Milei officially rejects Argentina entering BRICS

[aloevera]

El Gobierno argentino renunció a los BRICS a través de una carta enviada por el presidente Javier Milei

El Gobierno de Javier Milei renunció a la membresía de Argentina al bloque de los BRICS, apenas días antes de que el ingreso acordado por el expresidente Alberto Fernández entrase en vigencia, el 1 de enero de 2024. Lo hizo a través de una carta enviada a sus miembros, y que la Cancillería...

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Credit swap with China cancelled due to his immature words, BRICS now officially rejected. When he said there's no money, he really meant that he would make sure that there is no money. Total disaster.

 

[wrangler]

I don't see this as very smart. I think Argentina should follow the path of India. Stay neutral in everything, do business with everyone. They are becoming a super power. Instead, Milei is a falling in love with the IMF, and U.S, both of which will not benefit Argentina. I am starting to see him as very narrow minded....

 

[NomadTrader]

I don't see this as very smart. I think Argentina should follow the path of India. Stay neutral in everything, do business with everyone. They are becoming a super power. Instead, Milei is a falling in love with the IMF, and U.S, both of which will not benefit Argentina. I am starting to see him as very narrow minded....

There is plenty of investment capital sloshing around the globe.

He's making a play for private money from North America. Given how many times investors in Argentina have been burned by the cyclical nature of Argentine politics (liberalization and nationalization), its a hard sell. Argentina's irresponsible history/bad reputation (from an investment perspective) limits its appeal to future investors.

All investment money has strings attached, if it didn't it would just be called 'charity.' The worse the reputation, the higher the assumed future risk and therefore the more strings attached for any future investment. Chinese money is no exception. Just because Chinese investors haven't yet gotten burned, themselves, by Argentina, doesn't mean they'll overlook Argentina's past behavior regarding the treatment of other investors. In fact the Chinese are extremely risk averse when lending money overseas and almost always cover their risk of loss with severe collateral stipulations.

I think given the hard sell facing Argentina, a focused, narrow approach is a legitimate strategy. Argentina lacks trust. Playing both geopolitical sides may be a good way to maximize your diplomatic influence, but it doesn't garner private investor's trust.

Milei is getting a lot of attention in private investment circles right now. People are giving Argentina a fresh look.

I can't disagree with your assessment of neutrality for diplomatic purposes, but as for investment capital...a focused approach may work.

 

[grosso95]

BRICS means nothing anyways, there are 0 formal agreements.
They are not a political, military alliance (like eu/NATO) and they have 0 formal trade agreements.
So it's absolutely meaningless at the moment to even be a part of them in practical terms.

 

[NomadTrader]

I don't see this as very smart. I think Argentina should follow the path of India. Stay neutral in everything, do business with everyone. They are becoming a super power. Instead, Milei is a falling in love with the IMF, and U.S, both of which will not benefit Argentina. I am starting to see him as very narrow minded....

and if you will allow me a brief follow-up comment...

We shan't forget about candidate Milei's narrowest of narrow appeals.

The strongest trait I associate with people of "The Tribe" is gratitude and loyalty towards those who show it to them.

We may see a modest flow of sweet, sweet geld....from fields yonder...

 

[redlobster]

BRICS means nothing anyways, there are 0 formal agreements.
They are not a political, military alliance (like eu/NATO) and they have 0 formal trade agreements.
So it's absolutely meaningless at the moment to even be a part of them in practical terms.

BRICS countries have a common bank that supports member countries' economic development and infrastructure projects. They have an agreement to protect members in response to short-term liquidity pressures. India and China have benefited in many ways from participating in BRICS, but who wants to be in the same boat with India and China, right? Argentina is just too good for that.

 

[antipodean]

BRICS countries have a common bank that supports member countries' economic development and infrastructure projects. They have an agreement to protect members in response to short-term liquidity pressures. India and China have benefited in many ways from participating in BRICS, but who wants to be in the same boat with India and China, right? Argentina is just too good for that.

So just another kind of IMF / source of lending?
(La patria no se vende, unless it is to a BRIC...)

 

[redlobster]

La patria no se vende ...

That's a good slogan to drive a privatization. From what country will the investors come? Argentina? Is this what 'liberating' the economy is supposed to look like?

 

[NomadTrader]

BRICS countries have a common bank that supports member countries' economic development and infrastructure projects. They have an agreement to protect members in response to short-term liquidity pressures. India and China have benefited in many ways from participating in BRICS, but who wants to be in the same boat with India and China, right? Argentina is just too good for that.

Care to elaborate on how India has benefitted from BRICS?

Granted, it gets them some good international press and a seat at a table that gives the 'perception' of status...

but how have they actually benefitted from it?

 

[SinPulgas]

That's a good slogan to drive a privatization. From what country will the investors come? Argentina? Is this what 'liberating' the economy is supposed to look like?

Would you care to explain yourself? Did you think that this was Milei's slogan? You seem confused.