Argentina's market drops 48% in one day

[wayneL]

smart guy

Very smart and just insane enough to fend off the socialists and actually carry out his program.

 

[sptrawler]

View attachment 165951


BUENOS AIRES, Nov 19 (Reuters) - Argentina elected libertarian outsider Javier Milei as its new president on Sunday, rolling the dice on an outsider with radical views to fix an economy battered by triple-digit inflation, a looming recession and rising poverty.

Official results have not been released, but his rival, Peronist Economy Minister Sergio Massa, conceded in a speech. His candidacy was hampered by the country's worst economic crisis in two decades while he has been at the helm.

Milei is pledging economic shock therapy. His plans include shutting the central bank, ditching the peso, and slashing spending, potentially painful reforms that resonated with voters angry at the economic malaise, but sparked fears of austerity in others.

"Milei is the new thing, he's a bit of an unknown and it is a little scary, but it's time to turn over a new page," said 31-year-old restaurant worker Cristian as he voted on Sunday.

A year is a long time in politics, sounds as though a lot can be learned.

MSN

From the article:
Inflation, Argentina's perpetual scourge and Milei's top priority upon coming to office, slowed from a monthly rate of 25.5% in December 2023 to just 2.7% in October — its lowest level in three years.

“Inflation has gone down faster than what everyone has expected," said Ignacio Labaqui, a Buenos Aires-based senior analyst at risk consultancy Medley Global Advisors. “That’s something that validates his narrative and sustains his popularity

In a sign of Milei's long way to go — and the unmitigated shambles he inherited — Argentina's annual inflation rate remains at 193%.

But Argentines are paying closer attention to month-to-month inflation, taking the sharp decline as a sign that Milei’s fiscal shock therapy is paying off.

“Last year, it was brutal, like a shock to the system, I couldn’t keep up with the prices,” said 34-year-old deli worker Jazmin Quintana. “I’m not saying I like the guy, I find his personality very weird and aggressive, but I admit — if he continues on this route I’ll be very happy.”


A stronger peso is also boosting confidence. The black market dollar price has dropped since July, narrowing its gap with the official rate of 980.

Chileans, once accustomed to bargain-hunting in Argentina, are now surprised to see the traffic reversed. Shoppers unable to afford iPhones, imported perfumes and kitchen appliances in Argentina arrive at Chielan border towns by the busload to get the most bang from their buck. The customs office shut down briefly last month because officials were overwhelmed.

Underpinning the currency appreciation is a new tax amnesty to lure Argentines to declare their hidden U.S. dollar savings — longs squirreled away in offshore bank accounts and under mattresses. Ahead of the first-phase deadline on Oct. 31, the scheme drew some $19 billion into Argentina’s banks, the tax agency reported, boosting scarce foreign exchange reserves.

 

[wayneL]

A Brit's rant par excellence, pointing out the great things Millei is doing in Argentina compared to Britain. Applies similarly to what is happening here in Australia.

 

[Dona Ferentes]

choose your poison.

the fake western tilt from the the Islamist apologists is the toxicity, btw

A year into Javier Milei’s presidency, Argentina’s poverty hits a new high

In Argentina, the poverty rate has surpassed 50 percent in the wake of wide-ranging austerity measures and deregulation.

www.aljazeera.com

 

[sptrawler]

choose your poison.

the fake western tilt from the the Islamist apologists is the toxicity, btw

A year into Javier Milei’s presidency, Argentina’s poverty hits a new high

In Argentina, the poverty rate has surpassed 50 percent in the wake of wide-ranging austerity measures and deregulation.

www.aljazeera.com

It will be interesting to see how it pans out, it was a basket case before, if it is a basket case afterwards, will it will always be a basket case?

 

[wayneL]

choose your poison.

the fake western tilt from the the Islamist apologists is the toxicity, btw

A year into Javier Milei’s presidency, Argentina’s poverty hits a new high

In Argentina, the poverty rate has surpassed 50 percent in the wake of wide-ranging austerity measures and deregulation.

www.aljazeera.com

Financial leaches will always struggle in such a radical change. The solution is for such people to become productive in some way.

Productivity/becoming of tangible value to others = $$$

 

[Dona Ferentes]

Financial leaches will always struggle in such a radical change.

we have a lot of them here.

. The solution is for such people to become productive in some way.

Productivity/becoming of tangible value to others = $$$

something gotta give

 

[farmerge]

we have a lot of them here.


something gotta give

@Dona Ferentes well just pour more of the struggling taxpayers hard earned into Centre link, then there will be plenty to go around.

 

[Dona Ferentes]

Rio Tinto to invest $2.5 billion to expand Rincon lithium project capacity to 60,000 tonnes per year

12 December 2024

Rio Tinto has approved $2.5 billion to expand the Rincon project in Argentina, the company’s first commercial scale lithium operation, demonstrating its commitment to building a world-class battery materials portfolio. ....

....This investment supports Argentina’s ongoing ambitions to become a world-leading lithium producer. Argentina's economic reforms and the new Incentive Regime for Large Investments provide a favourable environment for investment, offering benefits such as lower tax rates, accelerated depreciation, and regulatory stability for 30 years, protecting the project from future policy changes, as well as enhanced investor protections.

 

[sptrawler]

Well Milei is certainly shaking the tree in Argentina.

Milei Ends Argentina’s Deficit After 123 Years

Milei Ends Argentina’s Deficit After 123 Years | Global Finance Magazine

gfmag.com

When Javier Milei was elected president of Argentina in 2023, many believed the nation was headed toward disaster. A libertarian economist and TV personality who claimed to take telepathic advice from his five cloned English mastiffs, Milei also described himself as an “anarchocapitalist” and “tantric sex guru.” He also advocated for the legalization of organ sales, the unrestricted ownership of firearms and the dismantling of the central bank.

Yet, “El Loco”—The Madman, as his countrymen call him— accomplished the unimaginable: Argentina’s fiscal deficit was eliminated for the first time in 123 years.

In December 2024, Argentina emerged from the severe recession it entered in late 2023. Also, annual inflation is down from near 300% last April to nearly 100% (or about 2.5% monthly).

“Milei’s government has achieved what many consider a miracle in terms of cutting down inflation and stabilizing the economy and the US dollar’s price, two long-standing Argentinian traumas,” says Juan Pablo Ferrero of the Department of Politics, Languages and International Studies at the University of Bath. “These are notable accomplishments upon which Milei is now basing his political success.”

Milei’s actions have also made Argentina expensive, Ferrero observes. Local and labor-intensive industries are struggling.

“Is this development model sustainable without a strong and dynamic industrial sector? So far, Milei’s approach seems to rely heavily on agro-exports, mining, and the sale of gas and oil,” Ferrero argues. The risks include the reprimarization of the economy, with the middle class paying the price.

Yet, Ferrero concedes, against many predictions, Milei’s leadership style is proving effective: “According to opinion polls, he remains a popular president, despite having implemented one of the most radical austerity programs ever recorded.”

 

[finicky]

claimed to take telepathic advice from his five cloned English mastiffs, Milei also described himself as an “anarchocapitalist” and “tantric sex guru.” He also advocated for the legalization of organ sales, the unrestricted ownership of firearms and the dismantling of the central bank.

What's wrong with any of this?

 

[farmerge]

What's wrong with any of this?

Perhaps the first two belong to a third world dictatorship or the good 'ol US of A

 

[Dona Ferentes]

#110 gfmag seems to have a few axes to grind. very poor article. And nothing new.

 

[wayneL]

#110 gfmag seems to have a few axes to grind. very poor article. And nothing new.

I want one of those shiny chainsaws.

 

[sptrawler]

#110 gfmag seems to have a few axes to grind. very poor article. And nothing new.

Yes Dona, also it remains to be seen if Milei is riding a sugar hit from the austerity measures, or if he has a plan for building a financially sustainable economy.
Much the same issue just about ever Western country is facing.

 

[Dona Ferentes]

Yes Dona, also it remains to be seen if Milei is riding a sugar hit from the austerity measures, or if he has a plan for building a financially sustainable economy.
Much the same issue just about ever Western country is facing.

no , not really. at the turn of the last century, Argentina was the envy of the world. More capital flowed there than other 'emerging economies' like Australia. Then, disfunction, coups, socialist paradise crap, with the pendulum swinging like a wrecking ball.

Something had to happen.

“El argentino es un italiano que habla español, piensa en francés y querría ser inglés"

 

[sptrawler]

no , not really. at the turn of the last century, Argentina was the envy of the world. More capital flowed there than other 'emerging economies' like Australia. Then, disfunction, coups, socialist paradise crap, with the pendulum swinging like a wrecking ball.

Something had to happen.

“El argentino es un italiano que habla español, piensa en francés y querría ser inglés"

So you think it wont be a problem, that's great, maybe the gain will be worth the pain.

 

[qldfrog]

Yes Dona, also it remains to be seen if Milei is riding a sugar hit from the austerity measures, or if he has a plan for building a financially sustainable economy.
Much the same issue just about ever Western country is facing.

he would be the first one to get a hit from austerity measures ROL
Usually, you get riot and strikes and coup d etat in Argentina...
, we will soon taste what austerity measure do in an australian context
I can guess we will have no sugar hit