President Javier Milei participated in the LLao LLao Forum and spoke before the Red Circle in an event that was held behind closed doors. According to what was reported in the media, the president referred to the “inheritance received” and the economic situation of the country, as well as congratulating the escapees.
Some of the businessmen who participated in the event were Eduardo, Alejandro and Daniel Elsztain and Saúl Zang (Irsa), Martín Migoya, Guibert Englebienne, and Patricia Pomies (Globant), Cristiano Rattazzi, Andrea Pagani (Arcor), Carlos Miguens and Gonzalo Tanoira ( San Miguel), Eduardo Bastitta (Plaza Logística) and Tomás Mindlin (Pampa Energía), Verónica Andreani (Andreani), Alberto Arizu (Luigi Bosca) and Andy Freyre (Softbank).
More adjustment and the promise not to devalue
Milei maintained that the Government carried out the largest fiscal adjustment in humanity and justified the pruning by saying that there was no room to carry it out gradually. “To do gradualism, above all, you have to have time and financing (two aspects that we did not have),” said the president.
“15% of GDP, which was previously taken by the State in fiscal deficit for parasitic activities, returns to the private sector for productive investments,” Milei added.
The president talks about cutting back on “parasitic activities,” but he did not touch the interests of the “business caste,” but rather the adjustment It was in retirements, salaries, social programs and sensitive items such as education and health. On the contrary, what was allocated to debt interest increased 7.3% in real terms in the first quarter of the year, according to data from the Congressional Budget Office.
According to Milei, “the Government is creating the conditions to grow again, after having inherited the worst crisis in history. The only defect of the Bases law and the DNU is that both go against the work of politicians.” The growth would not be this year, according to projections the economy would contract by 3.5%, according to the survey (REM) published by the BCRA. Meanwhile, the president omits that the bill benefits large businessmen such as the Large Investment Incentive Regime that offers tax benefits for the next thirty years for businessmen who make investments. On the contrary, the Bases bill harms working people: it eliminates the retirement moratorium and allows privatizations.
The president asked the businessmen “Why do you want to touch the exchange rate?” The employers expect a devaluation since inflation devoured the exchange rate adjustment and they are going to pressure for a new adjustment. Milei promised that he will not devalue. However, a new devaluation cannot be ruled out because the reserves are thin, the IMF is not granting new funds at the moment, and it will be necessary to see if the agricultural employers’ associations liquidate foreign currency. A new rise in the dollar will put pressure on prices and accelerate inflation.
Escapers Award
He president questioned the economic policy of the previous government and congratulated the escapees. Milei declared “they finance the deficit with monetary emission, they generate inflation. What do they do? Price controls like the Gondola Law. And when they control prices, shortages appear. Then politics responds with a Shortage Law. The dollars go away , then they put capital controls in place and then whoever escapes is a criminal.”
The president added “he who escapes is a hero, he managed to escape from the clutches of the State”“if I put on the suit of economist, I would recommend my client to buy dollars. That later appears as a leak. And if they buy them in black, the better, so they don’t have to pay stupid taxes to finance useless things.”
Milei in the Llao Llao. The biggest hugs with their militant ceos Elsztain (Irsa), Galperin, Bastitta Harriet (Logistics Square), Guibert Englebiene (Globant) and Rattazi (formerly Fiat) pic.twitter.com/DRnfrFjMDj
— Leandro Renou (@leandrorenou1) April 19, 2024
Milei’s statement is little surprising. The tax project that entered Congress includes money laundering that has benefits for those who have not declared cash and other assets, nor will they be asked about the origin of those funds (whether they come from legal or illegal activities), and they will not They will be penalized for not having declared them. Many of the leakers are large companies. A Central Bank report published in 2020 indicates that capital flight in the Cambiemos era was US$86 billion. The journalist Horacio Verbitsky unveiled the ranking of the hundred companies that fled the most during the macrismo and they stood out Telefónica, Pampa Energía, General Motors, Shell, Quilmes, Monsanto, Aluar, Procter & Gamble, Arcor and Techint, among many others. Now with Milei and Caputo’s money laundering project, a new gift is being granted to the escapees.
Milei maintained that it is businessmen “who have the power to move Argentina forward, changing the future and creating wealth.” Before finishing, the President made another harangue. “Guys, at some point you are going to have to invest, you are going to have to put in the balls, so that the waters open and we are free. Long live freedom, damn it,” he stated.
It is not the first time that it has been promised that greater economic openness and the elimination of regulations will cause an increase in investments and economic growth. The dictatorship, Menemism, the Alliance and Macri promoted these policies and this fueled external public debt, facilitated the flight of capital as a result of the liberalization that advocated the entry of investments, and fueled the spiral of crisis that the country went through since the Rodrigazo. up to now with increased poverty and degradation of employment. The only beneficiaries were the big businessmen. These are the reasons for the businessmen’s applause for Milei in the LLao LLao Forum, once again seeking to reward the “business class.” As the PTS deputy in the Left Front said, Myriam Bregman to Milei “You seemed like a cuddly kitten of economic power and you are; the caste is happy.”
Source: www.laizquierdadiario.com
