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Milei denied that there is an exchange delay, defended the adjustment and stated that he is “getting closer” to lifting the stocks - Infobae
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Milei negó que exista atraso cambiario, defendió el ajuste y afirmó que está “cada vez más cerca” de levantar el cepo
El Presidente expuso ante el CICyP sobre la marcha del programa económico. Rechazó las críticas y destacó el impacto de la reducción del gasto sobre la baja de la inflación y de la tasa de interés y el aumento de las reservas. “Metimos el ajuste más gran de la historia de la humanidad”, afirmó...
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May 15, 2024
The President spoke to the CICyP about the progress of the economic program. He rejected the criticism and highlighted the impact of reducing spending on lowering inflation and interest rates and increasing reserves. “We made the biggest adjustment in human history,” he said. Praise for Caputo and Bausili
President Milei spoke before the businessmen of the Inter-American Council of Commerce and Production
President Javier Milei today rejected that there is an exchange rate delay in Argentina and questioned the economists who maintain the need to appreciate the dollar, while he maintained that we are “getting closer to opening the exchange rate” and defended the adjustment, of the order of the 15 points that, he stated, he is carrying out. “ It is the largest in the history of humanity ,” he stated.
When speaking before the Inter-American Council of Commerce and Production (CICyP), he said that Argentina is moving towards a regime of “currency competition” in which each person will choose in which currency to carry out transactions. And he maintained that this will lead to "the peso being used less and less, and when it almost stops being used, we will move towards dollarization and eliminating the Central Bank, so that corrupt politicians cannot steal again by issuing money."
Regarding the chances of ending the exchange rate, the head of the Executive maintained that “ it is in our plans to open it as soon as possible , but it took us a while because we do it on the market, we do not do it prepo, by force. “That is a characteristic of this government, which strictly respects private property.”
La Palabra De Javier Milei Antes De Exponer En Cicyp
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Video: Milei arrives at Cicyp to speak in front of businessmen
“I am not a communist, I am a libertarian liberal, and I believe that you are the creators of wealth,” Milei told the businessmen who participated in the meeting that took place in a hotel in downtown Buenos Aires. The scenario served for the head of state to provide strong support to his economic team, both to Minister Luis Caputo and to the head of the Central Bank, Santiago Bausili.
The President had begun his speech with strong questions about the economists and the “fatal arrogance” that he attributed to the specialists who raised the existence of exchange rate delays. “They are pretending to know things about which they do not have the faintest idea,” the president complained, at a lunch at the Alvear hotel where the main presidents of the business chambers and half of the National Cabinet are meeting.
Milei attacked his professional colleagues who question the established value and told them that they do “nonsense analysis” and are “chantas . ”
“Although I come as President, given how intense the debate is about whether there is an exchange rate delay, I cannot stop being an economist. So it seems relevant to me to have this debate because from my point of view, with rare exceptions, what the majority of analysts are saying is wrong; Therefore I am going to show why what they say is wrong,” Milei said.
“Because the truth is that, if the reservations are not made, they are, strictly speaking, blackmail. But if they do, why do they do this analysis if it is wrong,” she emphasized. Milei was ironic before the businessmen, and said that “as you will see, I came a little bloodier than usual.” Immediately, she added, “we are making an adjustment of 15% of the Gross Product, impossible, nothing,” said the president.
Official presence
A large part of the Cabinet accompanied the President during the presentation from the main table. The Secretary General of the Presidency, Karina Milei, was present; the Minister of the Interior, Guillermo Francos; the Minister of Security, Patricia Bullrich; Foreign Minister Diana Mondino; Minister Caputo; and the head of the BCRA Bausili, for whom Milei asked for applause for having lowered the monetary authority's deficit.
“This debate seems interesting because from my point of view what most analysts are saying is wrong,” Milei said. She assured that "a few have worked for years with these stupid analyzes and now they need to justify, or, as they were wrong in December and January, they want to force reality to stick their heads in."
“If I am going to define delay, it means that I am comparing against something, it means that I have to know the complete price vector,” but he maintained that this is not possible. “Do you think you can make that count and define that there is a delay?” he questioned and added a new question: “Does that mean you can't do anything? No. There could be indirect ways or mechanisms to believe that there is an imbalance.”
“We are ending the problem of passes, which is on track. Fixing the problem of puts, something that the International Monetary Fund allowed a path of indirect financing to the previous government and that turned a blind eye and looked the other way and left the fuss to us," he stated in an open criticism of the organization. international credit.
Wanting to correct the exchange rate through a devaluation for the President “the only thing it does is increase the number of indigent poor and does not solve the problem. Because with that devaluation what I am doing is aborting the process in which I reallocate resources. That is to say, when I clean up the entire system, if Argentina is going to give face in dollars, but it is not corrected by devaluing, it is corrected through structural reforms in the non-tradable sector, that would be the rule, therefore it is absolutely ridiculous".
“There is a political analyst - he speaks of Ian Bremmer - from the United States who, when he analyzed the coming to power of our space, very influenced by the things that were said here such as the dollar at $10,000, had a very negative vision. A few days ago the man said: 'I was wrong,' "he expressed in another section of his speech. Bremmer, a political scientist, had suggested that Argentina could experience a “collapse imminently,” but now he was surprised and highlighted the current management for its economic advances.
In his presentation, which was rich in technical data, he dedicated a section to one of the promises he had made in the electoral campaign, the reduction of taxes . “The best sign that we want to lower them is that we do not share them, because if we share them we will not lower them further,” he assured. “As the economy begins to rebound, we will begin to lower it,” he added emphatically.
He also criticized those who question the adjustment of public accounts that he has been implementing. According to his vision, they question “because the quality of the fit is not optimal. I'm going to tell you something, 'No, because it's very much a blender and it has scissors.' First, we have cut public works, we did zero, we cut discretionary transfers, we do not stop cutting choreos, we took the structure of the State in half. “No, but it's a scissor.” What scissors? We are rebuilding rates. “But it's a scissor”, those who said that on top of that it couldn't be adjusted more than one point. And then I tell you something: when the blender becomes permanent, it is also a chainsaw.”
There he had praise for the Minister of Economy Luis “Toto” Caputo. “I'm going to call Toto little plaster pig: to get a handle out of it you have to break it. And I endorse it. It is unbreakable. It is unbreakable, and I am going to tell you something else, if someone wants to break it first they will have to break me, because I am not going to deliver the fiscal result. Then, back, decreasing public spending, decreasing country risk, falling interest rates, therefore, the model does not close them. In other words, there is no element of economic theory that substantiates the nonsense of the exchange rate delay,” he indicated.
In the end he referred to the implementation of a basket of currencies. “We are going to extend the coin competition. To the extent that the economy expands, that is, the consumption path becomes larger, that will increase the demand for money, but we are not putting pesos into the economy. So what is the consequence? "That the economy is going to begin to be endogenously monetized by the individuals themselves, putting, if you want, more dollars into the economy, or whatever currency you want," he explained.
“Therefore we are going to go to a regime where the peso is going to be fixed and you are going to choose the currency you want. All currencies will compete against the peso. Do you like the exchange rate, the basket of currencies? Well, the place that is determined by a bureaucrat, a ponderer, is going to be determined by yourselves with your decisions. In other words, the problem of exchange appreciation is over. Of course: the weight is going to be like a rock. Because it doesn't move, but you will be able to choose what currency the transactions will be in. And as the economy expands, the amount of pesos will be relatively smaller. And, when you realize, the amount of pesos that I will be able to dollarize or the economy or any of those monetary schemes and eliminate the Central Bank will be so small . And the possibility of any thieving politician in this country stealing them again with the tax will end,” he explained.
