Elon Musk Hails a Game Changer In Brazil And Argentina

Brazil and Argentina want to create a common currency.

Elon Musk sees himself as a visionary. He wants to change our civilization as we know it today.

The serial entrepreneur promises that humans will live on Mars soon. He made it the centerpiece of his vision for humanity.

While waiting to realize this spectacular promise, the Techno King, as he’s known at Tesla, wants to fill the vacuum of global leadership that currently exists. He sees himself as a global tutelary figure. He comments on almost all the events and issues having planetary consequences or capable of upsetting geopolitical, economic and societal balances.

Reduce Dependence on the US Dollar

He also sees himself as the voice of the people. The people who feel ignored by the elites. He wants to forge a strong bond with these people. He has thus made Twitter polls the best way to consult these people and prove to them that he hears them. 

He organizes polls on Twitter on important decisions with which he is confronted. This was the case recently when he pledged to respect the results of a poll which asked whether he should step down as CEO of Twitter.

A few days later, Musk announced his resignation which will be effective once he has found a replacement.

Twitter is a country without borders for the billionaire. He sees the platform as the global agora. This is the way to address people in most countries. He therefore wants to use it to cement his place in history and continue to grow his influence even if sometimes it is at the cost of controversy. 

For him even the negative criticisms are good to take since they contribute to make him the center of the discussions. Very few are the topics that Musk doesn’t dabble in.

The billionaire has just given a thumbs up to Brazil and Argentina, which are thinking of creating a common currency.

Brazil and Argentina will this week announce the start of preparatory work for the creation of a common currency, the Financial Times reported on Jan. 22, citing officials of both countries. The goal is to build a currency that can boost regional trade and reduce dependence on the U.S. dollar.

“There will be (…) a decision to start studying the necessary parameters for a common currency, which includes issues ranging from budgetary issues to the weight of the economy (of each country) through the role of banks power plants,” Argentine Economy Minister Sergio Massa told the newspaper.

‘Good Idea’

Officials of the two countries will hold discussions this week at a summit in Buenos Aires.

Musk believes that a common currency between the two countries is a good idea and has just made it known.

“Probably a good idea,” the billionaire commented on Jan.22.

We do not know what this potential currency will be called. Some have mentioned the “real peso,” or “peso real,” a name that is a combination of the current Argentinian and Brazilian currencies.

Brazil suggests that this currency be called the “sur” (the south), according to the Financial Times.

The idea emerged in 2019 but was rejected by Brazil’s central bank at the time. The idea is to create a common currency that will resist external monetary and economic shocks and help to stabilize a region highly dependent on foreign capital flows.

The Brazilian real and the Portuguese peso are two currencies that are particularly vulnerable to the international context because the two countries are dependent on their raw material exports. They can be severely affected by the rise in interest rates by the U.S. Federal Reserve

The new common currency project could later be extended to other Latin American countries.

Related Posts

Union Capital Financial Group Ltd, registered in the British Virgin Islands, does not provide investment services inside the United States. The company only provides consulting, advisory and educational services.