After a tense day on social media due to the long exchange between Javier Milei and Cristina KirchnerThe president closed the event for the 45th anniversary of the Argentine Institute of Finance Executives (IAEF) with harsh criticism of Kirchnerism and the monetary policy they applied during their governments.
“Given the aberrations and inconsistencies in CFK’s letter today and all the damage it has done to Argentina, I’m going to have to explain a lot of things”began.
“Greetings, Cris, this is for you. Cris, take note, take out your notebook and write it down, because those around you are not going to help you get out of this mess,” he continued. “If you’re already up, come here and I’ll give it back to you.”he concluded with boxing references.
He also pointed out the presidency of the leader of the Union for the Fatherland: “During Cristina’s second presidency, inflation climbed to an average of 30%. She forgot to say that one of her ways of fighting inflation was to lie about it.” And he added: “Getting into poverty or getting out of it, does not happen overnight, or just because.”
“We did not create inflation, it was created by 20 years of wild populism. Perhaps all that dye did him harm, it darkened his thinking,” the president said sarcastically, despite clarifying minutes later that “he was not talking about Cristina.”
MILEI’S NEXT STEPS ON THE ARGENTINE ECONOMY
Regarding the currency controls, the reason why his administration is receiving a lot of criticism, Milei said: “I cannot set dates (to lift it). I understand that their brains have been mistreated by years of collectivism. It is madness to talk about dates, one advances by objectives,” he said.
Despite this, he mentioned that there are still steps to be taken to achieve this: “Economic activity is improving, and that leads to an increase in demand for money. And companies need to demand working capital (demand for money)and they ask for cash from the banks,” he began to detail.
«That, in turn, leads to money bases move from traditional to broad. “We have kept the money supply constant, and demand is growing. The money overhand is being cleared and there is less and less inflation,” he continued.
On the other hand, he confirmed that he will speak before Congress to present the 2025 budget based on the Zero Deficit Law: “This is a monetary policy rule that is here to stay, and it involved stopping issuing money to finance the treasury. We had to end endogenous issuance, and, in accordance with showing the positive fiscal result and accommodating financial surplusesthe curve in pesos could begin to be recomposed.” And he added: “That allowed “Remove the debt from the Central Bank and transfer it to the Treasury, because in the end it always belonged to the Treasury.”
To close his speech, he referred to the step that will be taken after leaving the currency controls, with the search for monetization in dollars, which can be used to make any transaction in the country due to the free competition of currencies. In this context, “the amount of dollars will be so large that Let’s go to be able to close the Central Bank, and we will put an end to Argentina’s worst economic cancer“, hill.
