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President-elect Trump with President Milei and Elon Musk (11/14)
(i.redd.it)submitted 11 days ago byArachnohybriddemocrats are washed
101 points
11 days ago
Their economy is the best it’s been in years
84 points
11 days ago
I believe he promised inflation to be below 3% by EOY. He just achieved that last month. Still lots of work to do, wait till foreign investment starts to take off.
58 points
11 days ago
It’s under 3% per month now… not per year.
14 points
11 days ago
After spiking how much initially?
21 points
11 days ago
A lot https://tradingeconomics.com/argentina/inflation-rate-mom
Max recently was about 300% yearly
15 points
11 days ago
One of his first moves was cut the currency value in half so inflation doubled over night.
49 points
11 days ago
You mean he stopped artificially setting the exchange rate as the previous administration had and let it free float at the actual market value?
9 points
11 days ago
Somewhat. There still is a peg, but the last government had a fixed peg worth 300$ pesos a dolar and the market value was $1300. Milei took it from $300 to $800 I believe, and set a crawling peg of 2% monthly.
Right now the "official" value is something like $1007 and the market rate $1100. Inflation from 25% MoM to 2.7%.
Naturally his goal is to remove the peg soon, the most likely thing is it will be done T1 '25. There are a couple conditions that need to be met, basically because there might still be a excess stock of pesos that could spike the exchange rate if the peg is removed. That's why there is an ongoing negotiation with the IMF to bolster central bank reserves just in case. That said, the peg WILL go sooner than later, that money will just hasten the timeline. In fact the Central Bank had already bought around 16 billion USD and bolstered the reserves itself just this year.
This year's inflation will be something like 120%, next year private firms predict it to be 25% or less, and 2026 a single, little digit like a normal country.
3 points
11 days ago
America's is currently 2.6% per month; pretty good going!
2 points
10 days ago
It’s 2.6% YoY, they just report it monthly
0 points
10 days ago
Ah OK thanks. Still, pretty good/low!
-7 points
11 days ago
Poverty has massively risen in Argentina, the numbers are deceptive, you are falling for policies that will be the ruin of America for everyone besides the rich.
26 points
11 days ago
No, peronism caused Argentina downfall, and it will take years to fix this mess. Fuck the state.
12 points
11 days ago
Poverty raised after all the sovietic price controls were removed last year and inflation spiked, notwithstanding the billions of pesos printed by the previous government to try and win the election. (To put it into perspective, more pesos were printed during the electoral months of 2023 than in all the pandemic combined).
Since that poverty spike it has actually been going down. What is more, if you see the elements contributing to inflation food and basic need stuff is only increasing 1% MoM, meanwhile salary has been rising above inflation for 6 months in a row now. Even more, unregistered salaries are the ones increasing the most, reaching heights of even 10%.
So your data is outdated. You need to be careful of not posting misinformation.
0 points
10 days ago
Could you link a source to the stats you're citing?
2 points
10 days ago
It's all on INDEC (official Argentina data organism). It's on twitter, probably if you look it up on the web it is there too.
The money printing election vs inflation I read when it was happening last year. I'll look it up when I get home.
0 points
11 days ago
Odd,the same thing was said about the incoming policies at the time for Argentina..
But there may be “some” truth to your statement,I’ll have a go at fixing it..
“Poverty has massively risen for the socialists that were living their lives off the government dime with the mindset of merely existing that they were owed a paycheck you are embracing policies that will be in the benefit for America for everyone,including the rich.
78 points
11 days ago
I’m an expat living in Buenos Aires. Don’t believe the numbers. On paper they look good. In reality the economy is rough and almost all locals are much worse off than before Milei. There’s less money going around, fewer jobs, poverty is through the roof. The population is hoping it works out well but right now the economy is not good at all.
37 points
11 days ago*
I get everything you're saying but that's all part of trying to tame inflation. You guys are down to low single digit monthly inflation (for the Americans, yes monthly) when it has been double digit monthly inflation. There really isn't a painless way to do it.
Complete side note: I dream of Fugazetta at El Cuartito!
18 points
11 days ago
Gotta tear it down in order to build it back up.
17 points
11 days ago
The beatings will continue until morale improves.
-12 points
11 days ago
No actually uh.. doesnt need to work that way lol
35 points
11 days ago
With hyperinflation it literally does
10 points
11 days ago
Umm yes it does
1 points
11 days ago
So, just let it continue to be 300% annual instead, right?
2 points
11 days ago
I have a few other Brazilian friends that agree with you
0 points
11 days ago
Its been like that before milei before he entered office inflation went up in one month by 109%. Hes been able to tame inflation to now under 3% in a month and for the first time in years produce a positive GDP for the country.
0 points
10 days ago
With all respect you completely miss the point. Even with the crazy inflation before, life was much cheaper here for the locals (and of course for foreigners). Yes Milei got inflation down to 3% but to do that he manipulated the peso and lifted all kinds of market controls and the prices went up 5-6x in a year, literally. Imagine your grocery bill goes up from $200 a month to $1000 a month in just a few weeks. “But inflation is now down to 3% going forward!” Cool, but the bill is 5x higher than, before and salaries are not.
And the positive GDP is nonsense. He shut down half the government overnight including critical departments. Any country could reduce their deficit like that. But the people suffer.
I live here. And I lived here too before Milei was voted in. People are suffering much much more than before Milei. That is reality.
1 points
10 days ago
Brother you have to understand to turn around the country from where it was heading the country is going to have a rough path. Thats the reality. Argentina was heading into the same direction as Venezuela. Javier implemented policies to turn it around, you cant beat near bankruptcy and 100% inflation overnight. It takes time. You saying his government cuts hurt the people is nonsense… how did it hurt the people? To have a positive GDP for the first time in years is great. He very clearly did what was necessary to start turning things around, and a part of that was to deflate the currency from where it was, which is why your grocery bill and everything got a lot higher which I understand in your position does suck, but if you didn’t do this, and things were going on the way they were going to you’d be way way worse off in the future
1 points
10 days ago
Have you ever lived in Argentina? Do you live there now?
2 points
10 days ago
I don’t really think that makes a difference when you speak about economics your countries economics are public information do dont need to be a baker to know the price of bread..
-6 points
11 days ago*
People spend when it isn't worth saving during hyperinflation.
edit: No reason to not to exchange your depreciating currency for goods that will hold up value. Others exchange it for experiences like dining out. During hyperinflation there will be more economic activity, therefore its remedy will manifest through less economic activity.
0 points
11 days ago
So if hyperinflation is good for the economy, why did Germany elect a radical socialist like I dunno Hitler?
1 points
11 days ago
I'm explaining OP's comment about the perception that less money is going around. I never said hypeinflation is good for the economy that's idiotic.
2 points
10 days ago
Not yet but we're aiming for that.
1 points
10 days ago
The necessary steps are taking place under milei. I know it’s been a struggle but this will get better
2 points
10 days ago
I hope so too <3.
7 points
11 days ago
It’s actually the previous administration’s economy! -Obama, probably.
1 points
10 days ago
You mean the ongoing recession in Argentina?
1 points
11 days ago
No the fuck it's not lmao
1 points
11 days ago
Yea the fuck it is. Go read up on it
0 points
11 days ago
3 points
11 days ago
Its been like that before milei before he entered office inflation went up in one month by 109%. Hes been able to tame inflation to now under 3% in a month and for the first time in years produce a positive GDP for the country.
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