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Javier Milei: “At the market exchange rate we are one shot away from dollarizing” - Infobae
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www.infobae.com
February 15, 2024
The President confirmed that he “continues with the idea” of exchanging the Argentine peso for the foreign currency. In addition, he responded to Cristina Kirchner after she published a document criticizing his management.
The President specified what conditions the Argentine economy is in to adopt the foreign currency and spoke about the elimination of the stocks.
Javier Milei confirmed this Wednesday that he “continues with the idea” of dollarizing the Argentine economy and announced that with the market exchange rate the conditions are favorable. In addition, he responded to Cristina Kirchner after she published a document criticizing her management.
“I continue with the idea of dollarizing,” Milei confirmed and added: “There is enormous work that is being done by the Central Bank and that probably saved people who understand the matter are not seeing it. We issue money to buy dollars, we buy 7 billion dollars. We have a problem with endogenous emission, which is the Leliqs. In that context, we have these two sources of monetary emission. The base does not change, it is set at 10 million. In that context, what you have is that we are compressing by fiscal sector and with Bopreal.”
“When you look at the BCRA balance sheet, you began to deflate liabilities and assets, we cleaned up the debt of importers, but today we have a monetary base of 8 billion and we buy dollars for 7 billion . We have 87.5% of the base covered. At the market exchange rate you are one shot away from dollarizing. You already have that. You need to clean up the rest of the remunerated liabilities - repos - and what you need is a reform of the financial system so that it is not vulnerable to a run. The idea is there, but it takes time. If we continued cleaning the BCRA's balance sheet at the rate we are doing, the IMF estimates that we could open the stocks in the middle of the year. I prefer to see the numbers,” he added.
He also responded to Cristina Kirchner , who this Wednesday published a 33-page letter with strong criticism of the President and the economic and social model that La Libertad Avanza is promoting from the Casa Rosada. Mainly, the head of state referred to the questions about the model chosen to combat inflation and pointed directly against the former vice president's arguments, calling them “a gross conceptual precariousness.”
“Economics is not an exact science, the fact that we use mathematics does not give it credence to be considered an exact science. If you stop emitting, sooner or later you are going to exterminate inflation. As much as Cristina Kirchner may not like it, inflation is always a monetary phenomenon that is generated because of the excessive supply of money,” the president began.
And he continued: “Cristina's model is the basis of Argentine decadence. For her, what generates inflation is the lack of dollars and that is a gross conceptual precariousness that could have been understood in the 60s . She says that in reality the problem arises that when you devalue there is inflation. The problem is that you devalue because you have a problem of external restriction and you cannot get the financing you need from the current account in the market and that is why you devalue and there you generate inflation.”
“External restriction is the effect of assuming that only quantities and not prices adjust. But that's because you assume prices don't change. Kirchnerism squandered the reserves, they gave Macri a very poor situation. When they stimulate demand by slowing the exchange rate, reserves fall. Every time they have problems with reservations they put in more control. When you do that the weights are tight. There was repressed inflation,” added the libertarian.
Javier Milei assured that with the Omnibus Law he achieved his objective of exposing those who do not support the change
Furthermore, Milei highlighted that Fernández de Kirchner accuses him “of saying that the fiscal deficit generates inflation and I never said that. It is because of the monetary issue. That is false. When the fiscal deficit is financed by the emission, that is where the price problem begins. The first paragraph - of the document - is monumental for all the errors it makes. It is false that Macri's Government is the one that went into the most debt, the one that went into the most debt is that of Alberto Fernández . He doesn’t understand what a budget constraint is.”
On the other hand, he spoke about Cosquín Rock and made his position clear by ensuring that “ tax exemptions are subsidies .” Along those lines, he explained: “When Córdoba makes the Cosquín Rock, which is private, it gives it a billion pesos in subsidies. All the artists, like Lali Depósito, received money from the State. But she collected money from several governments. 350 thousand dollars. Are you willing to finance those expenses against the VAT that takes food from the poor children of Chaco? To finance this culture of being burdened...two thirds of the children are in poverty. She cries, instead of complaining about the subsidies, why she doesn't cut the official guidelines that she uses to make people speak well of him. What corresponds to them by law is theirs, from there I don't touch anything. “The Nation has the power to do everything legally.”
During the interview, the President referred to the Omnibus Law that failed to be approved in the Chamber of Deputies. In that sense, he recalled that the measure had two objectives: “Propose reforms and organize the spectrum of politics.” “The wonderful thing is that when they started to dismantle it, they left evidence because they left their fingers dirty. There it became clear who wants change and who wants to continue with their privileges,” he highlighted.
“I am happy because I achieved the objective: if I have a bad law I would rather not have a law. And in 2025, when there are elections, it will be a purge because we are going to remind people who are those who did not support the change and are not going to renew their seats," he said and defined the deputies who voted against as “criminals”.
Javier Milei during the interview
The president also responded to the danger of the start of classes, since the unions are demanding a salary increase, which is why he reflected: “Who do the schools depend on? Is Argentina a federal country? The problem lies with the provinces, if teachers do not receive what they should receive it is because the governors are spending the money. Why does the Nation have to be financing permanently? "Let the recitals go down."
According to Milei's analysis, “all good Argentines understood that one cannot live beyond one's means. People understand that an adjustment must be made. The central issue is who pays for it. We say let politics do it. Well, it was noticed in Congress. The DNU voted for everyone but there is a problem with me: that I play the tones of politics. People know that they have been living beyond their means and that they have to make an effort. When we balance the economy, I am not going to increase spending.”
“We did the best job,” Milei described his meeting with Pope Francis in the Vatican and reported that he once again apologized for the “outbursts of the past.” “I did it in one of the debates but I thought it was worth doing it in person and he told me 'Son, who didn't make mistakes in his youth?'”
Source:
Javier Milei: “Al tipo de cambio de mercado estamos a un tiro de dolarizar”
El Presidente ratificó que “sigue con la idea” de cambiar el peso argentino por la divisa extranjera. Además, le respondió a Cristina Kirchner luego de que publicara un documento con críticas a su gestión
www.infobae.com
February 15, 2024
The President confirmed that he “continues with the idea” of exchanging the Argentine peso for the foreign currency. In addition, he responded to Cristina Kirchner after she published a document criticizing his management.
Javier Milei ratifico sus intenciones de dolarizar
El Presidente preciso en que condiciones se encuentra la economia argentina para adoptar la moneda extranjera y hablo sobre la eliminacion del cep
cdn.jwplayer.com
The President specified what conditions the Argentine economy is in to adopt the foreign currency and spoke about the elimination of the stocks.
Javier Milei confirmed this Wednesday that he “continues with the idea” of dollarizing the Argentine economy and announced that with the market exchange rate the conditions are favorable. In addition, he responded to Cristina Kirchner after she published a document criticizing her management.
“I continue with the idea of dollarizing,” Milei confirmed and added: “There is enormous work that is being done by the Central Bank and that probably saved people who understand the matter are not seeing it. We issue money to buy dollars, we buy 7 billion dollars. We have a problem with endogenous emission, which is the Leliqs. In that context, we have these two sources of monetary emission. The base does not change, it is set at 10 million. In that context, what you have is that we are compressing by fiscal sector and with Bopreal.”
“When you look at the BCRA balance sheet, you began to deflate liabilities and assets, we cleaned up the debt of importers, but today we have a monetary base of 8 billion and we buy dollars for 7 billion . We have 87.5% of the base covered. At the market exchange rate you are one shot away from dollarizing. You already have that. You need to clean up the rest of the remunerated liabilities - repos - and what you need is a reform of the financial system so that it is not vulnerable to a run. The idea is there, but it takes time. If we continued cleaning the BCRA's balance sheet at the rate we are doing, the IMF estimates that we could open the stocks in the middle of the year. I prefer to see the numbers,” he added.
He also responded to Cristina Kirchner , who this Wednesday published a 33-page letter with strong criticism of the President and the economic and social model that La Libertad Avanza is promoting from the Casa Rosada. Mainly, the head of state referred to the questions about the model chosen to combat inflation and pointed directly against the former vice president's arguments, calling them “a gross conceptual precariousness.”
“Economics is not an exact science, the fact that we use mathematics does not give it credence to be considered an exact science. If you stop emitting, sooner or later you are going to exterminate inflation. As much as Cristina Kirchner may not like it, inflation is always a monetary phenomenon that is generated because of the excessive supply of money,” the president began.
And he continued: “Cristina's model is the basis of Argentine decadence. For her, what generates inflation is the lack of dollars and that is a gross conceptual precariousness that could have been understood in the 60s . She says that in reality the problem arises that when you devalue there is inflation. The problem is that you devalue because you have a problem of external restriction and you cannot get the financing you need from the current account in the market and that is why you devalue and there you generate inflation.”
“External restriction is the effect of assuming that only quantities and not prices adjust. But that's because you assume prices don't change. Kirchnerism squandered the reserves, they gave Macri a very poor situation. When they stimulate demand by slowing the exchange rate, reserves fall. Every time they have problems with reservations they put in more control. When you do that the weights are tight. There was repressed inflation,” added the libertarian.
Javier Milei assured that with the Omnibus Law he achieved his objective of exposing those who do not support the change
Furthermore, Milei highlighted that Fernández de Kirchner accuses him “of saying that the fiscal deficit generates inflation and I never said that. It is because of the monetary issue. That is false. When the fiscal deficit is financed by the emission, that is where the price problem begins. The first paragraph - of the document - is monumental for all the errors it makes. It is false that Macri's Government is the one that went into the most debt, the one that went into the most debt is that of Alberto Fernández . He doesn’t understand what a budget constraint is.”
On the other hand, he spoke about Cosquín Rock and made his position clear by ensuring that “ tax exemptions are subsidies .” Along those lines, he explained: “When Córdoba makes the Cosquín Rock, which is private, it gives it a billion pesos in subsidies. All the artists, like Lali Depósito, received money from the State. But she collected money from several governments. 350 thousand dollars. Are you willing to finance those expenses against the VAT that takes food from the poor children of Chaco? To finance this culture of being burdened...two thirds of the children are in poverty. She cries, instead of complaining about the subsidies, why she doesn't cut the official guidelines that she uses to make people speak well of him. What corresponds to them by law is theirs, from there I don't touch anything. “The Nation has the power to do everything legally.”
During the interview, the President referred to the Omnibus Law that failed to be approved in the Chamber of Deputies. In that sense, he recalled that the measure had two objectives: “Propose reforms and organize the spectrum of politics.” “The wonderful thing is that when they started to dismantle it, they left evidence because they left their fingers dirty. There it became clear who wants change and who wants to continue with their privileges,” he highlighted.
“I am happy because I achieved the objective: if I have a bad law I would rather not have a law. And in 2025, when there are elections, it will be a purge because we are going to remind people who are those who did not support the change and are not going to renew their seats," he said and defined the deputies who voted against as “criminals”.
Javier Milei during the interview
The president also responded to the danger of the start of classes, since the unions are demanding a salary increase, which is why he reflected: “Who do the schools depend on? Is Argentina a federal country? The problem lies with the provinces, if teachers do not receive what they should receive it is because the governors are spending the money. Why does the Nation have to be financing permanently? "Let the recitals go down."
According to Milei's analysis, “all good Argentines understood that one cannot live beyond one's means. People understand that an adjustment must be made. The central issue is who pays for it. We say let politics do it. Well, it was noticed in Congress. The DNU voted for everyone but there is a problem with me: that I play the tones of politics. People know that they have been living beyond their means and that they have to make an effort. When we balance the economy, I am not going to increase spending.”
“We did the best job,” Milei described his meeting with Pope Francis in the Vatican and reported that he once again apologized for the “outbursts of the past.” “I did it in one of the debates but I thought it was worth doing it in person and he told me 'Son, who didn't make mistakes in his youth?'”
