Politics Thread: President Javier Milei - From Decree of Necessity and Urgency (DNU) to Today

[Avocado]

I admit Cristina was a thief. But so is Milei. They are two peas in a pod. Good article. Argentina's corruption numbers haven't improved at all in the 17 months since Milei has been President. Now Caputo and Milei are allowing unlimited money laundering. Open season for all the corrupt to just buy real estate.

Clean slates – for greenbacks only | Buenos Aires Times

 

[GS_Dirtboy]

Can anyone really name something Milei has really improved on? Taxes sound like they have come down a bit. Inflation is stabilized but prices are sky high. I realize he inherited a big mess but are investments really flowing into Argentina? Are foreign companies flooding into Argentina? Job creation happening? I don't really see that at all.

 

[Wally]

Can anyone really name something Milei has really improved on? Taxes sound like they have come down a bit. Inflation is stabilized but prices are sky high. I realize he inherited a big mess but are investments really flowing into Argentina? Are foreign companies flooding into Argentina? Job creation happening? I don't really see that at all.

Inflation is a HUGE factor and dropping even lower. They removed the currency controls (CEPO) and have a fiscal surplus. Big deal! Default risk is much lower and their country risk is falling daily. Poverty is going down too. Taxes are going down and imported products are flowing in. He just cut iPhone tax from 16% to 8%.

 

[VINO]

It is so great to have the prices stable on many things. Some things keep going up but with inflation still at 2% to 3% a month and the dollar flat prices are going up. Previous administrations were terrible but think the government is going overboard with cutting funding to many programs. Milei scammed people out of $250 Million bucks with the Libra scam. He did the same thing before. Wasn't his first time scamming.

 

[Opera Fan]

I like some of the things I see but I still wonder how all of this will play out. Consumption seems like it has fallen and can't get up. IMF wanted to see BCRA building up reserves and I don't see that happening. Seems like all they keep doing is borrowing more $$$$$ with REPO loans at high interest rates. Does not sound like a good plan.

 

[Larry]

I like some of the things I see but I still wonder how all of this will play out. Consumption seems like it has fallen and can't get up. IMF wanted to see BCRA building up reserves and I don't see that happening. Seems like all they keep doing is borrowing more $$$$$ with REPO loans at high interest rates. Does not sound like a good plan.

Before the IMF loan the peso was cratering. Without more debt debt debt from IMF Argentina was doomed. I am not a financial expert. Maybe someone else can explain it better? @earlyretirement, @Finance Prof , @CraigM or others.

Argentina keeps borrowing more. I saw they borrowed another $2 billion. Doesn't this worry any of you? So the Central Bank deposits this into their account then they exchange it from being debt to being an asset? And now it can be used to buy USD?? Am I getting this right? Isn't the BCRA just selling borrowed debt dollars for pesos to push the exchange rate lower? What am I missing here?

 

[CraigM]

Before the IMF loan the peso was cratering. Without more debt debt debt from IMF Argentina was doomed. I am not a financial expert. Maybe someone else can explain it better? @earlyretirement, @Finance Prof , @CraigM or others.

Argentina keeps borrowing more. I saw they borrowed another $2 billion. Doesn't this worry any of you? So the Central Bank deposits this into their account then they exchange it from being debt to being an asset? And now it can be used to buy USD?? Am I getting this right? Isn't the BCRA just selling borrowed debt dollars for pesos to push the exchange rate lower? What am I missing here?

I have said this before but Argentina needs to buy time. They have a serious liquidity problem and need outside help to get to the other side of it. Eliminating the deficit was a great start but it's not enough. The IMF is the lender of last resort, any other source of funds would carry onerous terms that Argentina can't afford. The alternative to IMF loans is fire sales of key assets or default.

 

[Larry]

I have said this before but Argentina needs to buy time. They have a serious liquidity problem and need outside help to get to the other side of it. Eliminating the deficit was a great start but it's not enough. The IMF is the lender of last resort, any other source of funds would carry onerous terms that Argentina can't afford. The alternative to IMF loans is fire sales of key assets or default.

But isn't it concerning to you they simply can't seem to build up their reserves no matter what they do? I wonder how things will be after the elections if they can't build them up now. Just keep taking on more debt. Doesn't seem like they are making much progress at all. Serious liquidity problem seems to be the nice way of wording it. Seems like they may run out of time.

 

[CraigM]

But isn't it concerning to you they simply can't seem to build up their reserves no matter what they do? I wonder how things will be after the elections if they can't build them up now. Just keep taking on more debt. Doesn't seem like they are making much progress at all. Serious liquidity problem seems to be the nice way of wording it. Seems like they may run out of time.

Of course it's concerning. I don't think you fully appreciate the hole that your heroes dug for Argentina, I'm sure it was a fun party while it lasted but this is the hangover.

 

[Larry]

Of course it's concerning. I don't think you fully appreciate the hole that your heroes dug for Argentina, I'm sure it was a fun party while it lasted but this is the hangover.

Well CFK is under house arrest so now it's Milei's problem!

 

[Bingo]

Well CFK is under house arrest so now it's Milei's problem!

True. Only so long they can use the "but it's not my fault" line. Now they have to find a way to dig themselves out of this sh*t. Piling on billions and billions more of debt I am not sure is the right solution but sounds like they have no other choice. I don't think that will work just piling on more loans but let's see.

 

[CraigM]

True. Only so long they can use the "but it's not my fault" line. Now they have to find a way to dig themselves out of this sh*t. Piling on billions and billions more of debt I am not sure is the right solution but sounds like they have no other choice. I don't think that will work just piling on more loans but let's see.

I understand the sentiment but repairing the damage created over decades is not going to happen quickly, especially areas like private sector job growth. From an outsider's perspective Milei has accomplished an awful lot in a short time. If he can stay focused (and reign in the petty scams) I suspect we'll see a lot of good things happen in the next few years.

 

[Betsy Ross]

I understand the sentiment but repairing the damage created over decades is not going to happen quickly, especially areas like private sector job growth. From an outsider's perspective Milei has accomplished an awful lot in a short time. If he can stay focused (and reign in the petty scams) I suspect we'll see a lot of good things happen in the next few years.

Exactly. This will take a while to fix. Definitely not going to be sudden. I see a lot of changes but the change from it will take time. They need to be successful in October to push more and more changes through with taxes and job reforms. His special powers will run out soon.