Melina Wisecup is NTD's congressional correspondent based in Washington, covering Capitol Hill and campaign politics.

Melina Wisecup

NTD Plus

News

We present news that is truthful and based on facts, outside of the political fog. Instead of focusing on the negative things happening around us, our mission is to give our viewers a good morning with empathetic and uplifting stories. Our aim is to provide an antidote to negativity by shining a light on the best side of people. We speak to inspiring people who positively impact communities, pursue topics that represent our common human values, and will never miss an opportunity to bring you heartwarming stories.

NTD Good Morning

Congress Back in Session to Tackle Election Integrity, Housing, Intelligence

Stefania Cox is an NTD News anchor and national correspondent based at the network's global headquarters in New York City. Stefania anchors "NTD Newsroom," and co-anchors "NTD News Today" weekdays at 10:00 am ET.

Stefania Cox

Dynamic Availability: The Trend Toward Short-Term Rentals During the World Cup

Cary Dunst is the news anchor for NTD Evening News. He is also the co-host of NTD Good Morning.


Cary Dunst

The Iranians ‘Desperately Need Cash’: Intelligence Analyst

Primary Reasons for UK Prime Minister Starmer’s Resignation Are Economic: Political Analyst

NTD Newsroom comprises teams of reporters, editors, and producers assigned to cover breaking news and other stories.


NTD Newsroom

Vance: Foundation Set for Final US–Iran Deal

Trump Admin Honors Fathers Across America on Father’s Day

World Cup on June 22: Messi, Mbappé, Haaland Back in Action

The Associated Press is an American not-for-profit news agency headquartered in New York City. 

The Associated Press

World News

Europe

UK Prime Minister Keir Starmer Announces Resignation

Reuters is a news agency owned by Thomson Reuters. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide writing in 16 languages.

Reuters

Americas

Trump-Backed De la Espriella Wins Colombia's Presidential Election

Tom Gantert is a reporter for The Epoch Times.

Tom Gantert

Melanie is a reporter and editor covering world news. She has a background in environmental research.

Melanie Sun

Daniel Monaghan is a reporter for NTD News covering culture, social issues, and education. He holds a BA in Political Science and Government.

Daniel Monaghan

Middle East

Iran

Mediators Announce ‘Encouraging Progress’ as First-Round of US–Iran Talks Ends

NTD Good Morning Full Broadcast (June  22)

NTD Good Morning Full Broadcast (June  19)

NTD Good Morning Full Broadcast (June  18)

NTD Good Morning Full Broadcast (June  17)

NTD Good Morning Full Broadcast (June  16)

NTD Good Morning Full Broadcast (June 15)

NTD Good Morning Full Broadcast (June  12)

NTD Good Morning Full Broadcast (June  11)

NTD Good Morning Full Broadcast (June 10)

NTD Good Morning Full Broadcast (June 9)

Helicopter With Singer Oliver Tree on Passenger List Collides With Another in Brazil, Killing 6

US News

State News

California

California Governor, LA Mayor Declare Emergency Over Warehouse Fire

News with integrity, from the United States and around the world. Focused reports and analyses that shed light on major issues the world deserves to know. NTD Evening News airs daily at 6 p.m. ET.

NTD Evening News

Up to 900 Planes Grounded Worldwide Amid Engine Shortage, United CEO Says

Andrew Thomas is a reporter for NTD News primarily covering business, the economy, and technology. 

Andrew Thomas

Science &amp; Tech

NASA Reverses Evacuation Alert Order for Astronauts Aboard Space Station

Rudy Blalock is a Southern California-based daily news reporter for NTD. Originally from Michigan, he moved to California in 2017 and the sunshine and ocean have kept him here since. In his free time, he may be found underwater scuba diving, on top of a mountain hiking or snowboarding, or at home meditating—which helps fuel his active lifestyle.

Rudy Blalock

8 Dead After B-52 Bomber Crashes at Edwards Air Force Base in California

Ohio

At Least 12 People Shot at Ohio Festival, Search for Suspects Ongoing: Police

Mary Man is a writer for NTD. She has traveled around the world covering China, international news, and arts and culture.

Mary Man

China News

Epoch Times Obtains Over 2,000 Unseen Tiananmen Square Photos on 37th Anniversary of the June 4th Massacre

News you can trust from the U.S. and around the world. Critical information and insight. We cover the stories that others don’t. NTD News Today airs Monday–Friday at 11 a.m. ET.

NTD News Today

US Embassy in Israel Issues Travel Alert for Much of Middle East

Los Angeles Warehouse Fire Prompts Shelter-in-Place Orders

Jack Bradley is a Washington correspondent for NTD News based in Washington, D.C. Jack previously anchored "NTD Newsroom" and worked as an assistant producer for the show. 

Jack Bradley

FBI Warns of Chinese Spies Posing as Recruiters

Argentina's President-elect Javier Milei has set forth an ambitious agenda that clinched him victory in the recent election, including a pledge to abolish the country's central bank and switch to the U.S. dollar.

Despite speculations of a potential shift towards more moderate policymaking in the lead-up to his inauguration, Mr. Milei reiterated his determination to shutting down the central bank, calling it “non-negotiable.”

With Argentina now gearing up for the possibility of a nation without a central bank and a shift from the peso to the U.S. dollar, many economists are discussing whether these will be successful measures to resuscitate the economy.

"It's completely feasible," says Daniel Lacalle, chief economist at Tressis, a Madrid-based investment firm.

At first, it might appear to be an unorthodox public policy pursuit to dismantle a central bank and abandon a currency. However, Mr. Lacalle told The Epoch Times that the public has already prepared for the change as households have rejected the peso.

"We need to understand first that the Argentine peso is a failure. It's a currency that the Argentine citizens don't accept,” he said, adding that they save, produce, and conduct vital transactions in dollars.

While the president-elect does not have enough support in Congress or among provincial governors, Heritage economist Peter St. Onge says dollarization has become a "relatively mainstream concept."

"If they can also switch over to the dollar, I think that it won't be that bad," he told The Epoch Times. "You'll probably see an outcome more or less like Ecuador has gotten, or maybe El Salvador, which also has the right populist president at this point. So it could definitely be a huge improvement for the people of Argentina."
<h2>It’s Happened Before</h2>
Dumping a currency for the U.S. dollar at a national level is not unprecedented, either.

In 1999, before it adopted the euro, Montenegro engaged in dollarization. In January 2000, Ecuador became a dollarized economy. In 2001, the U.S. dollar became legal tender in El Salvador. Twenty years later, the country also adopted Bitcoin as legal tender. After facing hyperinflation, Zimbabwe made the greenback the African country's primary currency, though the government recently announced that it plans to drop the U.S. dollar in 2025.

But what about central banks? Abolishing central banks has not been common in the post-Bretton Woods world order. However, many developing countries, except in Latin America, did not have central banks until the 1950s and 1960s.

For states where central banks were absent, there was a free-banking climate. Commercial banks were granted monopoly privileges by governments regarding the issuance of notes. In other nations, there were monetary institutions that governments monitored. Economists purport that these types of monetary systems where governments were restrained produced decent results, primarily in the form of low inflation. Moreover, politicians' access to printing presses was limited due to the private sector controlling money in circulation or stringent regulations surrounding monetary policy governance.

Some observers have questioned how Argentina would participate in the international community since other central banks would no longer have a counterparty to engage with moving forward.

This is not a problem, notes Mr. Lacalle, because countries worldwide have created and maintained a "dollarized corridor," so it would be a simple endeavor to generate liquidity from internal and external sources. Mr. Milei's monetary policy efforts are about stabilization and limiting "the profligacy of government spending," he added.

Mr. St. Onge echoed this sentiment, explaining that once countries have the U.S. dollar, they do not need the rest of the infrastructure.

"For a lot of the current contacts between central banks, they're more or less trying to prop each other up," he said. "There's this almost cartel system among the central banks of the world."
<h2>Dollarization in 2024</h2>
There has been some consternation about the speed of implementing the Milei government’s reforms.

Despite expectations of an accelerated process, it might be a lengthy crusade because the government will need to dollarize bank deposits, currency in circulation, and the central bank's liabilities. But the sooner the initiative begins, the better it is for the economy and growth prospects, says Nicolás Cachanosky, the co-author of the <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4476965">paper</a> "Dollarization: A Solution for Argentina." He thinks dollarization can be achieved in 2024 without limiting growth.

Mr. Cachanosky believes dollarization serves as a fast remedy for the inflation crisis, adding that there is a high cost the country could face if there is a new currency crisis or monetary crisis. He did caution that it does not guarantee that dollarization will avert a default, result in comprehensive fiscal reforms, or lead to effective governing. But it grapples with the inflation problem.

"It works equally well with both competent and ineffective governments, which is precisely what Argentina needs today," he <a href="https://www.bloomberglinea.com/english/argentina-can-dollarize-in-2024-without-limiting-growth-says-nicolas-cachanosky/">told</a> Bloomberg Línea.

Meanwhile, recently <a href="https://www.aier.org/people/nicolas-cachanosky/">writing</a> for the American Institute for Economic Research, Mr. Cachanosky says it has "never been cheaper" for Argentina to dollarize than it is today.

"Official dollarization would largely formalize the informal dollarization that has already occurred," Mr. Cachanosky wrote.

For dollarization critics, they should be more worried about other proposals to revive the peso, efforts that "would likely require even more dollars than dollarization."

"If Argentina lacks the resources for dollarization, it most certainly does not possess the means to rescue the peso," Mr. Cachanosky added.

Mr. Milei’s visit to the United States might prove a pivotal moment in the early days of the libertarian’s leadership. The president-elect plans to meet with officials from the U.S. administration, the International Monetary Fund (IMF), and the World Bank this week. With tens of billions of dollars due, Mr. Milei and his team might need to negotiate new agreements.

Argentina is the <a href="https://www.imf.org/en/News/Articles/2022/03/25/pr2289-argentina-imf-exec-board-approves-extended-arrangement-concludes-2022-article-iv-consultation">biggest debtor country of the IMF</a>, owing about $46 billion to the global institution.
<h2>The Real Challenge</h2>
"A big reason why he won was the runaway inflation," Mr. St. Onge told The Epoch Times.

But one hurdle that could prove to be challenging for Mr. Milei to overcome is government spending, despite it being a driving force behind inflation.

In Argentina, 30 percent of the population works for the government, and another 30 percent are welfare recipients, so it might be more challenging for the public to see the connection between inflation and spending, he noted.

"Neither of those groups want to cut the government spending, which is what's driving inflation in the first place," Mr. St. Onge explained. "The amazing thing is that he won with 60 percent of the population, who are clearly incentivized to keep the system running, and he managed to actually win an election."
<h2>Hitting a Roadblock?</h2>
The office of Mr. Milei confirmed that he will carry out his signature campaign pledge to shut down the central bank, clarifying it to be a "non-negotiable matter." The Nov. 24 <a href="https://twitter.com/OPEArg/status/1728046003876495731">statement</a> posted to X responded to "false rumors" that the libertarian economist is putting together a more moderate Cabinet than initially anticipated.

Last week, Bloomberg threw a wrench into Mr. Milei’s reform efforts after it <a href="https://www.bloomberg.com/news/articles/2023-11-24/wall-street-cheers-as-milei-swaps-dollarization-for-macri-brass">reported</a> that his "boldest campaign proposals … appear at least on hold for now amid a staffing shakeup.” Analysts argue that he could shift to more moderate policymaking heading into his inauguration. Carlos Rodriguez, a hawkish adviser to Mr. Milei's presidential campaign, confirmed on social media that he was exiting. Emilio Ocampo, a pro-dollar advocate, is no longer expected to become head of the central bank once Mr. Milei is confirmed into office.

Mr. Milei, who has stated that he does not intend to engage in "gradualism," has tried to calm down these reports. In addition to the statement that removing the central bank is not negotiable, Mr. Milei said that he plans to send an immense package of reforms to stabilize the economy on Dec. 11, one day after his inauguration. Speaking in a broadcast <a href="https://www.youtube.com/watch?v=DJXwiaxqp3c">interview</a> with LN+ TV, Mr. Milei stated that it was "urgent" to solve "the central bank's problems as soon as possible" by "halting monetary emissions" that manufactured the inflation currently ravaging Argentina.

"Today, my priority is to avoid hyperinflation," he said.

The official annual inflation rate is around 140 percent, with the South American country facing multiple episodes of hyperinflation over the past 30 years. The peso recently touched a record low of more than 1,000 pesos per U.S. dollar. The gap between the national currency and the value of the government-controlled official exchange rate is approximately 200 percent.

The newly elected leader will also contend with a recession as economists forecast that Latin America’s third-largest economy will contract by nearly 3 percent next year.

<em>From <a href="https://www.theepochtimes.com/world/argentinas-new-libertarian-president-wants-to-abolish-central-bank-can-he-achieve-his-goal-5536642">The Epoch Times</a></em>

Latest

Videos

Argentina

Business News

04_Top Stories

Latest Clips

Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."

Andrew Moran

Javier Milei

Latest and breaking news, documentaries, movies, and lifestyle content on NTD+.
 
Empower your knowledge and elevate your spirit with NTD+, your go-to destination for truthful news, insightful documentaries, and captivating lifestyle content that enriches your life.

Argentina's New Libertarian President Wants to Abolish Central Bank. Can He Achieve His Goal?