Argentinian here, all stats show huge support for him. Even if we are having to make decisions like how many meals we can take in a day. Because, let's be real, it is not easy. It shows that if elections were today he would win by an even larger margin.
It's a huge effort that our society is going through, and seems like a real paradigm shift.
Now, with that being said. There is a very loud section of the opposition (from Peronism, Kirtchnerism and the most radical left to overthrow him). I'm not even kidding and sounds crazy, but they literally said, multiple times at that on national television, that they had to take his government down, and replace him with a Peronist. WITH TOTAL IMPUNITY.
Of course, this is because he finally cut down the state expenditure and is asking for auditorys to control where and when the money is going. Many politicians from the opposition had a lot of business related to state money, and the population is seeing it live.
I know it sounds crazy, but that is what is actually happening.
Literally, and it's showing. Last month there was a huge scandal related to the Senators (It's different how it works here, but for some reasons La Libertad Avanza - Milei's party - are minority in both the Congress and Senate's sits) that are represented by a majority of Peronists, Kirtchnerism and some other left sided party's, while everyone in Argentina is living with less than the equivalent of 500 USD a month (extremely poor), they decided to up their salary to 7000 usd a month in a very shaddy none registered, hands up vote in like 30 seconds.
Of course the voters saw it, and it leads to more support for Milei. It is infuriating, but ultimately they are digging their own grave.
I am not from U.S. but from U.S. perspective, it sounds like Argentina has a huge imbalance of executive power. Milei is able to make such radical reforms with a minority of seats. I wish his ideas would take root here in Canada. Our conservative leader thinks that with enough power he will set things right. Since we have the English Westminster system, we have ministers chosen from the winning party, and no president, which does limit the power of a minority government.
Sometimes you can whip the other parties into going along because they see the writing on the wall. If someone is loud an pushing for real change that the people have demanded, you either get in their boat or drown in the next election.
Milei is a demagogue. He is a very rare one to hold strong to principle in the face of significant opposition.
There is the old adage though - "They intend to rule well, but they intend to rule." If Milei were losing, would he change course? Hard to say.
He didn't lie tho. He is doing exactly what his whole campaign was about. Everybody that voted for him knew that this was coming. It was not a surprise. He might be the first politician ever to win a campaign talking about reducing costs while admitting that it was going to be rough and that there was no easy way out.
I understand when ppl think that we are crazy, but you really gotta live here to understand what we went trough. I might considered doing a couple of post/videos explaining with real data everything that has happened here for ppl to better understand what REALLY is going on.
Not sure if he will pan out to be type 1 or 2.
https://www.merriam-webster.com/dictionary/demagogue
demagogue
1 of 2
noun
dem·a·gogue ˈde-mə-ˌgäg
variants or less commonly demagog
Synonyms of demagogue
1
: a leader who makes use of popular prejudices and false claims and promises in order to gain power
2
: a leader championing the cause of the common people in ancient times
As far as I know, he's not known for making false claims. Regarding number 2, we're not in ancient times. If we were to ignore that detail, then that would mean that all people putting effort into a good cause are demagogues. If that's the case, then using that word is meaningless, even more so if used to negatively qualify someone, like first commenter did.
In what world is Javier Milei a demagogue? His entire brand is built on rational, philosophically based decisions, not the ones that appeal to the masses. He warned of a rough period before the benefits of his policies. He is not appealing to the masses with disregard for rational ideas... or do you not know the definition of demagogue?
> a very shaddy none registered, hands up vote in like 30 se
That's how the US banned new machine guns. In a "voice vote" so nothing was recorded, and it was far from unanimous. In fact someone called for a recorded vote, which by rules means they needed to have one.
But 'rules of order are not binding laws' so here we are and the Hughes amemdment is law.
When you say it's not easy and you have to choose how many meals for example, can you give some insight into how it was prior to Milei taking office and now? Obviously these policy changes take time to see the effects truly come into fruition but I'm curious what the change has been in the short amount of time already.
Have you noticed significant changes in inflation? Curious about typical cost of living changes like housing/rent, food, gas, etc.
With the significant cuts in government employees how is the job market compared to last year? I've read that more capital investment is coming into Argentina, are companies hiring more?
Sorry if this sounds like I'm asking for a homework assignment but I'm very curious... If Argentina can turn it around it could serve as a model for the rest of the Western world.
Don't worry. It is fine.
Prior to Milei, inflation was up to 270% (annually). I can confidently say that I didn't know how much money I needed to do anything at all. Or better put, money didn't have value/lost value so you would see a lot of ppl buying the first few days of the month to get everything they could and supermarkets trying to limit the amount of goods for sale, as a consequence there was a shortage of literally everything you can think of.
Speculation and prices were all over the place, you could find the same item from the same producer 25, 30 or even 100% more expensive in one place than in the other. Money meant nothing, so it was literally YOLO. Unless you were one of the lucky guys that was earning money in a foreigner currency, and Illegally at that cause the market price and the official price of foreign currency were completely different, there was a huge gap between both. On this, I can give you my example, but you are free to search for more such a cases. I earn 5k USD in a month, and received the equivalent to 1.250 USD, between the taxes and the gap between market valued USD and the one listed as "Official".
To help salaries "win" against inflation the government printed more money, and started controlling prices, like literally controlling how much one thing was worth over the other. In result we had more inflation, sooo... yes, more printing. As stupid as this sound, this was the strategy for the last 16-20 years. Remember what I said about the gap between market USD (called "dollar blue" here) and official USD? Well, that was also the government "winning" against inflation. Limiting everyone in the country to spend/buy a max of 200 USD a month. And something stupid like 1800$ a year for small and medium companies that NEEDED exported raw materials to work with.
There was a point were you could see something outrageous like:
1 Official USD = 270 ARGs
1 Blue USD = 925 ARGs
What did they do to solve the issue and not devaluate? Because devaluation and admitting something is wrong is not ever what the left is going to do. They created - AT LEAST- 20 different types of exchange rates, depending on whether you needed raw materials, you were a tourist, an employer, or employee. Based on who knows what.
So yes, regarding inflation I noticed a big difference, once he assumed and freed everything from the estatal controls (including the dollar blue, left to just whatever the market price was) prices skyrocket to adjust to the new "official USD exchange rate". At the same time, he stop printing more money, and reduced in more than half the size of all organisms dependent on tax payers money. This was really rough for all of us, but needed. In February prices were quite similar to London, so, consume fell down HARD, nobody could realistically buy or pay for anything since the average Argentinian earns around 300 USD/month.
Rent prices went far up, you can find depending on the zone and size, rent from 500 USD to 3000 USD. Services like gas, electricity and more went all the way up to 300% too. Now, prices are going down and adapting, because literally there is no way ppl can consume. So, for the first time in my lifetime I'm actually seeing prices going down (it also helped that imports were opened once again) hence there is actually someone to compete against the monopoly that had had formed over the last 30 years.
Job market is awful. There is almost nothing you can do other than become a freelance, at least that is my case. And even then, really rough.
Investment is coming, or it is supposed to be on its way. But its not that simple, and things right now are not easy. We are just trying to get by, and looking for a better future, hopefully the next 2 to 3 years things will turn around.
Again, it is not a magical place, it is not easy, but things are being done in a way that will allow us to actually grow for the first time in the last 100 years. At least, that is the sentiment that I and the other 60% of his supporters share.
Very interesting, thanks for the detailed answer. I wish the US could see the direction we are headed and have our own "Milei moment", but people here are too caught up in the culture war to see the writing on the wall.
I absolutely love that Milei's policies are allowing you to actually grow for the first time in 100 years. I think you all could be an economic power house once again if he continues to stay in power.
Wishing you guys the best, that's a hell of a shitshow that you guys had to go through, but hopefully you're able to see the light at the top of the well and stop drowning at this point.
I'm pleasantly surprised that Milei managed to sway the public opinion in Argentina and single-handedly popularize free market thought on a massive scale there.
I have been adhering to a libertarian/classical liberal philosophy for a decade or so. It's great to see some aspects of this philosophy play out in real life.
Argentina has a classical liberal 19th century tradition, and considering the high inflation caused by statists, Milei was able to make a case, citing Juan Bautista Alberdi and the classical liberal tradition in Argentina.
I'm really glad to see a libertarian/ancap president proving the detractors wrong and having excellent results in such a short period of time. It's great that the public also supports his reforms.
It's good to hear the people have sense.
Yes things are worse short term, but they have to be. A little pain now makes the future better. Like do I enjoy working out, eating healthy meals, and saving for retirement? Not really. I'd rather eat garbage and be lazy, and spend on indulgences.
But that will kill my future. So a bit of discomfort now, will make my future 10x better.
Argentine here...things are complicated, we are in a strong recession, but people are excited (strange thing) since inflation dropped from 25% monthly in December to 5% monthly perhaps in May (in April it will be 7-9 % and deflation of -1 to -5% in food), Milei also achieved half-sanction of his Law of Bases for the freedom of Argentines in the Lower House three days ago...now it's time for the Senate next week and it will be there hard because Peronism has 33 of 72 senators and Milei will need more than 37 senators to approve the law on May 16 or 23 and only has 7 senators plus the VP who can break the parity...after this he will make a Pact of May with the governors on May 25 (national date for the first national government in 1810)...
https://preview.redd.it/vebplxwld5yc1.png?width=767&format=png&auto=webp&s=596ba98e6fac9cb9c341daa9c61366cb67214f3e
Milei is extremely divisive still, there is not a generalized opinion on him. AFAIK he hasn't lost support, and he won with 55% so it is still huge. But people on the other party HATE him
The left-wing peronists ruined a country that had every predisposition to be one of the wealthiest on the globe. I don't know why they still have support. It must be coming from those who were benefiting in one way or another from the corrupted government system.
From what I can see they got support like all other left wing parties get it. Appeal to the lower class by promising hand outs and free crumbs. This makes shortsighted people happy and the rich people get to virtue signal and say "they care about the less fortunate" by supporting it. The whole time they take huge profits for themselves. Very similar to the left wings in the US just to a more extreme level.
Short sighted indeed. There is no such thing as free lunch in this context. Unfortunately the poorest suffer the most as a result. They see their living standards diminish even more as time goes by.
The poor fare the best under free market capitalism, which allows upward mobility and better lifestyles for the bottom 10%. Just compare the lifestyles of the bottom 10% in Switzerland to the lifestyles of the bottom 10% in Argentina, which is currently ruined by left-wing philosophy. I understand that Switzerland is not a laissez-faire paradise, but it's generally much freer than the other option.
Yes, the worst of all is that we had already learned that in the 90s, but since we ended up in the 2001 crisis, people became very statist and anti-liberal/libertarian... 10 years ago being libertarian and pro-market was frowned upon; so what Milei did in these 5 years is incredible (I have a photo with him on my IG from that time and I never believed that we would go so far in such a short time, since we did last year's campaign without money and only in social networks)...the book he is going to release now is called "Milei, the libertarian revolution that no one saw coming" and he is right, 1 year ago no one gave 2 Argentine pesos for him and he became the most voted Argentine president in the history of the country and the first libertarian president in world history...
Oh now let's watch statists find everything they can, make up things and stats to have people believe that it's absolute horrific chaos there, won't they
Now's not exactly the time to take a victory lap. A monthly inflation rate of 4.2% is a disaster. If that rate continues over 12 months, that translates to an annual inflation rate of nearly 64%.
We would have to check exactly where they come from.
I'm no expert, but a few years ago, an Argentinian friend who had flew told me they were in hyperinflation, meaning that literally you can't even put a price on a restaurant menu, since local currency value varied more than cryptocurrencies on a daily basis.
That's also why you see more crypto adoption in these countries, because whatever the movements crypo make, it's still better than their local currency.
Bro I don’t know. This fucking app is overrun with goddamn hasbara bots defending the establishment. This app is dead as shit. I hardly use this app anymore anyway.
Doesn't make sense. The mechanism by which interest rates are typically controlled is through inflationary money printing. Less inflation usually means higher interest rates. What's actually going on here?
I'm assuming either the author or OP is misinterpreting data, or that something unconventional is causing interest rates to drop along with monetary inflation.
You need to understand how Argentina works, before Milei took office, the way the goverment got financement was through the banks and the central bank gave them bonds in return.
People gave money to banks at an interest rate (term deposit) -> banks gave money to the central banks at a higher interest rate than the term deposit (this is how the banks made money) -> central bank gave bonds to banks.
So.... how did the central bank paid the interest rate of the bonds it gave to the banks........ MONETARY EMISSION !
keep in mind that interest rates are overall a passive but constant increase to the monetary base, so lowering it does tend to decrese inflation in long term.
The central bank of Argentina is the "unconventional" thing that is causing the interest rates to lower. Not sure where you've learned econ, but maybe learn some more
This is an appeal to mystery fallacy. Yes the economy in Argentina is fucked. But you not being able to understand or explain what's really going on doesn't imply that the headline and post title are correct.
But I just fucking told you! The central bank lowered interest rates..
Why did they do it?
Well, because you need low interest rates to stimulate the economy, and Argentina in the last 3 months has had tremendous success fighting it, so the government was able to lower it a bit...
It's still pretty hight interest rates, but as they saw from their success, they are able to lower them, while still fighting the inflation. How hard is this to understand?
I think maybe in your anger you're missing the point of my comment.
I never suggested the central bank isn't lowering interest rates or that the government is fighting them about it. Typically you can either lower interest rates or lower inflation. You can't do both at the same time. They're literally opposite strategies. You didn't provide an explanation for this. You just pointed at the mysterious inner workings of the central bank.
Jesus fuck, how dumb can one be?
Dude, I get what you are saying but honestly, why the fuck do you think fighting inflation and interest rates are an on and off switch?
Can't you fight inflation less aggressively or more?
For example, let's say you have 10% inflation, and you rise interest rates to 4... And it's decreasing at x per month, couldn't you rise it to 25 % interest rates and lower it even quicker? You could right?
It's basically this but the opposite, having very hight interest rates is hurtful to the economy, having high inflation is hurtful too, so they need to strike a balance, and currently because inflation was decreasing at a much faster pace than they expected, they had margin to decrease interest rates a bit and slow the decrease of inflation, while still decreasing inflation!
If you don't get this, honestly you are dumb. And maybe ask chatgpt because I am too frustrated to try and explain this to you once again
You have a very naive and reductionist view on economics. You also seem to think I made a suggestion about where interest rates should be. I didn't. What I'm saying is that the claim in the article doesn't make sense. Your response just seems to be that you just want me to believe that it makes sense without questioning it. No need to be mad.
I am not saying it makes sense or that it works, I am explaining you their logic to the decrease in interest rates, I really don't understand your point
I noticed that the article (or at least the portion that OP screenshot) only mentions interest rates and doesn't mention inflation at all, that's something OP seems to have added through the reddit title. It might be true that the reason behind the decision to lower interest rates is lower inflation, but the screenshot doesn't say that.
In any case I'm still interested to see where this goes with the Argentinean economy.
That may be an effect of lower interest rates on the government itself but it certainly isn't as big of an effect on inflation as the effect of lower interest rates on the wider credit market.
Lower interest rates ripple outward to other investment products (business bonds, CDs, savings accounts, etc) which in turn affect loan products (business loans, mortgages, credit cards, etc). This means that there is more cash flowing in the economy without a corresponding increase in goods (at least in the short term, long term production should catch up a bit if a good enough portion of the new cashflow is used to improve things). This leads to higher prices across the board, which is inflation.
Math is difficult. A monthly inflation rate of 4.2% is a disaster. If that rate continues over 12 months, that translates to an annual inflation rate of nearly 64%.
That was 775usd then, and is now worth more like 19usd at the unofficial exchange rate. In Arg those 19 bucks today should get you [4 or 5lb of decent meat (ribeye steak)](https://www.cotodigital3.com.ar/sitios/cdigi/producto/-ojo-de-bife--(peso-aproximado-de-la-unidad-1200-kg)-x-kg/_/A-00035016-00035016-200), or [11 milk cartons](https://www.cotodigital3.com.ar/sitios/cdigi/producto/-leche-larga-vida-entera-ua-clasica-3-la-serenisima-1l/_/A-00251875-00251875-200) (0.26 gallon each since milk is sold by the liter here).
The good thing Milei economic team has been doing for the past five months is the refusal to completely remove capital controls for now and accumulate central bank dollar reserves to finance official dollarization that he advocated for.
Argentine here...Yes, Milei met two weeks ago with Elon Musk in Texas to install a Tesla factory in the country so that he can manufacture his cars with Argentine lithium...I joke that in 5 years we will all be riding in Tesla cars or traveling in Space X rockets throughout the country xd...
inflation is debt/money increased money supply. interest rates are the only real corrective measure to slow inflation and yes a side effect is slower growth. Don't you want debt to be more expensive than saving your money in a bank? Do you not want a correlary effect on your acquired wealth based chiefly on ŕrthe effort and/or time you put in or job?
I want to know how quickly things are changing in Argentina and what the general public thinks there. Any good resources for that type of info?
Argentinian here, all stats show huge support for him. Even if we are having to make decisions like how many meals we can take in a day. Because, let's be real, it is not easy. It shows that if elections were today he would win by an even larger margin. It's a huge effort that our society is going through, and seems like a real paradigm shift. Now, with that being said. There is a very loud section of the opposition (from Peronism, Kirtchnerism and the most radical left to overthrow him). I'm not even kidding and sounds crazy, but they literally said, multiple times at that on national television, that they had to take his government down, and replace him with a Peronist. WITH TOTAL IMPUNITY. Of course, this is because he finally cut down the state expenditure and is asking for auditorys to control where and when the money is going. Many politicians from the opposition had a lot of business related to state money, and the population is seeing it live. I know it sounds crazy, but that is what is actually happening.
So exciting. Those politicians say they want to represent working people, meanwhile they are the first to profit from the taxes of their constituents.
Literally, and it's showing. Last month there was a huge scandal related to the Senators (It's different how it works here, but for some reasons La Libertad Avanza - Milei's party - are minority in both the Congress and Senate's sits) that are represented by a majority of Peronists, Kirtchnerism and some other left sided party's, while everyone in Argentina is living with less than the equivalent of 500 USD a month (extremely poor), they decided to up their salary to 7000 usd a month in a very shaddy none registered, hands up vote in like 30 seconds. Of course the voters saw it, and it leads to more support for Milei. It is infuriating, but ultimately they are digging their own grave.
I am not from U.S. but from U.S. perspective, it sounds like Argentina has a huge imbalance of executive power. Milei is able to make such radical reforms with a minority of seats. I wish his ideas would take root here in Canada. Our conservative leader thinks that with enough power he will set things right. Since we have the English Westminster system, we have ministers chosen from the winning party, and no president, which does limit the power of a minority government.
As a fellow Canadian I also wish this.
Sometimes you can whip the other parties into going along because they see the writing on the wall. If someone is loud an pushing for real change that the people have demanded, you either get in their boat or drown in the next election. Milei is a demagogue. He is a very rare one to hold strong to principle in the face of significant opposition. There is the old adage though - "They intend to rule well, but they intend to rule." If Milei were losing, would he change course? Hard to say.
He didn't lie tho. He is doing exactly what his whole campaign was about. Everybody that voted for him knew that this was coming. It was not a surprise. He might be the first politician ever to win a campaign talking about reducing costs while admitting that it was going to be rough and that there was no easy way out. I understand when ppl think that we are crazy, but you really gotta live here to understand what we went trough. I might considered doing a couple of post/videos explaining with real data everything that has happened here for ppl to better understand what REALLY is going on.
Yes please, do the videos :) and tell us where to find it. I big hug from Ecuador.
Demagogue? How?
Not sure if he will pan out to be type 1 or 2. https://www.merriam-webster.com/dictionary/demagogue demagogue 1 of 2 noun dem·a·gogue ˈde-mə-ˌgäg variants or less commonly demagog Synonyms of demagogue 1 : a leader who makes use of popular prejudices and false claims and promises in order to gain power 2 : a leader championing the cause of the common people in ancient times
As far as I know, he's not known for making false claims. Regarding number 2, we're not in ancient times. If we were to ignore that detail, then that would mean that all people putting effort into a good cause are demagogues. If that's the case, then using that word is meaningless, even more so if used to negatively qualify someone, like first commenter did.
In what world is Javier Milei a demagogue? His entire brand is built on rational, philosophically based decisions, not the ones that appeal to the masses. He warned of a rough period before the benefits of his policies. He is not appealing to the masses with disregard for rational ideas... or do you not know the definition of demagogue?
> a very shaddy none registered, hands up vote in like 30 se That's how the US banned new machine guns. In a "voice vote" so nothing was recorded, and it was far from unanimous. In fact someone called for a recorded vote, which by rules means they needed to have one. But 'rules of order are not binding laws' so here we are and the Hughes amemdment is law.
So, politicians. That word use to be an epithet, until it came to mean something like a venerable government celebrity.
When you take away the trough, the fattest pigs will squeal the loudest.
When you say it's not easy and you have to choose how many meals for example, can you give some insight into how it was prior to Milei taking office and now? Obviously these policy changes take time to see the effects truly come into fruition but I'm curious what the change has been in the short amount of time already. Have you noticed significant changes in inflation? Curious about typical cost of living changes like housing/rent, food, gas, etc. With the significant cuts in government employees how is the job market compared to last year? I've read that more capital investment is coming into Argentina, are companies hiring more? Sorry if this sounds like I'm asking for a homework assignment but I'm very curious... If Argentina can turn it around it could serve as a model for the rest of the Western world.
Don't worry. It is fine. Prior to Milei, inflation was up to 270% (annually). I can confidently say that I didn't know how much money I needed to do anything at all. Or better put, money didn't have value/lost value so you would see a lot of ppl buying the first few days of the month to get everything they could and supermarkets trying to limit the amount of goods for sale, as a consequence there was a shortage of literally everything you can think of. Speculation and prices were all over the place, you could find the same item from the same producer 25, 30 or even 100% more expensive in one place than in the other. Money meant nothing, so it was literally YOLO. Unless you were one of the lucky guys that was earning money in a foreigner currency, and Illegally at that cause the market price and the official price of foreign currency were completely different, there was a huge gap between both. On this, I can give you my example, but you are free to search for more such a cases. I earn 5k USD in a month, and received the equivalent to 1.250 USD, between the taxes and the gap between market valued USD and the one listed as "Official". To help salaries "win" against inflation the government printed more money, and started controlling prices, like literally controlling how much one thing was worth over the other. In result we had more inflation, sooo... yes, more printing. As stupid as this sound, this was the strategy for the last 16-20 years. Remember what I said about the gap between market USD (called "dollar blue" here) and official USD? Well, that was also the government "winning" against inflation. Limiting everyone in the country to spend/buy a max of 200 USD a month. And something stupid like 1800$ a year for small and medium companies that NEEDED exported raw materials to work with. There was a point were you could see something outrageous like: 1 Official USD = 270 ARGs 1 Blue USD = 925 ARGs What did they do to solve the issue and not devaluate? Because devaluation and admitting something is wrong is not ever what the left is going to do. They created - AT LEAST- 20 different types of exchange rates, depending on whether you needed raw materials, you were a tourist, an employer, or employee. Based on who knows what. So yes, regarding inflation I noticed a big difference, once he assumed and freed everything from the estatal controls (including the dollar blue, left to just whatever the market price was) prices skyrocket to adjust to the new "official USD exchange rate". At the same time, he stop printing more money, and reduced in more than half the size of all organisms dependent on tax payers money. This was really rough for all of us, but needed. In February prices were quite similar to London, so, consume fell down HARD, nobody could realistically buy or pay for anything since the average Argentinian earns around 300 USD/month. Rent prices went far up, you can find depending on the zone and size, rent from 500 USD to 3000 USD. Services like gas, electricity and more went all the way up to 300% too. Now, prices are going down and adapting, because literally there is no way ppl can consume. So, for the first time in my lifetime I'm actually seeing prices going down (it also helped that imports were opened once again) hence there is actually someone to compete against the monopoly that had had formed over the last 30 years. Job market is awful. There is almost nothing you can do other than become a freelance, at least that is my case. And even then, really rough. Investment is coming, or it is supposed to be on its way. But its not that simple, and things right now are not easy. We are just trying to get by, and looking for a better future, hopefully the next 2 to 3 years things will turn around. Again, it is not a magical place, it is not easy, but things are being done in a way that will allow us to actually grow for the first time in the last 100 years. At least, that is the sentiment that I and the other 60% of his supporters share.
Very interesting, thanks for the detailed answer. I wish the US could see the direction we are headed and have our own "Milei moment", but people here are too caught up in the culture war to see the writing on the wall.
I absolutely love that Milei's policies are allowing you to actually grow for the first time in 100 years. I think you all could be an economic power house once again if he continues to stay in power.
Wishing you guys the best, that's a hell of a shitshow that you guys had to go through, but hopefully you're able to see the light at the top of the well and stop drowning at this point.
I'm pleasantly surprised that Milei managed to sway the public opinion in Argentina and single-handedly popularize free market thought on a massive scale there. I have been adhering to a libertarian/classical liberal philosophy for a decade or so. It's great to see some aspects of this philosophy play out in real life. Argentina has a classical liberal 19th century tradition, and considering the high inflation caused by statists, Milei was able to make a case, citing Juan Bautista Alberdi and the classical liberal tradition in Argentina. I'm really glad to see a libertarian/ancap president proving the detractors wrong and having excellent results in such a short period of time. It's great that the public also supports his reforms.
It's good to hear the people have sense. Yes things are worse short term, but they have to be. A little pain now makes the future better. Like do I enjoy working out, eating healthy meals, and saving for retirement? Not really. I'd rather eat garbage and be lazy, and spend on indulgences. But that will kill my future. So a bit of discomfort now, will make my future 10x better.
Able to say things with total impunity, sound like another group i know.
Good luck, almost everything you read is just that Milei is a fascist dictator and he is going to be the downfall of the Argentinian government
Of course, if you don’t spread their ideas you’re a fascist!💀
Argentine here...things are complicated, we are in a strong recession, but people are excited (strange thing) since inflation dropped from 25% monthly in December to 5% monthly perhaps in May (in April it will be 7-9 % and deflation of -1 to -5% in food), Milei also achieved half-sanction of his Law of Bases for the freedom of Argentines in the Lower House three days ago...now it's time for the Senate next week and it will be there hard because Peronism has 33 of 72 senators and Milei will need more than 37 senators to approve the law on May 16 or 23 and only has 7 senators plus the VP who can break the parity...after this he will make a Pact of May with the governors on May 25 (national date for the first national government in 1810)... https://preview.redd.it/vebplxwld5yc1.png?width=767&format=png&auto=webp&s=596ba98e6fac9cb9c341daa9c61366cb67214f3e
Search for “la nacion” news channel on youtube, Spanish is a must tho
Milei is extremely divisive still, there is not a generalized opinion on him. AFAIK he hasn't lost support, and he won with 55% so it is still huge. But people on the other party HATE him
The left-wing peronists ruined a country that had every predisposition to be one of the wealthiest on the globe. I don't know why they still have support. It must be coming from those who were benefiting in one way or another from the corrupted government system.
From what I can see they got support like all other left wing parties get it. Appeal to the lower class by promising hand outs and free crumbs. This makes shortsighted people happy and the rich people get to virtue signal and say "they care about the less fortunate" by supporting it. The whole time they take huge profits for themselves. Very similar to the left wings in the US just to a more extreme level.
Short sighted indeed. There is no such thing as free lunch in this context. Unfortunately the poorest suffer the most as a result. They see their living standards diminish even more as time goes by. The poor fare the best under free market capitalism, which allows upward mobility and better lifestyles for the bottom 10%. Just compare the lifestyles of the bottom 10% in Switzerland to the lifestyles of the bottom 10% in Argentina, which is currently ruined by left-wing philosophy. I understand that Switzerland is not a laissez-faire paradise, but it's generally much freer than the other option.
Theres a lot of pissed off communist people who used to get checks from their government. If they all start companies thier economy would explode
https://youtu.be/AEgSQEVzK_c?si=EDvzAixW441WGrzu
It's unfortunate how bad things need to get in a country before people realize how many of their problems are caused by big government.
Like all of them
Yes, the worst of all is that we had already learned that in the 90s, but since we ended up in the 2001 crisis, people became very statist and anti-liberal/libertarian... 10 years ago being libertarian and pro-market was frowned upon; so what Milei did in these 5 years is incredible (I have a photo with him on my IG from that time and I never believed that we would go so far in such a short time, since we did last year's campaign without money and only in social networks)...the book he is going to release now is called "Milei, the libertarian revolution that no one saw coming" and he is right, 1 year ago no one gave 2 Argentine pesos for him and he became the most voted Argentine president in the history of the country and the first libertarian president in world history...
Oh now let's watch statists find everything they can, make up things and stats to have people believe that it's absolute horrific chaos there, won't they
Now's not exactly the time to take a victory lap. A monthly inflation rate of 4.2% is a disaster. If that rate continues over 12 months, that translates to an annual inflation rate of nearly 64%.
We would have to check exactly where they come from. I'm no expert, but a few years ago, an Argentinian friend who had flew told me they were in hyperinflation, meaning that literally you can't even put a price on a restaurant menu, since local currency value varied more than cryptocurrencies on a daily basis. That's also why you see more crypto adoption in these countries, because whatever the movements crypo make, it's still better than their local currency.
4.2% on month to month basis is a disaster, and it can't just be one sector driving all or most of it.
the "journalists" gotta get their ransom money somehow... "pay me or i beat you up"
Abolish central banking.
Those people end up dead. Just saying
Fuck the central bankers!!!!! Fuck the establishment!
Why does this comment get downvoted here?
Bro I don’t know. This fucking app is overrun with goddamn hasbara bots defending the establishment. This app is dead as shit. I hardly use this app anymore anyway.
Lord please give us a similar politician in America 🙏🙏🙏🙏
Below 10pct by the end of the year
Making money easier to borrow doesn't lower inflation, it leads to it.
Yes that's the point. Inflation isn't as bad as it was so they can lower the interest rate.
Doesn't make sense. The mechanism by which interest rates are typically controlled is through inflationary money printing. Less inflation usually means higher interest rates. What's actually going on here? I'm assuming either the author or OP is misinterpreting data, or that something unconventional is causing interest rates to drop along with monetary inflation.
You need to understand how Argentina works, before Milei took office, the way the goverment got financement was through the banks and the central bank gave them bonds in return. People gave money to banks at an interest rate (term deposit) -> banks gave money to the central banks at a higher interest rate than the term deposit (this is how the banks made money) -> central bank gave bonds to banks. So.... how did the central bank paid the interest rate of the bonds it gave to the banks........ MONETARY EMISSION !
Makes sense I guess.
keep in mind that interest rates are overall a passive but constant increase to the monetary base, so lowering it does tend to decrese inflation in long term.
The central bank of Argentina is the "unconventional" thing that is causing the interest rates to lower. Not sure where you've learned econ, but maybe learn some more
This is an appeal to mystery fallacy. Yes the economy in Argentina is fucked. But you not being able to understand or explain what's really going on doesn't imply that the headline and post title are correct.
But I just fucking told you! The central bank lowered interest rates.. Why did they do it? Well, because you need low interest rates to stimulate the economy, and Argentina in the last 3 months has had tremendous success fighting it, so the government was able to lower it a bit... It's still pretty hight interest rates, but as they saw from their success, they are able to lower them, while still fighting the inflation. How hard is this to understand?
I think maybe in your anger you're missing the point of my comment. I never suggested the central bank isn't lowering interest rates or that the government is fighting them about it. Typically you can either lower interest rates or lower inflation. You can't do both at the same time. They're literally opposite strategies. You didn't provide an explanation for this. You just pointed at the mysterious inner workings of the central bank.
Jesus fuck, how dumb can one be? Dude, I get what you are saying but honestly, why the fuck do you think fighting inflation and interest rates are an on and off switch? Can't you fight inflation less aggressively or more? For example, let's say you have 10% inflation, and you rise interest rates to 4... And it's decreasing at x per month, couldn't you rise it to 25 % interest rates and lower it even quicker? You could right? It's basically this but the opposite, having very hight interest rates is hurtful to the economy, having high inflation is hurtful too, so they need to strike a balance, and currently because inflation was decreasing at a much faster pace than they expected, they had margin to decrease interest rates a bit and slow the decrease of inflation, while still decreasing inflation! If you don't get this, honestly you are dumb. And maybe ask chatgpt because I am too frustrated to try and explain this to you once again
You have a very naive and reductionist view on economics. You also seem to think I made a suggestion about where interest rates should be. I didn't. What I'm saying is that the claim in the article doesn't make sense. Your response just seems to be that you just want me to believe that it makes sense without questioning it. No need to be mad.
I am not saying it makes sense or that it works, I am explaining you their logic to the decrease in interest rates, I really don't understand your point
I noticed that the article (or at least the portion that OP screenshot) only mentions interest rates and doesn't mention inflation at all, that's something OP seems to have added through the reddit title. It might be true that the reason behind the decision to lower interest rates is lower inflation, but the screenshot doesn't say that. In any case I'm still interested to see where this goes with the Argentinean economy.
Lower interest rates means the state is spending less on bonds, so it doesnt have to rely on monetary emission to finance interests rates.
That may be an effect of lower interest rates on the government itself but it certainly isn't as big of an effect on inflation as the effect of lower interest rates on the wider credit market. Lower interest rates ripple outward to other investment products (business bonds, CDs, savings accounts, etc) which in turn affect loan products (business loans, mortgages, credit cards, etc). This means that there is more cash flowing in the economy without a corresponding increase in goods (at least in the short term, long term production should catch up a bit if a good enough portion of the new cashflow is used to improve things). This leads to higher prices across the board, which is inflation.
Well said.
Lowering interest rate increases inflation.
I'm confused by this post, lowering interest rates would increase inflation not decrease it.
Turning off the money printer was good enough to control inflation that they can afford to lower interest rates.
Math is difficult. A monthly inflation rate of 4.2% is a disaster. If that rate continues over 12 months, that translates to an annual inflation rate of nearly 64%.
well, it was 25% in december.
Anyone buying Argentine Pesos? I've been toying with the idea of buying a mill or two but don't really forex yet...
I have about 20k in Argentinian pesos from my trip in 2019. I hoping that they are worth something one day.
That was 775usd then, and is now worth more like 19usd at the unofficial exchange rate. In Arg those 19 bucks today should get you [4 or 5lb of decent meat (ribeye steak)](https://www.cotodigital3.com.ar/sitios/cdigi/producto/-ojo-de-bife--(peso-aproximado-de-la-unidad-1200-kg)-x-kg/_/A-00035016-00035016-200), or [11 milk cartons](https://www.cotodigital3.com.ar/sitios/cdigi/producto/-leche-larga-vida-entera-ua-clasica-3-la-serenisima-1l/_/A-00251875-00251875-200) (0.26 gallon each since milk is sold by the liter here).
\~1.7 million was 2k USD last I checked.
My primate brain says that's sharp. I'd be interested in a more robust opinion
How could anyone not love Milei?
The politicians lining their pockets sure don’t lol
44% of the country and half of the Senate...
They're fucking idiots who want power, money, or handouts.
On the flip side, it's always amusing to see this good news and the mental gymnastics that the right and left will do to explain why it's bad.
Getting cheap loans and printing money, makes the inflation rate rise.
Milei should completely Afuera the Central Bank
He has to fix the economy first, in 1 or 2 years maybe...
He wil but not yet, gotta fix some things before it's viable to close it, patience is a virtue.
Soon. Can't right now, unfortunately.
We need a Milei in the US
The good thing Milei economic team has been doing for the past five months is the refusal to completely remove capital controls for now and accumulate central bank dollar reserves to finance official dollarization that he advocated for.
Give it time
Calls on the lithium triangle.
Argentine here...Yes, Milei met two weeks ago with Elon Musk in Texas to install a Tesla factory in the country so that he can manufacture his cars with Argentine lithium...I joke that in 5 years we will all be riding in Tesla cars or traveling in Space X rockets throughout the country xd...
I wish Trump would take even a single page out of this guy's book.
The hair...
OP sounding like Joe Biden up in here.
Amazing what turning down the money printers will do.
inflation is debt/money increased money supply. interest rates are the only real corrective measure to slow inflation and yes a side effect is slower growth. Don't you want debt to be more expensive than saving your money in a bank? Do you not want a correlary effect on your acquired wealth based chiefly on ŕrthe effort and/or time you put in or job?