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Abolish the central bank and completely "dollarization"! Argentina elects a president with a chainsaw
Nov 27,2023
Recently, according to the Argentine presidential electionResults show far-right electoral coalitionThe candidate of the "Liberal Forward Party" and Congressman Javier Millay was elected as the new president of Argentina with 55.95 percent of the vote.
Argentina is currently facing upWith an annual inflation rate of 140 per cent and about 40 per cent of the country's population in poverty, the risk of recession is increasing.
Millet's election for Argentina, there is still a lot of uncertainty.
"The new president with a chainsaw"
The currentThe 52-year-old Miley, an economist, is the founder and main leader of Argentina's "Liberal Forward Party. At school, he was known as "El Loco" ("madman") by his classmates for his bad temper and aggressive rhetoric.
In 2021, Millet broke into politics as an MP. Previously, he worked as a talk show host, rock 'n' roll, professor, actor and internet celebrity economist.
Some analysts say that Millet's voter composition is mainlyYoung people under the age of 30, and people who experienced the Great Depression of Argentina from 1998 to 2002.
The Argentine presidential election has received widespread attention from the outside world. One of the important reasons is the candidacy of extreme right-wing politician Millet.
Due to the high inflation rate in Argentina and the severe slowdown in the country's economic growth over the years, Millet advocates full dollarization, in addition,Millay's campaign promise was"Blow up" Argentina's central bank and propose deep cuts in taxes and public spending.
At the same time, the controversy caused by Millay also lies in his support for the legalization of organ trading, the implementation of a loose gun control policy, and the legalization of abortion.
Because he has some things in common with former US President Trump, such as his love of social media, his astonishing speech and extreme conservatism, but his ideas are surprisingly bold,"When you say it," Millet became known as "Trump of Argentina".
After Millay was elected president, former US President Trump later issued a message to congratulate Javier.Millet did well in Argentina's presidential election. The whole world is watching!
I'm very proud of you. You will turn your country around and truly make Argentina great again!
During the campaign, Millay often held up a chainsaw, indicating that he would"Drastic spending cuts". The picture of him holding a chainsaw also became one of the advertising images used in his campaign.
In order to promote his comprehensive dollarization plan, he carried a dollar pictorial with his head on the campaign trail to promote his views on the liberal economic model.
He said that taxes are theft! The devil invented the state, GodThe system (favored) is the free market.
The outside voice is mixed
Previously, global110 economists jointly signed an open letter warning that the election of radical right-wing economist Milero as president may bring economic and social damage to Argentina.
This letter was written by the famous French economist Piketty, the Indian economist Ghosh and others, and was jointly signed by economists from all over the world, including the former UN Under-Secretary-General for Economic and Social Affairs Ocampo.
This is not the first time economists have spoken out against Millay.
Early inIn early September, a letter signed by 170 global economists stated that the dollarization of the Argentine economy will lead to rising inflation, repeated economic recessions and high unemployment, and will not solve the country's fundamental economic problems.
Economists have said that we believe that in order to deal with the complex challenges of the Argentine economy, currency dollarization will be a misleading attempt.
While the prospect of Argentina having a stable currency certainly gives hope to the general public, evidence abroad and the situation at home mean that dollarization is far from a panacea.
However, Millay did not win by sensationalism alone.
Llosa, a columnist for the Washington Post, believes that in the presidential campaign debate, the media and political analysts saw Milay, who was cornered and unable to resist.
However, some voters interpreted the debate differently. What they saw was a person who avoided the opponent's well-designed speech and calmly explained political opinions in detail.
Just weeks before the vote, former Argentine President Macri announced his support for Millet. This endorsement provided important political support for Millay.
After Millay announced his victory, the Argentine peso plummeted. As he walked out of the Colon theater in the Argentine capital Buenos Aires, he was greeted by a devalued peso and applause from supporters.
This seemingly contradictory scene just reflects the anxious mentality of Argentines who can't wait to change the status quo.
Argentina has highest global inflation rate
Previously, according to the National Bureau of Statistics of ArgentinaThe consumer price index for October showed that in the first 10 months of this year, Argentina's consumer price index rose 120 percent and 142.7 percent in the past 12 months.
Not only the highest among Latin American countries, but also broke itself.A record of 32 years.Today, Argentina has one of the highest inflation rates in the world.
in Javier. After Millet was elected as the new Argentine president, capital markets moved. Argentina's stock market rose sharply, rising more than 20%.
A day earlier, shares of Argentine companies listed in the United States also rose.
Since Millay had publicly stated after his election that he would seek to promote state-owned energy companiesvalue of YPF in order to privatize.
Subsequently, the largest state-owned oil company in Argentina.ADR shares soared 43%, the highest gain since records began in 1993.
In addition, Argentina's two largest private banksBanco Macro SA and Grupo Financiero Galicia SA rose 20% and 17% respectively. The Global X MSCI Argentina ETF posted a record gain of 12%.
At the same time, ArgentinaTreasury bonds maturing in 2030, 2041 and 2046 are all up at least 1.9 cents, and their external debt is $276.7 billion at the end of 2022, while their foreign exchange reserves are less than $32 billion.
Inflation was matched by a sharp devaluation of the Argentine currency, the peso. Since the beginning of the year, the official exchange rate of the Argentine peso has plunged nearly.50 per cent to around 350 pesos to the dollar.
At present, Argentina is in the most serious economic crisis in decades, and 2/5 the people in the country live in poverty.
Recently, according to the latest data released by Argentina's National Bureau of Statistics, the country's poverty rate has reached40.1%。
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