{"id":88989,"date":"2025-09-17T11:54:35","date_gmt":"2025-09-17T08:54:35","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=88989"},"modified":"2025-09-17T11:56:19","modified_gmt":"2025-09-17T08:56:19","slug":"economist-predicts-argentinas-financial-collapse-advocates-bitcoin-adoption","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/economist-predicts-argentinas-financial-collapse-advocates-bitcoin-adoption\/","title":{"rendered":"Economist Predicts Argentina&#8217;s Financial Collapse, Advocates Bitcoin Adoption"},"content":{"rendered":"<p>The economic programme of Argentina&#8217;s President <a href=\"https:\/\/forklog.com\/en\/news\/keep-cutting-javier-what-has-changed-in-argentina-after-a-year-with-a-crypto-president\">Javier Milei<\/a> is a classic Ponzi scheme, according to Saifedean Ammous, author of &#8220;The Bitcoin Standard.&#8221;\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Anatomy of the Milei Ponzi<\/p>\n<p>In my previous piece on Milei[1] 18 days ago, I argued that the Milei administration is running a debt and inflation ponzi that is coming near its end, and that the only concrete achievement of his administration so far is that it destroyed the\u2026 <a href=\"https:\/\/t.co\/BRYK9cNoeo\">pic.twitter.com\/BRYK9cNoeo<\/a><\/p>\n<p>\u2014 Saifedean Ammous (@saifedean) <a href=\"https:\/\/twitter.com\/saifedean\/status\/1965101959259771303?ref_src=twsrc%5Etfw\">September 8, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He claims the country is on the brink of collapse due to an unsustainable model of government bonds and inflation. The authorities have created a system where speculation on these assets has become the only path to financial security, the expert noted.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The main achievement of the Milei administration is the destruction of the national currency and the creation of a shitcoin casino,&#8221; Ammous added.\u00a0<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Milei&#8217;s Ponzi Scheme\u00a0<\/h2>\n<p>The economist criticised the system known as la bicicleta financiera, which Milei launched after coming to power in 2023. This is a high-yield carry trade strategy where investors buy government bonds with interest rates exceeding the pace of peso devaluation.<\/p>\n<p>The volume of such operations is estimated at $40 billion to $80 billion.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Anyone with savings in dollars could buy bonds yielding, for example, 5% per month, while the peso depreciated by 2%, ensuring a net profit of 3% per month. This is the carry trade, which in Argentina is called la bicicleta financiera\u2014a real financial pyramid that has become the country&#8217;s key &#8216;industry&#8217;,&#8221; Ammous noted.\u00a0<\/p>\n<\/blockquote>\n<p>The expert explained that the government accelerates the devaluation of the national currency by printing money to pay high interest rates. Meanwhile, only insiders who understand how this scheme works benefit. Ordinary citizens &#8220;remain vulnerable.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The population holding savings in pesos loses everything due to inflation,&#8221; the economist said.\u00a0<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Impending Collapse\u00a0<\/h2>\n<p>Ammous emphasised that the situation continues to worsen. The peso has fallen by 10% against the US dollar and has already exceeded the corridor set by the authorities. Prior to the <a href=\"https:\/\/en.wikipedia.org\/wiki\/2025_Buenos_Aires_provincial_election\">September 7, 2025 elections<\/a>, the Central Bank spent $540 million to support the currency, but failed to curb the devaluation.\u00a0<\/p>\n<p>Meanwhile, the yield on government bonds has reached 88%. According to the economist, when this figure exceeds the rate of depreciation, investors will begin to massively switch to the US dollar and bitcoin. This will lead to the final collapse of the peso and force Argentina to seek assistance from the <span data-descr=\"International Monetary Fund\" class=\"old_tooltip\">IMF<\/span>.\u00a0<\/p>\n<p>The expert stated that Milei&#8217;s policy turned out to be not a libertarian reform, but a cover for a financial pyramid enriching a narrow circle of speculators. Bitcoin investor Simon Dixon agreed with him.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83c\udde6\ud83c\uddf7 A textbook proof-of-weapons network endgame.<a href=\"https:\/\/twitter.com\/JMilei?ref_src=twsrc%5Etfw\">@JMilei<\/a>\u2019s shitcoin told you everything\u2014just like <a href=\"https:\/\/twitter.com\/realDonaldTrump?ref_src=twsrc%5Etfw\">@realDonaldTrump<\/a>.<\/p>\n<p>These politicians aren\u2019t elected, they\u2019re selected\u2014to extract value for the banks that let them play president.<\/p>\n<p>Protect yourself with Bitcoin.<\/p>\n<p>\u2014 Simon Dixon (@SimonDixonTwitt) <a href=\"https:\/\/twitter.com\/SimonDixonTwitt\/status\/1965114459804078547?ref_src=twsrc%5Etfw\">September 8, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Milei&#8217;s shitcoin spoke for itself\u2014just like <a href=\"https:\/\/forklog.com\/en\/news\/what-to-know-about-donald-trumps-memecoin-surge-supply-and-industry-impact\">Donald Trump&#8217;s meme coin<\/a>. These politicians aren&#8217;t elected\u2014they&#8217;re appointed to extract value for the banks that let them play presidents. Protect yourself with Bitcoin,&#8221; he wrote.<\/p>\n<\/blockquote>\n<p>Earlier this year, Argentina&#8217;s president was embroiled in a corruption scandal involving the meme coin Libra. The politician mentioned the token on social media, triggering its market cap to soar to $4 billion. Soon after, the figure <a href=\"https:\/\/forklog.com\/en\/news\/libra-token-promoted-by-argentinas-president-plunges-94\">plummeted<\/a> by more than 90%, leaving investors with multimillion-dollar losses.\u00a0<\/p>\n<p>Opposition representatives in the country <a href=\"https:\/\/forklog.com\/en\/news\/analysts-link-libra-and-melania-tokens-to-a-single-team\">threatened<\/a> Milei with impeachment. The Argentine Fintech Association stated that the situation could be an example of a Pump &#038; Dump. Several lawsuits were also filed against the president.\u00a0<\/p>\n<p>The US Department of Justice even <a href=\"https:\/\/forklog.com\/en\/news\/us-justice-department-investigates-libra-and-argentine-president\">became involved<\/a> in investigating the incident.\u00a0<\/p>\n<p>Subsequently, Milei <a href=\"https:\/\/forklog.com\/en\/news\/javier-milei-says-he-merely-shared-information-about-libra\">stated<\/a> in a television interview that he did not intend to persuade people to buy the meme coin LIBRA, but merely &#8220;shared&#8221; information.\u00a0<\/p>\n<p>In June, the anti-corruption agency <a href=\"https:\/\/forklog.com\/en\/news\/argentine-anti-corruption-agency-clears-president-in-libra-token-scandal\">exonerated<\/a> the politician.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The economic programme of Argentina&#8217;s President Javier Milei is a classic Ponzi scheme, according to Saifedean Ammous.<\/p>\n","protected":false},"author":1,"featured_media":88990,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"He pointed to the rapid devaluation of the peso due to Milei's actions.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[908,18],"class_list":["post-88989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-argentina","tag-bitcoin"],"aioseo_notices":[],"amp_enabled":true,"views":"447","promo_type":"1","layout_type":"1","short_excerpt":"He pointed to the rapid devaluation of the peso due to Milei's actions.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=88989"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88989\/revisions"}],"predecessor-version":[{"id":88991,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88989\/revisions\/88991"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/88990"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=88989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=88989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=88989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}