Economist and The Bitcoin standard Saifean Ammous warned that Argentina’s financial system was in the downfall, called the economic economic program Javier Milei, a “debt and inflation ponzi” strengthened by unstable bond that produced and printing money.
In a Post In X, Ammous argues that the Argentina government has created a financial system in which the bond of bond is the only path to financial security. “The only concrete achieved by his administration to this day has ruined the money and created a Shitcoin casino,” he said.
In the midst of the crisis is what the local “La Bicicleta Financiera” calls, a high yield that carries a trade in which investors buy short-term government bonds offering interest rates that exceed the speed of peso appreciation. According to Ammous, this setup, which has become the country’s most profitable industry, is a Ponzi book scheme.
“The bicicleta is clearly uncertain, because while the government offers high yields to its bonds, it has to create more pesos, which appreciates the peso,” he wrote. “It’s impossible for this bicicleta to run forever,” he added.
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Ammouss Peso’s warning is near
Ammous noted that the peso has broken the target exchange band despite $ 540 million in forex interventions. Bond rates hit 88%, and Argentine’s stocks and bonds collapsed. Meanwhile, Milei’s administration faces allegations of corruption and Election losses.
He warned that once the lowering of the peso reaches the return of the bond, investors will throw both bonds and pesos, motivating a haste in safer owners such as the US dollar or bitcoin (Btc).
“The peso collapsed, the bonds collapsed, and the government left the IMF required for a bailout,” Ammous wrote.
According to Ammous, the size of the trade is now ranges between $ 40 billion and $ 80 billion in short-term debt, draining capital far from productive use. He also noted that insider and foreign institutions such as JPMorgan benefited from the scheme by the time of their entry and exit.
“Random banks from around the world have managed to release most of the stocks and merchants around the world by just playing this rigged game of Russian roulette.”
Ammous concluded that Milei’s refusal to close the central bank exposed libertarian rhetoric as a foreground. “It’s longer, it’s more dangerous. It’s not idealism that Ponzi wants to stop; it’s a practical need for material.”
Related: Argentine lawmakers return to Milei probe in Libra Crypto scandal
Milei’s Libra Scandal
In February, Milei shared a post with X endorsed Libra (Libra) Memecoin, which quickly advanced to a $ 4 billion market cap before Crashing 94% hours later.
The move led to investors’ losses that cover the road -millions and triggers calls from opposition members for Milei’s impeachment. However, Milei claimed that he “just spread the word” about the token, It was not advanced.
In June, Argentina’s anti-corruption office released a resolution stating that Milei did not violate any ethical laws. The office said Milei acted in a personal capacity and used his private account, which he has maintained since 2015, to express his view of politics.
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