Javier Milei Leads Argentina to a Week With No Food Inflation for First Time in 30 Years
It takes time. Normal people know transformation doesn’t happen overnight.
Long live f*&%ing freedom!! That’s what Argentine President Javier Milei loves to say!
For 30 years, Argentines faced rising food prices every week.
Every week for 30 years.
Well, the libertarian free-market economist President Javier Milei has steered Argentina in the correct direction because, for the first time in 30 years, the country did not experience food inflation.
You mean to tell me that when the government goes away the market finds a way to balance itself?
As a libertarian, I AM SHOOK.
View this post on Instagram
Translation: Argentina achieves first week without food inflation in 30 years
And yes, Milei’s caption translates to “Long live f*&%ing freedom!”
Inflación cero la última semana.
Inflación 0,1% la última quincena. pic.twitter.com/HBCMzz0xhV— Ramiro Castiñeira (@rcas1) June 23, 2024
Translation:
Zero inflation last week.
Inflation 0.1% the last fortnight.
Argentine inflation as a whole has gone down this year from 292% to 276% in May.
It doesn’t seem like a lot and the number is still high, but normal people know transformations don’t happen overnight.
However, the monthly inflation rate went down 4.2% from 8.8% in April.
What was it in December when Milei took office? 25%:
Thursday’s inflation data is likely to fuel bets that Argentina’s central bank will continue cutting the country’s benchmark interest rate.
The monetary authority has brought the rate down from 133% in December to the still steep rate of 40%.
Argentina’s government has touted its success taming inflation with tough measures to reduce central bank money printing, focus on rebuilding reserves and cut spending.
Markets cheered Thursday after the Senate passed a sprawling reform package overnight that is key to President Milei’s economic agenda, with Argentina’s bonds and beleaguered currency rallying.
Milei is obviously on the correct path. He is also the first Argentine president not to pass a new law in his first six months in office.
DONATE
Donations tax deductible
to the full extent allowed by law.
Comments
This is the way.
Milton Friedman is smiling.
And the best part? It clearly demonstrates that the socialist way is the wrong way.
Hopefully, it will trigger changes in adjacent countries the way immigration problems have made the EU tilt in the correct direction.
capitalism =freedom
lefty hates that
If you use the real term, free market, rather than Marx’s term (capitalism), it all becomes clear.
Very few people understand that the term ‘capitalism’ was created to demonize the free market and normal economic functioning.
It was also based on the feudal means of land ownership. Which was never practiced in the US. So, it never existed here.
true
Which is why, for example, Reason magazines motto is “Free Minds and Free Markets” not “Capitalism”!
so the next lefty move is to devalue the regions currencies so that inflation will then be out of control in a region where there are separate economies so it will make it look like capitalism is failing
lefty loves chaos
He was an early supporter of Sy Sperling.
This is going to be an interesting story to observe as it unfolds. Argentina has funded their deficit spending and accumulated debt from abroad; from foreign investors. Japan which also has large strictly debt/deficit spending is largely funded internally from domestic savings. FWIW Japan’s debt to GDP ratio is 263% v Argentina’s 85% ratio. Japan can sustain low interest rates on sovereign debt due to the domestic funding so even though their debt levels are far higher the financiers of the debt (Japanese savers) accept a near zero nominal rate b/c the real rate of return (accounting for inflation which is negative in Japan: deflation) is actually a net positive.
Contrast that with the US. The ten year Treasury is 4.27% While the official US inflation rate is 3.27% for a real rate of return of 1%….assuming you believe the official CPI report accurately measures inflation. Prices in the real world are up across the board about an aggregate of 20% since Biden took office 41 months ago…that’s not a winning formula for a positive rate of return over a ten year period. Nor does the end of the petrodollar or the reduction in foreign purchases of longer Treasury bonds. Central banks and gov’t around the world are reducing the amount of US dollars/Treasury bonds they hold as reserves in favor of physical gold.
and looking to make the chinese yuan as the currency of choice
That will never happen. The people of China will never be allowed to convert the Yuan to other currencies, because the Yuan would disappear.
Chinese consumers bought just under 11 million ounces of gold in the first quarter of ’24. That’s just under 309 Tons of gold in a three month period. That is about a 6% year over year increase in terms of ounces purchased for the.same period in ’23. The Chinese govt wholly supports this. It also takes advantage of Basil III settlement which now requires physical delivery when requested instead of paper settlement. That drains physical gold from Western markets to the East. Indian consumers, Middle Eastern consumer other Asian consumers are buying lots of physical gold.
yeah
and “it will never happen that children will be allowed to have abortions” etc etc
thanks for the thought but I do not agree
Why would you want to own currency is an obviously mismanaged country like the USA? The problem is that you are faced with a choice of which large economy is mismanaged the least, not that there are many good alternatives.
The US $ was/is the world reserve currency b/c of the preeminent position the US enjoyed in the post WWII era both military and economically. Kind of hard not to be #1 when you’re the only Nation which simultaneously possessed a nuclear arsenal, a world-wide network of strategic bases inherited from GBR and are the only industrial power whose factories, plants, cities and agriculture weren’t wrecked in the war.
The international orgs were/are dependent upon the participation of the USA; UN, NATO, IMF, World Bank and of course the SWIFT system of international trade settlements. Then we got the Saudis to agree to price oil sales in US $ after the Nixon took us off the silver standard and ended foreign govt ability to swap US $ for gold. That 50 year era ended a few weeks ago. Then there’s the stupid blunder of the US leading the charge to seize Russian financial assets held abroad. That didn’t happen previously in the post WWII era and now that it has every Nation must wonder will they be next if they PO the US gov’t? By creating this uncertainty the momentum for an alternative international settlement system has gained steam. The BRICS + Nations are getting closer to accepting an alternative to the US $ for trade to complement the basic alternative settlement systems they have begun on bilateral basis.
The US has problems BUT it is still the ‘cleanest shirt in the dirty clothes hamper’. Lots of momentum left before the US $ loses prominence but that momentum will run down at some point and when it does….very bad for the US economy b/c we won’t be able to export our inflation as we do now. Instead we will bear all of its cost internally as Argentina does. We ain’t gonna cut gov’t spending, our budgets won’t balance and our $35Trillion Federal debt (on the books) will grow. Our off the books unfunded federal liabilities are well over an additional $100 Trillion and that # is vastly understated. We will.spend about $1.2 Trillion this year on debt service which is about 20% more than we will spend on the DoD budget in FY24.
you mean “nixon took us off the gold standard”
also he did so as euro threatened the usa with other fiscal policies
and he did so so they could return to the Keynesian way of life
of no budgets and socialist spending …as did the usa “enjoy” the same gov spending
Golly. It’s almost as if austere govt. with sensible fiscal policies ledes to positive, practical economic growth.
But that’s just CrAzY tAlK!
Talk about a buried lede! Last sentence:
He is also the first Argentine president not to pass a new law in his first six months in office.
WAIT one minute there! Did they not have to pass laws to cut the departments?!?!
If they were created by the Argentinian equivalent of an executive order, probably not. Or the office has more power over the budget than the US president has.
The day the Argentine Senate met to debate Milei’s policy platform the left-socialists took to rioting in the streets.
I’ve not seen anything quite like it – a hailstorm of rocks literally shower riot police – and those police came wholly unprepared for it.
By the way – those rocks were very uniform and nasty bits of jagged 3x3inch crushed rock- so some entity imported those rocks by the pallet load. One only finds rock like that in rock crusher tailings
Wait, wait, wait, wait, wait. If you “tame” inflation, people without access to sophisticated financial shenanigans can build wealth too — without inflation, simple savings accounts, n index funds work.
How you gonna keep them working n voting right if they have their own stuff?
dont forget that the USA is COMMITTED TO OVERTURNING OUR CURRENT BANKING SYSTEM so that the
Equity movement can put poc in the drivers seat not by having earned it ( otherwise no new system would be needed) by by allowing our debt
to crater us
will it be bitcoin or just the takeover next generation by the AAaction musings of the Lisa Cook’s of the financial world!?!!?!?!
castro …all of them ALWAYS RIDE INTO POWER based on the lies of
equality/equity etc
we are no different
The welfare state is the entitlement that the government serves up to its
bratty kids
and then the rest of society pays the price
slavery is slavery
no matter who is in charge
Long Live Liberty, Damnit! Will he be able to fight the entrenched interests that just want to make money off the State and screw the people? If his speech at Davos is any indication he is not kidding and is ready to go down the river on this.