I can't say I "get" your
point, Alan.
We are talking about
currency in pay envelopes to employees in the public sector, actual currency
notes in the form of "argentinos." Otherwise, the envelopes will be empty, for
the government, due to currency board restrictions, is prohibited from
creating pesos. Whatever pesos that had been collected through taxation had
been diverted to fulfilling international debt obligations. The new argentino
notes are going to be spent and received by the sellers of goods and services.
The sellers will presumably deposit them into "argentino" denominated accounts
in banks, against which they will write checks made payable to whomever will
accept them. Presumably, the government will accept them against tax
obligations.
The Argentines are trying
to keep their economy going.
What's wrong with
that?
"Inflation", in respect of
Argentina at the present time, is a red herring. The problem in Argentina
right now is deflation. Money has been sucked out of the economy to satisfy
foreign debt obligations, leaving nothing for ordinary
transactions.
The public sector, even in
wastefully bureaucratic Argentina, supplies real value to the Argentine
public.
The pubic sector employees
deserve to be paid.
And just WHAT does the
"holding" of assets have to do with it?
Trade is about the
PRODUCTION, DISTRIBUTION and CONSUMPTION of assets, isn't it?
>From: "Alan G. Isaac"