“In a country of high inflation, the 22% devaluation that we had yesterday is quickly transferred to prices. With this, it is estimated that August inflation will be between 10% and 14%. Yesterday and today there are remarks 3 or 4 times on the same day on some products, as happened in 1989 with hyperinflation ”, he assured. Daniel Adlerspecialist in Financial Education and Entrepreneurship.
Adler explained that: “we know that The reserves of the Central Bank are at their historical lows, which is around a negative of around 11 billion dollars, since it is disguised with other types of currencies or assets. In this line, the devaluation is not free, because 84% of the debt that the State has is indexed to inflation and devaluation. During this government we have a 484% devaluation”.
“In every political process, PASSED or general elections, there are socioeconomic and macroeconomic movements, which occurs because in the financial market bad news is preferable to uncertainty. Now we have uncertainty, since although it was known that there was going to be a devaluation at the request of the IMF, this was done automatically after the results of the PASSED, unlike the micro devaluations that they had been doing from Economy. In this case it was seen as a form of punishment, a lesson to society, by the Government, not liking the numbers of the scrutiny “.
“It was expected that this would happen – continued the specialist – some movement yesterday, but the free dollar will begin to slow down because it will return to routine. This was just a few PASSED, there were almost 10 million people who did not go to vote and no one is assured of the Presidency. There was only a shock from the ruling party and the decision to slap the market devaluing strongly in a single day “
Even so, Adler was optimistic: “There is no need to panic, it is natural, it is to be expected that this will move. Moreover, in relation to other PASSED and other elections, we have been quite calm in relation to the broadcast that has been carried out in Argentina. I would have even expected higher devaluations due to the policy that the Economy follows to issue 3 billion pesos per day, the amount of subsidies that continue to be given, the unemployment rate passing 50%, among other problems or that every day there are more workers in a dependency relationship who become poor. It could be worse”
“The biggest problem we have is the lack of education. Not only the one we have known for years, but also the lack of financial education; we have talent and resources, but no education. This is the main trigger for the problems in Argentina. Sergio Massa, as soon as he took office as Minister, cut millions of pesos to Education, and today, no candidate talks about education. Companies seek to hire people and what they see, not only that they lack preparation or do not understand texts, they see that the boys do not even know how to express themselves, they do not know how to speak, interact “
“Governments do not take measures for the growth of companies, of ventures. For some officials it seems that being an entrepreneur is a bad word, it is the enemy, when in reality they should be allies that produce quality goods, with the capacity to be exported, collaborate with the income of foreign currency in the country and provide high-quality jobs. But there are not even credits for the growth of these companies”.
“There is a culture to improve, to modify, the rulers have to wake up once and for all and improve the systems. The country will continue to exist, the issue is what Argentina will be like if there is no immediate profound change,” Adler concluded.
Source: Ambito
