Micael on Nostr: MILEI IS GIVING A MASTERCLASS ON WHAT MONEY IS I still think he’s a bitcoiner but ...

MILEI IS GIVING A MASTERCLASS ON WHAT MONEY IS

I still think he’s a bitcoiner but he doesn’t know yet. This is my conclusion.

Milei is literally explaining money in front of me and a group of business men and I am writing as I am listening to him now:

“From the problem of the of the coincidence of wants to the problem of divisibility; the human need for money arises.

Cows were the first form of money (commodity money). Then salt, tabaco and many other things where money.

But money was not just supposed to be a medium of exchange but also a store of value. And the easier it was to create the easier it was to demonetize.

This is how gold, silver and copper turned into the best form of money, because of its scarcity. They were the best form as money:

Unit of account
Medium of exchange
And store of value

Next problem: thefts.

This is how banks and deposit came into existence.

Promissory notes for the metallic deposit. As it was expected a corrupt banker started printing promissory notes without baking.

This process rises prices denominated in promissory notes / paper currency.

Then the state instead of stoping this crime is starter monopolizing this crime on a giant scale.

From there another problem arises. The easy money is rejected or traded at a discount by the free market.

“Legal tender” laws were created by monarchs and governments to force people to use this fake money / paper currency.

Money is an indirect good for transactions. It’s worthless if you are alone in an island.

It’s only useful to buy other goods, it’s a medium to an end.

The demand from money is a derivative demand. It works like a mirror. The demand for money is a consequence for the demand for goods and services.

Keynes is an idiot he didn’t know anything about economics.

The monetary nature of inflation. Inflation is always and everywhere a monetary phenomena generated by the increase of the currency supply. This prices increases prices included the exchange rates.

Price levels are determined by the currency supply and the demand. That’s it.

If there’s supply of dollars increases faster than the ARG peso supply the exchange rate will go lower.

If we add to the equation that our government has a surplus the government will be taking pesos out of the market and the exchange rate USD/ARS will have more pressure to go down.

Take a look at this: first they said we were going to get into a Great Depression, then the Nike logo recovery, then a V recovery.

Not only we crashed inflation but the economy only expanded. Keynesian’s shield burn all their books

Not only this, the last activity numbers where around 6/8%. The economy is expanding fast 💨

And this also increases the demand for currency pushing exchange rates lower.

But is not yet so monetized. The economy is not yet prepared for a currency getting stronger.

But Argentinians should benefit from this. But not generating a deflation.

But individuals should benefit the ones deciding the quantity of currency circulating. They should monetize it, not the government increasing the currency supply.

How are they going to do this? Currency competition.

I cut it here because I left before everyone else. I’ll Watch the recording later and keep building on this ideas.

BULLISH AF ON ARGENTINA 🇦🇷 AND PROUD OF THIS MFKR LION