Overall it was a challenging few months for Argentina as Javier Miley, La Libertado Avanza (the ultra-conservative party he belongs to), and Argentina as a whole, have returned to the perennial issue of the country’s overwhelming inflation and stagnant stock market.
Mairay, who took the Argentine president’s reins in 2023, has been pushing for austerity measures and was easily seen as a hero who could cut monthly inflation to 1.5% and achieve economic growth.
But Mairei’s love affair with his citizens is beginning to get sour as Argentina takes emergency measures to prevent him from becoming a punchline to economics and inflation jokes again.
The turnarounds of austerity measures from the world’s biggest supporters and reducing debt to the world’s biggest debts have been intense.
In April, Mairay accepted tens of millions of dollars from the International Monetary Fund (IMF data shows that Argentina is now more than a combination of Ukraine, El Salvador, Ecuador, Pakistan, Kenya, the Ibowaka coast and Angola).
This sudden economic decline was not at all impossible to predict. Martin Guzman, former Minister of Finance in Argentina, is a carry trade speculator It causes capital flight and puts inflationary pressure on the peso.
He finishes the article. “In Argentina, the future is clear. At some point it becomes clear that the new IMF loans will not correct the dynamics of the current account.
“The exchange rate pressure is even greater than if the IMF bet the government. This proves to be extremely expensive for the Argentinians and the IMF itself.”
Read more: How Argentina bounces each Javier Mairei to pump Libra
The US is ready to help
Treasury Secretary Scott Bescent said via X that “Argentina is our systematic integral ally,” and that the United States is “ready to do what it takes to support Argentina.”
He added options to support a sick Latin American country. “It includes, but is not limited to, exchange lines, direct currency purchases, and government debt purchases denominated in US dollars.”
What Bessent didn’t specify was what terms would be determined for Argentina and Milei to receive more or less amounts on the loan. What the US will receive in return.
Meanwhile, despite providing immediate aid to Argentina during a crisis, the Trump administration has cut aid to Ukraine, detaining and deporting Korean workers, creating dramatic trade issues between Canada and Mexico.
Without squinting, the administration may recognize that it is not eager to help its allies, but more interested in supporting another right-right, conservative political leader.
Milei and Crypto: Matches made in Hell
Milei’s rise in power included regular praise for Bitcoin (BTC) and cryptocurrency, but little progress was made in cryptocurrency policy proposals.
Additionally, Milei was previously involved in cryptocurrency fraud, but still investigates his finances by lawyers and judges.
It is also worth pointing out that BTC is not considered a fiat currency in Argentina and that central banks prohibit banks from providing clients with a way to buy BTC or other cryptocurrencies.
This is because Mairay is the central bank.One of the greatest thieves in human history. ”
Read more: Javier Milei disbands the crypto unit he set up to investigate himself
Certainly, in 2023, the then presidential candidate said he would do everything with his power to shut down the central bank and remove the debt.
Rather than undertaking Argentinean bankers, the IMF and even cryptocurrency policies, it appears that Milei has doubled its debt and decided to fully operate the central bank.
It turns out that no one is a libertarian during the financial crisis.
