ArgentinaI was shocked when Javier Miley, nicknamed “El Loco” (the crazy one), won the presidential election in . One of Miley’s most radical proposals regarding the Argentine economy was to close the Argentine Central Bank, which he blamed as the cause of high inflation.
In other words, Miley believes that the country’s monetary policy should be determined by the US Federal Reserve. However, with the Argentine Central Bank’s foreign exchange reserves near zero, it does not seem possible for the country to move towards full dollarization. According to economists who conducted calculations for Bloomberg Radio, the country needs about $40 billion to implement Miley’s idea.
Shock therapy plan.
According to a study conducted 10 years ago, Argentine citizens have savings amounting to about $50 billion. In Argentina, one dollar is equivalent to 357 pesos at official exchange rates. Miley, who moved from TV stardom to politics, won more than 55% of the votes. Miley’s term in Argentina, a G20 member, will officially begin on December 10. Experts say Miley could apply “shock therapy” in Argentina, which is experiencing triple-digit inflation numbers and has had problems accessing foreign funds because it has been unable to repay its debts several times.
It deals with privatization
At the heart of Miley’s economic promises lie lower taxes, closing the central bank, removing the Argentine peso from circulation and using the US dollar entirely. Of course, despite all his contradictions, he also confirms that he will hold a referendum if necessary to make these decisions, and that he will not make them a “fait accompli.” Miley’s economic promises are not limited to closing the central bank and switching to the US dollar. It advocates that the state should participate as little as possible in the economy. For this reason, he believes that all public institutions, including health and education, should be gradually privatized.
40% of the country’s population are poor
in October Annual inflation in Argentina reached its historic peak, rising to 142.7 percent. Poverty has also increased in the country, which suffers from high inflation rates. According to official data, the poverty rate reached 39.2 percent at the end of 2022. This means that 18.1 million people in the country have income below the poverty line. While purchasing power in Argentina is decreasing, rents are increasing faster than incomes in major cities, especially Buenos Aires, creating a housing crisis.
Money printing is a scam
“if “If you take the money printing machine away from politicians, inflation will go down,” Javier Miley said, adding: “Printing money is a fraud because it reduces purchasing power.” He said: “He took money from your pocket by force without you noticing.” In his interview with El Pais newspaper in July, when asked why he wanted to dollarize the economy, Miley said: “Why not dollarize the economy?” He replied: “Argentina was the richest country in the world when it did not have a central bank.”
Election promises of the new president
■ The central bank will close.
■ The Argentine peso will be withdrawn from circulation and its currency will be changed to the dollar.
■ It will reduce taxes.
■ Public services, including education, will be privatized.
release date: 05:30, 26 November 2023
(Tags for translation) United States of America