President Javier Milei spoke within the framework of International Economic Forum (IEFA) which takes place in the city of Buenos Aires and said that ““The situation he received was very delicate.” The president assured that The State keeps the food of 280 million human beings because the tax burden is 70%.
During his speech, Milei detailed the inheritance he received from the previous Government and said that “it was very complicated.” “It’s nothing to cry about but we received the country in a really disastrous situation”he highlighted.
“We were always prepared to receive this hot potato and that can be seen because, If we had not taken quick measures we would have already been blown up.“, he stated.
In another section of his speech, the President said that “In the populist adventure, we Argentines lost more than 80% of our income” and, on the other hand, he pointed out that The Central Bank imbalance that he received “was worse than the one that Alfonsin had” at the beginning of 1989 which, precisely, led to hyperinflation.
“We have overadjusted the primary surplus to more than 5% of GDP”, revealed about the tax accounts and said that this “deserves the courage that others do not have.” In this regard, the President said that his Government has done an adjustment of 11 points in just three months.
And he addressed a few words to those who want to see him leave by helicopter by pointing out that “Those who are angry are because their jobs were cut.” On the other hand, in an indirect message to Clarin Group said “They are angry because Elon Musk arrived.”
Inflation and Reserves: what Javier Milei thinks about the current data
President Javier Milei said that The fall in current inflation is stronger than that seen in Convertibility. He pointed out that “February’s CPI was in double digits due in part to promotions that distort measurements.”
Milei also anticipated that the Central Bank (BCRA) Will have null reservations in short, “when the previous Government left them negative by US$11,000 million.” He also criticized those calling for an acceleration of the crawling peg and said that it is a absurd in the current context. “Why should I devalue?“Milei asked himself and stated that Keynes dedicated himself to finance and “broke like a rat” for going against the markets.
Thus, the President said that he is not going to change the crawling peg “in a context in which all futures markets are aligned with monetary policy.” For Milei, “there is a short v-shaped recovery and that is reflected in the fall in country risk” and he anticipated that the system of compensating liabilities will soon end.”
The president also did not waste time to criticize the training of economists at Argentine public universities. In this regard, he said that is “very ideologized” and they do not know what the real exchange rate is.
Milei also said that we are moving towards a financial system that does not need a lender of last resort, with free banking. “Issuing money is a scam”said Milei and announced that plans to create a law that provides for jail time to condemn the issuance of money.
That law will give the category of crime against humanity to prevent it from being easily repealed. He also confirmed that he is betting that the dollars from the mattress savings go out and monetize the economy.
Thus, indirectly, the president spoke of a trend that he sees as positive but that harms the savings of Argentines and that is an increasingly common verb: dissaving.
Milei also highlighted that the country risk is on its way to a thousand points and pointed out that this achievement “will not open the capital market.” “We are making a much stronger adjustment than analysts anticipated with an economy that is falling less”he pointed.
Source: Ambito
