“You have several problems back at the same time. One is the debt, someone will have to start saying that the debt cannot be paid,” he said Tomás Rebord In its Blender streaming cycle. The driver highlighted the economic fluctuations that affect the country and as the national government cannot finish braking.
In his editorial, Rebord emphasized: “This payment scheme cannot be sustained. You cannot sustain it. You no longer have an income that justifies it. At the same time, with these three things that the Government smoked, what did it do? To get out of the pound scandal, I lift the headache.” “You encouraged, from the State, tourism outside the country too. You open the only canillas you have and uncovered all the places at the same time. Now the Canillas began to close and have Buracos, Buracos everywhere,” he concluded.
In recent weeks, the government of Javier Milei He took a remarkable turn in his exchange strategy. Although he had promised a free floating of the peso, about 300 million dollars began to sustain the currency against strong devaluation pressure, a measure that contravenes its orthodox discourse and that puts in tension the limited stock of reserves of the Central Bank.
Simultaneously, the Executive raised bank lace up to 50 % or more, forcing banks to invest in treasure letters with rates that are around 69 % annually. The economic results in these maneuvers resulted in a more expensive loan and less consumption, in a context of recession announced.
Although the government has managed to significantly slow inflation. In May, the monthly index fell to 1.5 %, the lowest since 2020. In July it remained close to that level, with a monthly inflation of 1.9 %and a core inflation in 1.5 %, marking a milestone since 2018. However, this improvement is tied to a strong contraction of purchasing power. Salaries and real income fell, which annulled any gain derived from inflation moderation.
In parallel, many Argentines still allocate more than 50 % of their income to essential foods and services, evidencing a macroeconomic improvement that does not translate in relief for the population. Although it has obtained advances in inflation and fiscal balance, the libertarian government did it at the cost of a strong social recession, fall of purchasing power and growing political distrust.
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