Milei’s economic policy and Caputo is increasingly approaching the edge of the abyss, this Wednesday the Central Bank (BCRA) intervened in the exchange market and sold 53 million dollars of the reserves to contain the jump of the wholesale dollar, which had drilled the roof of the band, $ 1,475. This play, far from being a gesture of strength, showed the limits of a plan that is only sustained with the support of the IMF and deepens the country’s dependence.
The BCRA did not sell reservations since April, but the crisis caused by government policies led to the limit agreed with the Monetary Fund and Caputo immediately used the option of selling reservations that the program enables it.
While the Government strives to give signals of “stability”, Argentine debt bonds in dollars sank up to 3%. The country risk, the indicator prepared by the JP Morgan to measure the cost of indebtedness of the country, shot at 1,231 basic points, a jump of 8% in a single day. The message is clear, neither the large investment funds nor the speculators trust the policies of Milei and Caputo. They know that the economic plan is tied with wire, which is sustained by force of adjustment, indebtedness and raffle the few reserves that remain.
After the defeat in the Buenos Aires elections, Milei tries to avoid an even worse result in the nationals of October using the dollar as an anchor so that inflation does not shoot. But the cost is paid by workers and retirees, with the fall in income, the impossibility of accessing credits and the increase in quotas in installments. The tax adjustment and the high interest rates freeze the real economy, while the government prioritizes the payment of the debt and the demands of the IMF.
SOLEGERLY UNCOTING THE EXTERNAL DEBT: THE DEPARTURE BEFORE THE ADJUSTMENT AND THE LOB
Keeping back the price of the dollar or devaluing cannot bring any benefit for popular majorities, it is necessary to break with the IMF and sovereignly ignore the external debt to put a limit to the attacks on the living conditions of workers and their families. Debt is a mechanism of looting and domination of imperialist powers and international financial capital; Payment perpetuates capital escape and permanent adjustment over the working people.
The parliamentary defeats of Libertad advances this Wednesday in the Chamber of Deputies allow to see the political weakness of the ruling and aggravate their crisis. In Caputo despair you can give IMF dollars again as it did during Macri’s management, but with an economy in worse conditions that on that occasion. The victory in Congress left by pediatric emergency laws and increased funds for universities on the verge of being approved, can be the first step to throw down the government’s plan.
The Left Front is the main political alternative that openly raises the need to reject the covenant with the IMF, and ignore the scam of the external debt that is already unpayable. Only in this way can the adjustment be stopped, end the submission of the country and reorganize the economy depending on popular needs, not creditors and speculators.
Source: www.laizquierdadiario.com
