Argentina Is Losing Faith in Milei’s Free-Market Revolution

[carride]

Instead, the economy stalled out, declining in the second quarter compared with the previous three months. Unemployment is at 7.6%, up from 5.7% when Milei took office. And Argentina has about 200,000 fewer jobs since he took office, government data shows.

https://www.wsj.com/world/americas/argentina-is-losing-faith-in-mileis-free-market-revolution-9475ba42

 

[sergio]

Article says people in La Matanza are having trouble paying 75 cents for a bag of bread. They show a horse and cart in La Matanza. Do they still use horses and carts there?

 

[Bajo_cero2]

Why would there be a free market if they intervene in the value of the dollar, artificially lowering it? If there were a free market, the dollar would be worth 3/5k.

 

[SlowWalker]

Why would there be a free market if they intervene in the value of the dollar, artificially lowering it? If there were a free market, the dollar would be worth 3/5k.

Can you help me understand this.

There were three days the government intervened. But since the announcements from Bessent the government has not intervened in the FX market. My understanding is that the swap announced provided reassurance to the market that the government (should they win in October) will have the funds to make there debt payments.

Is the current price not the result of free market? Otherwise would the price not be at or above the band level?

 

[FrankPintor]

Can you help me understand this.

There were three days the government intervened. But since the announcements from Bessent the government has not intervened in the FX market. My understanding is that the swap announced provided reassurance to the market that the government (should they win in October) will have the funds to make there debt payments.

Is the current price not the result of free market? Otherwise would the price not be at or above the band level?

May I say this?

"since the announcements from Bessent the government has not intervened in the FX market". This is certainly untrue. The government has made a massive intervention in the FX markets, to the tune of USD 7 billion, by reducing export taxes for certain products to zero.

"Is the current price not the result of free market"? Nope, it's a result of Bessent's intervention, plus whatever the Argentinian government is doing (see above). "would the price not be at or above the band level"? Well, that's where it was before Bessent's intervention.

 

[Bajo_cero2]

Can you help me understand this.

There were three days the government intervened. But since the announcements from Bessent the government has not intervened in the FX market. My understanding is that the swap announced provided reassurance to the market that the government (should they win in October) will have the funds to make there debt payments.

Is the current price not the result of free market? Otherwise would the price not be at or above the band level?

The government has spent billions of usd of international loans intervening the usd exchange rate.

Dólar barato, deuda cara: cómo Luis Caputo volvió a rifar el futuro para llegar a octubre

Esta vez, sin embargo, el déjà vu tiene un matiz más oscuro. Porque lo que antes fue una crisis política o una corrida financiera, hoy amenaza con ser una combinación explosiva de ambas.

www.ambito.com

This exchange rate only benefits US soy farmers that can compete with Argentina's new very expensive costs in usd:
Más allá de la lectura local, la iniciativa permitió a Argentina aprovechar un espacio de mercado que, hasta entonces, estaba dominado por los productores de soja de EEUU, que se vieron afectados por la pelea arancelaria entre Trump y Xi Jinping que derivó en la implementación del 20% de aranceles a las importaciones estadounidenses en ese rubro.

Trump, acorralado por los sojeros: furia por el acuerdo con Milei y un pedido a China

El lobby sojero de Estados Unidos reaccionó al "salvataje" de Argentina mientras China, el principal mercado de ambos, aprovechaba la caótica exención de retenciones ordenada por el ministro Luis Caputo.

www.perfil.com

 

[carride]

Farmers in USA have been blocked from selling soy to biggest customer. Thanks to the tariff wizard. Argentina took advantage of that few months ago, and again booked a big order this week

https://www.nytimes.com/2025/09/25/business/china-soybean-sales-farmers.html

https://www.reuters.com/world/china/chinese-buyers-book-least-10-argentine-soybean-cargoes-sources-say-2025-09-23/

 

[Bajo_cero2]

Farmers in USA have been blocked from selling soy to biggest customer. Thanks to the tariff wizard. Argentina took advantage of that few months ago, and again booked a big order this week

View attachment 10617

https://www.nytimes.com/2025/09/25/business/china-soybean-sales-farmers.html

https://www.reuters.com/world/china/chinese-buyers-book-least-10-argentine-soybean-cargoes-sources-say-2025-09-23/

Sure. The fraud is to become Argentina's soy too expensive, so US farmers send US soy to China with AR papers provided by the puppet of Milei:

SOJA RECHAZADA - Más Campo - Periodismo de Campo

China rechazó el cargamento de 300.000 toneladas de soja a Argentina. La potencia de China le rechazó el cargamento de…

mascampo.com.ar