The last thing that suits us is that a competitor rescues us

“For several years now, the Argentine governments have had a diplomatic discussion with the US governments, and this has nothing to do with ideologies,” he explained. Alvarez Agiswho recalled that Milei himself had said that the Chinese “they give and don’t ask for anything in return”. For the economist, Trump’s turn implies that the United States now says: “I am the same as always, I want you to kick China out of your country, but this time, in exchange for that, there is money“.

The help of a “competitor”

However, Alvarez Agis He used a forceful metaphor to illustrate his concern: “It’s like the CEO of Pepsi coming to the board of directors and telling the shareholders: ‘We’re doing badly, but I have some news: I got Coca Cola to rescue us‘. “I don’t know if it’s a good idea for you to ask a competitor for a hand.”

The former official recalled that when the Minister of Economy, Luis Caputowanted to lower withholdings, the US Secretary of the Treasury, Scott Bessent, was opposed because both countries sell the same products. “The last thing that suits us is for a competitor to rescue us,” he said.

In addition, he warned of possible trade demands from the United States. He mentioned that the arrival of Chinese cars to the Argentine market “disciplines local prices,” but He wondered if Washington would continue giving money for the country to open imports from China.. “I wouldn’t be surprised if the US asks us to impose the same tariffs on the Chinese as they do,” he warned.

With irony, Álvarez Agis pointed out that “The only good news about this is that ‘La Doce’ will be able to go to the US World Cup with Bessent’sand maybe they’ll do a little song and everything.”

The failure of the economic plan

Regarding the economic program, the economist was lapidary: “If you come with a macroeconomic program and in April you ask the IMF for a bailout, and in October another bailout for the US, that program has failed miserably.. “When the swimmer comes to take you out in Mar del Plata, you don’t tell him ‘it’s great that you were swimming.'”

According to his analysis, the Government exhausted all its resources: “Milei spent money on money laundering, money from the IMF, money from Bessent.” For Álvarez Agis, it is necessary to modify the macroeconomic program, but he warned that “in this framework it will not be a plan that focuses on employment, production, exports and local industry.” And remembered that “Trump wants jobs to return to Detroit, not to the suburbs.”

The former vice minister was categorical when stating that “again we are ruining the economy to win an election” and compared the rescue with Macri’s agreement with the IMF: “When Macri signed the agreement with the Fund I said that was the economic mistake of the century. This rescue of Milei can compete“.

Criticism of the Fund

He also questioned the position of the director of the IMF, Kristalina Georgieva: “What happened to Georgieva is quite unfortunate. Three years ago I said exactly the opposite, I was against the adjustment“.

For Alvarez Agis“something very pathetic is happening: this director of the IMF completely aligns herself with the discourse of her main shareholder, which is the US Government. With Biden, Georgieva was a Keynesian and with Trump she is MAGA“.

The economist also referred to the electoral “timing” of the rescue: “The surveys said that people supported Milei’s adjustment, and there was a 14-point difference in PBA”. In that sense, he interpreted that “Trump and Bessent said ‘we are going to rescue you, but win the elections.'”

Finally, he explained why an eventual devaluation might not be completely reflected in prices: “With this combo of fiscal adjustment, very strong importing economy and recession, It is not unusual for a devaluation not to be passed on to prices“.