International Argentina's Economic Crisis: President-Elect Pledge To Shut Down Central Bank, Dollarizing the Economy to Combat Triple-Digits Inflation

[Arkain2K]

Argentina's Milei seeks foreign policy, IMF reset in Washington trip​

By Jason Lange and Rodrigo Campos | November 28, 2023

WASHINGTON, Nov 28 (Reuters) - Argentina's president-elect Javier Milei met on Tuesday with top U.S. officials in Washington and his economic team huddled with IMF officers as he seeks to formulate a plan to reshape the country's foreign policy and lead its economy out of crisis.

Milei told reporters as he left the White House that his meeting had been "excellent." Among those in attendance were national security adviser Jake Sullivan and Juan Gonzalez, the National Security Council's senior director for the Western Hemisphere.

"We talked about the economic and social conditions in Argentina at the moment," Milei said in brief comments before he was whisked off in his official car. Milei aligned himself with Western values, his office later said.

The White House said Sullivan and Milei had discussed during their meeting the importance of building on a strong bilateral relationship on economic issues and shared priorities such as investment in clean energy and technology.

Milei, a far-right libertarian who takes office on Dec. 10, won election this month pledging radical reforms such as dollarization and "shock" austerity to fix Argentina's economy. Inflation is near 150%, foreign currency reserves are in the red and a recession is looming.

His foreign policy, meanwhile, is unabashedly pro-United States and pro-Israel, with a cooler stance on top trade partners Brazil and China.

"Milei is a unicorn, the leader of a major Latin American economy who is ostentatiously pro-American," said Benjamin Gedan, director of the Latin America program at Washington-based think-tank the Wilson Center.

While Milei's incoming team has looked to moderate earlier criticism of China and Brazil's leftist government, the U.S. trip ahead of his inauguration underscores his priorities.

He has also pledged not to join the China-led BRICS trade group. That's a sharp change in approach from outgoing center-left President Alberto Fernandez, who visited Moscow as Vladimir Putin was readying his invasion of Ukraine in February last year and recently returned from a visit to Beijing.

THE $44 BILLION QUESTION​

Milei also needs to get the country's $44 billion deal with the International Monetary Fund back on track, with support from the U.S. - the IMF's largest shareholder - key to any revamp.

IMF Managing Director Kristalina Georgieva said earlier on Tuesday that she would meet Milei at the lender's headquarters, but the meeting did not happen. The IMF did not respond to a request for comment on the missed meeting.

Economic advisors to Milei, Nicolás Posse and Luis Caputo, met with the IMF's No. 2 Gita Gopinath and other fund officials, the fund said separately.

"They discussed the country's complex challenges and plans for urgently strengthening stability and setting the basis for more sustainable growth," the IMF said in a statement.

A U.S. Treasury official confirmed that Milei's advisors met with Treasury officials to discuss the president-elect's economic agenda, but declined to provide details. The Treasury manages the dominant U.S. shareholding in the IMF.

Argentina is by far the largest global debtor to the Washington-based lender but its program has ran off the tracks, and the IMF has been losing patience. The program is used mostly to pay the Fund back for a failed $57 billion program from 2018.

During his campaign Milei vowed to dollarize South America's second-largest economy, though he seems to have put that on the back burner while he looks to overturn a deep fiscal deficit and tamp down inflation. He has stuck, however, to pledges that he will radically change the mandate of the central bank.

The IMF has said in the past that dollarization is not a substitute for sound macroeconomic policy. Lack of an orthodox policy framework under the current administration and a sharp increase in central bank-financed spending in the run-up to the presidential election further hurt the Argentine economy.

Milei and IMF officials had a first virtual meeting on Friday, which Georgieva called a "very constructive engagement".

Milei's office said the meeting with the IMF was part of protocol to explain the incoming team's economic plan and not in search for more financing.

Georgieva, however, told Reuters in an interview that the IMF was "very keen" to support Argentina and the country could be a candidate to receive a relatively small amount of extra financing through a trust for middle-income countries.

Argentina's Milei seeks foreign policy, IMF reset in Washington trip

Argentina's president-elect Javier Milei met on Tuesday with top U.S. officials in Washington and his economic team huddled with IMF officers as he seeks to formulate a plan to reshape the country's foreign policy and lead its economy out of crisis.

www.reuters.com

 

[LeonardoBjj]

With soy and lithium trade in the balance, Argentina's Milei has a China conundrum​

By Lucinda Elliott, Joe Cash and Maximilian Heath
December 7, 20237:00 AM GMT-3Updated 6 hours ago

BUENOS AIRES/BEIJING, Dec 7 (Reuters) - Argentina's President-elect Javier Milei has a China conundrum.

The libertarian economist insulted communist-run China in a fiery campaign, but takes office on Sunday needing the country's second-largest trade partner more than ever as a recession looms and foreign currency reserves run dry.

Since he won the Nov. 19 election, Milei's team have taken a more diplomatic tone, reflecting complex ties with China, the top buyer of Argentine soybeans and beef, a key investor in its lithium, and the provider of an $18 billion currency swap - effectively, a form of credit provision that has helped Argentina avoid default.

Miguel Schiariti, president of the local CICCRA meat industry chamber, is hopeful of a "cordial" relationship, pointing to recent comments by incoming foreign minister Diana Mondino. China buys over three-quarters of Argentina's beef exports.

Mondino told Reuters in a Dec. 2 interview that the new government would review "secret" state-to-state deals to ensure they were all above-board, but emphasized Argentina would not cut ties with China, and would look in fact to bolster private trade.

"The private sector is the one that makes the deals," she said, adding that Argentina wanted to "export as much as possible to everyone." The new government will be keen to overturn trade deficits, she said, including with China - around $10 billion last year.

"We have a lot of debt... so we need a positive surplus."

'PROJECTS WILL BE REVIEWED'​

Not everyone is convinced that things will be so easy, with sensitive mega-projects including hydroelectric and nuclear needing solid state-to-state relations.

In the southern province of Santa Cruz, Chinese-made turbines are set to arrive early next year for a $5 billion hydropower dam project, which the outgoing Peronist regional governor Alicia Kirchner said could be held up by the change in government.

"Those dams are at risk with Milei," Kirchner said in an October interview, citing his public criticism of China during the campaign.

"(Milei) says we can be an island," Kirchner said. "I don't think the country has a future that way."


Milei's campaign has not spoken specifically about the dams.

China is providing financing for around a dozen ongoing infrastructure projects in Argentina, government data show, which range from railways and solar farms to space stations and fertilizer facilities. It also has a dozen mining investments, especially in electric-vehicle battery metal lithium.

Some projects are already facing big delays or are "paralyzed," said Patricio Giusto, director of the Sino-Argentina observatory based in Buenos Aires, citing poor management, regulatory hurdles and domestic economic issues.

That could worsen if diplomatic ties are strained, he said. Cross-cancellation clauses in some contracts could allow Beijing to stop loans to projects if another one was canceled, he added.

"If Milei attempts to cancel any of these public works contracts, China would simply ask for the money back from any number of projects," Giusto said. "That's money Argentina simply doesn't have."

Construction of the two Santa Cruz hydropower plants, the biggest Chinese investment yet in Argentina and funded by the China Development Bank, began in 2015 but remains less than half complete, two provincial sources close to the work said.

Chinese investors would likely be practical, a senior diplomat in Buenos Aires said. "There won't be confrontation with Argentina but projects will be reviewed."

China's embassy in Buenos Aires did not immediately respond to a request for comment.

'OTHER PROBLEMS TO SOLVE FIRST'​

China also gobbles up Argentina's soybeans and other grains, buying over 93% of the country's soy exports so far this year, official data show. It rises to almost 100% for barley and sorghum.

Overall, China accounts for some 10% of Argentine exports, and over a quarter of its imports.

"We believe that the foreign ministry will maintain relations and negotiations with China," said Gustavo Idigoras, president of CIARA-CEC, which represents major grains exporters and crushing companies like Bunge and Cargill.

Meanwhile, China's Gangfeng Lithium (002460.SZ), Tsingshan Holding Group, and Zijin Mining (601899.SS) have major investments in Argentina's lithium sector, the world's no. 4 producer of the "white gold" metal.

In China, experts saw a likely pragmatic relationship.

"Milei will view Argentina's political relationship with China in economic terms. He used to be an economist, after all," said Beijing-based Hu Yukun, a Chinese international relations commentator.

Hu predicted Milei would at most downgrade the relationship, but would, like previous governments, treat China as a crutch for the country's economic woes, flagging the currency swap, which cash-strapped Argentina has used to pay back the International Monetary Fund (IMF).

The swap - of which some $11.5 billion has already been activated - could come into the crosshairs of Milei's government, an Argentine central bank source said.

"It is now an issue for the next administration. The swap was useful to the current government because it avoided defaulting on payments with the IMF," the source said.

Milei's recently appointed economic team has not spoken about the currency swap but has had initial meetings with the IMF that Milei described as "collaborative."

The swap "could be (impacted) because of what he has said about not having relations with China at the state level," the source said. "But in recent weeks his speech has moderated and he has many other problems to solve first."

Reporting by Lucinda Elliott, Joe Cash, Maximilian Heath and Jorge Otaola; Additional reporting by Jorgelina do Rosario; Editing by Adam Jourdan and Rosalba O'Brien

https://www.reuters.com/world/ameri...entinas-milei-has-china-conundrum-2023-12-07/

@SalvadorAllende - Looks like the dude will end being better for Argentina after all!

 

[SalvadorAllende]

@SalvadorAllende - Looks like the dude will end being better for Argentina after all!

Who knows. He will take office this sunday.

Also who the fuck reads copy&pasted news? Fuck that

 

[LeonardoBjj]

Who knows. He will take office this sunday.

Also who the fuck reads copy&pasted news? Fuck that

- Me?

 

[Arkain2K]

To be fair, this is not actually a devaluation, but rather a correction to reflects the Argentine peso's true market value.

Argentina to devalue peso by over 50% as part of emergency economic reforms



Argentina will devalue the peso by more than 50% as part of emergency measures to help the nation’s struggling economy, the country’s Economy Minister Luis Caputo announced Tuesday.

The stark move changes the official conversion rate to 800 pesos per dollar from 365 pesos and comes just days into President Javier Milei’s term.

Milei campaigned on a pledge to get rid of the peso and replace it with the dollar in order to get the economy back on track. The peso has been artificially supported for years by strict capital controls, and its value has plunged roughly 52% this year against the US dollar.

Argentina’s central bank in recent years has printed more of the peso to help the country’s government avoid defaulting on its debt. That has resulted in skyrocketing prices.

The move marks the first of several steps to tamp down that hyperinflation, which led Argentina’s central bank in October to raise its benchmark interest rate to 133%.

Caputo on Tuesday reiterated Milei’s campaign theme that “there is no money” as he outlined other measures, including a cut to new public works projects, plans not to renew labor contracts that have been in effect for less than one year and reducing energy and transportation subsidies.

“For a few months we’ll be worse off, particularly with inflation,” he said.

Regarding public works, Caputo said that “there’s no money to pay for works that often end up in the pockets of politicians and business people.”

The International Monetary Fund said Tuesday following Caputo’s remarks that it supports the new initiatives.

“IMF staff welcome the measures announced earlier today by Argentina’s new Economy Minister, Luis Caputo. These bold initial actions aim to significantly improve public finances in a manner that protects the most vulnerable in society and strengthen the foreign exchange regime,” Julie Kozack, IMF director of communications, said in a press release.

https://www.cnn.com/2023/12/12/economy/argentina-milei-peso-dollar/index.html

 

[Sinister]

Argentina’s libertarian president-elect picks a former Central Bank chief as his economy minister​

By DANIEL POLITI | November 29, 2023

Argentina's libertarian president-elect picks a former Central Bank chief as his economy minister

Argentina’s President-elect Javier Milei says he's chosen Luis Caputo, a former finance minister and Central Bank chief who is known as an expert in markets, to lead the Economy Ministry when the right-wing leader takes office on Dec. 10.

apnews.com

All "libertarians" who support police States are totally full of sh*t. This guy is consolidating State power to crack down on protests. This is likely because the price controls placed by the Peronists are now revoked, prices are higher, and they're going to devalue the peso even further:

Argentina’s security minister announces crackdown on protests

Move comes as demonstrations are expected to grow as social groups react to new president Javier Milei’s austerity plans

www.ft.com

This includes cracking down on masking (for purposes of recording identities), creating a registry of people and organizations who are labeled problematic, and billing these organizations and individuals for the cost of the security forces. Imagine the Government setting the police on you and then billing you for it. Lol

Reactionary voting, no faster path to fascism.

 

[milenss]

Argentine - next US state..

 

[LeonardoBjj]

All "libertarians" who support police States are totally full of sh*t. This guy is consolidating State power to crack down o protests. This is likely because the price controls placed by the Peronists are now revoked, prices are higher, and they're going to devalue the pesp even further:

Argentina’s security minister announces crackdown on protests

Move comes as demonstrations are expected to grow as social groups react to new president Javier Milei’s austerity plans

www.ft.com

This includes cracking down on masking (for purposes of recording identities), creating a registry of people and organizations who are labeled problematic, and billing these organizations and individuals for the cost of the security forces. Imagine the Government setting the police on you and then billing you for it. Lol

Reactionary voting, no faster path to fascism.

Argentina’s president warned of a tough response to protests. He’s about to face the first one​

BY DÉBORA REY AND ALMUDENA CALATRAVA
Updated 1:00 PM BRT, December 20, 2023

BUENOS AIRES, Argentina (AP) — Just days after taking office, Argentine President Javier Milei’s government announced drastic economic measures that angered some social and labor groups, and warned it would crack down on any protests blocking streets.

The right-wing populist on Wednesday will face the first test of how his administration responds to demonstrations after those groups called on people to turn out to protest the economic shock measures, which Milei has said are needed to address Argentina’s severe crisis.

The shocks include a 50% devaluation of the Argentine peso, cuts to energy and transportation subsidies, and the closure of some government ministries. They come amid soaring inflation and rising poverty.

Milei’s security minister, Patricia Bullrich, presented a new “protocol” to maintain public order that allows federal forces to clear people blocking streets without a judicial order and authorizes the police to identify — through video or digital means — people protesting and obstructing public thoroughfares. It can bill them for the cost of mobilizing security forces.

The new protocol is aimed at preventing blockades, especially in Buenos Aires, where regular protests often block street for hours in what are commonly known as “piquetes.”

Some groups are saying the protocol goes too far and criminalizes the right to protest.

On Wednesday morning, hours before the planned protest, police officers were deployed in downtown Buenos Aires and other parts of the city but mainly at the entrances to the capital and some public transportation stations.

Bullrich warned Wednesday that authorities won’t let people block streets. “They can demonstrate as many times as they want. They can go to squares,” she said to TV channel Todo Noticias. “But the streets are not going to be closed.”

Argentine labor, social and human rights groups on Tuesday signed a petition asking the United Nations and the Inter-American Commission on Human Rights to intercede against the new public order prosedures. The document states that the security protocol is “incompatible with the rights to free assembly and association, freedom of expression and social protest” recognized in the country’s constitution.

Argentina’s government went farther this week, and on Monday announced that people who block streets could be removed from the public assistance benefit lists if they are on one.

“To the beneficiaries of social plans: know that no one can force you to go to a march under threat of taking away your plan,” said Sandra Pettovello, head of the newly created Human Capital Ministry, which combines what were the ministries of Labor, Education and Social Development.

“Protesting is a right, but so is the right of people to move freely through Argentine territory to go to their workplace,” she said.

In Argentina, some people receive social support directly from the government, but others get support through social organizations with direct links to federal offices. Milei’s administration says that many of these groups use this as way to force people to go out to protests in exchange for support.

Polo Obrero, which represents the unemployed, is one of the social groups calling for the protests on Wednesday. Its leader, Eduardo Belliboni, said Milei’s government is planning to go “against the right to protest.”

People were called to protest in Buenos Aires, marching from Congress to the historic Plaza de Mayo. The march will coincide with the 22nd anniversary of a protest against the government’s handling of an economic crisis that left dozens dead and led to the resignation of then-President Fernando de la Rúa

A recent poll by the University of Buenos Aires’ Observatory of Applied Social Psychology indicated that 65% of those surveyed agree with banning the blockades.

Milei, a 53-year-old economist who rose to fame on television with profanity-laden tirades against what he called the political caste, became president with the support of Argentines disillusioned with the economic crisis.

Argentina has an annual inflation rate of 161%, and four out of every 10 people are poor. The South American country also faces a $45 billion debt owed to the International Monetary Fund.

https://apnews.com/article/argentin...ocial-groups-c1b7d6506769f1331c37db6e16fe29a1

 

[Sinister]

Argentina’s president warned of a tough response to protests. He’s about to face the first one​

BY DÉBORA REY AND ALMUDENA CALATRAVA
Updated 1:00 PM BRT, December 20, 2023

BUENOS AIRES, Argentina (AP) — Just days after taking office, Argentine President Javier Milei’s government announced drastic economic measures that angered some social and labor groups, and warned it would crack down on any protests blocking streets.

The right-wing populist on Wednesday will face the first test of how his administration responds to demonstrations after those groups called on people to turn out to protest the economic shock measures, which Milei has said are needed to address Argentina’s severe crisis.

The shocks include a 50% devaluation of the Argentine peso, cuts to energy and transportation subsidies, and the closure of some government ministries. They come amid soaring inflation and rising poverty.

Milei’s security minister, Patricia Bullrich, presented a new “protocol” to maintain public order that allows federal forces to clear people blocking streets without a judicial order and authorizes the police to identify — through video or digital means — people protesting and obstructing public thoroughfares. It can bill them for the cost of mobilizing security forces.

The new protocol is aimed at preventing blockades, especially in Buenos Aires, where regular protests often block street for hours in what are commonly known as “piquetes.”

Some groups are saying the protocol goes too far and criminalizes the right to protest.

On Wednesday morning, hours before the planned protest, police officers were deployed in downtown Buenos Aires and other parts of the city but mainly at the entrances to the capital and some public transportation stations.

Bullrich warned Wednesday that authorities won’t let people block streets. “They can demonstrate as many times as they want. They can go to squares,” she said to TV channel Todo Noticias. “But the streets are not going to be closed.”

Argentine labor, social and human rights groups on Tuesday signed a petition asking the United Nations and the Inter-American Commission on Human Rights to intercede against the new public order prosedures. The document states that the security protocol is “incompatible with the rights to free assembly and association, freedom of expression and social protest” recognized in the country’s constitution.

Argentina’s government went farther this week, and on Monday announced that people who block streets could be removed from the public assistance benefit lists if they are on one.

“To the beneficiaries of social plans: know that no one can force you to go to a march under threat of taking away your plan,” said Sandra Pettovello, head of the newly created Human Capital Ministry, which combines what were the ministries of Labor, Education and Social Development.

“Protesting is a right, but so is the right of people to move freely through Argentine territory to go to their workplace,” she said.

In Argentina, some people receive social support directly from the government, but others get support through social organizations with direct links to federal offices. Milei’s administration says that many of these groups use this as way to force people to go out to protests in exchange for support.

Polo Obrero, which represents the unemployed, is one of the social groups calling for the protests on Wednesday. Its leader, Eduardo Belliboni, said Milei’s government is planning to go “against the right to protest.”

People were called to protest in Buenos Aires, marching from Congress to the historic Plaza de Mayo. The march will coincide with the 22nd anniversary of a protest against the government’s handling of an economic crisis that left dozens dead and led to the resignation of then-President Fernando de la Rúa

A recent poll by the University of Buenos Aires’ Observatory of Applied Social Psychology indicated that 65% of those surveyed agree with banning the blockades.

Milei, a 53-year-old economist who rose to fame on television with profanity-laden tirades against what he called the political caste, became president with the support of Argentines disillusioned with the economic crisis.

Argentina has an annual inflation rate of 161%, and four out of every 10 people are poor. The South American country also faces a $45 billion debt owed to the International Monetary Fund.

https://apnews.com/article/argentin...ocial-groups-c1b7d6506769f1331c37db6e16fe29a1

Campaign as if you sympathize with the disgruntled public, then bring down the heavy hand of the State on them. Seems legit

 

[Arkain2K]

Argentina's Milei signs decree to boost exports, deregulation​

By Maximilian Heath | December 20, 2023

BUENOS AIRES, Dec 20 (Reuters) - Argentine libertarian President Javier Milei on Wednesday signed a decree outlining economic reforms including an end to limits on exports plus measures to loosen regulations, as his new government combats a severe economic crisis.

"This is only the first step," Milei said in a televised address.

"The objective is to return freedom and autonomy to individuals and start dismantling the enormous amount of regulations that have impeded, hindered and stopped economic growth," he said.

Among the reforms are plans to privatize state-owned companies, but Milei did not name specific firms.

In the past, Milei, a self-described anarcho-capitalist, has said he favors the privatization of state-owned oil company YPF (YPFD.BA).

Since his inauguration on Dec. 10, Milei has pledged "shock" therapy for the economy including deep spending cuts in a bid to tame triple-digit inflation.

The former TV pundit rode a wave of popular anger to victory, campaigning on a promise to reverse the prolonged economic slump and blaming corrupt elites for the country's ills.

His government, which has devalued the local peso currency by over 50%, has said it plans to hike taxes for Argentina's grains exports - a key source of global supply for processed soybeans, corn and wheat.

The push for higher taxes intended to raise revenue so that other levies can be lowered was met last week with surprise and criticisms from farm groups that predicted the measure would hurt the industry.

Grains exports are also a crucial source of foreign currency reserves for the central bank, needed to finance imports and pay down debts.

Earlier on Wednesday, thousands took to the streets of Buenos Aires, the capital, to protest the government's austerity plans, lead by representatives for the unemployed demanding more support for the poor.

Argentina's poverty rate soared past 40% in the first half of this year.

https://www.reuters.com/world/americas/argentinas-milei-signs-decree-boost-exports-deregulation-2023-12-21/

 

[LeonardoBjj]

Protests erupt in Argentina against President Javier Milei’s economic shock decree​

By Miguel GoyenecheDecember 23, 2023

Buenos Aires, Argentina — Thousands took to the streets of Argentina in the past few days to protest a series of economic decrees proposed by President Javier Milei.

On December 20, Milei announced sweeping deregulations to Argentina’s economy, sparking backlash from opposition members and groups representing unemployed people.

Riot police were dispatched at major protest sites in the capital, Buenos Aires, including outside of Congress and the Plaza de Mayo, the city’s main square.

“Milei scammer” and “Money for education, not for the IMF,” read banners of protesters in the capital, according to El Pais.

In all, Milei announced over 300 measures to deregulate much of Argentina’s economy, a move which has been called unconstitutional by some observers.

Milei — who has been described as an anarchocapitalist — set out to reduce the government’s involvement and oversight in many aspects of Argentina’s economy, including announcing that he would privatize many state-owned companies, would decrease labor protections and remove regulations that limit the amount of agricultural and productive land that can be owned by foreign companies.

His so-called “Necessity and Urgency Decree” (DNU) included:

• Revoking the “Rent Bill,” allowing landlords to negotiate contracts with tenants without a set time limit or price control, as well as allowing them to negotiate in other currencies. (Argentina, especially Buenos Aires, has been experiencing a rent crisis for half a decade).
• Revoking the law that prohibits the privatization of State-owned companies.
• Reforming the “Labour Bill” to extend an employee’s trial period from three to eight months, and a reduction of the indemnization that companies must pay when they terminate employees.
• Revoking the “Land Bill,” which established that only 15% of the country’s productive land can be owned by foreigners, making way for international firms to buy up Argentina’s agricultural and resource-rich land.
• Modifying the “Societies Bill” to allow public, fan-owned soccer clubs to privatize.
• Opening up the country’s satellite internet services market to foreign competition. Argentina’s satellite internet is currently managed by State-owned telecom ARSAT.

“We are doing our utmost to try to reduce the crisis we inherited,” said Milei on a televised broadcast on December 20. “We designed a shock stabilization plan.”

The president also announced he would call for extraordinary sessions of Congress in order to present a package of bills to push forward his economic reforms.

“The DNU is going to have to go through Congress,” wrote journalist Matías Mowszet on X. “The only differences with a normal law are that: 1) It comes into force before passing through Congress and not after. 2) As long as only one of the two chambers approves it, it is firm. You don’t need both of you to approve it.”

Experts have begun questioning the legality of Miliei’s decree. According to constitutional lawyer Andrés Gil Domínguez, “This decree is an attempt to obtain the sum of public power and to supplant Congress, in its entirety, in the legislative function.”

Daniel Sabsay, president of the Argentine Association of Constitutional Law, also called the decree unconstitutional, and mad. “The exceptional circumstances required by the Constitution for the issuance of the DNU do not exist,” Sabsay told La Nación.

Former President Alberto Fernández — who was fiercely criticized by Milei in this year’s elections — also weighed in. “The Republic is at risk by the folly that the president exhibits when issuing measures contrary to the Constitution and the interests of our people,” he wrote on X.

A main architect of Milei’s controversial decree, Federico Sturzenegger, took to Radio Mitre to defend the measure. “The president didn’t send the measures through Congress because the idea is to show an image of regime change,” he said. Sturzenegger led Argentina’s Central Bank from 2015 to 2018.

Milei’s party, La Libertad Avanza, only holds 37 of 257 seats in the House and seven of 72 in the Senate. He will need to work closely with other coalitions to ensure his decree is passed in one of the two houses of Congress. Addressing the protests against his measures, on December 21 Milei told Radio Rivadavia, “There may be people suffering from Stockholm Syndrome. They are in love with the impoverishing model, and look at communism with nostalgia, love and affection.”

https://argentinareports.com/protes...resident-javier-mileis-economic-shock-decree/

 

[LeonardoBjj]

A nationwide strike in Argentina poses major test to Milei’s economic ‘shock therapy’​

PUBLISHED WED, JAN 24 20247:58 AM EST
Sam Meredith@SMEREDITH19

• The nationwide strike comes just 45 days after President Javier Milei took office, making it the fastest action of its kind into the term of a new Argentina government.
• Thousands of workers are poised to take the streets after a mobilization called by the opposition aligned Confederación General del Trabajo (CGT), the largest and most influential union in the country, and other union forces.
• Analysts warned that the potential for the labor union’s movement to grow in both size and potency could become a serious disruptor of economic activity.

Argentina’s largest labor union grouping on Wednesday is expected to hold a nationwide general strike to protest President Javier Milei’s shock economic agenda.

The strike comes just 45 days after the right-wing leader took office, making it the fastest action of its kind into the term of a new Argentina government.


Thousands of workers are poised to take the streets after a mobilization called by the opposition aligned Confederación General del Trabajo (CGT), the largest and most influential union in the country, and other union forces.

The strike represents a significant test for Milei, who has announced sweeping measures to deregulate Latin America’s third-largest economy.

Analysts said the general strike was unlikely to have a significant impact on Milei’s policies in the near term but warned the potential for the labor union’s movement to grow in both size and potency could become a serious disruptor of economic activity.

Argentina’s government has not responded favorably to the strike action. Milei’s administration has reportedly said it will dock a day’s pay from each striking public servant, and established an anonymous toll-free line for people to report “threats and pressure” on workers to stay away from their jobs.

“The general strike is more of a political test for the labour unions than for Milei,” Jimena Blanco, head of Americas at risk consultancy Verisk Maplecroft, told CNBC via email.

“Regardless of attendance, the strike caters to the unions’ own support base and, at this stage, is not representative of wider social sentiment. However, it has the potential to grow in the future as the impacts of the economic shock plan become palpable.”

Blanco said history shows that during Argentina’s hyperinflation crisis in the late 1980s, the Peronist-aligned unions held 13 strikes, eventually bringing an early end to the Raúl Alfonsín’s government.

“And while we do not expect the pursuit of a similar strategy, the relentless use of labour action to pressure the executive means mobilisations could become a serious disruptor of economic activity and suppress potential investor appetite, particularly if they turn violent and result in the damage of assets,” she added.

The left-leaning Peronist movement was founded by Juan Peron, who first became president in 1946. Peronist candidate Sergio Massa conceded defeat to Milei in the country’s presidential run-off late last year.

Economic crisis​

Argentina is once again in the grip of a profound economic crisis.
The purchasing power of Argentinians has been ravaged by an annual inflation rate of more than 211%, its highest level in 32 years, while two in five citizens now live in poverty after decades of financial mismanagement.

Milei has said there is no alternative to his proposed “shock therapy” to remedy the situation. He has announced plans to dollarize the economy, abolish the country’s central bank and privatize the pension system.

Last week, Argentina’s libertarian president called on business and political leaders to reject socialism and instead embrace “free enterprise capitalism” to bring an end to world poverty.

Nicolas Saldias, senior analyst for Latin America at the Economist Intelligence Unit, said the unwillingness of the highly partisan unions to call a strike during the last administration had likely sapped their credibility with the wider public.

“As a result, I think that many Argentinians will not interpret the strike favourably as it is too soon and the union leaders are extremely unpopular with the wider public,” Saldias told CNBC via email.

“The government was wise to leverage its honeymoon period to fast-track its reforms and it is making important progress on its legislative agenda as there is still goodwill among non-Peronist parties,” he added.

However, Saldias said that if the economy fails to recover quickly enough, subsequent strikes could have more of an impact on Milei’s agenda.

https://www.cnbc.com/2024/01/24/arg...r-battle-to-mileis-shock-economic-agenda.html

 

[Bunk Moreland]

Looks like Argentina is up for sale.

 

[Sinister]

A nationwide strike in Argentina poses major test to Milei’s economic ‘shock therapy’​

PUBLISHED WED, JAN 24 20247:58 AM EST
Sam Meredith@SMEREDITH19

• The nationwide strike comes just 45 days after President Javier Milei took office, making it the fastest action of its kind into the term of a new Argentina government.
• Thousands of workers are poised to take the streets after a mobilization called by the opposition aligned Confederación General del Trabajo (CGT), the largest and most influential union in the country, and other union forces.
• Analysts warned that the potential for the labor union’s movement to grow in both size and potency could become a serious disruptor of economic activity.

Argentina’s largest labor union grouping on Wednesday is expected to hold a nationwide general strike to protest President Javier Milei’s shock economic agenda.

The strike comes just 45 days after the right-wing leader took office, making it the fastest action of its kind into the term of a new Argentina government.


Thousands of workers are poised to take the streets after a mobilization called by the opposition aligned Confederación General del Trabajo (CGT), the largest and most influential union in the country, and other union forces.

The strike represents a significant test for Milei, who has announced sweeping measures to deregulate Latin America’s third-largest economy.

Analysts said the general strike was unlikely to have a significant impact on Milei’s policies in the near term but warned the potential for the labor union’s movement to grow in both size and potency could become a serious disruptor of economic activity.

Argentina’s government has not responded favorably to the strike action. Milei’s administration has reportedly said it will dock a day’s pay from each striking public servant, and established an anonymous toll-free line for people to report “threats and pressure” on workers to stay away from their jobs.

“The general strike is more of a political test for the labour unions than for Milei,” Jimena Blanco, head of Americas at risk consultancy Verisk Maplecroft, told CNBC via email.

“Regardless of attendance, the strike caters to the unions’ own support base and, at this stage, is not representative of wider social sentiment. However, it has the potential to grow in the future as the impacts of the economic shock plan become palpable.”

Blanco said history shows that during Argentina’s hyperinflation crisis in the late 1980s, the Peronist-aligned unions held 13 strikes, eventually bringing an early end to the Raúl Alfonsín’s government.

“And while we do not expect the pursuit of a similar strategy, the relentless use of labour action to pressure the executive means mobilisations could become a serious disruptor of economic activity and suppress potential investor appetite, particularly if they turn violent and result in the damage of assets,” she added.

The left-leaning Peronist movement was founded by Juan Peron, who first became president in 1946. Peronist candidate Sergio Massa conceded defeat to Milei in the country’s presidential run-off late last year.

Economic crisis​

Argentina is once again in the grip of a profound economic crisis.
The purchasing power of Argentinians has been ravaged by an annual inflation rate of more than 211%, its highest level in 32 years, while two in five citizens now live in poverty after decades of financial mismanagement.

Milei has said there is no alternative to his proposed “shock therapy” to remedy the situation. He has announced plans to dollarize the economy, abolish the country’s central bank and privatize the pension system.

Last week, Argentina’s libertarian president called on business and political leaders to reject socialism and instead embrace “free enterprise capitalism” to bring an end to world poverty.

Nicolas Saldias, senior analyst for Latin America at the Economist Intelligence Unit, said the unwillingness of the highly partisan unions to call a strike during the last administration had likely sapped their credibility with the wider public.

“As a result, I think that many Argentinians will not interpret the strike favourably as it is too soon and the union leaders are extremely unpopular with the wider public,” Saldias told CNBC via email.

“The government was wise to leverage its honeymoon period to fast-track its reforms and it is making important progress on its legislative agenda as there is still goodwill among non-Peronist parties,” he added.

However, Saldias said that if the economy fails to recover quickly enough, subsequent strikes could have more of an impact on Milei’s agenda.

https://www.cnbc.com/2024/01/24/arg...r-battle-to-mileis-shock-economic-agenda.html

Right wing populists being great at uniting a Country, as usual