The Economist Roberto Cachanosky warned that in the Government “They are not cleaning the balance sheet of the Central Bank, they are dirtying it” and stated that “The longer you have the stocks, the more complicated it will be to get out.”
“Javier Milei says that he is cleaning the Central Bank’s Balance Sheet to get out of the trap. What is cleaning the balance sheet? Ensure that all net passes are liquefied over time and accumulate reserves”Cachanosky wondered.
In this regard, the economist stated that “On December 7, the pesos in circulation plus the BCRA debt with the banks, represented 74% of the gross reserves. The latest data for April is that it is 75% above gross reserves.”
“The BCRA debt grows faster than the reserves they buy. “They tell you the reserves they buy, they don’t tell you the reserves they liquidate.”said Cachanosky about the accumulation of reserves that the Government displays as one of its great achievements.
Regarding the economic outlook, in statements to FM Milenium, the economist indicated that there is a very strong drop in the level of economic activity, industry and construction. “That affects your collection, that means you have to make a greater effort to maintain fiscal balance.”
In this regard, he emphasized that “The adjustment basically goes through the private sector, you increased and extended the COUNTRY tax, you returned to profits, you have the fuel rate tax increase all the time… I get the gas bill, the amount of taxes is impressive. Behind every rate increase, there is a huge tax. “Quite the opposite of what he said in the campaign.”
“My impression is that Milei He said things that were known could not be fulfilled, such as dollarization. I’m not against it, but it couldn’t be done. He proposed dollarization as a standard campaign model when it was known that it could not be done because there was nothing to do with it. He said he had 10 billion dollars and they never showed up. The first thing he did was cut Emilio Ocampo,” Cachanosky stated.
“Milei was selling something that he was not going to be able to fulfill. He is doing the opposite things to what he said, he raises taxes instead of lowering them, he controls more taxes in the opposite way than what he said and he, against all regulations, set a maximum exchange rate that is a price control. “He sold liberalism but applied strongly interventionist policies”closed the economist.
Source: Ambito
