Why is there Inflation in Argentina? The only way out is Bitcoin.

Argentina is making headlines once again with its inflation, now well over 100% per year and 8.4% in just the last month. And those are government statistics, so things are much worse on the ground.

But why is this happening? Most people, certainly my own family members if I asked them, would blame corruption from whatever party is in power at the time, but this view is borne out of ignorance.

Inflation in Argentina is chronic because we always have a dollar shortage, and we have a dollar shortage because we are always servicing debt from the IMF.

For example, in 2022 we ran a 7 Billion USD surplus from our international trade, mainly from selling our agricultural products. https://www.indec.gob.ar/uploads/informesdeprensa/i_argent_02_23EC82BFFB1E.pdf

But how much is our yearly debt servicing obligations? For 2023 that is projected to be 14 Billion. https://www.imf.org/external/np/fin/tad/extforth.aspx?memberKey1=30&date1key=2022-10-31&category=FORTH&year=2023&trxtype=REPCHG&overforth=F&schedule=exp

So, even if 2023 was a good year and we did run a trade surplus like in 2022, we would still be 7 Billion USD underwater, and suffering crazy inflation as a result. 2023 is, unfortunately, not a good year. We are now in the middle of a historical drought, so you do the math.

To compound the problem, the forex markets and exchanges are full of predatory capital looking to capitalize by betting against weak currencies. The math is so easy to see, everyone piles on and shorts the s**t out of the Argentinean peso, making inflation even worse.

Now, one could argue that Argentina should not have taken out the debt in the first place. But if you have read the Confessions of an Economic Hitman, you know that the debt is forced down our throats by force. This latest bout of debt was thanks to Macri, who signed the largest one in our history right before he was voted out of office. https://theintercept.com/2022/03/10/argentina-imf-debt-protests/

Argentina is unfortunately screwed, right, left, center or martian. Bitcoin is the only way out.