Liquidity shortages, bank closings and automated teller machines seem to be the new norm for many countries, and the strengthening of capital controls in Argentina also reflects this disturbing trend. The election of President Alberto Fernández on Sunday had the effect of limiting Argentinean account holders to purchases in USD of $ 200 per bank account and $ 100 per month in cash. As protests continue to mount around the world, placards do not look good for cash money or the people who hold it.
Read also: Low interest rates crush young people and fuel global riots
In the name of central bank savings
Unlike a normal private sector enterprise, government organizations and the institutions that are embedded in them are often immune to market consequences. The creator of Bitcoin itself may have implied that this fact had been inserted in the block "The Times 03 / Jan / 2009, the Chancellor on the brink of the second bailout of banks". The repression exercised by the Argentine central bank on purchases in US dollars is a new proof of this significant lack of consequences for decision-makers.
According to reports, the new limit on US dollar purchases in Argentina is designed to "preserve the reserves of the Central Bank". The Central Bank of Argentina (BCRA) said in a statement: "Given the current degree of uncertainty, the BCRA board of directors decided to take this Sunday a series of measures to preserve the reserves of the Central Bank. The announced measures are temporary, until December 2019. "The bank is worried about the possible collapse of the Argentine peso (ARS), which has devalued by nearly 85% in one year. little less than four years.
Fernández should assume his full presidential role on December 10, and the Argentineans were already preparing for possible reinforced controls following his election. As the Buenos Aires Times says:
Last week, the Argentines rushed to buy dollars and withdraw their deposits before the vote, fearing that more and more controls are put in place in a context of economic crisis.
Prosperity at Fiat Panic
Although news.Bitcoin.com reported in early September that the less important capital control of the time (a purchase limit of US $ 10,000 per month) mainly affected businesses, the new, stricter $ 200 per month potentially affects everyone. Although the measures are said to be temporary, the uncertainty remains, and it is understandable. Governments have never been reliable when it comes to money management. Indeed, as Ana Eiras and Brett Schaefer of the Heritage Foundation noted in 2001:
Poor economic policies and political instability contributed to Argentina's decline from its remarkable position as the 10th richest country in 1913 to the 36th richest in the world in 1998.
The article goes on to say that the centralized political orientations of the International Monetary Fund (IMF) have only aggravated things, saying that "Argentina is the only rich country to experience such a reversal in recent history, despite the participation of the International Monetary Fund (IMF). Indeed, IMF lending and forecasts have worsened Argentina's problems and not mitigated them. "
Your money does not belong to you
Demonstrations against an unjust and reckless economic policy are taking place all over the world. Argentina, Chile, France, Hong Kong, Indonesia, India, Egypt and Lebanon are among the current hotbeds of economic troubles. The case of India is particularly noteworthy, as there are reports of people dying from lack of access to money in their bank accounts. With regard to Lebanon, the banks have been closed for more than a week and the Al-Jazeera newspaper reported on October 29:
The Lebanese banking association said the banks would remain closed Tuesday for a tenth consecutive day of work, but the central bank had provided the cash needed to pay the salaries of public sector workers, including members of the security forces.
In Chile, ATMs would run out of cash and become unusable in the midst of the upheaval of current protests, grocery stores starting to run out of food and infrastructure destroyed by frustrated protesters. At the same time, central banks and financial planners continue to drag the global economy further into debt dysfunction through negative interest rate policies, quantitative easing and a printing press.
When things move, it is always the citizens of these countries who have to pay, as recent events show. When a restaurant serves poor food with poor service in the private sector, it goes bankrupt. When the state destroys an economy, it simply raises taxes, locks in money, devalues it and makes you pay for its mistakes. In light of this knowledge, the demand for economically sound, non-permissive alternatives, such as bitcoin, is becoming increasingly pronounced, as individuals around the world realize that full ownership of their hard-earned assets is a right. fundamental human.
What do you think of the situation in Argentina and the possession of fiat money? Let us know in the comments section below.
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Image credits: Shutterstock, Federico Rotter, fair use.
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