The economist stated that Javier Milei should “go to prison” for the increase in the monetary base and questioned the elimination of the PAIS Tax.
The Economist Roberto Cachanosky He questioned the economic recovery that the ruling party points out and accused President Javier Milei for issue pesossomething that had been highly criticized by Libertad Avanza with the Government of Alberto Fernández.
“There are some statements by Milei that are really surprising. He said that he is going to pass a law so that whoever issues currency will be tried for a crime against humanity. WellI would tell him that he has to go to prison, because the broadcast that the Central Bank is making is phenomenal,” Cachanosky attacked during an interview with Radio Rivadavia.
“From December until now, the monetary base increased by 120%. In April it increased 14%, in May 16% and another 16% so far this month. If you screen this broadcast, you’re going to hell, you’re going to a hypermarket. Inflation is at 4.2% because the exchange rate is being stepped on, which is a serious problem, and rate increases have been postponed. But if they continue at this issuance rate, when they correct prices and release rates they will have to forget about that,” he added.
Dollar and the debate over the crawling peg: what Roberto Cachanosky said
Furthermore, the economic consultant questioned the exchange rate set by the ruling party, highlighted that the liquidation of the countryside is not happening as the Government expected (“It is the lowest grain liquidation in the last 10 years,” he stated), and He questioned whether the PAIS Tax will cease to exist at the end of the yearas planned.
“The PAIS Tax represented 13% of total tax revenue in the first five months of the year; today it is the fourth most important tax. Will it expire at the end of the year? The check tax should have ended in December 2002, the Personal Property tax in December 1999… Believing that in Argentina someone imposes a tax and then takes it out is not true. If, with the poor fiscal balance that the Treasury has, they take out the PAIS tax, we will enter a fiscal deficit,” he asserted.
Why for Cachanosky, the Government has a “ceiling of credibility”
Cachanosky also referred to the reaction of the markets after the approval of the Bases Law and indicated that “there is no long-term credibility.”
“We are seeing that Argentina has a credibility ceiling. There are many who saw cheap Argentine assets and bought, but when they rose they realized that the outlook was not entirely clear and they sold. They make profits and look for other assets in which to invest. Argentine assets do not grow sustainably because there is no long-term credibility in economic policy,” he argued.
Finally, the liberal economist expressed doubts regarding the inclusion of Federico Sturzenegger to the Cabinet.
Caputo Sturzenegger.jpg
“I don’t understand how they are going to work together with Caputo (Luis). Federico has to be in charge of deregulating the economy, and one of the deregulations should be removing the exchange rate, who manages that? Caputo or Sturzenegger? The same with utility rates, for example. I see a very big inconsistency there,” she questioned.
Source: Ambito
