Javier Milei works for a greater devaluation of the peso. This Monday, in statements to the media, he recommended “not renewing” the fixed terms in pesos. In the same sense, he said that the peso “cannot be worth more than excrement.” The candidate of the reactionary right pushes a policy that leads to a greater collapse in the wages of the working class and the income of the impoverished popular sectors.
These are not the first statements in that sense. A few days ago, in Mar del Plata, he had stated “the higher the dollar, the easier it is to dollarize”, in reference to the rise of the North American currency. The statements constitute an invitation to the exchange rate run.
Milei appears as the brash and extreme spokesperson for a policy shared by various wings of the ruling class. For example, the rural employers’ associations that have always pushed for a greater devaluation. To satisfy this demand, the national government launched successive batches of the so-called “agricultural dollar” which, in fact, constitutes a covert form of devaluation.
The IMF itself is another of the economic actors that pushes for a devaluation, putting pressure on the Government itself. This, in the context of the fact that the agreement with the Fund – as the Left Unity Front has always denounced – is inflationary. That agreement is sustained and continued by the national government itself.
In the case of Milei, The devaluation is functional to his proposal of dollarization. Which confirms that this plan would certainly lead to hyperinflation. Which would imply a very hard blow to the salaries of millions of workers and to the income of the popular majorities as a whole.
Milei’s proposals come at a time of strong exchange rate pressure, where the so-called blue dollar does not stop climbing. This same Monday she surpassed $945, rising more than $65 in a single day. In this way, the so-called exchange gap widened even further, up to almost 170%.
In the background what emerges are the structural problems of the national economy. The shortage of foreign currency is inseparable from the permanent flight of capital carried out by large businessmen in various sectors. It is also inseparable from the speculative maneuvers carried out by those same companies, with which they They appropriate dollars that the State itself gives them at the official price. The external debt, mechanisms of constant withdrawal of national wealth, is inseparable from that same lack.
The Government of Massa and the Frente de Todos, having legitimized the entire Macrista inheritance of public and private debt, as well as speculative export-import businesses, is responsible for having reached the end of its mandate in a situation of extreme fragility and a extremely weak national currency. An emergency program is imposed with fundamental points such as the break with the IMF and the non-payment of the debt, as well as the nationalization of banking and foreign trade, among other fundamental points that the Left Front raises so that the crisis does not The vast majority continue to pay it.