[Economics] Dollarize the Argentine economy?

[#Wittels-]

It is surprising that an economic proposal already tried and failed, with a high economic, political and institutional cost, returns unchanged.

Legislative initiatives and various opinion notes have been entered regarding, for now, the project to dollarize the Argentine economy, inspiring, they say, in the purpose of contributing to the reduction of inflation and providing solidity to the national economy.

It is surprising that an economic proposal already tried and failed, with a high economic, political and institutional cost, returns unchanged.

As almost always happens with these economists, they have an undeniable ignorance of the Argentine institutionality; very especially of the National Constitution and the International Human Rights Treaties, which today make up the supreme law of the Nation (arts. 31 and 75, inc. 22°, C.N.).

 

It is that, among the powers of the National Legislative Power, art. 75, Inc. 6, provides for "Establish and regulate a federal bank with the power to issue currency, as well as other national banks." Then the Inc. 11° of the same norm establishes: “Have currency stamped, fix its value and that of foreign ones; and adopt a uniform system of weights and measures for the entire Nation”. The first provision, which copies (when not) the US regime, has not become operational to date, so the powers established in both paragraphs of the C.N., have institutional corporeality in the Central Bank of the Argentine Republic.

Now let us suppose, to relieve the absurdity of the dollarization proposal, renouncing a section of our sovereignty as a Nation, which is the issuance of our currency and fixing the value of foreign currencies, that a currency is adopted that we cannot issue nor circulate as representative currency all of our wealth and natural resources, and of the goods and services that make up the gross domestic product of the Nation.

 

We will never see how to adapt the monetary expression to the entire set that it should represent. Every economist must know that the scarcity of a currency that is not in the power of any national authority to issue it, and therefore its circulation will always be limited to its existence and availability, implies the rise in the value of the substitute currency, The U.S. dollar. Perhaps it is what these sectors intend, to produce the adjustment that they both proclaim and yearn for. Impoverish the Argentine people and prevent their access to food, housing, health and education. Make the provisions of the UN International Covenants a dead letter. Of Economic, Social and Cultural Rights; pact that begins, as well as that of Civil and Political Rights, recognizing the right of free or self-determination of the peoples, their right to economic independence and the ownership of the peoples – not of the States or their Governments, but of the peoples- on the set of wealth and natural resources existing in their territory. This is, I remind you once again, of the highest-ranking norms of international human rights law, to whose compliance the 193 States that make up the UN must obey.

 

Now I delve into the legal/institutional aspect; that which is rarely addressed when economic proposals are launched for the nation's people as a whole. Will they not warn these propagandists of the US dollar that it is unreasonable to introduce a legislative proposal when the institutional fence is at the highest level of our institutions: the National Constitution and the International Human Rights Treaties (arts. 31 and 75 of the CN ) ?

 

Or is it that they propitiate a Constitutional Reform (art. 30. C.N.) to impose the submissive monstrosity?

I predict the infeasibility of giving treatment, in the National Congress, to a grossly unconstitutional initiative, leaving as a safeguard, always, that of going to the National Judicial Power to annul the null act, of absolute and incurable nullity.

And I prevent what is established in art. 36 of the C.N. –duty of obedience to the supremacy of the National Constitution–, when it recognizes the right of the Argentine people to resist acts of institutional violence and the disqualification of the promoters of these initiatives, as infamous traitors to the country (art. 29, CN) .

 

*Eduardo S. Barcesat. Full Professor Consultant; fac. of Law; UBA. National Constituent Convention; year 1994.

 

Link: https://www.perfil.com/noticias/opinion/eduardo-barcesat-dolarizar-la-economia-argentina.phtml