An economist predicted the collapse of Argentina's financial system.

# The economist predicted the collapse of Argentina's financial system and called for a transition to bitcoin.

The economic program of Argentine President Javier Milei is a typical Ponzi scheme. This was stated by the author of the book "The Bitcoin Standard," Saifedean Ammous.

Anatomy of the Milei Ponzi

In my previous piece on Milei[1] 18 days ago, I argued that the Milei administration is running a debt and inflation ponzi that is coming near its end, and that the only concrete achievement of his administration so far is that it destroyed the… pic.twitter.com/BRYK9cNoeo

— Saifedean Ammous (@saifedean) September 8, 2025

According to him, the country is on the brink of collapse due to an unstable model of government bonds and inflation. The authorities have created a system where speculation on these assets has become the only path to financial security, the expert noted.

"The main achievement of Milei's administration is the destruction of the national currency and the creation of a shitcoin casino," added Ammus.

Milei's Ponzi Scheme

An economist criticized the system called la bicicleta financiera, which Milei launched after coming to power in 2023. This is a high-yield carry trade strategy, where investors buy government bonds with interest rates that exceed the rate of devaluation of the peso.

The volume of such operations is estimated at $40 billion - $80 billion.

"Anyone who had savings in dollars could buy bonds yielding, for example, 5% per month, while the peso was depreciating by 2%, providing a net profit of 3% per month. This is the carry trade, which in Argentina is called la bicicleta financiera — a real financial pyramid that has become the key 'industry' of the country," noted Ammus.

The expert explained that the government is accelerating the devaluation of the national currency as it prints money to pay high interest rates. In this process, only insiders benefit, who understand how this scheme works. Ordinary citizens "remain in a vulnerable position."

"The population that holds savings in pesos is losing everything due to inflation," said the economist

The Imminent Collapse

Amus emphasized that the situation continues to worsen. The peso has fallen by 10% against the US dollar and has already exceeded the corridor established by the authorities. On the eve of the elections on September 7, 2025, the Central Bank spent $540 million to support the currency, but it was unable to contain the devaluation.

The yield on government bonds, meanwhile, reached 88%. According to the economist, when this figure exceeds the rate of depreciation, investors will start to massively switch to the US dollar and Bitcoin. This will lead to the final collapse of the peso and force Argentina to seek help from the IMF.

An expert stated that Mile's policy turned out to be not a libertarian reform, but a cover for a financial pyramid that enriches a narrow circle of speculators. Bitcoin investor Simon Dixon agreed with him.

🇦🇷 A textbook proof-of-weapons network endgame.@JMilei’s shitcoin told you everything—just like @realDonaldTrump.

These politicians aren’t elected, they’re selected—to extract value for the banks that let them play president.

Protect yourself with Bitcoin.

— Simon Dixon (@SimonDixonTwitt) September 8, 2025

"Shitcoin Mileya said it all for himself — just like the meme coin of Donald Trump. These politicians are not elected — they are appointed to benefit the banks that allow them to play at being presidents. Protect yourself with Bitcoin," he wrote.

At the beginning of the year, the president of Argentina found himself at the center of a corruption scandal related to the meme coin Libra. The politician mentioned the token on social media, provoking a rise in its market capitalization to $4 billion. Soon after, the figure collapsed by more than 90%, leaving investors with multi-million dollar losses.

Opposition representatives in the country threatened Mile with impeachment. The Argentine Fintech Association stated that the situation could be an example of Pump & Dump. Several lawsuits have also been filed against the president.

The U.S. Department of Justice was even involved in the investigation of the incident.

Subsequently, Milei stated in a television interview that he did not intend to convince people to buy the meme coin LIBRA, but simply "shared" information.

Recall that in June, the anti-corruption agency acquitted the politician.