There is a legend that circulates in the government since the first days of July, but that, after the palazo in Buenos Aires and the political decomposition that brought that result, began to take its own flight. It is about the back of the decision to disarm the Lefi, the instrument that the Central Bank had been using to maintain a large stock of pesos outside the market.
According to all economic analysts, that was the great watershed in the economic direction of the government: a counter -ram of what the ruling party imagined, around a third of that stock (almost 6 of 15 billion pesos) returned to the market, causing the tremendous that was then wanted to solve with a strong rise in the interest rate. In turn, this last decision was the one that ended up freezing the real economy, the necessary prelude to electoral defeat in the most populous district in the country.
That is why the anatomy of that moment, of the disarmament of the Lefi, is so central. And the story that circulates in the Casa Rosada realizes that neither Luis Caputo nor his staff were in favor of advancing in that sense. That there was a strong discussion between the minister and the president. And that the only word to accurately define the president’s position is “whim.” Something similar to a baby, who did not want to hear what his closest collaborators advised him and that, convinced by his own environment that he was a wise economist on his way to winning the Nobel Prize, he imposed his will.
The great novelty now is that even the economic team is not responsible for denying this story. And that even in that trench, the one that is supposed to be the last of the government, begin to find guilty about the Buenos Aires electoral defeat and the winding direction that the ruling party took since then. It is that even in the first ring of the administration they know it: the king is naked. And now everyone sees it.
