Comments by "" (@badluck5647) on "ARGENTINA: The country that PUNISHES EXPORTS - VisualPolitik EN" video.

A currency's value depends on supply and demand. A monetary policy effects both. Obviously, printing more money increases supply. However, if people think inflation will eat the value of the currency too quickly, then they will be a lot less demand for that currency. That is why well run governments have a target of only 2-3% inflation. It gives the benefits of the money printing without reducing demand. Latin America doesn't seem to understand this and rather just complain about exchange rates as they print too much money.
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There is probably a rich politician who owns a ranch and vinyard that uses his connections to get around the rules.
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They both benefit. Otherwise, both parties wouldn't agree to the transaction. The local industry gets money that they need to buy the equipment and labor necessary to increase productivity. This increased productivity allows the local industry to pay a return on investment to the foreign investors. Win-Win.
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@migo2444 What alternative reality are you living in? Venezuela is still exporting oil. They just can't get much oil from the ground because their equipment is too old, and no one wants invest in the country, so they can't get money for new equipment.
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@acevaver5425 You are characterizing only one aspect of demand, while ignoring other aspects. Few countries prefer to have Chinese yen as a reserve currency, because there is little faith in the long term stability of the currency compared to wealthy democracies. This is because there are no checks on the power of a Chinese autocratic to destabilize the currency with things like capital controls and intentionally trying to devalue it. The key to the dollar's high demand is trust in its stability.
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The worst part is that these people aren't getting rich by producing value, but instead are only getting rich due to government connections.
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You know the Venezuela oil industry collapsed because they scared off American investors? I'm not sure what is so evil about using foreign money to buy the equipment needed to increase productivity in exchange for the foreign investor getting a cut of the new increased productivity?
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@FZJanimated Maybe some of that newly printed money should go to education, so ignorant voters can learn some basic economics. Most Americans knew enough economics to oppose Build Back Better to avoid further inflation issues.
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@acevaver5425 Your "military power" idea is nonsense. It true that the US has the most military power, and most in demand currency, but the correlation ends there. Top reserved currencies 1. U.S. Dollar: $6.74 trillion (61.82%) 2. Euro: $2.21 trillion (20.24%) 3. Japanese Yen: $572 billion (5.25%) 4. Pound Sterling: $495 billion (4.54%) 5. Chinese Renminbi: $213 billion (1.95%) Top military spending 1. The United States — $778 billion 2. China — $252 billion [estimated] 3. India — $72.9 billion 4. Russia — $61.7 billion 5. United Kingdom — $59.2 billion The EU and Japan aren't know for having an impressive military, but they are huge stable markets, so people want the Euro and Yen. Meanwhile, Russia and India are deeply unstable economically, so few want to deal with their currencies.
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@manickn6819 Maybe. It is hard to know (If I could perfectly predict currency values, then I wouldn't need to work for a living). I have a hard time seeing people embracing the Chinese yuan when Chinese millionaires and billionaires don't want it. The Communist work very hard to avoid capital flight. It will probably grow, but I don't see it surpassing either the Euro or the Dollar. I imagine the Japanese Yen and Swiss Frac will grow as autocrats attempt to diversify. The fact that you can spend a Dollar anywhere makes it so attractive that even the Iran and Syrian governments finds ways to get dollars. The dollar isn't going anywhere unless progressives print too much money in America.
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@bassamalfayeed1384 A little inflation is good, because it encourages investment instead of holding money in savings account. It also allows the government to get a small amount of revenue from money printing. Deflation is actually worst for an economy than inflation.
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