Regarding the Stock, a restriction that weighs on businessmen, Milei gave certain details: “It is in our plans to open it as soon as possible, but it took us a while because we do it on the market, we do not do it prepo, by force. “That is a characteristic of this government, which strictly respects PRIVATE PROPERTY.”
Close the tap
At its core, the president’s speech raises his decision to end the monetary issue. So that there is no doubt about this decision, I graph it as follows: “I’m going to call Toto ‘little plaster pig’: to get a handle out of it you have to break everything, which I endorse. It is unbreakable. “If someone wants to break it, they have to break me first, because I am not going to deliver the fiscal result.”Milei said before the Cicyp businessmen.
What is important from the point of view of the economic program is that the president indicated that he is seeking to end with all emission sources. From a fiscal point of view, he achieved it with an unprecedented adjustment in the world, as he noted.
He reiterated that the intention is to reduce to 25% of GDP public spending to return taxes to the private sector and, in this sense, he anticipated that a possible scheme could be first: eliminate the country tax, then the withholdings and then the taxes on bank credits and debits. And he pointed out as the main example of his government’s commitment to this policy of tax reduction the refusal to make them co-shareable with the provinces. And, the reason is that if they are co-participating, it would be much more difficult to eliminate them.
Stocks
At the same time, and after defending the negative interest rate policy, he maintained that The problem of repos is over and they are fixing the problem of Central Bank puts (options to purchase securities by the monetary authority). And at the exchange level, he specified that an attempt is being made to “match” the flow of foreign currency funds with demand (payments of imports and profits of retained companies).
As these problems are being resolved, the president considered that they are “very close” to opening the trap.
The ultimate objective, Milei specified, is that, once the fiscal deficit has been closed, the remunerated assets and puts of the Central Bank that generate endogenous issuance have been cleaned up, and the problem of pending payments abroad has been resolved, The Government’s decision will be not to issue, not even for foreign exchange earnings.
Thus, non-emission will be “the nominal anchor” of the economy. And to the extent that the activity is expected to expand, the decision not to issue pesos will lead – he anticipated – to currency strengthening. In this regard, he reiterated that he will propose that go prisoners officials who issue money.
At the same time, the president’s vision is that to the extent that the amount of pesos in the economy is reduced, other currencies will begin to circulate, in what has been called currency competition (dollars, euros, etc.). This path leads, according to Milei’s road map, to closure of the Central Bankthus preventing politicians from continuing to “steal” from the people.
As an economist, Milei once again criticized his colleagues for carrying out “nonsense analyzes” and described them as “blackmail.”
Backstage
On his first visit to Cyccip as president, the Hotel Alvear was too small due to business interest in attending. Almost all the owners or senior managers of companies could be seen.
The president arrived accompanied by his sister, Karina and several of his ministers, Security, Patricia Bulrrich, from Defense, Luis Petri, from Economy, Luis Toto Caputo; the head of the BCRA, Santiago Bausili, the Secretary of Finance, Pablo Quirno, Both officials were highlighted in the presidential speech.
When he concluded his presentation, the president greeted several of those present, and as he did on the occasion of the event organized by the Libertad Foundation, he left without having lunch.
“I believe you,” “we believe you,” was one of the most heard comments. Today most businessmen are convinced that Milei will carry out what she proposes. That she will seek to banish inflation, lower taxes and provide the necessary framework for the development of private activity.
“He is determined to carry out his economic plan just like Caputo,” They summarize and highlight that they are both committed to this task. “Perhaps because Milei is a political outsider and also his Economy Minister, this is what leads them not to compete and not to hesitate when tough measures must be taken,” summarized an important businessman in the industrial sector.
Does this mean that investments will come? Not until the laws that provide certainty and stability are approved. In this sense, businessmen are betting that the RIGI is approved as well as having the Base Law.
These objections, however, do not mean that they do not value this government. “We must support it, it is the only possible way to get out of the stagnation,” they synthesize.
Among the numerous guests it was possible to see Adelmo Gabi, president of the Stock Exchange, Alejandro Bulgheroni and Bettina Bulgheroni, Luis Miguel Etchevehere; Gabriel Martino; the ambassador of Uruguay, Carlos Enciso Christiansen; Marcelo Figueiras (Richmond); Guillermo Dietrich, Daniel Novegil, (Vice Chairman of Ternium); Mario Montoto, (TAEDA Foundation); Amador Sánchez Rico, ambassador of the European Union in Argentina; Adrian Werthein; Juan Nápoli, (Securities Bank Christian); Rattazzi; Alfredo Gusman (Celusal) Julio César Crivelli, (Camargo), Natalio Grinman, (Argentine Chamber of Commerce and Services); Nicolás Pino, (Argentine Rural Society); Gustavo Weiss, (Camarco), Daniel Funes de Rioja, UIA, David Uriburuamong others.
Source: Ambito
