The economist advised the Government to accumulate reserves in the Central Bank and warned about the risks of depending on US aid.
The economist Emmanuel Alvarez Agis warned about the risks of financial dependence on the US and proposed a strategy to accumulate reserves in the Central Bank. The recommendation arises after Javier Milei’s meeting with Donald Trump at the White House, which left promises but without concrete announcements, and while the Country Risk continues to rise.
According to Álvarez Agis, “rescue is condition the country to the economic interests they have in the United States; this is a rescue from Trump to Milei, not from the United States to Argentina”. The economist, founder of PxQ Consultora, explained that, although aid could “save us,” it also represents a “backfire” for the national economy.
The summit in Washington left uncertainty about the amount of Treasury aid. “We were drowning and Captain Hook’s ship saved us”said Álvarez Agis during the “Gelatina” streaming, describing the dependency generated by this international assistance.
The “Francella” strategy
As an alternative, the economist proposed what he called “do Francella’s”: “You have to put together one dollar above the otherbut at the Central Bank, so that when the moment of panic comes you can say ‘I don’t need your dollars, because I have all these saved.’”
Álvarez Agis also questioned Caputo’s strategy, warning that “its bridges lead to the abyss” and described as “regrettable” the current situation. Furthermore, he compared Milei’s situation with that of Gabriel Boric in Chile: “You can vote for an influencer, but then you don’t want him to tweet, you want him to fix the economy.”
JAVIER MILEI AND DONALD TRUMP
Presidency
Finally, he warned about the vulnerability to the United States: “Losing control of the exchange rate is a problem that Argentina had to deal with without the greatest power in the world intervening in the exchange rate. “We depend on Trump’s mood.”
Elections and markets: an uncertain future
Asked about the impact of an official defeat, Álvarez Agis was direct: “Hold on tight.” He clarified that the markets could react negatively to a political change and anticipate fiscal and social problems, leaving the Government without a “lifesaver” US financial
Source: Ambito
