Argentina’s self-proclaimed “anarcho-capitalist” president, who wields a chainsaw and says he gets most of his political advice from his dog, has many political analysts and economists saying his radical plans are almost certain to fail. It looks like we accomplished what we said was possible. country’s economy.
Javier Millay, 53, a former right-wing economist and television commentator whose combative style and support for conspiracy theories have drawn comparisons to Donald Trump, came to power in December. did.
Five months after being sworn into office, Argentina still has one of the highest annual inflation rates in the world, with a cumulative rate of 287% as of March, according to the report. Bloomberg data – But Millais’s liberal-tinged austerity “shock” policies have led to a decline in inflation every month for the past three months.
And there are some signs when national inflation figures for April are released next week. argentina economy Monthly inflation could return to single digits for the first time since October 2023.
In his first weeks in office, Millay drastically cut spending in Argentina’s public sector, halting new infrastructure projects, cutting energy and transportation subsidies for residents, and cutting back on energy and transportation subsidies for Argentina’s federal ministries. halved the number of He also devalued the country’s peso currency by more than 50% against the US dollar.
Advice from a dog:Chainsaw into the system.Far-right liberal Javier Millei becomes Argentina’s new leader
Founder Ian Bremer eurasia group The political and economic risk consultancy wrote in an emailed newsletter late Wednesday that Milley was elected., Many experts predicted that his economic plans would lead to “further collapse soon.”
“Thankfully for the Argentine people, that did not happen,” he wrote. “Over the past three months, monthly inflation has fallen each month from 25% in December to nearly 10% in March, and forecasters expect April’s numbers to be in the single digits. The country achieved this by increasing the central bank’s foreign exchange reserves, lowering the benchmark interest rate, and reducing the money supply without destabilizing the currency or financial markets. The company inherited a surplus for the first time in more than 10 years. ”
Javier Millay wields a chainsaw and threatens to blow up Argentina’s central bank, calling climate change a ‘socialist conspiracy’
Latin America’s second-largest country and third-largest economy has suffered from economic and political dysfunction for decades. There were nine defaults on government debt. owes tens of billions of dollars. international monetary fund and, Recently, China faces economic turmoil.
Millais has long claimed to be a member of a school of liberalism whose core political and economic philosophy calls for the de facto abolition of the state.. During his campaign, he repeatedly brandished a chainsaw to symbolize his intention to cut public spending to rebuild Argentina’s troubled economy. He also claimed that he was considering “blowing up” Argentina’s central bank, which has not actually happened.
Millais characterized climate change as a “socialist conspiracy.” He has consistently downplayed the atrocities committed by Argentina’s military dictatorship in the 1970s and 1980s. He claims to have gotten the best advice from Murray, Milton, Robert and Lucas. Murray, Milton, Robert and Lucas are his four mastiffs, or dogs.
Related:These dogs were featured at the coronation of Charles III
Elon Musk is also a fan
he seems to be bonding Tesla And X owner Elon Musk About free markets and the need to protect liberty and individual liberty. “I encourage you to invest in Argentina,” Musk said in a recent X post, in which he was pictured giving a thumbs up with the Argentine leader for the second time in less than a month. Photographed.
What you need to know about Javier Millay:Why do people talk about Argentina’s president?
Still, many Argentines complain that Mr. Millei’s economic policies have made life difficult in the short term, with spending cuts hurting salaries and pensions that are far from keeping up with inflation.
Trade unions across Argentina were expected to stage a 24-hour general strike across the country on Thursday as Mr Millay’s cost-cutting plans lead to a sharp reduction in consumption, construction and manufacturing activity. More than 400,000 people recently took part in large-scale protests against funding cuts to public universities.
Carry a large wad of cash with you.Businesses prefer cash
Argentina’s central bank was forced on Tuesday to issue its first 10,000-peso banknote, worth about $11, as many residents carry large wads of bills for small payments. Many businesses in Argentina still prefer to trade in cash due to chronic economic instability.
in This week’s BBC interviewNevertheless, Millais insisted that his economic reforms were working and were primarily targeted at Argentina’s political class, or elite, rather than the general population.
He defended his policy by saying, “There is no magic. Real life requires time.”
“What was the alternative? Would we continue to print money like the previous administration did, causing inflation that would ultimately affect the most vulnerable?”
