According to Milei, there are three ways to finance a budget with a fiscal deficit, and all of them are immoral and unethical. The deputy gave highlights of support for bitcoin in his presentations in Congress.
The thoughts of Milton Friedman, one of the most important referents of economic liberalism, resounded yesterday in the Argentine Congress. “Inflation is always a monetary phenomenon!” deputy Javier Milei stated in his first speech after taking office.
During the discussion on the 2022 Budget, the representative explained why his political space rejects the financial plan presented by Kirchnerism.
A lot of epithets were used by Milei to describe the budget in question: “unfeasible”, “not achievable”, “inconsistent”, “a disaster”, “a scandal”, “obsolete” and, mainly, “immoral”.
For the representative, all the ways of financing a budget with a fiscal deficit are immoral. As he explained during his speech, there are three possible ways to do it, and none of them will be ethical and moral.
First, the asset could get financed with debt, but that strategy would punish future generations. Some generations were not born, people who did not even vote, and a decision like this one, would change the party with future taxes.
As a second option, a budget with a fiscal deficit could receive backup from monetary issuance. This situation would be unsustainable due to the inflation it would cause. When that situation takes effect, not only is the operation of the economic system affected, but it hits the most vulnerable citizens between 25 and 30 times harder, said the deputy.
As the third option to finance a budget with these features, Milei mentioned the tax increase. As he has said before: In his opinion, taxes are theft, so he speaks out against their application.
The official stated that the only thing his party is going to accept is budgets that are balanced. The media economist, who in his campaign criticized with strength what he calls the political caste, argues that it is the state sector and not the private sector, which must limit its expenditures to avoid deficits.
Bitcoin is the Non-State Antidote to the Phenomenon of Inflation
In this actual economic context, many are those citizens and businesses who see bitcoin (BTC) as an antidote that can protect the individual from the monetary phenomenon named inflation. The cryptocurrency that got created by Satoshi Nakamoto, unlike the money imposed by the States, has an immovable monetary policy that gets defined from its origins.
There will never be more than the 21 million BTC currently existing. In addition, the emission rate is constant except for halvings. This situation happens every four years and involves halving the number of coins that are issued every approximately 10 minutes.
The volatility of bitcoin can indeed make it difficult for some to consider it a good store of value in the face of inflation. But, if you look at the price chart, a trend appears to be upward since its birth.
By: Jenson Nuñez
