With the adjustment On the subject of spending, the president Javier Milei reaffirmed on Tuesday that he will continue with his zero monetary emission plan to curb price increases and promised that “sooner or later inflation will be exterminated.”
In the midst of a severe recession, with the Industry down 20.4% in June and close to 200,000 jobs lostthe Government is betting on deepening the economic plan with the help of a budget cuts during 2024.
The President’s proposal, based on the reduction of the fiscal deficit and the monetary scheme, includes the sanitation of the central bank with its program of zero emissions.
Javier Milei on inflation: “Sooner or later it will be exterminated”
Despite the Questions from like-minded economiststhe president defended the scheme announced by the Minister of Economy, Luis Caputo, and the head of the BCRA, Santiago Bausili, and assured that there will be no increase in the monetary base and that, as a corollary, the inflation “will be exterminated.”
“I’ll leave you an account. The broad monetary base is 34 trillion, which will remain constant given the zero emission program. In turn, the fiscal surplus would imply a contraction of the base of at least 9 billion. So 25 billion remain, while only with the payment of taxes 12 billion are required,” he said. Milei tonight, prior to attending the Colon Theater.
He then defended the head of the Treasury regarding his statements on the local currency. 2When Caputo tells us that the peso will become a scarce commodity, he is right.” And he promised: “Sooner or later the inflation rate will be exterminated,” and then close the tweet with his classic “Long live freedom, dammit.”
Friendly fire? Roberto Cachanosky’s criticism of Javier Milei’s “zero emission” plan
In the last few hours, Roberto Cachanosky, One of the economists who accompanied the President during the electoral campaign and supported his proposals, once again questioned the economic recovery that the government is pointing out and attacked President Javier Milei for issue pesossomething that had been highly criticized by Libertad Avanza with the Government of Alberto Fernández.
“Zero emissions are a Chinese tale,” he said in statements to the TN channel on Monday night, adding that “If they did not want to issue, the exchange restriction would have been removed.“Why does the State have to intervene in a government that calls itself liberal?”
“The confusion is phenomenal. I think they don’t know where to go. They went from saying that the peso was excrement to intervening in the CCL and saying that it was going to be the strong currency,” the economist continued.
Last month, Cachanosky questioned the Government’s plan and the submission of a law to penalize the issuance of currency. “There are some statements by Milei that are really surprising. He said that he is going to submit a law so that whoever issues currency will be tried for crimes against humanity. Well,I would tell him that he has to go to jail, “Because the issuance that the Central Bank is making is phenomenal,” he said during an interview with Radio Rivadavia.
“Since December until now, the monetary base has increased by 120%. In April it increased by 14%, in May by 16% and another 16% so far this month. If you project this emission, you are going to hell, you are going to a hypermarket. Inflation is at 4.2% because the exchange rate is being trampled on, which is a serious problem, and rate increases have been postponed.“But if they continue at this rate of issuance, when they correct prices and release tariffs they will have to forget about it,” he added.
Source: Ambito
