Milei blames lawmakers for delays in his government’s achievements — MercoPress
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Milei blames lawmakers for delays in his government’s achievements — MercoPress

Milei blames lawmakers for delays in his government’s achievements

Thursday, July 11, 2024 – 11:29 UTC

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The president spoke of “serial fraudsters” who do “their thing” to distract the government from control by wanting to spend money recklessly

Speaking at the 170th anniversary of the Buenos Aires Stock Exchange, Argentine President Javier Milei warned that he would veto any congressional initiative that undermines his administration’s fiscal balance, and explained what he believes is behind the renewed rise in the so-called “blue” (a euphemism for “black market”) exchange rate between the local peso and the U.S. dollar.

The economist Milei said that “I will try to explain what is happening and how we will end up leaving.” He then mentioned some “serial idiots” who do not understand the real cause of inflation. “There is no multi-causal inflation, that is how they will call various absurdities that the central bank is responsible for, because the rest is pure nonsense,” he argued, before talking about “fiscal degenerates” who he blamed for the rise in the dollar and the country’s risk. “The vast majority of economists do not know these things. There is a serious problem of deformation,” Milei also claimed.

“A zero deficit is the most brutal way to ensure intertemporal solvency. That’s why country risk went from 2,900 points to 1,100 until Congress got its act together,” was Mileis’s logic. “When fiscal degenerates wanted to spend like crazy, the market took its toll,” he insisted.

“If they want to pass laws that will change the fiscal balance, you know what, I will veto all of them, I will not give up the fiscal balance,” Milei also warned in his speech titled “Money, Prices and the Exchange Rate.”

In addition, Milei praised Economy Minister Luis Toto Caputo for the achievements of his administration since he took office on December 10, 2023.

“Because we still have capital controls, if you buy dollars indirectly, not directly, hitting the bond price through solvency (they tell us) ‘when the dollar goes up,’ and so of course, as long as the fiscal degenerates want to play their game, they will see that in the dollar price,” Milei also explained.

The president also highlighted the work of Minister Sandra Petovello: “The poor Minister of Human Capital is being beaten because she is discovering fraud,” he emphasized. On security, Milei noted that under Minister Patricia Bullrich, “federal forces have entered (the province of) Santa Fe and we have reduced the number of homicides by 70%.”

Milei also emphasized that the libertarian government had “fired many public sector workers” in addition to maintaining the salaries of those who were not fired in line with inflation. He saw this as an achievement that would help end exchange rate controls (also known as “shares”) once “convergence of the inflation rate with the devaluation rate” was achieved.

“The first step we are aiming at is to map the inflation rate with the devaluation rate. When we get to 2% inflation per month, we will move to 1%, and when it disappears at a level close to 0, we will have to choose whether we will move to a zero devaluation scheme or let it run,” he added.