Hello community. In simple words, what is Milei trying to say in this video? between the 41:24 and 41:45 minutes. He talks about currency competition and hedge against market risks. In simple words, what is he referring to when he says this? ' It means that you choose the currency you want, so if you are an oilman, you can make your contracts in WTI, in you are in the gas sector, you can do it with BTU, if you are soybeans, you can do it with the price of soybean in Chicago ' Thanks.
His plan is to drop peso and use US dollar. Countries have done that, but no more monetary sovereignty, has to be in sync with the Fed. And frankly, he doesn’t know what he is talking about.
" What does he mean by making WTI, BTU contracts" WTI is light sweet crude oil (West Texas Intermediate - CL). With BTU he means natural gas (NG), as it is measured energy-output-wise in BTUs (British Thermal Units).
Thanks, I know what those instruments mean. I think he is trying to tell us, to combat inflation in each of the countries, and for example, we are an oil businessman, we should not do business with the local currency of where we live, instead to do it with the international price of oil, in this case, WTI. So the question would be, how/what instruments should I use to expose myself to the WTI price?
He says that since the Argentine Government is extremely corrupt, he prefers another corrupt (US) that steals much less, that's why his idea of dollarizing Argentina, I'm not Argentine by the way.
Not about you but why he would think others will steal less, it is the same political class, same group of billionaires. Anyway, I am not familiar with South America politics, so can’t comment. But currency is not a solution for structural problems. He thinks all the farmers and oilmen can sell products in futures markets to hedge, what an idiot, I don’t know how he is an economist.