The current president of the Justicialist Party (PJ) also emphasized the layoffs of Sonia Cavallo and Mariano de los Heros, in addition to strongly criticizing the management of the libertarian in reference to the value of the dollar and the appreciation of the peso. “And the dollars you bought with the” surplus “, where are they? We all know that you used a good part so that you do not shoot the price of financial dollars“He said.
Cristina Fernández de Kirchner’s critic Javier Milei
After the column published by Javier Milei in the newspaper La Nación last Friday, Cristina Fernández de Kirchner used her social networks to answer the president and He outlit his criticisms in reference to the value of the dollar. It was not the only one since the Buenos Aires governor, Axel Kicillof, did the same through a column in another medium.
At the beginning of her criticism, the Argentine former president began: “Che Milei. I notice something nervous. On Saturday you published an economic gallimaties in the nation to say that you are not going to devalue because this type of change is the product of a ‘successful stabilization’ ”
“What you said on Monday in America …” I notice many angry people who talk about Carry Trade and don’t even know how Live (they are actually a few more) they are taking it all because of the difference between the dollar devalued to 1% monthly and the peso charging interest at 2.4% monthly, “said the president of the PJ who then added:” In Seriously, can someone believe you that there is no carry? “
In his column, the president had assured that #the real exchange rate begins to fall, just like a scratched album, economists begin to give alarms of exchange delay without even considering the case of a appreciation of weight “. On this point, the former president shot: “‘We are not motivating a decrease in the dollar.’ Daaaaale! How are you not intervening in the exchange market? And the dollars you bought with the “surplus” for the adjustment on retirees, education, health and provinces where are they? Because in reservations or news. “
At this point, Cristina Kirchner said that “We all know that you used a good part so that you do not shoot the price of financial dollars. The truth is, I did not make you such a denial. In the end…”.
“I think your nervousness, it really has to do with the fact that you still did not close with the IMF Negotiations that the Government maintains with the International Monetary Fund (IMF).
Finally Cristina Kirchner pointed against the Minister of Economy, Luis Caputo, whom he accused of being the “Econochanta del Monte” for his statements in reference to the value of the dollar and its consequences. “When he tried to explain why Argentina is very expensive for Argentines (who go out to vacation abroad and buy from everything to the bordering countries because it is cheaper), as for foreigners (who come to our country and cannot believe the prices they see);
“‘Advanced prices!’ … that did not have it. Will it be a conceptual finding of the Austrian school? With Milei: Argentina face for everyone,” the message concluded.
Javier Milei’s justification on the value of the dollar
In a column published last Friday, the President ratified his exchange policy and the current exchange rate valuewhich would be supported because “Argentina is Net creditor of the world“, which is why the country could live with permanent deficit within its intertemporal budget restriction” and pointed to the energy, miners and agricultural sectors. That was the reason why he ratified that his administration not only will not devalue, but that “Given such an wave of dollars, the country should be on its way to a much more appreciated currency“
“Moreover, given the Country risk fall since LLA won the elections, To the extent that the international interest rate falls under domestic, it should not surprise that the country goes to a negative current account. Is it to fear? Given the fiscal balance, no“The president continued his analysis, who pointed out that when” the real exchange rate begins to fall, just like a scratched album, Economists begin to give alarms of exchange delay without even considering the case of an appreciation of the weight“
In addition, he indicated that if the money supply is contracted by Fiscal surplus Simultaneously to the recomposition of the demand for money and the growth of the economy, “the dollar not only has no monetary fuel to rise, but quite the opposite, since in fact they are missing and pesos will be missing as the months pass“. In a column of his authorship in the nation, he criticized”All devaluation bets of economists“And he stressed that”The government will not devalue to save their clients’s clothes at the expense of the pain of the wells of good. “
After this, the libertarian leader crossed the economists who criticized him and aimed at a exchange rate delay for having “a series of serious methodological problems.” In that sense, he explained: “No one can determine the intertemporal general equilibrium pricing vector from which the statement is derived that the exchange rate is latesince its calculation implies knowing the preferences, technology and endowmentsboth of the local economy and the World Cup, and not only in the present, but also for the future. “
He then stated that “in an attempt to correct this difficulty, economists usually resort to averages as if there is a process of reversion to the average, which would imply that the deep parameters do not change in time” and that “the point is not trivial of the beginning of the series, where the chaste of exchange backwardness They usually start the series from the exit of convertibility, a period characterized by violation of property rights which leads to the systematic depreciation of the currency. “
“Naturally, under the current model there is no fiscal deficit, so it is not necessary Kirchnerist Case, “the president continued his reflection, who differed from macrismo because”The consolidated debt of the National State has fallen in more than US $30,000 million“And of the civic-military dictatorship because”Money is not issued to finance the treasure and, therefore, there is no need to sterilize the money that has not been created. “” Under this analysis there is no exchange delay “the president concluded.
Source: Ambito
