The former Minister of Finance, Hernan Lacunza, pointed out today that there is no margin to have these levels of fiscal deficit and warned that “if it continues to finance with issuance or with dollars, inflation is going to go to 300 points.” He also talked about the dollarization and his role in Together for Change.
In dialogue with the program “Si Pasa, Pasa”, hosted by Ignacio Ortelli on Radio Rivadavia, Lacunza explained that to lower inflation “you have to do the opposite of magic and the same thing that countries did 40 years ago, when inflation It was an endemic problem.”
Lacunza spoke of dollarization again
And I add: “For people to understand that public spending had to be lowered, inflation had to be 130%.”
Lacunza, who stressed that this public spending is “unfinanceable,” acknowledged: “What worries me the most is dollarization, which is absurd, because of the place it is occupying in the public debate. If it were that easy, it would be done.”
On the other hand, he assured that “with the inflation that exists, poverty is above 40 percent, but it will not drop below 22 from one day to the next, rather it has to go downward persistently”, and he explained that “it is the main factor that is rising to poverty”.
Likewise, Lacunza announced that this year it will be 150% and criticized that “to continue like this, 50 more points of inflation are needed each year.”
And he harshly criticized the Government: “I am concerned about the inconsistency of the entire plan. They have everything screwed, but everything has been out of adjustment since before the current minister. What is being done now is trying to hold on by postponing payments for imports or debts, anticipating income such as with Brazil, China or the IMF and entering debts”.
“This situation worries me because the future is not this government but the Argentines, who are the ones who have to pay this mortgage,” he confessed.
Finally, he recalled that “the `Plan Platita` of 2021 added 50 inflation points for 2022″ and remarked that “with this inflation, you don’t see the effects in a year but perhaps in a month.”
What he said about dollarization and his role in JxC
At another point in the note, the economist from Juntos por el Cambio gave an account of his role in space: “It will be seen over time if I will be Horacio Rodríguez Larreta’s Minister of Economy” and affirmed that they are working on a program, “after the President will choose his team”.
On the other hand, in relation to dollarization, the minister stated that it is “absurd to think of dollarization in these terms” and concluded: “What worries me the most is the place that this is occupying in the public debate, we are permeable to shortcuts and magic formulas.”