Find UFOs, The Apocalypse, New World Order, Political Analysis,
Alternative Health, Armageddon, Conspiracies, Prophecies,
Spirituality, Home Schooling, Home Mortgages and more, in:
The Rumor Mill News Reading Room
Zero Hedge: Why Milei Must Shut Down The Argentina Central Bank [8 min video]
The monumental fiscal and monetary hole that Peronists Massa and Fernández have left for Javier Milei is difficult to replicate. Ex-president Mauricio Macri himself explained that the inheritance Milei receives is “worse” than the one he found from Cristina Fernández de Kirchner. Peronism leaves a country in ruins and with a massive time bomb for the next administration.
The enormous economic problems of Argentina start with a primary fiscal deficit of 3% of GDP and a total deficit (including interest expenses) exceeding 5% of GDP. Moreover, it is a structural deficit that cannot be reduced unless public spending is slashed.
Public expenditure already accounts for 40% of GDP and has doubled in the era of Kirchnerism. If we analyze Argentina’s budget, up to 20% is purely political spending. The previous left-wing administration only cut spending on pensions, which were half of the adjustment in real terms, according to the Argentine Institute of Fiscal Analysis.
Massa and Fernández’s interventionist policies and price controls have left a shortage of meat and gasoline in a country rich in oil and livestock, demonstrating again what Milton Friedman said: “Will we read next that government control of prices has created a shortage of sand in the Sahara?”
We must not forget that the Fernandez administration leaves Argentina with an annual inflation rate of 140% following an insane increase in the monetary base of more than 485% in five years, according to the Central Bank of Argentina.