The president-elect Javier Milei assured this Tuesday that he will deepen the fiscal adjustment to pay the debt in interviews conducted on the Infobae site and with Alejandro Fantino.
Milei said “we are going to make a very strong fiscal adjustment to reach zero financial deficit directly, which means that the debt does not grow any more, that we are going to be solvent intertemporally and that we are going to pay the debt.” In this way she confirmed that will honor the illegal debt at the expense of deepening the adjustment which the current Government has already started to comply with the IMF and the speculators.
The president-elect stated “we were very explicit: we want a small state that has the characteristic of honoring its commitments. With this I am saying: I am going to make the fiscal adjustment to pay the debt.” Milei acted demagoguely by saying that the adjustment will be paid for by politics and not the people, but as she already anticipated in her electoral platform and in her intentions to privatize public media, YPF will involve layoffs of state workers who are not the political caste.
Milei’s blackmail is that if progress is not made with the adjustment there is a risk of hyperinflation. Thus, it seeks to divide the working class between state, private and informal workers. The president-elect added that “six very hard months are coming” but that they will mean “the takeoff of Argentina” although he did not detail how the country would “take off” with the weakness of reserves, the weight of debt and high inflation. .
Regarding the snowball of the Leliq, debt letters issued by the Central Bank and are in the hands of commercial banks, Milei pointed out that “we are going to fix the problem of the Leliq with a market solution, without a Bonex plan.” She once again did not explain what the solution would be. The underlying issue is that in the Leliq business, commercial banks actually “invest” the money that savers and companies have placed, mainly in fixed terms, in the banking system. Therefore, a non-payment of the Leliq or an exchange for long-term bonds would imply an expropriation of savings, particularly of small savers.
Regarding what would happen on the street when the adjustment is applied, Milei responded, “The law will be applied and I am not going to allow myself to be extorted. If not, we don’t solve anything else. I also said in my speech that ‘within the law, everything and outside the law, nothing’. “We cannot give in to the extortion of the violent, of those who have some privilege.” That is, there will be repression to pass the adjustment.
The union leaderships have to break the truce and call assemblies to begin new plans of struggle. It is necessary to redouble the organization in places of work, study and in the neighborhoods to face the adjustment plans.