Coin Press - Argentina, Milei and the US dollar?

NYSE - LSE

BCC	0.85%	95.44	$
NGG	-5.25%	65.93	$
SCS	-0.56%	10.68	$
BCE	0.22%	22.71	$
RYCEF	-18.79%	8.25	$
CMSC	0.13%	22.29	$
GSK	-6.79%	36.53	$
CMSD	0.7%	22.83	$
RIO	-6.88%	54.67	$
RBGPF	100%	69.02	$
JRI	-7.19%	11.96	$
VOD	-10.24%	8.5	$
AZN	-7.98%	68.46	$
RELX	-6.81%	48.16	$
BTI	-5.17%	39.86	$
BP	-10.43%	28.38	$

Argentina, Milei and the US dollar?

Argentine economist and politician Javier Milei garnered significant attention with his proposal to dollarise Argentina’s economy. Renowned for his outspoken views, Milei argues that switching to the US dollar would tame the country’s runaway inflation and stabilise the monetary system. Yet, despite widespread debate, this radical measure has not been implemented. What factors are preventing a swift transition to the greenback?

Complex Economic Realities
One of the chief barriers to immediate dollarisation is Argentina’s chronic lack of sufficient foreign reserves. Converting an entire national currency into US dollars requires a robust stockpile of hard currency to back deposits and transactions. Argentina’s reserves, however, have been under persistent pressure due to debt obligations, trade imbalances, and capital flight—hardly an ideal foundation for a large-scale monetary overhaul.

Domestic Policy Constraints
Furthermore, the proposal faces a host of domestic policy challenges. Any government considering dollarisation must align its fiscal policies with the new currency regime. This includes placing strict limits on deficit spending and overhauling public expenditure practices. Argentina’s entrenched budget deficits and reliance on monetary financing complicate these reforms considerably. Even if Milei could muster enough political support, balancing the budget and enacting austerity measures would likely spark domestic unrest.

Institutional and Legal Hurdles
The Argentine Constitution does not explicitly prohibit the adoption of a foreign currency, yet the legal framework surrounding bank regulations, contracts, and state obligations complicates an abrupt switch. Existing debts, wages, and pensions—often denominated in pesos—would need to be recalculated. Moreover, securing approval from multiple layers of government, including Congress and provincial authorities, is no trivial task.

IMF Concerns and International Relations
Argentina’s longstanding relationship with the International Monetary Fund further complicates attempts at dollarisation. The IMF, which has extended substantial loans to Argentina, tends to advocate for stable monetary frameworks but is often wary of extreme measures that might undermine the viability of sovereign financial systems. Any plan to scrap the peso would likely invite further scrutiny from international lenders and bondholders.

The Road Ahead
While Javier Milei remains a vocal proponent of dollarisation, his vision must contend with Argentina’s political realities, economic constraints, and external obligations. Without broad consensus on budgetary discipline and robust foreign reserves, an abrupt adoption of the US dollar could prove disruptive. As a result, the push for dollarisation may be relegated to political rhetoric unless Argentina’s policymakers find the means and the will to enact deep structural changes.

Conclusion
For now, Milei’s ambition has not materialised, serving instead as a flashpoint in Argentina’s ongoing economic debate. Whether the country will one day fully embrace dollarisation remains an open question—one hinging on both domestic consensus and international confidence in Argentina’s financial and institutional stability.

Trump’s Ukraine Economic Colony Plan Stirs Debate

China Targets Dollar at US Critical Moment

EU Pledges €800 Billion for Defence to Deter Russia

Israel escalates War to crush Hamas

Trump, Putin and the question: What now?

Canada challenges Trump on Tariffs

Nuclear weapons for Poland against Russia?

Rebellion against Trump: "Ready for War?"

Ukraine: Problem with the ceasefire?

Ukraine Loses Kursk: A Collapse?

Russia's "Alliance" in the Balkans is sinking

US Federal Reserve with “announcement”

Featured

Stargate project, Trump and the AI war...

In a dramatic return to the global political stage, former President Donald J. Trump, as the current 47th President of the United States of America, has unveiled his latest initiative, the so-called ‘Stargate Project,’ in a bid to cement the United States’ dominance in artificial intelligence and outpace China’s meteoric rise in the field. The newly announced programme, cloaked in patriotic rhetoric and ambitious targets, is already stirring intense debate over the future of technological competition between the world’s two largest economies.According to preliminary statements from Trump’s team, the Stargate Project will consolidate the efforts of leading American tech conglomerates, defence contractors, and research universities under a centralised framework. The former president, who has long championed American exceptionalism, claims this approach will provide the United States with a decisive advantage, enabling rapid breakthroughs in cutting-edge AI applications ranging from military strategy to commercial innovation.“America must remain the global leader in technology—no ifs, no buts,” Trump declared at a recent press conference. “China has been trying to surpass us in AI, but with this new project, we will make sure the future remains ours.”Details regarding funding and governance remain scarce, but early indications suggest the initiative will rely heavily on public-private partnerships, tax incentives for research and development, and collaboration with high-profile venture capital firms. Skeptics, however, warn that the endeavour could fan the flames of an increasingly militarised AI race, raising ethical concerns about surveillance, automation of warfare, and data privacy. Critics also question whether the initiative can deliver on its lofty promises, especially in the face of existing economic and geopolitical pressures.Yet for its supporters, the Stargate Project serves as a rallying cry for renewed American leadership and an antidote to worries over China’s technological ascendancy. Proponents argue that accelerating AI research is paramount if the United States wishes to preserve not just military supremacy, but also the economic and cultural influence that has typified its global role for decades.Whether this bold project will succeed—or if it will devolve into a symbolic gesture—remains to be seen. What is certain, however, is that the Stargate Project has already reignited debate about how best to safeguard America’s strategic future and maintain the balance of power in the fast-evolving arena of artificial intelligence.

Truth: The end of the ‘Roman Empire’

The fall of the Roman Empire in the fifth century AD has long captivated historians and the public alike. For centuries, scholars have debated the precise causes of the Empire’s decline, offering myriad explanations—ranging from political corruption and economic instability to moral degeneration and barbarian invasions. Yet despite the passage of time and the wealth of research available, there remains no single, universally accepted answer to the question: why did the Roman Empire truly collapse?A central factor often cited is political fragmentation. As the Empire grew too vast to govern effectively from one centre, Emperor Diocletian introduced the Tetrarchy—a system dividing the realm into eastern and western halves. While initially intended to provide administrative efficiency, this division ultimately paved the way for competing centres of power and weakened the unity that had long defined Roman rule. Frequent changes of leadership and civil wars further sapped the state’s coherence, undermining confidence in the imperial regime.Economics played an equally crucial role. Burdened by expensive military campaigns to protect ever-extending frontiers, the Empire resorted to debasing its currency, provoking rampant inflation and eroding public trust. The resulting fiscal strains fuelled social unrest, as high taxes weighed heavily upon small farmers and urban dwellers alike. Coupled with declining trade routes and resource depletion, these pressures contributed to a persistent sense of crisis.Compounding these challenges was the growing threat from beyond Rome’s borders. Germanic tribes such as the Visigoths, Vandals, and Ostrogoths gradually eroded the Western Empire’s defensive capabilities. While earlier Roman armies proved formidable, internal discord had dulled their edge, allowing external forces to breach once-impenetrable frontiers.Modern historians emphasise that the Empire did not fall solely because of barbarian invasions, moral decay, or fiscal collapse; instead, its downfall was the outcome of a confluence of factors, each interacting with the other. The story of Rome’s fall thus serves as a stark reminder that even the mightiest of civilisations can succumb to the inexorable weight of political, economic, and social upheaval.

Georgia Slips into Russia’s Grasp

Georgia, a nation long caught between its European aspirations and the shadow of its northern neighbour, appears to be sliding further into Russia’s orbit, prompting alarm among its citizens and the international community. Recent developments, rooted in the controversial parliamentary election of October 2024 and the subsequent actions of the ruling Georgian Dream party, have fuelled fears that the country is relinquishing its sovereignty to Moscow’s influence.The election, which saw Georgian Dream secure 54% of the vote according to official results, has been widely contested. International observers, including the Organisation for Security and Co-operation in Europe (OSCE), reported significant irregularities, while the pro-European opposition and outgoing President Salome Zourabichvili denounced it as fraudulent, alleging Russian interference. Zourabichvili, in a statement to AP on 28 October 2024, claimed the vote marked "Georgia’s submission to Russia," pointing to tactics mirroring those used in Russian elections. The Kremlin has denied these accusations, with spokesman Dmitry Peskov asserting on 28 October 2024, via tagesschau.de, that Western powers, not Russia, sought to destabilise Georgia.Since the election, Georgian Dream has tightened its grip. On 28 November 2024, Prime Minister Irakli Kobakhidze announced a suspension of EU accession talks until 2028, a move that sparked mass protests in Tbilisi and beyond. Demonstrators, waving EU flags, have faced brutal crackdowns, with over 300 arrests and reports of police violence documented by Georgia’s Ombudsman on 11 December 2024 (BILD.de). The party’s founder, billionaire Bidzina Ivanishvili—whose fortune was amassed in Russia—has been accused of steering Georgia towards Moscow. On 27 December 2024, the US imposed sanctions on Ivanishvili, citing his role in undermining democracy "in Russia’s favour," according to the US State Department.Russia’s influence is not new. Since the 2008 war, Moscow has controlled 20% of Georgia’s territory—Abkhazia and South Ossetia—where thousands of Russian troops remain stationed. Yet, recent moves suggest a deeper entrenchment. Georgian Dream’s adoption of laws mirroring Russia’s—such as the "foreign agents" legislation in May 2024—has drawn parallels to Kremlin tactics, while trade ties with Russia have surged, with exports rising sharply since 2022, per Georgia’s National Statistics Office.The EU and NATO have voiced concern. On 4 December 2024, NATO Secretary-General Mark Rutte called the situation "deeply troubling," urging Georgia to recommit to its Euro-Atlantic path (DW.com). Meanwhile, Baltic states have imposed sanctions on Georgian officials, and the EU is mulling visa restrictions. Yet, with protests persisting into April 2025 and no resolution in sight, many fear Georgia’s pro-Western dreams are fading, ceding ground to a resurgent Russian sphere.