In April 1982, a desperate military dictatorship invaded a distant archipelago to distract its citizens from economic collapse. Seventy-four days later, the regime that had "disappeared" 30,000 people was finished—not by protest, but by a war bill it could not pay. This is how a $3 billion gamble on nationalism accelerated Argentina's hyperinflation to 12,000% and ended military rule forever.
Argentina's military junta came to power in 1976 promising order. What they delivered was state terrorism and reckless borrowing. By 1981, global interest rate shocks had turned manageable debt into a death spiral. Inflation was destroying the peso. IMF austerity sparked riots. The regime was losing control.
General Leopoldo Galtieri saw one way out: reclaim the Falkland Islands from Britain and unite Argentina behind a nationalist cause. He assumed the United States would stay neutral. He believed Margaret Thatcher would not fight for rocks eight thousand miles away. He was catastrophically wrong on both counts.
The war drained reserves Argentina did not have. Defeat was total. The junta collapsed within months, and democracy returned in 1983. But the economic damage was only beginning—war spending had ignited hyperinflation that would haunt Argentina for a decade. This video examines the economic fragility that made the invasion seem rational, the three fatal miscalculations that doomed it, and why desperate regimes still reach for nationalism when the balance sheet fails.
WHAT YOU WILL LEARN
The Debt Spiral Trap: How variable-rate loans and dollar-denominated debt made Argentina's economy impossible to stabilize
The Distraction Gamble: Why authoritarian regimes turn to external conflict when domestic legitimacy collapses
The Three Fatal Miscalculations: Galtieri's wrong assumptions about U.S. neutrality, British resolve, and the value of possession
War Spending and Hyperinflation: How $3 billion in military expenditure accelerated inflation from 150% toward 12,000%
The Modern Echo: Why this pattern of economic fragility plus nationalist adventurism remains a warning for today
DISCLAIMER: This video is for educational purposes only. It does not constitute financial advice. Macroeconomic analysis involves probabilities, not certainties. Viewers should consult with a qualified financial advisor before making investment decisions.
ABOUT THE CHANNEL
THE UNTOLD ECONOMY explores the hidden mechanics of power, money, and crisis. We deconstruct the crashes, wars, and policy mistakes that shaped the modern world, strictly focusing on the period from the 1850s to today. This is not news; this is a forensic analysis of why systems fail.
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Economics, Geopolitics, Financial Crisis, History Documentary, Money, Economic Collapse, Falklands War, Argentina Economic Crisis, Hyperinflation Argentina, Leopoldo Galtieri, Margaret Thatcher, 1982 Falklands, Military Junta Argentina, Dirty War, Latin America Debt Crisis, IMF Crisis, Malvinas War, Cold War Economics, Sovereign Debt, Military Dictatorship Collapse
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