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how's the inflation?
GDP?
He became president of Argentina and achieved what economists said was impossible.
In a 2-hour interview with
@lexfridman
, he explains how he slashed 3,000+ regulations in 6 months.
https://x.com/benaverbook/status/1859055924268188096
how's the inflation?
GDP?
The current inflation rate in Argentina is 192.99%, which is calculated based on CPI (Consumer Price Index) values for the last 12 months ending in October 2024.
Argentina began a process of stabilizing its macroeconomy in 2024. Real GDP is estimated to contract by 3.5 percent in 2024, due to the stabilization plan that includes the realignment of relative prices and the elimination of fiscal and external imbalances.
but, same source (World Bank), looking to the future with rose colored glasses
Argentina Overview: Development news, research, data | World Bankeconomy is expected to grow by 5 percent in 2025, driven by improved weather conditions, investments in the energy sector, and normalization of agricultural production.
good weather is coming!
Argentina was so incredibly ed due to structural corruption half of the US can only imagine in their wettest dreams. At that point might as well elect anyone and try anything. Hope it works out tbh bc luv Manu
Um argentines are still eating out of trashcans
That clown didnt do
Snake oil salesmen speak spanish too
Sadly
Inflation good now
Extreme inflation and radical poverty are great as long as the rightwing memes are going hard on the interwebspheres
Poverty there is like 53% of the total population and actually increased with this guy...
https://www.reuters.com/world/americ...ld-2024-10-01/
"he acheived what economists said was impossible"
But the latest monthly inflation is a 3 year low.
so?
consumers still have to pay the ac ulated inflation == the shelf price
also, it's normal for deflation to happen during recessions -- is it good that Millei's policies have caused one?
(not rhetorical, the notion of price discovery depends on economic pain)
They deserve credit for having an executing an economic plan, especially without riding some fluke international grain prices, etc. But above all, they deserve credit for not outright stealing and just not being corrupt, which is a breath of fresh air in those la udes.
That said, they still have tight currency controls, poverty is off the charts and still have negative dollar reserves. They're desperate to get another unpayable loan from the IMF, because nobody in their right mind will invest long term there.
So the trajectory matters... It's not like anyone can flip a switch and fix everything that came before.
When America's budget deficits, which are much larger that Argentina's, catchup to it then there will likely be a spectacularly bad recession here. Maybe even a depression because we usually fix problems here by throwing as much money as possible at the problem. That playbook doesn't work when the problem is that we can't do that anymore.
But it doesn't work like that, this is what most Americans get wrong. Argentina biggest problem is that it doesn't have enough US dollars, because that's what they need to pay their external debt, imports, and backstop their currency. People there save in US dollars and some parts of the market are entirely dollarized (ie: real estate). The trust in the local currency has been lost for a long, long time.
The US is in a completely different place. We have had sustained growth for years on end now (the pandemic was one year exception), and US Treasuries are bought up as soon as they're put on offer. The US doesn't have any obligations that are not in US dollars.
But they key point is trust in the currency. The US just had a bout with inflation, which is what you see when your deficits catchup to you, and was able to orderly address it via small modifications to the interest rates. That works because people trust the currency.
Look for countries with 20+% interest rates, and you'll quickly spot the countries where trust in their currency has been lost.
Right. If we get fiscal discipline in the future then trust will probably be warranted. If we don't then that trust will be lost and you will see a disaster with no obvious fix that isn't excruciatingly painful. Right now, I see little reason to trust our currently political system over the long-term that has driven our interest payments to become the single largest expense we have. But my lack of faith in the system is apparently still a contrarian view, which is good for our country until the problem simply becomes undeniable... or something actually changes for the better.
This isn't about being contrarian. Investors just aren't stupid. The credibility of the US dollar is directly related to the credibility of other currencies.
The only other relatively serious currencies are the Euro, the British pound and the Yen. None of which have anywhere near the economy size of the US.
It's not ONLY about relative strength to other national currencies. There's a reason why gold prices have run up, and arguably bitcoin is also running up, at least in some part, due to lack of faith in traditional fiat currencies.
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