2024-02-23 00:16:21
“The sanitation that we are doing in the Central Bank is fierce, but notice that since we took office, the monetary base has not increased, and we have already purchased more than 7 billion dollars,” President Javier Milei told journalist Jonatan Viale this Thursday. , in “Do you see her?”, the new political cycle of the channel All News (TN).
“We fired 50,000 people, we canceled nearly 200,000 plans, we put our finger on the trust funds, where pus comes out every touch,” the president said regarding the harshness of the adjustment, and when Viale told him regarding the hardships that a huge percentage of the population is going through, Milei answered “I know very well what is happening”, insisting that “we are ordering a century of decline, but we said in the campaign that we had to adjust, and we reached zero deficit in January and they told us that was impossible.”
“Larreta hired the traitor López Murphy to destroy me, his people even treated me as a Nazi,” he said regarding his attacks on the former minister, even slipping that “he received money from Larreta to dirty me.”
Prison for issuing in the Central Bank
“We are going to send a law to Congress to define seigniorage as a criminal offense. If the Central Bank finances the treasury, directly or indirectly, the president of the Central Bank, the board of directors, the president of the Nation and all the deputies and senators who vote on a budget that is financed by the issuance of money,” Milei said.
“It cannot be that you have a delusion like Kirchnerism, issuing more than 20 points of the GDP. That is a scam, a theft,” he said.
“It’s a bomb,” the journalist told him and Milei ironically: “Really? I didn’t imagine it,” Milei said, adding “we are going to send the project when we are in a position to open the market, when we finish cleaning up the Central Bank and we can build the bases of the currency competition system, with the peso. In the transition it is with the peso.”
“Milei related that he told his project to the deputy director of the International Monetary Fund (IMF), Gita Gopinath: “Her eyes were like gold. She was surprised by my level of orthodoxy.” He also said that it seems that he is “ more orthodox” than the IMF.
“Gonipath was pleasantly surprised. It is a strong commitment on the fiscal level, the issue of zero deficit is not negotiated. This way you don’t take on more debt and your debt-product ratio becomes constant or decreasing, making you solvent. And the flip side of that is that the interest rate goes down, making it easier for you to achieve zero deficit, which we are going to take advantage of to lower taxes,” Milei said.
“Our program is a very tough monetary commitment, because those who violate it will end up in prison. Furthermore, if we go to a system of free currency competition, the exchange rate will be flexible.”
Step prior to dollarization
Milei explained that “free currency competition is a prior step to dollarization” and, regarding dollarization, he added: “What happens is that it can end up happening because the people decide it, it is a possibility.”
“The IMF promised to continue accompanying us. This implies that, if they are willing, they endorse a program. Therefore, if the program requires it, funds would have to be discussed. The IMF’s position is to work alongside us, they are strongly committed to our success. For them it is also an emblematic case.”
“We have just made an unthinkable adjustment in Argentine history. When we talked regarding the chainsaw, they said ‘no, it’s not going to do it, it’s impossible.’ We had committed to reaching zero deficit equilibrium by 2024. Then we began to see the numbers and we believed that we were going to achieve it in March, because we were seeing that we were ending up in primary equilibrium. In the end we achieved it in January, therefore, now they are not going to take us out of there.”
News in development…
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