Is the Milei "Transformation" Failing Already?

[carride]

Confidence growing in Argentina economy and for Americans doing business in the country with Milei at the helm.

They all have confidence that the 24 F16 fighter jets he is buying this week from Denmark will bring a lifetime of parts, maintenance, and military training purchased from USA. The Denmark cost is 650 million U$D according to this article, though I have read 300-ish million in the past. Too bad he canceled this planned joyride flight in Denmark by sending one of his ministers instead

“Eyectarse, eyectarse, eyectarse”: antes de subir al F-16, Javier Milei recibirá instrucciones sobre cómo actuar ante una emergencia

El Presidente tendrá una capacitación obligatoria en Dinamarca para ocupar el lugar del copiloto en una de las aeronaves que comprará la Argentina; el martes se firmará el contrato de compra de 24 aviones de combate

www-lanacion-com-ar.translate.goog

 

[Musicman]

They all have confidence that the 24 F16 fighter jets he is buying this week from Denmark will bring a lifetime of parts, maintenance, and military training purchased from USA. The Denmark cost is 650 million U$D according to this article, though I have read 300-ish million in the past. Too bad he canceled this planned joyride flight in Denmark by sending one of his ministers instead

“Eyectarse, eyectarse, eyectarse”: antes de subir al F-16, Javier Milei recibirá instrucciones sobre cómo actuar ante una emergencia

El Presidente tendrá una capacitación obligatoria en Dinamarca para ocupar el lugar del copiloto en una de las aeronaves que comprará la Argentina; el martes se firmará el contrato de compra de 24 aviones de combate

www-lanacion-com-ar.translate.goog

Better than buying war jets from the left wing communists in China I suppose. Trump would not approve either and Milei needs the USA onboard in his plan to make Argentina great again,

 

[gringoexpress]

Better than buying war jets from the left wing communists in China I suppose. Trump would not approve either and Milei needs the USA onboard in his plan to make Argentina great again,

What does Argentina need F-16s for? If the country needs to save money, I support that, but then going out and spending it on fighter jets? It's like when your tenant tells you he doesn't have the rent because he spent it at the bar.

 

[perry]

give him time? like a guy with a noose around your neck- No

. The infation of the last 4 months is the highest ever recorded in Argentina as its in all curencies not only the peso . This has never ever happended before as when a currency is destroyed as Milei says that our currency is why has it strengthened 25% against all currencies since December 2023? The inflation in dollars since December has been over 130 percent by all conservative estimates Nearly everything is over two times more expensive in dollars since December 2023 . Previous hyperflation periods as recorded by Weinmar Germany Argentina under Alfonsin were very very cheap for those in dollars as they could get a wheelbarrow of local currency for 100 dollars . Hyperinflation with the appreciation of the argentinian peso against all currencies has never ever happemed before certainly not in any other country I have studied . If a member can show me a example of this in history I would be very interested

 

[mikic007]

Better than buying war jets from the left wing communists in China I suppose. Trump would not approve either and Milei needs the USA onboard in his plan to make Argentina great again,

They have to decide, if there is money or not. As it looks like there is plenty of it, but not for the people and services that would benefit them. Using MAGA narrative is distasteful.

 

[FrankPintor]

. The infation of the last 4 months is the highest ever recorded in Argentina as its in all curencies not only the peso . This has never ever happended before as when a currency is destroyed as Milei says that our currency is why has it strengthened 25% against all currencies since December 2023? The inflation in dollars since December has been over 130 percent by all conservative estimates Nearly everything is over two times more expensive in dollars since December 2023 . Previous hyperflation periods as recorded by Weinmar Germany Argentina under Alfonsin were very very cheap for those in dollars as they could get a wheelbarrow of local currency for 100 dollars . Hyperinflation with the appreciation of the argentinian peso against all currencies has never ever happemed before certainly not in any other country I have studied . If a member can show me a example of this in history I would be very interested

Prior to this year, every time the inflation figures were announced, the cassandras would come out here to crow about how inflation in Argentina was higher than even Venezuela. Where are they now? Who would have thought that Milei would be the one to bring us Argenzuela?

Since Peso printing has stopped (and is intended to be criminalized), the value of the Peso has been increasing, so we have inflation in Dollars added to the Peso inflation caused by the abrupt removal of price controls. Milei stated that one of his objectives was to encourage people to bring their saved Dollars out from under the mattress and bring them into the banking system. Rather than that, he seems to be forcing people to bring out their saved Dollars into the blue Dollar system (adding to the Peso shortage) to compensate for the savage cost of living increase he caused.

Without much evidence so far, I am suspicious of the latest inflation figures. Estimates prior to the official announcements seem to be consistently above the announced figure, and Milei has put pressure on INDEC to take supermarket discounts (which have always existed) into account when calculating inflation.

 

[Bajo_cero2]

Prior to this year, every time the inflation figures were announced, the cassandras would come out here to crow about how inflation in Argentina was higher than even Venezuela. Where are they now? Who would have thought that Milei would be the one to bring us Argenzuela?

Since Peso printing has stopped (and is intended to be criminalized), the value of the Peso has been increasing, so we have inflation in Dollars added to the Peso inflation caused by the abrupt removal of price controls. Milei stated that one of his objectives was to encourage people to bring their saved Dollars out from under the mattress and bring them into the banking system. Rather than that, he seems to be forcing people to bring out their saved Dollars into the blue Dollar system (adding to the Peso shortage) to compensate for the savage cost of living increase he caused.

Without much evidence so far, I am suspicious of the latest inflation figures. Estimates prior to the official announcements seem to be consistently above the announced figure, and Milei has put pressure on INDEC to take supermarket discounts (which have always existed) into account when calculating inflation.

The printing was stopped?

Cuántos pesos emitió Milei para comprar dólares: cuál es el riesgo

La emisión monetaria se mantuvo firme durante el primer mes del presidente Javier Milei, principalmente para comprar dólares para las reservas y pagar intereses de los pasivos remunerados del BCRA.

www.cronista.com

 

[Reply Guy]

The printing was stopped?

Cuántos pesos emitió Milei para comprar dólares: cuál es el riesgo

La emisión monetaria se mantuvo firme durante el primer mes del presidente Javier Milei, principalmente para comprar dólares para las reservas y pagar intereses de los pasivos remunerados del BCRA.

www.cronista.com

Good article - bringing some facts to the conversation versus people just talking about their feelings.

 

[FrankPintor]

Facts are excellent, 3-month old facts (@Bajo_cero2 's article is from January) are pretty useless with this government. I did search for recent data on the M1 - M3 measures of cash in the economy but I didn't find any from after January.

For those who, despite all evidence, "feel" that there's a plan behind this mess, how do you get from continuing high Peso emission, as the article says, to "Milei promises to criminalize monetary emission" (https://buenosairesherald.com/politics/congress-opening-speech-javier-milei-pacto-de-mayo) without stopping the Peso printing presses? Am I expecting too much logic and joined-up-thinking from Milei and his boosters here? And, more important to most of us than these feelings, how is the Peso overvaluation relative to the Dollar to be explained?

To go back to the Argenzuela analogy, Venezuela has had both Bolivar and Dollar inflation, but I expect mostly because it destroyed internal production and imports even basic foodstuff, which is not the case with Argentina (yet).

 

[mikic007]

Facts are excellent, 3-month old facts (@Bajo_cero2 's article is from January) are pretty useless with this government. I did search for recent data on the M1 - M3 measures of cash in the economy but I didn't find any from after January.

For those who, despite all evidence, "feel" that there's a plan behind this mess, how do you get from continuing high Peso emission, as the article says, to "Milei promises to criminalize monetary emission" (https://buenosairesherald.com/politics/congress-opening-speech-javier-milei-pacto-de-mayo) without stopping the Peso printing presses? Am I expecting too much logic and joined-up-thinking from Milei and his boosters here? And, more important to most of us than these feelings, how is the Peso overvaluation relative to the Dollar to be explained?

To go back to the Argenzuela analogy, Venezuela has had both Bolivar and Dollar inflation, but I expect mostly because it destroyed internal production and imports even basic foodstuff, which is not the case with Argentina (yet).

I guess it's pretty simple. Government prints allright, but it doesn't pass it to people. Instead, it's buying dolars from those people. So usd stagnate, there are still pesos going in, when mixed with outstanding Argentinian economy, you get high inflation despite lack of purchasing power. It's all a giant mess that will backfire sooner or later.