Market analyst Santiago Llull warned about the new economic plan announced by the Minister of Economy, Luis Caputo, and President Javier Milei.
He economist and analyst of markets, Santiago Llull, warned about the new monetary plan announced by the Minister of Economy, Luis Caputo, and President Javier Milei and mentioned a possible “hyperrecession”: “Are we going to escape hyperinflation and go into a hyperrecession?”
Speaking to C5N, Llull highlighted the contradictions of Milei’s government regarding its official narrative: “The market is the one that is not trusting in what is being done. Many people, without political bias, argue that this is a desperate move, because it was a maneuver that was not clear. Now you are saying directly that you are no longer issuing, and you boasted about buying the 12.5 billion in reserves. So, what did you buy them with? With issuance. You are going against your own narrative.”
And, along the same lines, he added: “They said that you can’t intervene in the market. Well, now you’re saying that you have 1.7 billion dollars that you bought between April and now to be able to intervene. On the other hand, It’s a free market and you’re questioning a bank. with name and surname, private, by a financial instrument that has that particularity. Banks do not have a Government.”
New monetary plan: the ghost of a “hyperrecession”
The market analyst harshly criticized the monetary plan that aims to implement a zero-emission plan. “The big point is: Are we going to escape hyperinflation and go into a hyperrecession? You earn more in dollars today than last week, but what good is that to me if the products, the gondoliers and the supermarket owners don’t say that the dollar was worth 1500 and now that it’s worth 1300 I’m going to lower it? That variable of the economy where 70% is consumption in Argentina is not going to have an impact,” he questioned.
Llull extended his criticism to the president and pointed out that “he was right when he said he was Terminator and came from the future, because is copying the same thing that happened between 2016 and 2018 but faster, without gradualism.”
Luis Caputo detailed phase 2 of the Government: “The gap will tend to collapse”
This weekend, the Minister of Economy, Luis Caputo, He detailed phase 2 of the Government within the framework of the “zero emission” and expanded on the information about the second part of the economic plan that will begin this Monday: “The gap will tend to collapse.”
In the framework of the second part of the economic plan, Caputo highlighted the decrease in inflation as the main result that would be generated by the reduction of the exchange rate gap: “This whole new monetary scheme reduces inflation. As inflation falls, the gap follows suitso what will end up happening is that contrary to what many think, the cash settlement will tend to converge with the official dollar. This will allow a much simpler and less traumatic exit from the currency controls for Argentines.”
The Government of Javier Milei began the second part of its economic plan. This morning, the president himself announced a change in dollar operations in the Single and Free Exchange Market (MULC). He also anticipated that this week they will resolve the issue of the “puts” and downplayed the exchange rate tension of recent days, which led the blue dollar to trade at $1,500.
Source: Ambito
