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Argentina election: Milei’s victory puts the peso’s future in doubt

jhungary

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Libertarian Javier Milei’s victory Sunday in Argentina’s presidential run-off contest has far-reaching consequences for the country’s struggling economy, including the fate of the peso.

A political outsider who ran on a promise to “break the status quo,” Milei’s economic platform rested on a desire to dollarize the Argentinian economy. Dollarization means the country would give up the Argentine peso and use the US dollar as its currency.

If enacted, the policy would hurl the nation into unknown territory: No country of Argentina’s size has previously turned over the reins of its own monetary policy to Washington decisionmakers.

Ecuador and El Salvador have also dollarized their economies to combat inflation.

Argentina has one of the world’s highest inflation rates; data released last week showed that prices rose 142% year-over-year. Milei’s proposal to switch Argentina’s currency from the peso to the US dollar rests on the argument that the dollar is stronger than the peso and, unlike the peso, cannot be printed at will.

His vision has drawn international attention and a number of warnings from critics, who refer to the move as a straightjacket, saying that dollarization results in a country losing autonomy to influence the economy through monetary policy moves such as interest rate changes.


Sergio Massa, the country’s current economy minister and Milei’s run-off opponent, had criticized the plan for dollarization as a surrender of national sovereignty.

Proponents of the plan, including analysts from the Cato Institute, a libertarian economic think tank based in Washington, DC, favor the move as a practical strategy to tame what has been a decades-long problem.

CNN’s Abel Alvarado contributed to this reporting
 
Argentina tried so many things, but up to today, it's unable to fix the economy.

I don't know what happens there, but it will become a never-ending problem if Argentina is not productive and makes money.

Usually problem happens because of delusional, trapped in rich people mentality, who think they are wealthier than they are, and then spending like crazy.

Usually, politicians are responsible for it, promising anything to win the election, launching anything to increase popularity.
 
Argentina tried so many things, but up to today, it's unable to fix the economy.

I don't know what happens there, but it will become a never-ending problem if Argentina is not productive and makes money.

Usually problem happens because of delusional, trapped in rich people mentality, who think they are wealthier than they are, and then spending like crazy.

Usually, politicians are responsible for it, promising anything to win the election, launching anything to increase popularity.
Well, you really don't know this guy

I will start off by saying this, people call him "El Loco" means "the crazies".

This guy is freaking nuts, he was compared to Bolsonaro and Trump, but he is madder than Trump. He once said if you don't have enough money to live, sell your organ.......

And he is also running on an Anti-China policy (and more or less Brazil)


Mr Milei favours stronger ties with the US and has criticised China and Brazil, saying he won't deal with "communists"

He think China steals Argentina job and the money were there to pollute Argentina. I mean, as much as I hate Chinese Government, Argentina can't survive with Dollarize Peso alone if they really go ahead and do what this guy said, which is decouple from Brazil and China. And yet, this guy was elected with 56% of the vote.

You have to be really bad to elect this guy as President.
 
Well, you really don't know this guy

I will start off by saying this, people call him "El Loco" means "the crazies".

This guy is freaking nuts, he was compared to Bolsonaro and Trump, but he is madder than Trump. He once said if you don't have enough money to live, sell your organ.......

And he is also running on an Anti-China policy (and more or less Brazil)




He think China steals Argentina job and the money were there to pollute Argentina. I mean, as much as I hate Chinese Government, Argentina can't survive with Dollarize Peso alone if they really go ahead and do what this guy said, which is decouple from Brazil and China. And yet, this guy was elected with 56% of the vote.

You have to be really bad to elect this guy as President.

I don't even know where to start in critiquing this guy. He's lost his marbles and those who have elected this clown.
 
I don't even know where to start in critiquing this guy. He's lost his marbles and those who have elected this clown.
Argentina has been terribly run for decades. They went from one of the most prosperous countries in the world to great impoverishment within decades. They suffer from ridiculous inflation. So I see this as more a sign of their desperation rather than anything else.
 
Well, you really don't know this guy

I will start off by saying this, people call him "El Loco" means "the crazies".

This guy is freaking nuts, he was compared to Bolsonaro and Trump, but he is madder than Trump. He once said if you don't have enough money to live, sell your organ.......

And he is also running on an Anti-China policy (and more or less Brazil)




He think China steals Argentina job and the money were there to pollute Argentina. I mean, as much as I hate Chinese Government, Argentina can't survive with Dollarize Peso alone if they really go ahead and do what this guy said, which is decouple from Brazil and China. And yet, this guy was elected with 56% of the vote.

You have to be really bad to elect this guy as President.

If they switch to the dollar Christina de Kirchner will likely jump off a cliff.
 
Well, you really don't know this guy

I will start off by saying this, people call him "El Loco" means "the crazies".

This guy is freaking nuts, he was compared to Bolsonaro and Trump, but he is madder than Trump. He once said if you don't have enough money to live, sell your organ.......

And he is also running on an Anti-China policy (and more or less Brazil)




He think China steals Argentina job and the money were there to pollute Argentina. I mean, as much as I hate Chinese Government, Argentina can't survive with Dollarize Peso alone if they really go ahead and do what this guy said, which is decouple from Brazil and China. And yet, this guy was elected with 56% of the vote.

You have to be really bad to elect this guy as President.

Lol

Democrazy...

But let us see if he can fix the Argentina's economy crisis.
 
I don't even know where to start in critiquing this guy. He's lost his marbles and those who have elected this clown.
Well, the thing is, he is an economist (Believe it or not), he is one of those ultra-conservative and if he was a scientist, he will be called a mad scientist and most likely doing experiment in human type of scientist.

All of what he said, technically can be done within some circumstance, but he is mad to even try it, Argentina is not a small country with small expenditure like Ecuador, it's the second biggest economy in South America only after Brazil. And if they are doing this, they literally surrendered their fiscal policy to the US (Because they are adopting the USD) this can't be done in just a few years, which mean most likely it will get reversed by the next guy when he is gone half way thru, which will then destroy the entire Argentinian economic integrity. They wouldn't even have a central bank to regulate that, because Melei is closing it down....

This guy is as simpleton as Trump but probably 10 times more nationalistic than Trump...

If they switch to the dollar Christina de Kirchner will likely jump off a cliff.
Well, Argentina may actually better off become the 51st state of the US than switching to Dollar.

They will need to buy all the dollar they need, where is the money come from? You need a better economic base to do that, and they don't have that at the moment, and the more you buy, the more expensive it gets, I mean this is going to be a multi year affair, can he even do that within his term of 4 years? If not, then what? Leave this hanging or have the next guy take care of this mess??

I foresee a lot of Argentinian is likely to jump off a cliff if he really go ahead and do it.
 
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Lol

Democrazy...

But let us see if he can fix the Argentina's economy crisis.
lol, it's like a Trump-Biden 2024 run and US elected the 3rd guy.....

Funny thing is, he had a long lead run in into the election and the last poll that was done a month or so ago is the only poll Melei was trailing, and yet he still win by that margin (a 11-point swing) .......something seems off.
 
lol, it's like a Trump-Biden 2024 run and US elected the 3rd guy.....

Funny thing is, he had a long lead run in into the election and the last poll that was done a month or so ago is the only poll Melei was trailing, and yet he still win by that margin (a 11-point swing) .......something seems off.

He is probably crazy like Trumps.

But he must have something that makes people elect him over the others.

If I'm not wrong, his opponent is an ex-minister of finance.

An ex-minister of finance knows better about the Argentina economic situation.

Ideally, in meritocracy, he should be selected as the next president.
 
He is probably crazy like Trumps.

But he must have something that makes people elect him over the others.

If I'm not wrong, his opponent is an ex-minister of finance.

An ex-minister of finance knows better about the Argentina economic situation.

Ideally, in meritocracy, he should be selected as the next president.
lol, he makes Trump look tame.......

He was voted in because the people loses faith of their government, they see the Fernandez's government as corrupt and the current minister of finance Masse (the guy Melei ran against) failed to pull the country from economic woes, and people wanted a change, and in come this guy who promise just about everything in the world

That's more or less he was elected

 
Argentina is a case study in what happens when a military oversteps it boundary, they introduce instability, corruption and such a deep rot, you can go from being one of the richest countries in the world per capita to an inflation-riddled basket case. Lessons, lessons...
 
Argentina is a case study in what happens when a military oversteps it boundary, they introduce instability, corruption and such a deep rot, you can go from being one of the richest countries in the world per capita to an inflation-riddled basket case. Lessons, lessons...

A big lesson.

Military oversteps its boundary is a sign of ignorance and selfishness.

Just because they are military guys, big guys with guns, can they write a code for a computer program? Finding a cure for a disease? Fix a broken car and invent EV at the same time?

And finally run a country?


One of the scariest is a populist leader who never run a country before, but elected as a president.

Just like someone who is not a pilot, is being elected to be a jumbo jet pilot.

The only thing that is running the country is the businessmen, no wonder they are so powerful.
 
Why not switch to RMB, after all the Dollar is becoming insignificant according to some. Argentina until recently was in so much love with China. The new Presidente seems to be a bit of "Anti-communist", he calls them shit, and have invoked China on many occasion to bad mouth it. All of this doesn't really look good and thankfully the guy has also decided to pull back its request to join BRICS. Interesting times ahead.
 
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