Argentina Devalues Peso, Hikes Rates After Libertarian Outsider’s Shock Win In Presidential Primary
The Argentine peso, already at historic lows, puked immediately after far-right political outsider Javier Milei won the country’s primary election on Sunday. He wants a dramatic overhaul of the country’s entire political and economic system, even vowing to ditch the peso.
Milei is a rock-singing libertarian outsider candidate, an admirer of Donald Trump and self-described anarcho-capitalist, and his primary win headed into the October general election is being widely viewed as punishment for Argentina’s two main political establishment blocs – the center-left Peronist coalition and the main Together for Change conservative opposition bloc.
After winning 30% of the vote, beating the main conservative opposition bloc (at 28%) and the ruling Peronist coalition which came in third place, it’s being hailed in Argentine media as a “political earthquake”.
The 52-year old Milei might also be called the Ron Paul of Argentine politics, given his willingness to controversially raze entire longstanding institutions, including pledges to abolish Argentina’s central bank. He has also talked about replacing the peso with the US dollar and privatizing state-run firms.
Multiple administrations have overseen a years-long spiral into a persisting economic crisis, with year-on-year inflation above 115%, and one in four people living in poverty. The peso has in recent months plummeted such that foreign soccer fans now regularly taunt locals at matches by burning and ripping up the Argentine currency.
Milei’s win, which is being taken as a clear sign of what lies in store for the Oct.22 election, is voters’ attempt to “shock” the system and try something new.
Javier Milei, argentinian presidential candidate, shows in an eccentric manner which ministries (like Health and Education) he would abolish if elected. pic.twitter.com/p8Bx3Jg4rX
— Crazy Ass Moments in LatAm Politics (@AssLatam) August 7, 2023
The peso’s plummet prompted the Argentine central bank to hike rates (to 118%!) and devalue the official peso rate to 350/USD in an effort to reassure markets and to prevent a broader selloff of assets from spreading. It hasn’t worked yet as the peso plunge continued and a US-traded Argentina ETF plunges most since March 2020.
Bloomberg reports Monday, the government’s moves is “a drastic policy shift as it runs out of funds to defend its currency.”
However, the official rate remains dramatically deocoupled from the reality of perceived value on the street, with the so-called ‘blue dolar’ trading at almost 600/USD…
His ultra anti-establishment views will continue to have ripple effects. Bloomberg Economics economist Adriana Dupita previews more of the uncertainty ahead based on the central bank’s latest actions:
If the past is any guide, a sharp peso depreciation would definitely add some inflationary pressure but not sufficient to tip the country into hyperinflation. We estimate that a 25% depreciation of the peso could add some 8 percentage points to the year-over-year CPI one year after it happens — on top of what inflation would be with the currency stable, in real terms. Most of the impact would happen in the first month after the currency shock.
That pressure is relevant but not sufficient per se to trigger an inflation spiral. The rise in interest rates announced by the BCRA helps mitigating the hyperinflation risk, but the problem is that the devaluation is happening in a moment when fiscal policy is lax and amid expectations of new rounds of depreciation — illustrated by the plunge in dollar blue, and fueled by the prospect of a dollarization in case Milei wins. That renders the impact of the devaluation on prices a lot more uncertain.
Milei had told supporters on Sunday that “we have managed to build this competitive alternative that will put an end to the parasitic, thieving, useless political caste.”
Good morning to a world in which a libertarian who says that he wants to burn down the central bank and considers it a crime for the government to print money is the top vote getter among #Argentina‘s presidential candidates.https://t.co/jO80vpkPF6
— Eric Martin (@EMPosts) August 14, 2023
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No problama, Samantha Power and Victoria Nuland will be flying to Argentina in 3….2…1.
The only question is what color will they use this time to describe the “revolution”.
Red!
More like black and red (with just a splash of white to confuse the sheep). Nazis are like cockroaches. You’ll never kill them all…but you don’t HAVE to live with them.
I thought they pushed their chips all in on black?
One man cannot fix a fundamentally decimated nation. The US/CIA/Deep State will assassinate him the minute he upsets the “money men/tribe” with budget cuts or sound economic actions that undermine their inflation-based wealth transfer programs. After 80 years of Peron-style socialism, the people need to throw EVERYONE out of office and that is NOT going to happen. When there are stories of hundreds of like-minded folks ALSO doing well in the polls then maybe we can think there might be hope. But everyone always runs to the arms of the devil they know when the shit hits the fan. No doubt the Deep State is preparing a shit package for delivery to a large Argentinian fan as we speak.
I agree Mr L but I still this is a very encouraging development. It’s another blow to the ‘liberal world order’. Doug Casey has property in Argentina. It will be interesting to get his take.
You’re both right.
i think they are both wrong.
look at the twitter video. i dont understand a single word he says, but he looks like a fkng actor.
and then there is this:
“…including pledges to abolish Argentina’s central bank. He has also talked about replacing the peso with the US dollar and privatizing state-run firms.”
hello??? promoted as an outsider, but nothing more than a see aye ey plant selling out argentinian and their resources for pennys on the dollar to the cabal.
My first thought. Just another actor.
…and oh so wrong. It’s a matter of morality versus venality.
We ALL get exactly what we ask for. Be cautious in your prayers. They might just get answered.
Don’t get me wrong. I applaud anyone and everyone that promotes liberty and condemns government and its fiat money. But of course a switch to the criminal dollar is no solution, and until the people are calling for serious change, nothing will.
Live like it’s 31 A.D.
Follow The Leader!
https://en.wikipedia.org/wiki/Dirty_War
By the 1980s, economic collapse, public discontent, and the disastrous handling of the Falklands War, resulted in the end of the Junta and the restoration of democracy in Argentina, effectively ending the Dirty War. Many members of the junta are currently in prison for crimes against humanity and genocide.[23][24] The Dirty War left a profound impact on Argentine culture, which is still felt to this day.
The junta, calling itself the National Reorganization Process, organized and carried out strong repression of political dissidents (or perceived as such) through the government’s military and security forces. They were responsible for the arrest, torture, killings and/or forced disappearances of an estimated 9,000 to 30,000 people.[28][12][10] With the help of Washington,[29] the junta was aided with $50 million in military aid.
Does anyone else see the shift in tone, messaging, and language in articles from both ZH and RT?
They are increasingly mimicking the wording and underlying narrative of the MSM.
When alternative news sources get a big enough following, they want to get bigger still and decide that the way to do so is to adopt a more leftist-statist attitude. To cease being “alternative”.
zh has gone down the toilet after the google fiasco a couple of years ago.
It started in the toilet. Where can you hope to go from there?
Exactly. Since when are anarcho-capitalists “far right”?
The right supports Monarchy…that is, centralized, unlimited state control. The left supports a Republic—dispersed, limited governance.
By definition libertarians are far left. But hey, control the language, control the narrative.
Anarcho-capitalists are almost always personally and culturally conservative and reactionary. They are not libertines, but libertarians. Libertarians oppose the initiation of aggression, while retaining the right to lethally oppose aggression by others.
The only societal cohort that truly supports the right to say no, is libertarians. Not all who claim the name are in fact libertarian, as many who claim to be moral are nothing of the sort. Wolf in sheep’s clothing, and all that.
There is a broad spectrum of self proclaimed libertarians who really aren’t, but I get your point.
The left-right paradigm is DEAD. There is left and right, but there is also libertarian versus authoritarian. Libertarians stand ABOVE the left-right dichotomy, in opposition to all authoritarianism of either the left or right.
Thanks for all the DVs. Proves my point that I triggered a bunch of people who probably agree with me on most issues because I used words in their original sense, that have since been hijacked to subvert their philosophical potential.
The right-left paradigm was invented by the French Parliament during their revolution. Monarchists sat on the right, Republicans on the left. This is the classical political spectrum. To the right more state control, to the left more individual freedom. By this standard everything more intrusive than a benign monarchy would be far-right. This includes fascism, communism, socialism, and modern “democracies.”
In modern times this paradigm has been (intentionally) conflated with the spectrum of social morality. “Conservatives” are supposedly traditional and “Liberals” supposedly non-conformist. This is why people spout meaningless garbage like “I’m politically conservative, but socially liberal!”
MrL, the problem with your diagram is that both axes are depicting the same thing: the degree of government interference with individual decisions. And this, in my mind, is the only political spectrum that matters: Totalitarian statists are one extreme and anarchic individualists are the other.
The modern “political discourse” is full of false paradigms designed to keep the plebs arguing over different shades of gray. Take your words back and don’t use vernacular of the revisionists.
Well, ignore my comment from two minutes ago. You have clarified things. I tried to edit it, but it said I could no longer edit.
I also have noticed the shortened time limit on edits. Thankfully, I still have no “regerts”! I stand by everything I’ve ever said…and why would I not? I’ll have to justify it all before GOD soon enough!
Fortunately for most of us, it’s not really important what libertarians think, say or do.
Personal freedom is economic freedom and economic freedom is personal freedom.
Your diagram pretends they can be separated.
Economic independence is the foundation of the only sort of freedom worth a damn. — H.L. Mencken
…In THIS life, anyway.
Its just a model for representation of the Nolan Chart. It pairs typically with questions (world’s smallest political quiz) that get people answering questions regarding personal liberty issues and economic liberty issues. Indeed, they CANNOT be separated, but sadly, most people DO put them in different categories. That is how they end up “liberal” or “conservative.” The lines are just to define general categories of how most folks see themselves, NOT hard lines of demarcation. Again, they are based on scores of a political questionaire.
That diagram can’t be correct nowadays because it doesn’t show the batshit crazy anywhere in there.
It’s a fag diagram. Venn knew overlap is inevitable. That douchebag wants to pretend it doesn’t. Look at all those nice, clean delineations! No overlap at all.
Libertarians stand on the shoulders of other retards.
How do you define left and right. Left and right of what? Is there a metric and a scale?
Only one I’ve heard of makes sense, where left and right are a spectrum defined by the amount of government power and control.
How are you defining them and on what basis?
I am the center. (says everybody)
Like you know “everybody”. Dip shit. I WALK ALONE!
Those I wish to kill versus those I don’t.
It’s simple, really.
Go fuck yourself, idiot! You’re so mind screwed you might as well shoot yourself!
ZH did have a gaggle putsch in 2020. I think RT is making some effort to avoid appearing to be a straight up Kremlin mouthpiece. I think RT is generally more neutral than our media narrative readers.
Ain’t it a shame when you have to trust the Commies?
DK
DC
DGAF
People speaking for and representing Freedom is always good. Getting rid of central banks and putting criminals behind bars is even better.
Blow it out yer ass, you hollow poser. I’ll do you the courtesy of not calling you a bot…you fake and gay fag.
Your an obnoxious ANON posing as TCS. Insults and slander roll off of me like water from a rubber tree plant.
Your insults roll off me faster than I roll off your wife, cuck. 1,2,3,4…you declared a flame war. We’re on like donkey kong. Bring on your half wit!
It’ll be a funny diversion from your mundane shit. Hey! That rhymed!
REEEEEEEEEEEEEEEEEEEEE !
Also? I think you just mind fucked yourself. Good job!
Meanwhile, in Africa….
Burkina Faso & Mali Reps Arrive in Niger: We Won’t Accept Repeat of NATO’s Libya Adventure
Delegations from Mali and Burkina Faso have arrived in Niger to reaffirm support for the new gov’t against outside military intervention.
Mali’s spokesperson declared “Our survival depends on it,” recalling NATO’s “adventure in Libya” that created a decade of regional instability…
Approximately 30,000 people gathered in Niger’s capital of Niamey on August 6, as the country faced a looming threat of military intervention led by the Economic Community of West African States (ECOWAS) regional bloc. However, as the deadline set by ECOWAS expired on Sunday, the regional bloc held an emergency virtual meeting with the African Union to discuss the situation in Niger.
Niger coup: Russia warns Ecowas not to take military action
Russia has warned that military intervention in Niger would lead to a “protracted confrontation” after regional bloc Ecowas said it would assemble a standby force.
Such an intervention would destabilise the Sahel region as a whole, the Russian foreign ministry said.
Russia does not formally back the coup.
But the US, which backs efforts to restore deposed leader Mohamed Bazoum, says its Wagner mercenary group is taking advantage of the instability.
On Friday coup supporters, some waving Russian flags, protested at a French military base near the capital NIamey, some chanting “down with France, down with Ecowas”.
https://www.bbc.com/news/world-africa-66478430
Mutton chop sporting Elvis died a bit young, from big pharma and big numbers on scales of weight.
This Argentinian similar, gyrating his political pelvis in South America might suffer a similar fate.
Vote harder seemingly worked in Buenos Aires. Or is he a plant by puppeteers, too? Showtime?
Wonder if he does a cover of Don’t Be Cruel?
Wise men say only fools rush in, right, hound dog?
you’ve got a suspicious mind, Suds
I’ll thank you on his behalf for the compliment!
The most logical reason to move to Argentina is because you like Italian chicks.
…and fucking NAZIS.
Just sayin’…
Plus…the underarm hair is smelly and off-putting. Shave your cunt and not your armpits? What’s THAT all about?
Someone needs to start on Javier Milei’s obituary…you don’t attack the Central Bank and live as a rule.
You haven’t read my manifesto yet! LOL!
I got it all worked out!
There is nowhere to move. It is time to stand and fight. They will follow us everywhere. They are bent on full-spectrum dominance. They are few. We are many. Arithmetic is on our side. Use it.
“There is no New Frontier
We will have to make it here.”
~ The Eagles, “The Last Resort”
But just in case:
All in God’s Good Time.
Hey guys, I’m an argentinean italian “chick”. Nowhere to run there or here (yours and ours being so beautiful countries). https://es.weforum.org/people/javier-gerardo-milei
Yes. Our countries are similar. We, however, are not.
If you love your life, do not conflate the two. Someone might misunderstand. Not you or I, but “someone”.
Sounds like maybe (MAYBE — a BIG maybe but possible) Argentina has been watching El Salvador and getting some ideas. I am keeping my fingers crossed here, but it could be that the people of Central and South America have finally had their fill of socialism and crime.
AND FUCKING MONKEYS WILL FLY OUT OF MUH BUTT TO TRUMPET THE GLORIOUS NEWS!!!
Can you mail me some of that shit you’re smokin’? That would be GREAT!
No hable Argenish!
BAM! The long version!
Habla “Black Betty”?
Sorry. I simply don’t have it in me to side with historical spiritual Enemies for the sake of expediency. I’d MUCH rather die. After all, Death is only the beginning.
So, please die, already.
You killed JFK, because he wanted to kill you.
Die. EMP, please take out this pulse of ChatGPT.
Says the manatee with no name! Fucking IRONY abounds and abides!
“I declare a thumb war!” – Arnold Black nigger, something about spies with hermaphrodite Jamie Curtis!
thanks for the giggles!
Kay. Think I’ma change muh name to the “Black Jewish Assassin”. Let’s do it Sammy Davis style 4 a while!
So many contradicting conclusions in the comments section.
Seems emotions and biases are on the high there.
This is news anyway.
I will watch the developments very carefully.
My only obervation is the situation is worth watching.
A smart psyops or some liberty breakthrough?
Time will tell.
Whatever happened to Samuel Bankscam Freed?
They put muttonchops on him and ran him as a candidate in Argentina.