The Quijote. In chapter eight of the first part of The Ingenious Gentleman Don Quijote of La Mancha, Cervantes places the gentleman in various towns in La Mancha. The fight is with ancient windmills, to which, of course, fails to win for several real reasons, but also imaginary. Above all, because the windmills are there, in his mind. Will it be the luck of Javier Milei and his troupe? On the one hand, everyone talks about him, even the most prestigious newspapers in the world. On the other hand, the economists from Together for Change attack him, although they fail to break him in his arguments. Instead, Milei has decided to build bridges, it seems, with the Changelings. at least that His economic team is doing low, while the boss goes to all the media to say that he does not intend to settle with the “caste.”
The media, for example, don’t always talk about Milei’s economic ideas. Yes, instead, of “the most famous dogs in the world.” Or also of the sideburns, the jopo, the wig. Everything serves to write about the lion of the Supply during these hours. Both Bloomberg and the Wall Street Journal have gone out of their way in the past 24 hours to rock the libertarian’s profile. the dogs Conan, Murray, Milton, Robert and Lucas have been the journalistic center of the Bloomberg Agency Stories, the most important of the international markets. Thus, under a note on sovereign bonds, and another on country risk, slips in one of the Austrian economist and his pack.
Wall Street wonders about the wig
In the same line he described it Jacob Gallagher, WSJ Editor. “Mullet, moptop or mohawk,” Gallagher writes of Milei’s hairstyle, a mix of both, “a cross between Ozzy Osbourne and an ox, an anarcho-capitalist in a leather jacket.” There is more: according to the Spanish newspaper El País, also about Milei’s hairstyle, “Lilia Lemoine, a member of Milei’s Freedom Advances anti-establishment political coalition (and a part-time superhero cosplayer), is the only person who can style it.. What she does to make it look like a tidy bird’s nest remains a political secret.”
Warm up when you come in, Melco
With a little less hair -but not so much- Patricia Bullrich, the candidate of Together for Change, proceeded -Maslatón dixit- and offered the place of Minister of Economy in his eventual future cabinet to the economist Carlos Melconian. “Melco” has worked in recent years at the head of the IERAL of the Mediterranean Foundation on numerous plans that could now be part of Bullrich’s electoral platform. The team of the future minister Melconian is completed by Rodolfo Santangelo, Enrique Szewach and Daniel Artana.
Dollar and noodles with tuco
Footnote, a few months ago, Melconian compared dollarization to the somewhat sui generis idea of ”being invited to eat noodles with tuco without having noodles,” referred to dollars. At that time he maintained that, even if the Central Bank has reserves, these assets are not enough to carry out an effective dollarizationIn other words, Melconian pointed out, that dollarization is not a viable solution for the Argentine economy.
To the pineapples, but for the dollar
More complex was the debate that took place this week related to dollarization. As it was told, the economist Emilio Ocampo, made a true “Sicilian Defense Najdorf”, known for its risk and good predisposition to the contest. Organized by FIEL, and with the moderation of Artana himself, the bullrichista deputy Ricardo López Murphy, the radical Martín Tetaz and the economist Diana Mondino (UCEMA, LLA) sought to discuss dollarization with the theoretician who is part of Milei’s teams.
To dollarize: a version
Ocampo said he prefers a “hard currency reform” because both convertibility and inflation targeting failed in recent years. “A stabilization with a fixed exchange rate is not going to work by decree or like the Austral Plan,” he added. Ocampo thinks that each country dollarizes as and when it can and that dollarization is the only way out. His equation is based on “deconstruct” (or destroy) the Central Bank, and then delete it. The storekeeper account is known: the Leliqs would become part of (underlying) a scheme of Monetary Stabilization Funda project that, he assures, he faced for a year and a half with investment banks from the United States in order to certify its viability. The entities would lend US$30,000M? against the “packaged” debt” or repackaged. At the same time, he proposes to sell the BCRA gold (USD 10,000 million) and add deposits from the Bank of Basel and DEG.
dollar philosophy
However, the political reading that cannot be missing is this: for Ocampo, dollarization would not be an end in itself, but a means to an end. Strictly speaking, it would play the same role that convertibility had in the early 1990s to the serve to stabilize prices and enable a kind of “phase 2”, that is, structural reforms.
With good sense, his own Artana told Ocampo that “if you are capable of making the reforms, then it is no longer necessary to dollarize,” to which Diana Mondino replied that dollarizing is useful because it inhibits any other attempt at future populism linked to the monetary issue and the fiscal deficit.
To Congress for support
Another who raised his hand was Tetaz, who said that it is “impossible” to dollarize, under the idea that the ability to “coordinate the economic cycle” is lost, to observe productivity trajectories and even to obtain the necessary political support to do so. What exchange rate should be dollarized? What impact could a devaluation of Brazil have with a dollarized Argentina? “If Brazil devalues and we are tied to the dollar, we have another 2001,” she said. Even López Murphy put up a “stop” sign, pointing out that before dollarization, what is needed is control of fiscal dominance, since even with dollarization, one can always run a deficit.
Alliance is sought: the Epstein case
To finish, some messages from Milei’s financial reference, Dario Epstein. The former head of the National Securities Commission in the 90s, sent a strong message last night on twitter: “JvC colleagues: until August 13, the rival to beat in front of you was the K, but from August 14 we are those of Libertad Avanza? Is there no way we can work together?” Another economist from Epstein’s team, of his close confidence, also sent a strong signal: “Milei-Macri: the agreement that will guarantee governability from now on for four years. write down”.
As in Don Quixote, the knight’s fight with ancient windmills stands in itself as a tribute to stoicism, but also to madness. Could it be that Javier Milei will leave the cambiemitas without an agreement? Will there be a reversal in Baglini’s theorem style? For now, many prefer to talk about hairstyles. And the dogs, of course.
Source: Ambito
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