Spotorno paraded through the small table of a news channel to analyze the main economic variables of Argentina, after the rise of the dollar and the inflation data for May, revealed by INDEC.
“At this point in the game, a hyperstock is possible, because despite the fact that we have a historical harvest record, we are not accumulating reserves. We know that it ends in August or September and the first question is where more dollars are going to come from,” Spotorno raised on LN+, and then posted it on his social networks.
As the teacher from UADE and CEMA clarified, the hipercepo thing is just market rumors. “We will have to see what actually comes out, but if it becomes very rigid, the costs would be very similar to getting out of the stocks … but without the benefits,” he added. Before the consultation of this medium for some type of measure similar to a “hypercep”, official sources of the Central Bank denied it flatly.
Likewise, the economist did not notice the slight slowdown in inflation in May, which was 5.1% and that in five months accumulated 29.3%, but instead warned about its consequences. “We are seeing a process of destruction of money that has no end at this point in the game, and what we are seeing in the markets is the same,” evaluated Spotorno opponent.
“Argentina has a fundamental problem that we have not been able to solve, which is the fiscal deficit. You have to finance it, you have to pay for it. If I receive $100 and I spend $120, I am $20 short. For that I have two options: I issue pesos, which generate inflation; or issue debt. Now, international funding has been cut off. For this reason, we continue to issue pesos, but it is worth less and less”pointed out the Buenos Aires leader of United Republicans.
Data from the Center for Economic Studies of Orlando J. Ferreres anticipates that in the first week of June inflation was 3%, in the second above 4% and so far this month, June will again mark above 5%. . “Not only do you have a State that spends more, but it has a size that built a very large backpack on the productive sector, that is why the economy has not grown for a decade”remarked Spotorno.
Source: Ambito
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