The Minister of Economy, Luis Caputo, presented in the Cycle of Economic Situation the Stock Exchange of the province from Cordoba ante More than 300 entrepreneursrepresentatives of business chambers and officials. The person in charge of moderating a talk after his presentation was the former president of the Central Bank, Guido Sandleriscurrent advisor to the Stock Market, and the same one who replaced the current minister at the head of the monetary authority during the Macri administration.
The employers’ associations welcomed the minister and celebrated the government’s repressive measures and applauded when the minister stated that “they ended the pickets.” Caputo promised tax cuts (the classic employer’s demand), and He invited them to join the money launderinga measure that includes large benefits for evaders and fugitives. The big businessmen insisted on the question of when the restriction will be lifted, but the head of the Treasury did not give a precise date.
The employers smile
The Córdoba Stock Exchange is chaired by Manuel Tagle, who said in his presentation that “one can never be too liberal” and that “President Macri’s ideas are similar to those of President Milei.”
Tagle said that “what this Government has done is amazing; society is perplexed by the achievements in such a short time,” and he gave his “unconditional support” to the economic plan that Caputo is implementing, and in particular to the financial scheme that the minister himself designed.
The businessman asked society to “have courage” to bear the costs of “cooling down” the economy. Tagle’s optimistic statement comes in a context of increasing poverty and unemployment, in a country where more than a million girls and boys go to bed without dinner while big companies made money in the first months of the Milei era. Miserable.
Low reserves, money laundering and restrictions
The Minister of Economy said that the private sector is “fundamental” in the economic project and added that they are “doing their homework, but to the extent that you support these long-term changes, you should know that we will get out of the trap well, it doesn’t matter if it’s a month earlier or a month later, the recovery will be faster and we will have a fiscal surplus, which will allow us to lower taxes; and don’t doubt that we will do it: we will take the State’s foot out from under the private sector, which will be the way in which they will gain competitiveness.”
According to Caputo, “the economy hit its lowest point between April and May and has turned around.” The minister said that “as long as we consolidate the low inflation and wages continue to recover, we will see a recovery that will surprise many.” However, there are specialists who warn that in the best of cases the economy is no longer in free fall mode, and there is uncertainty about the level of reserves, inflation and the social situation is serious.
In relation to the money launderingThe Minister of Economy pointed out that “it is not for the government but for the Argentines.” “It is so that people can take dollars out of the mattress and put them to work. It is not intended to raise money,” he added. The minister implored businessmen to enter the money laundering process.
It is worth remembering that with this measure, speculative financial capital and business groups will be able to enter their undeclared funds into the banking system, having the option of not having to pay a single dollar, a measure voted unanimously in the Senate, including the entire Unión por la Patria bloc, with broad support from the Unión Cívica Radical, the PRO, Peronism and the Pichetto bloc in the Chamber of Deputies. The regulation establishes that assets that do not exceed US$ 100,000 will have a 0% rate in all cases, and larger amounts could access the same benefit if they enter it into the Argentine financial system and do not withdraw it until 2026.
The Central Bank’s reserves are scarce and the Government is betting on a Donald Trump victory in the United States to renegotiate an agreement with the IMF and for fresh funds to arrive. But in the best case scenario, that will happen in the first quarter of 2025, while the Government will scrape the pot with what comes in from money laundering, the payment of Personal Property Taxes, and some of the moratorium. That is why Caputo lights a candle to the fugitives and speculators.
Regarding the elimination of the exchange rate restrictions, the Minister of Economy pointed out that “the condition is that when we leave there is total calm.” In this sense, he maintained that “the conditions are not yet met” because “we still have problems with stocks, flows, and we need to further clean up the balance sheet of the Central Bank.” The Government knows that if it lifts the restrictions without dollars in the Central Bank, this will cause a jump in the exchange rate (devaluation) and an acceleration of inflation. The rise in prices has slowed down although it remains at high levels at the cost of sinking economic activity and worsening the living conditions of the popular majority. The Government fears a resurgence of inflation and that social patience will run out. Will financial capital and employers wait or push for a devaluation? Wait and see.
Source: www.laizquierdadiario.com
