Argentina second currency

[deacon]

Apparently, the Argentine economy is so bad, that one province has created a second currency. Its called Chachos, and they can be exchanged 1 to 1 for a peso. Seems strange to me that a province is printing its own money and trying to circulate it when they already have an equivilant currency. Unless this is essentially a way for the province to circumvent central government printing restrictions.


https://www.batimes.com.ar/news/economy ... rapy.phtml

[Lemon Thrower]

We did this in the US before 1789. Ben Franklin remarked about the wonders (from a government perspective) of being able to print money.

In 1789 the Constitution was ratified and Art. 1 Sec 10 gave Congress the power to coin money.

It also prohibited bills of credit, meaning paper money. During or shortly after the Civil war, there were a series of Supreme Court cases that said its ok to ignore this provision of the Constitution (about paper money, not about the States). If you want to learn more about those cases, research "fiat tender cases" because Uncle made its unbacked paper money (greenbacks) legal tender which one would think violates the Constitution. Ironically, Salmon P. Chase (yes that Chase) got overruled.

[pmbug]

2/3 of the province are government employees. It's no wonder they are broke.