many struggling Filipinos do it. Often, one family member at a time. 
My remark was my personal view, I was in no way telling you to pack up and leave. 
I was fortunate because I left my country due to marriage to an Australian. Nevertheless, had I not gotten married I would have done everything to leave the Philippines in exact same way the others did, beg or borrow. >

I'm always worried about their peso getting stronger and the euro getting weaker because that could mean my beloved Yerba Mate Rosamonte tea becoming more expensive, and I can't possibly have that. First world problems, I know. >

Calling Yerba Mate a tea 🤢 >

✌🏿✌🏿✌🏿 >

Standard Argentine financial L >

Steam Games are so expensive over there. >

As an argentinian, can confirm :( >

Messi will fix it. >

Thanks to the geniuses of the Partido Peornista and the kirchnerists. >

Macri didn't do shit either, and the problem has been going for several decades. At this point it's clear that the problem is much larger than a couple of people, it's institution-wide. >

But sure, let's blame Biden  /s >

Here come all the Americans making a joke and using sarcasm tags.
How come it is only the shit Biden joke comments that use them, all the other sarcasm doesn't? >

Because there's some really dumb people on this site who will unironically blame Biden for something Biden has little control over? >

No worries guys, I got the solution to all of Argentina's problems:
"We bitch and moan about the Falklands. That should solve it." - every Argentinian politician ever >

Wow, another American Biden joke using shit sarcasm tags. The common theme ses ti be that Americans don't get sarcasm at all >

Take a chill pill, Jill. Or at least take the stick out of your ass. You’re too uptight. >

and some people keep thinking socialism is good. When you see how a system had literally destroyed so many countries and you still want to try it in your country, in that moment you need to realize that you are the problem. >

How does this relate to socialism.? Also Argentina is not a socialist country, they have however made poor economic choices. >

30% of the population, the working population, pays for the rest of the population to live through huge government welfare programs. >

Argentina has a lot of public debt , with inflation government and corporate debt vanishes.
Inflation is not seen as a disease in Argentina  but a route planner. >

Karma for rigging the World Cup. >

Noooooooo!! Que pasa!! Ganamos la copa do mundo che!! Como puede ser que siga la Hambre en Hambretina!!! 😰 >

Average Mexican >

Sin hambre >

Anda a saltar el muro chapulín colorado. >


Oddly enough, America has among the lowest inflation rates in the world at the moment.

Lucky bastards. >

Time to blame Biden.
​
/s >

Sarcasm tags ruin sarcasm. >

Why are Argentine companies so greedy, goddammit? >

Don't brag too hard. I'm pretty sure our own numbers are fucking fake, and the reality is way higher than we are led to believe. >

Is it really inflation for them or is it like here in the US where they're just price gouging? >

Constant state of inflation that has never ended >

Don’t vote for commies >

Argentina is a democratic republic with a mixed economic system, champ.  Sound familiar? >

It’s just a general advice, not directly related with Argentina’s current situation, but I guess you voted for them, ‘em I right?… mate. >

I live in the US where there really aren’t communists to be taken seriously.  No one talks about them aside from radicalized right-wingers. >

ItS nOt ReAl sOcIALiSm....... >

Argentina has a capitalist economy  
You are correct that capitalism is not real socialism. >

Makes me wonder how the people recover from all this. >

Ouch 🤕 >

What does this look and feel like for the middle and lower classes on a day to day basis? Does anyone have links to any documentaries or long form reporting covering this situation? >

At this point we're numb to it, but it's still daily torture. Whenever I buy groceries, I make sure to buy extra canned goods, because next week they'll cost more. I'll get stuff that's on sale even if I don't need it right  now, because  I know at  some point I will and when I do, it's going to be way more expensive.  You can't ever plan for the future, because you don't know what things will be like a year from now. Saving up in pesos is literally  burning money, inflation will eat your cash faster  than you can store it. Instead, people want to save in USD, since  that's  reliable. Of course, government doesn't like this, so they constantly add more hoops to the process. There's a  cap on how many USD you can buy per monrh (200). But if you fit into any of the conditions the government thought up, your cap is even lower. Got state aid? Not allowed to buy USD. Signed up for a government program for findin a job or the like? No dollars for you. Of course, this means  most people get  theirs on the black market, paying even higjer prices than the already ludicrous exchange rate, and good luck going to a  sketchy exchange shop with all your koney in a briefcase, easiest mugging targwt ever. Did I mention our insanely high violent crime rate? 
I could go on, but the short version is, it's not just that it's bad right now, it's that we  know with certainty it's hopeless and will only get worse >

Looks at grocery receipt
99 percent ain't bad >

And somehow we are still alive... >

They use all the money on repairing the things they climbed and broke after the world cup. >

It can go down but it will never stop going up. >

They just won the wc and messys more popular than ever so it's all ok >

how is it possible to survive such inflation? >

My sister in law is paid half her salary in Argentinian pesos and the other half in US dollars for saving. Basically when you get your biweekly check you use the pesos to buy gas and food and the rest you save in USD. >

but why such a crazy inflation?