The political crisis due to corruption scandals, exchange volatility, and the reaction to monetary and intervention measures on the dollar, are three elements that in the week were reinforcing doubts about the economic plan of Milei and Caputo. In this context, the country risk reached on Wednesday the 898 points, a level not seen in five months. Also Argentine actions fell that quote on Wall Street up to 3.9 %, while the S&P Merval of the Buenos Aires Stock Exchange had a decrease of 2.1 %.
This lack of trust In the ability to pay the “sovereign” debt, I had already registered other delivered jumps during the year. One was in mid -February, with the outbreak of the $ Libra case (675 points), and another in April, in the week prior to the agreement with the IMF, when in the middle of runs the indicator came to touch the 1,000 points.
The economy tied with wires to reach October with a dollar inside the flotation band and contained inflation began to make water this week. In front of the dollar shooting that this Monday closed to $ 1385 (reaching record nominal value), Caputo confirmed the intervention in the market -free market with treasure funds. The dollar does not float, and the libertarian government intervenes in the “market.”
The government continues to increase the debt in pesos, validating very high rates and increasing bank lace to historical levels (53.5 %), all to dry the square. But these Desperate measures are losing fire power.
The consequences of this model of exchange delay, indebtedness and financial speculation, enables the sangria of foreign exchange for tourism, for possession from the removal of the exchange rate (escape) and in imports. At the same time, contractive measures cool economic activity, and make access to credit.
In the electoral prelude, the exchange tension for the demand for dollars for coverage could worsen, accentuating the imbalances of the economy. Its transfer at internal prices directly affects the popular sectors that they consume less and less and do not reach the end of the month. The rises of July had their correlation in August, accelerating the inflation that is expected to exceed 2 %.
The economic course carried out by Milei and Caputo is designed to benefit friends economic groups, promote speculative income and guarantee the payment of debt to the IMF. It is a brutal adjustment plan that deepens inequality and transfers the cost of the crisis to popular workers and sectors. That is why it is necessary to face it with impossible measures such as the non -payment of the external debt and the nationalization of the bank, as key tools to stop the capital escape and recover the control of financial resources based on the majorities. Among other measures that configure a workers’ alternative to this crisis.
Source: www.laizquierdadiario.com
