I celebrate the end of the stocks: “The last link of the chain that our national economy tied 15 years ago has been broken,” said the president. “After a year of hard work we can terminate the Argentine sanitation process,” he added. The president speaks of an “Argentine sanitation”, but hides the bleeding of dollars of the Central Bank that forced the Government to submit to the demands of the IMF. A “sanitation” that implied a strong adjustment to retirees, workers, students and not the caste as promised In the electoral campaign. We must also remember the operation of the Central Bank’s debt to the Treasury to show a decrease in the debt of the monetary authority, but it was only an accounting maneuver of Caputo.
Javier Milei He referred to the series of advertisements made by Economy Luis Caputo and the Central Bank. So celebrated the devaluation imposed by the IMF and the agreement with the agency.
The president said: “I am pleased to address myself with a news that we expected a long time ago. We eliminated the exchange rate of the Argentine economy forever.” Milei stands out The exchange rate jump that will cause higher inflation and the fall in the purchasing power of wages, retirements and social programs will be deepened. Among the measures that were announced this Friday are: a flower band of the dollar between $ 1,000 and $ 1,400, elimination of the Blend dollar, the stocks are flexible for companies.
The IMF will deliver to the government a loan of US $ 20,000 million in a four -year program. Milei said: “A few minutes ago the background announced an unpublished program because it is the first time that the IMF approves one that is not to finance the transition of a disorderly macroeconomy to an orderly, but to support an economic plan that has already paid its fruits. I want to thank the Board and, especially, the president of the body.” The president celebrates a new mortgage for the working people that will include more adjustment, as recognized during his speech.
Then, he congratulated “the 87 heroes who defended the fiscal surplus with the efforts we made to eliminate demagogy forever.” He referred to the 87 deputies who supported the veto to the increase to retirement and who entertained with a roast in the fifth of Olivos.
To justify the loan granted by the IMF -and that the Government insistently pursued -said it was granted for being “an exemplary student.” He argued that Argentina went “to be the worst student in the world in economic matters to do homework and be the exemplary student”, referring to the objectives met by lowering the fiscal deficit by force of layoffs, poverty and adjustment to retirees. However, he lied and said that “we put the fiscal accounts in order in record time and almost the entire adjustment fell on the State and not on the Argentines of good.” He said this minutes after he thanked the deputies for voting against retirement reform. He said Argentina is “one of the five countries in the world that only spends what it collects and not one more weight.”
“We were able to get the last thorn that infringed us with deep pain, we got rid of the exchange rate,” said the president. However, hours before, INDEC had given the inflation rates of 3.7 %. Despite being announcing a new devaluation and more adjustment, Milei unusually said they hope “inflation is a bad memory of the past.”
He also dedicated a paragraph to economic turbulence and said that the departure of the stocks and the agreement with the fund will make “no reasons for Argentina to suffer future self -inflicted turbulence … we are prepared for external shock.”
Milei also reiterated the adjustment that Caputo had announced: “We need a primary surplus of 1.4 percent and now we decided to raise it to 1.6 percent,” Milei said in the national chain. And he stressed: “Our goal is to become the freest country in the world.”
He held the agreement with the IMF responsible for inflation that had to go through the Product Congress “for the aberration of the Guzmán Law, which forced us to go to Congress to ask permission to agree with the IMF.”
The truth is that the new indebtedness with the IMF and the devaluation conditions imposed by the program show that Milei’s economic plan and his cabinet failed. Caputo sought to endure without devaluing to the elections, but after the scam $ Libra increased instability in the “markets”, followed the bleeding of what forced Milei to succumb to the pressures of the “markets” and the fund, who requested a devaluation.
The president tried to cover his announcement as a heroic epic to present – and hide – which, in reality, implies a new blow to the citizen pocket and greater economic instability. These measures could boost an increase in inflation and a possible recession. Nor could he avoid that trends towards commercial confrontations and uncertainty in the global economy will impact Argentina, a country that already faces a deep internal economic crisis.
This announcement comes in a context of growing questioning from below to the government. The mobilizations in support of the retirees, the repudiation of the brutal repressions of Bullrich and the general strike of the CGT that occurred only 24 hours before reflect the rising discomfort by the adjustment that has already been done on the workers and the popular sectors. This force that begins to arouse is what can face the economic and political plans of Milei and the IMF, promoting the continuity of unemployment with a struggle plan thatVance towards a general strike, until defeating the attacks and imposing a favorable exit on the working class.
Source: www.laizquierdadiario.com
