Everyone excited about an Argentina economic miracle is basing it on all sorts of government statistics except the most important statistics: money supply measures and public debt growth. Under its new supposedly free-market Rothbardian president, Argentina’s money supply in 2024 has increased at these astonishing rates:
- M0: 209%
- M1: 133%
- M2: 93%
- M3: 123%
To put these numbers in perspective, note that they dwarf the rates during the preceding years, during which Argentina thoroughly earned its reputation as one of the most dysfunctional fiat monetary basket cases in the world. In the four years of 2020-2023, Argentina’s money supply measures grew at a compound annual growth rate of:
- M0: 50%
- M1: 77%
- M2: 90%
- M3: 86%
In Milei’s first six months in office, public debt grew from $370 billion to $442 billion, a staggering increase of 19.4%. Borrowing $72 billion in 6 months can make any economic statistics look good, but the problem of course is in the long-term consequences. It is possible to make short-term growth, poverty, unemployment, or inflation numbers look good by printing and borrowing money, thus transferring the cost of a short-term glow up to the future, where they are paid with exorbitant interest. Those of us who thought things could not possibly get worse might need to reconsider.
