From our friends at the private news service EuroIntelligence, edited by former Financial Times associate editor Wolfgang Munchau:

Javier Milei, the president-elect of Argentina, promises to abolish the central bank and to dollarize the economy. For a country with over 140% inflation…the public’s trust in the central bank has broken down. …

Fiat money [the ability of governments to create inflation by printing money] is the most vulnerable part of our economic system. We in the west have been using it to bail out banks after the global financial crisis, to bail out governments in the sovereign debt crisis, to stabilize economies during a pandemic, and to impose sanctions on our opponents.

The economic consequences of our abuse of the fiat money system are not nearly as extreme as they are in Argentina. Not yet at least. Nor is the backlash….

The real danger for fiat money systems is not a scenario where Argentina falls into an economic hole, but one in which Milei appears to succeed, and where his ideas catch on. It will come as a total shock.