2024-01-11 03:30:00
The closing and detonation of the Central Bank is over. Did anyone lose? an arm because taxes did not go down but on the contrary; “la casta” ended because it was just a slogan, as did “la rift” that only sought to divide and confront the Argentines: the show was over.
Those who pay are always the same, the salaried workers and large sectors of the middle classes who cannot transfer the increase in prices to what they charge for their work or the services they provide. It is an elementary question and reiterated throughout the centuries.
The great neoliberal revolution that came to change Argentina (with an intense fetid smell given that it is something dead in today’s world, except in some former countries of what they called the “first world”) to date brought us the following genius: a 120 percent devaluation that liquefied salaries more than they were, a brutal drop in economic activity that has just begun.
It also brought pass the “famous Leliqs” issued by the Central Bank to transform them into a National Treasury bond, lowered the interest rate on fixed terms to liquefy the savings of employees and the middle class (Those who have serious capital invest in other more sophisticated instruments), they issued a bond in dollars (Bopreal) to pay importers the back dollars that the State does not have to sell them and that issue failed miserably because it was literally rejected by the absolute majority of them.
He National Treasury forces the BCRA to issue a non-transferable title for US$ 3,200 to pay the monetary fund, which is another way of making moneyand only in the first month of mandate the BCRA issued 7 trillion pesos to buy foreign currency and redeem public securities (bloomberglinea.com).
Not even the IMF believes in the Government’s financial program, which it claims is socially and politically impracticable due to its extreme orthodoxy (the owner of the most recessive plans in the world says that the government’s plan is super harsh) nor does it lend him the expected dollars, nor the hours before the accused Ministers of Economy and president of the Central Bank take office. (imagine that situation in the previous government through the media, I say) they have managed to get a dollar from abroad.
Those who are eager to get hold of the profitable public assets of the Argentine State (the current president of Mexico said something brilliant days ago referring to our country: “neoliberalism is privatizing profits and socializing losses”) They are restless, waiting to see if the Government gets its crazy Omnibus Law and its DNU to find some legal security to disembark.
Meanwhile, the former opponents of “we will be Venezuela” (bread and circuses like in ancient Rome to confuse the plebs) cannot explain the constitutional destruction that means the mass of abrogations and modifications that are intended to be made to the Constitution, the substantive codes and public order laws without going through the National Congress, according to the planned mechanism in our fundamental standard for more than 160 years.
They scare people by announcing an emergency when the emergency and runaway inflation, the ongoing hyperrecession, ongoing unemployment, public debt, falling wages, the sale of public companies profitable and even those that are not, although essential for national development, is accelerated and induced by the current management.
And for those who can read this opinion, it is not about continuing as we were (we explained it from here over the years) but about modifying the pending issues necessary to take advantage of a unique international historical cycle for Argentina, but so that the be used by everyone, laying the foundations for a future of development for the country and the generations that follow us.
These changes with political force could be made, but not establishing a business model like this – which we have been warning about for weeks here – where the president announces the modification of a law to benefit a US satellite communications company actually interested in lithium for the electric cars it makes and that it has something to do with his campaign financing, like others that ministries and secretariats of the State receive. Let us pay maximum attention to upcoming events and use the most precious part of us, our logical reasoning, given that delicate moments await us.
* Lawyer. Professor at the Faculty of Economics, Unco.
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#Central #Bank #show