by President Javier Milei anticipated this Sunday that the country Will continue to “suffer from high inflation for a few months” and warned Congress that, if it does not approve the omnibus reform law, “the adjustment will be greater”. Furthermore, he was satisfied with the results of this first month of management, and He once again stated that the zero deficit is not negotiable.
Increasing pressure on legislators debating the omnibus law, the president warned Congress that “either they put on long pants so that Argentines are better off, or the market passes the bill on us.”
“We are in no way going to enable policies that generate a disaster, therefore austerity is non-negotiable. And the damage suffered by the population, in depth and over time, is on the side of Congress. Whether they do things well or whether they dedicate themselves to playing ‘fulbito’ for the stands while they ruin the lives of Argentines, as they have done in the last 40 years,” he reinforced his intransigent stance on the deficit.
In a conversation with radio Miter, Milei explained that if the DNU on economic deregulation and the omnibus law “were implemented”, Argentina “would rise 90 places in the ranking of economic freedom” and “would be in a position to enter a path so that , in a reasonable amount of time, looks like countries like France and Germany.”
“Us We are satisfied with the achievements we have achieved this month. First because we receive a country on the verge of an explosion. Inflation had been traveling at a rate of 1% daily in the first week of December, then accelerated to 1.2%. That meant we were going to end the month around 45%. That the month closed at around 25% is a truly enormous achievement“, he stated in line with his previous statements, in which he had said that any figure below 30% was “a big number.”
For the president, “This is a consequence of a hyper-orthodox stabilization plan that was implemented. Where a strong fiscal adjustment was proposed so that there is no more need for issuance to finance the treasury, a process of sanitation of the Central Bank that is ongoing, and a sincerity in the exchange market. And that allowed expectations to be accommodated.”
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The President referred to the first number of his administration released by the INDEC on inflation matters.
He also stated that at the macroeconomic level “it has been possible, at least, to put a stop to this explosive dynamic.” In that context, he warned that “there is still a lot of realignment of relative prices, Therefore we are going to continue suffering high inflation for a few months. But if we continue on this path of austerity, sloppiness and sanitation of the Central Bank, without a doubt we will be able to bring down inflation.”
The president insisted on his request to Congress to sanction the omnibus law. He assured that “zero deficit is not negotiable” and that, if this standard is not advanced, and in a more adverse context, “the adjustment that will have to be made will be greater”.
However, he recognized that the path that will have to be followed in the immediate future is not the simplest, nor the most comfortable, and he appealed to a religious figure to illustrate it.
“The Jewish people on the Passover holiday take bitter herbs. Why? Because it reminds them of the way out of slavery. When you have to get out of these situations it is not easy, no. You have to take measures to get out of this decadence. And that has costs. But we have to accept them, because if we don’t change more, we will become the largest slum in the world,” he said.
“How much further dilations and nonsense are done from politics, the market passes the bill,” he said, adding that the Government “understands” that “the origin of all evil is the State and politicians generating fiscal deficits.”
On the other hand, as is usual in his pronouncements, the libertarian leader once again attacked the left by regretting that in Argentina there are “leftists who all they want is to generate inflation, they want the Central Bank to generate inflation and it is an oxymoron” because , he stressed, “they say they defend the poor and want an instrument that will multiply them.”
He also stated that in the political discussion “we have people who He’s trying to find the square of the circle, the obese skeleton, the virgin whore, and the hot ice cream.“, when “all those things don’t exist and we have to waste time explaining that they don’t exist.”
After stating that Energy and transport subsidies will be completely eliminated within three yearsand that it cannot be estimated what the values that will be in force when there is a “full rate”, the president also outlined a comparison between him and former president Mauricio Macri.
“I went for the shock solution when President Macri went for gradualism,” he summarized, explaining that the savings and adjustment policy carried out by the Cambiemos Government between 2015 and 2019 lacked the investment counterpart.
“When a gradual policy is implemented, the investor waits. It was a shame because there was great consensus and great support in terms of international funding, and if the shock adjustment had been made, it would have clearly reversed history and made a government “excellent,” he said.
“But the gradualist solution was chosen, many ‘red’ sirens were heard – not precisely because of the color of the sirens – and thus President Macri ruined his Government,” he concluded.
