"Each peso [or dollar] is a contract between the government and the peso holder. That contract guarantees that each peso -- as a unit of value that the holder has worked hard to get -- will be worth as much tomorrow as today. If the government breaks the contract, it's breaking the law. The only role of government in the economy should be to guarantee the integrity of market transactions."
Domingo Cavallo
(1946) Finance Minister of Argentina, economist
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Reader comments about this quote:
In our case,the "peso" is guaranteed to be worth less tomorrow than it is today. It's back to the first quote about inflation.
 -- jim k, Austin, Tx     
  • 2
    Awesome, except that is impossible for the government to gaurantee anything to do with the value of currency. The private and foreign owned Federal Reserve does all that as well as chooses your candidates for you. Democracy is a sham.
     -- J Carlton, Calgary     
  • 5
    How can Mexico's worthless money be worthless than our worthless money? Recently in news it was said thar Mexico will no longer accept "dollars" but there never were such things as quarts, pounds, meters, inches or dollars--all measurements. See: "Money", The Greatest Hoax On Earth: www.morpix.biz/amazon
     -- Byron, Anytown USA     
  • 4
    Caught in the cross-hairs of corrupt international banking practices. Slavery through socialism. Many have died bringing this point to matter. Let alone the exchange for coined money !
     -- Ronw13, Oregon     
  • 1
    There are (depending on jurisdictional definition) 5 elements to a contract. One of which is knowledge of that which is being contracted. The knowledge here referenced to is similar in effect to a "social contract" - an oxymoron and impossible happenstance (not a contract). The stated scenario does not broach any of the 5 elements of a contract.

    The entire concept alluded to is an exercise in "legal positivism" illusion. Natural law (fiscal law) supersedes the above word salad as government can not guarantee a measure of exchange between 2 private parties. All the comments above more accurately describe government's role in economics than the quote's.
     -- Mike, Norwalk     
    I liked the quote, but Mike got me thinking. Aside from the semantics, Cavallo makes the point that :

    "The only role of government in the economy should be to guarantee the integrity of market transactions."
     -- E Archer, NYC     
  • 2
     -- robert, Somewhere in the US      
     -- jim k, Austin      
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