Bitcoin Standard author: Argentina’s ‘bond Ponzi’ near collapse, Bitcoin is exit

2 hours ago

Economist and The Bitcoin Standard writer Saifedean Ammous has warned that Argentina’s fiscal strategy is connected the brink of collapse, calling President Javier Milei’s economical programme a “debt and ostentation Ponzi” propped up by unsustainable enslaved yields and wealth printing.

In a post connected X, Ammous argued that Argentina’s authorities has created a fiscal strategy wherever enslaved speculation is the lone way to fiscal security. “The lone factual accomplishment of his medication truthful acold is that it destroyed the currency and created a shitcoin casino,” helium said.

At the halfway of the situation is what locals telephone “la bicicleta financiera,” a high-yield transportation commercialized wherever investors bargain short-term authorities bonds that connection involvement rates exceeding the gait of peso devaluation. According to Ammous, this setup, which has go the country’s astir lucrative industry, is simply a textbook Ponzi scheme.

“The bicicleta is evidently unsustainable, due to the fact that arsenic the authorities offers precocious yields connected its bonds, it needs to make much pesos, which devalues the peso,” helium wrote. “It is intolerable for this bicicleta to tally forever,” helium added.

Ammous warns peso illness is adjacent

Ammous noted that the peso has already breached past its people speech set contempt $540 cardinal successful forex interventions. Bond rates person deed 88%, and Argentine stocks and bonds person plunged. Meanwhile, Milei’s medication faces corruption allegations and recent predetermination losses.

He warned that erstwhile the peso’s devaluation overtakes enslaved returns, investors volition dump some bonds and pesos, triggering a unreserved to safer assets similar the US dollar oregon Bitcoin (BTC).

“The peso collapses, the bonds collapse, and the authorities is near having to beg the IMF for a bailout,” Ammous wrote.

According to Ammous, the standard of the transportation commercialized present ranges betwixt $40 cardinal and $80 cardinal successful short-term debt, draining superior distant from productive use. He besides noted that insiders and overseas institutions similar JPMorgan person profited from the strategy by timing their introduction and exit.

“Random bankers from each implicit the satellite managed to outperform the immense bulk of stocks and traders worldwide by simply playing this rigged crippled of Russian roulette.”

Ammous concluded that Milei’s refusal to unopen down the cardinal slope exposes the libertarian rhetoric arsenic a front. “The longer it goes on, the much harmful it volition be. It isn’t idealism to privation the Ponzi stopped; it is applicable worldly necessity.”

Milei’s Libra scandal

In February, Milei shared a station connected X endorsing the Libra (LIBRA) memecoin, which rapidly surged to a $4 cardinal marketplace headdress earlier crashing by 94% hours later.

The determination led to capitalist losses totaling hundreds of millions and triggered calls from absorption members for Milei’s impeachment. However, Milei claimed helium had lone “spread the word” astir the token, not promoted it.

In June, Argentina’s Anti-Corruption Office issued a solution stating that Milei did not interruption immoderate morals laws. The bureau said Milei acted successful a idiosyncratic capableness and utilized his backstage account, which he’s maintained since 2015, to explicit his governmental views.

Magazine: Memecoin degeneracy is backing groundbreaking anti-aging research

View source