Javier Milei's economic program focuses on deregulation, privatization, austerity measures, and radical free-market liberalism, aiming to restructure the government and economy through a neoliberal approach.

"Javier Milei's economic program in Argentina focuses on deregulation, privatization, and austerity measures, with the goal of facilitating neoliberal reforms and reducing the role of the state in the economy. His approach involves insulating his agenda from democratic influence and using executive decrees to bypass legislative institutions."

Javier Milei's proposed economic program focuses on deregulation, privatization, and austerity measures, aiming to promote economic growth and reduce government intervention. The program includes policies such as eliminating regulations, privatizing state-owned industries, and reducing government spending.

"Javier Milei's proposed economic program consists of deregulation, privatization, austerity measures, and radical free-market liberalism, aiming to reduce government spending and intervention in the economy. The program is part of a comprehensive omnibus bill that seeks to implement these reforms quickly."

"Javier Milei's proposed economic program focuses on deregulation, privatization, and austerity measures, with the goal of implementing radical free-market liberalism in Argentina. The program includes the privatization of state-owned companies, reduction of government spending, and elimination of subsidies."

The current annual inflation rate in Argentina is 138 percent, causing significant economic hardship for its citizens.

The current annual inflation rate in Argentina is 211 percent.

The current annual inflation rate in Argentina is climbing toward 300%.

The current annual inflation rate in Argentina is over 200%.

The current annual inflation rate in Argentina is over 140%, as indicated by the latest October inflation figures, which have reached a 32-year high.

Javier Milei was inaugurated as Argentina's president on December 10, 2023.

Javier Milei was inaugurated as Argentina's president on December 10, 2023.

Javier Milei was inaugurated as Argentina's president on December 10, 2023.

Javier Milei was inaugurated as Argentina's president in December 2023, with the exact date being December 10.

Javier Milei was inaugurated as Argentina's president in December 2023.

Javier Milei plans to replace Argentina's currency, the peso, with the US dollar as part of his economic reforms.

Javier Milei plans to dollarize the Argentinian economy, which involves replacing the peso with the US dollar.

Javier Milei plans to replace the Argentine peso with the US dollar as part of his economic reform agenda.

"Javier Milei plans to replace Argentina's peso with the US dollar to address the country's economic issues."

"Javier Milei may consider dollarization, or replacing the peso with the US dollar, as part of his plan for Argentina's currency."

Javier Milei's political ideology is characterized as libertarian, anarcho-capitalist, and far-right populist, with a strong emphasis on free-market liberalism.

Javier Milei's political ideology is characterized as anarcho-capitalist, libertarian, and far-right populist, reflecting his economic and political approach.

Javier Milei's political ideology is anarcho-capitalist and libertarian, with a focus on neoliberal restructuring and market-oriented policies.

"Javier Milei's political ideology is characterized as anarcho-capitalist, libertarian, and far-right populist, reflecting his emphasis on limited government intervention and free market reforms."

Javier Milei's political ideology is characterized as anarcho-capitalist, libertarian, and far-right populist, with a strong emphasis on reducing the role of the state and promoting market-oriented reforms.

Javier Milei won the presidential election with 56% of the vote.

Javier Milei secured 56% of the vote in the presidential election, winning against Sergio Massa who received 44% of the votes.

Javier Milei secured approximately 55.8% of the vote in the presidential election.

Javier Milei will be inaugurated as President of Argentina on December 10, 2023, after winning the election and promising to implement drastic measures to address the country's inflation crisis.

Javier Milei will be inaugurated as President of Argentina on December 10, 2023.

Javier Milei was inaugurated as President of Argentina on December 10, 2023.

Javier Milei is scheduled to be inaugurated as President of Argentina on December 10, 2023.

Javier Milei was inaugurated as President of Argentina on December 10, 2023.

The current poverty rate in Argentina is 40%, indicating a significant portion of the population is struggling economically.

Approximately 40% of Argentina's population is currently living in poverty.

The poverty rate in Argentina was 38.9% in September, which is approximately 2/5 or 40% of the population.

"President Milei's economic reform measures in Argentina focus on reducing government spending, privatizing state entities, and controlling inflation as part of a broader neoliberal restructuring program."

President Milei's economic reform measures aim to reduce government spending, privatize state entities, and control inflation, which is part of his broader neoliberal agenda to reform Argentina's economy and institutions.

President Milei's economic reform measures aim to reduce government spending, privatize state entities, liberate Argentina's economy, reduce the fiscal deficit, and control inflation through sweeping economic deregulation and elimination of regulations.

President Milei's economic reform measures aim to reduce government spending, privatize state entities, and liberate Argentina's economy, with goals including reducing the fiscal deficit and controlling inflation.

President Milei's economic reform measures aim to reduce government spending, privatize state entities, and liberate Argentina's economy, while also controlling inflation and reducing the fiscal deficit.

Argentina is currently facing economic challenges, including high inflation, which President Javier Milei is attempting to address through his policy agenda.

"Argentina is currently facing significant economic challenges, including high inflation and declining living standards, which are exacerbated by a history of fiscal mismanagement."

Argentina is currently facing significant economic challenges, including high inflation and declining living standards, with a cost of living surge of 142.7% and a poverty rate of 38.9%.

"Argentina is currently facing significant economic challenges, including high inflation and a large debt, which are impacting the country's living standards."

Argentina is currently facing economic challenges of high inflation and a deepening recession.

Javier Milei won the Argentine general election in November 2023.

Javier Milei approved over 300 economic reforms in Argentina, aimed at privatizing core public assets and repealing various laws and regulations.

Javier Milei approved a package of reforms with 366 articles, which is estimated to include over 300 economic reforms.

Argentina's annual inflation rate under President Javier Milei is over 100%, specifically above 200%.

Argentina's annual inflation rate under President Javier Milei is around 211%, which is the highest rate in 32 years.

The annual inflation rate in Argentina under President Javier Milei is close to 300%, which is higher than the provided answer options.

Argentina's annual inflation rate under President Javier Milei is over 200%.

Argentina owes the International Monetary Fund $44 billion.

Argentina owes the International Monetary Fund $44 billion.

Argentina's expected inflation rate by year's end is around 300%, as the country is experiencing its worst economic crisis in two decades.

The expected inflation rate in Argentina by year's end is around 300%.

One of the key provisions of President Javier Milei's economic reform decree is the removal of rent price caps.

"Javier Milei's economic reforms in Argentina are expected to involve the privatization of state-owned companies and industries as part of a broader neoliberal restructuring program."

Javier Milei's economic reforms in Argentina will involve the privatization of state-owned companies and state-run industries as part of his broader neoliberal agenda.

Javier Milei's economic reforms include the privatization of state-owned companies, specifically 41 companies across various sectors such as energy, aviation, and agriculture.

Javier Milei's economic reforms in Argentina will involve the privatization of state-owned companies, with the exception of certain companies like YPF.

"Javier Milei's economic reforms in Argentina include privatizing state-owned companies and state-run industries as part of his plan to reduce the state apparatus and promote economic growth."

"Javier Milei's policy agenda in Argentina is centered around free market and limited government principles, as evident from his neoliberal restructuring program."

Javier Milei's policy agenda in Argentina is centered around free market principles and limited government intervention, as evident from his efforts to repeal numerous laws and regulations and privatize public assets.

Javier Milei's policy agenda in Argentina focuses on free market and limited government, with key components including economic deregulation, elimination of regulations on supermarket laws, and measures to eliminate rent controls.

Javier Milei's policy agenda in Argentina is focused on free market and limited government principles, as evident from his neoliberal restructuring initiatives and the provisions included in the bill sent to Congress.

Javier Milei's policy agenda in Argentina is centered around free market and limited government principles, reflecting a neoliberal approach with a populist rhetoric.

Javier Milei's reforms in Argentina involve cutting back on certain areas, including labor rights, as evidenced by suggested reforms to cut pregnancy leave and increase the job probation period.

Javier Milei's economic program focuses on deregulation, privatization, austerity measures, and radical free-market liberalism, aiming to restructure the government and economy through a neoliberal approach.

Title:

Content: Argentina’s Javier Milei’s “Instant Democracy” and Neoliberalism

Javier Milei, YouTube screen grab.

Self-described “anarcho-capitalist,” Javier Milei became the president of Argentina in December 2023 promising “drastic” measures to temper the inflation crisis that has gripped the country. In the weeks since his election, Milei has brought forward an ambitious neoliberal restructuring program encompassing almost every aspect of the government.

Milei’s agenda confronts considerable opposition in Congress, where his governing coalition, Libertad Avanza, holds only a fraction of the seats. To adjust to these circumstances, Milei has cultivated a strategy of “turbo-politics,” bypassing legislative processes that risk delaying the implementation of his state reorganization plans.

Milei’s approach to Congress is symbolic of a decades-old strategy I have elsewhere called “neoliberal parliamentarism.” This concept describes a pattern of deliberate efforts to reform or subvert legislative institutions as a means of facilitating neoliberal reforms that do not have sufficient popular support to be actualized through usual democratic channels. These changes, even when temporary, often leave long-term scars on institutions by weakening norms of institutional forbearance.

The Emergency Decree and the Omnibus Bill

Milei has followed this blueprint, insulating the core elements of his agenda from democratic influence. The dismantling of the Argentine state began in earnest in mid-December when the executive branch presented an 83 page Necessity and Urgency Decree (NDU) aimed at repealing over 300 various laws and regulations, facilitating the privatization of core public assets.

This “mega-decree,” Milei claimed, was necessary to “start to undo the huge number of regulations that have held back and prevented economic growth”. It includes sweeping economic deregulation, such as the elimination of regulations on Argentina’s supermarket laws, which required the guarantee of low prices on basic products. It also includes measures to eliminate rent controls. Suggested labour reforms to cut pregnancy leave and increase the job probation period were suspended by the courts in January 2024.

Less than a week after issuing the NDU, the executive branch sent a massive omnibus bill titled Foundations and Starting Points for the Freedom of the Argentine People to Congress for consideration. The bill bundles the major elements of Milei’s neoliberal restructuring initiatives under the heading of a single piece of legislation with 664 articles. It will enable the government to carry out, in a matter of weeks, what would normally take years to achieve if these reforms were considered independently and subjected to the usual legislative scrutiny.

Reforms from the 351 page bill include an extraordinary provision declaring a state of public emergency on matters related to the economy, fiscal balance, social security, defence, health, and administration.

The emergency declaration delegates more than 1,000 extraordinary powers from the legislative to the executive until December 31, 2025, with the possibility of a two-year extension. This provision would enable Milei to make major reforms without having to consult Congress, thus eliminating a major hurdle to the implementation of neoliberal reforms.

Authors of the bill are attempting to facilitate the privatization of 41 state-owned companies across various sectors including energy, aviation, port administration, and agriculture. They also enable the reorganization of public administration, including embedding regulatory cuts from the NDU into law.

Additionally, the omnibus legislation proposes substantial reforms to environmental protection laws. These changes include the weakening of the Glacier Protection Law, allowing the mining of sensitive “periglacial” areas. The bill is presently being rushed through the legislative process by way of Extraordinary sessions of Congress, leading to marathon sittings during Argentina’s usual summer recess period.

“It’s impossible for people to have an idea of the enormous number of proposals Milei has sent,” said Ricardo Gil Laverda, a constitutional lawyer and former Argentine Justice Minister. “They cover dozens and dozens and dozens of laws, often on deep topics.”

To influence negotiations, Milei has threatened to put forward a non-binding referendum if the opposition parties do not agree to the main terms of his restructuring plan. Milei has also threatened to take away social welfare rights from protesters who block streets.

Despite these efforts, however, the reality of Milei’s lack of Congressional support has led him to compromise on some elements of his agenda as it makes its way through the legislative process. Although the structure of the bill remains, opposition politicians have made more than 100 changes to it, including curtailing the scope of the President’s emergency powers to one year rather than two, and retaining YPF, the national oil and gas company, in public hands, despite allowing most other state-owned companies to remain subject to privatization.

Neoliberalism and the Decline of the Legislature

Argentina is not unique. This most recent example of legislative subversion is a familiar tactic used to accommodate neoliberal restructuring, that has been utilized repeatedly by neoliberal reformers in recent decades, including the IMF-sanctioned omnibus bill rammed through Greece’s parliament in 2014.

This approach to the legislature is the consequence of the political limitations of neoliberal policy, which is opposed by considerable segments of society. A blueprint for this strategy is spelled out by former New Zealand Minister of Finance Roger Douglas in his 1993 book, Unfinished Business. The book recalls lessons from his experience implementing a neoliberal agenda dubbed ‘Rogernomics’ in the 1980s against the headwinds of widespread social and political opposition.

Douglas claimed it is “uncertainty, not speed, that endangers the success of structural reform programmes.” Neoliberal reforms should not be passed incrementally, but as a rupture, moving in “quantum leaps” to overcome popular opposition.

Democratic processes are typically slow and deliberate, designed to enable the legislative body to scrutinize the executive, foster compromise, and encourage debate. It was necessary, therefore, to streamline the democratic process to ensure that politicians could neither interfere with, nor demand meaningful changes to, neoliberal reorganization efforts.

Neoliberal governments should confront the legislature, not as an essential element of the process of democracy, but an instrument used by politicians and vested interests to interfere with the operations of the marketplace. “Speed is essential. It is almost impossible to go too fast,” Douglas said. “Once the programme begins to be implemented, don’t stop until you have completed it.”

This tactic did not occur in a vacuum, but emerged intrinsically from the content of a neoliberal theoretical framework that views democratic institutions as an additional layer of state administration to be overcome. Neoliberal thought is deeply skeptical in the capabilities of reason to infer or predict causality. Given the limitations of the mind, society should be governed, not by conscious modelling and careful planning, but according to spontaneous or “invisible hand” forms of social organization, which are the outcome of independent, unplanned individual decisions.

This position is most clearly expressed by Friedrich Hayek, who claimed that parliamentary sovereignty was in fact the “root of the evil” in modern society, since it facilitated the growth of the state. Legislatures constituted one limb of what Milton Friedman called the “iron triangle” of politicians, bureaucrats, as well as corporate and individual special interests that were perpetually reliant upon the government for rents, and therefore had an interest in obstructing market reforms.

‘Instant Democracy’ and the Rise of ‘Neoliberal Populism’

What should we make of Milei’s approach to Congress, then? Is it reflective of a new pattern in neoliberal governance, or merely the extension of an old one? The answer is both. While Milei’s approach clearly shares categorial similarities with the neoliberal legislative blueprint built for speed, his blending of these ideas with a coarse, populist rhetoric grounded in anti-statism, signifies an intensification of these patterns.

Milei’s populist neoliberal worldview contributes to a rising trend among far-right governments around the world to use this rhetoric to rationalize the subversion of democracy. This kind of “neoliberal populism” conflates democratic institutions with political actors, claiming that they are instruments of obstruction for self-serving politicians and bureaucrats.

This is a view Milei has proudly declared. “For me, the state is an enemy, as are the politicians who live off it,” he said. “We will put an end to the parasitic, stupid, useless political caste that is sinking this country.”

Grounded in the same logic as neoliberalism’s conventional demand for freedom from the state, democratic institutions increasingly appear as impediments to the logic of the marketplace. The elimination of cumbersome legislative processes, then, removes the obstacles that restrain market forces, generating popular economic independence, and restoring common-sense. This inverts the logic of democracy, making it appear as though executive rule is necessary to protect the interests of “the People” from Friedman’s “iron triangle.”

The anti-parliamentarism at the core of the neoliberal theoretical outlook has increasingly transformed into a populist program that mobilizes a general dissatisfaction with politicians against democratic institutions as such. Neoliberal politicians, such as Milei, use this reasoning to manufacture the conditions for the ongoing use of emergency powers and the concentration of authority in the executive branch.

The global elite, sensing “the smell of a big privatization wave coming,” are said to be “infatuated” with his take-no-prisoners approach to Congress. Thus, although not a new phenomenon, Milei’s brand of “instant democracy,” which conceives of speed and flexibility as the essence of legislative governance, has the support of both the financial elite as well as a growing populist dimension, giving it the hallmarks of a burgeoning political movement of the most regressive kind.

As the institutional forbearance that restrained most neoliberal governments to stay within the confines of liberal democratic constitutional structures continues to give way to a logic that sees the legislature as subordinate to the market, it is likely that we will continue to see the erosion of democratic standards.

Tom McDowell is a Lecturer in the Department of Politics and Public Administration at Toronto Metropolitan University. He is the author of Neoliberal Parliamentarism: The Decline of Parliament at the Ontario Legislature (University of Toronto Press, 2021).

How will Milei's reforms impact workers?

What does Milei promote in terms of healthcare and education?

"Javier Milei's economic program in Argentina focuses on deregulation, privatization, and austerity measures, with the goal of facilitating neoliberal reforms and reducing the role of the state in the economy. His approach involves insulating his agenda from democratic influence and using executive decrees to bypass legislative institutions."

How will Milei's reforms impact workers?

Javier Milei's proposed economic program focuses on deregulation, privatization, and austerity measures, aiming to promote economic growth and reduce government intervention. The program includes policies such as eliminating regulations, privatizing state-owned industries, and reducing government spending.

How will Milei's reforms impact workers?

"Javier Milei's proposed economic program consists of deregulation, privatization, austerity measures, and radical free-market liberalism, aiming to reduce government spending and intervention in the economy. The program is part of a comprehensive omnibus bill that seeks to implement these reforms quickly."

"Javier Milei's proposed economic program focuses on deregulation, privatization, and austerity measures, with the goal of implementing radical free-market liberalism in Argentina. The program includes the privatization of state-owned companies, reduction of government spending, and elimination of subsidies."

The current annual inflation rate in Argentina is 138 percent, causing significant economic hardship for its citizens.

Title:

Content: Argentina’s Javier Milei Attempts To Turn Back the ‘Pink Tide’

Election Sunday could elevate a radical libertarian, free marketeer, and advocate of sound money to the presidency of the country whose name means money.

It’s too soon to say whether tomorrow the arch-libertarian Javier Milei will be able to convert his place from leading contender to become Argentina’s president-elect. There might have to be a runoff. It’s not too soon, though, to savor the prospect of a free marketeer and sound money advocate acceding to the Pink House. Particularly in the land that spawned Perónism and whose name — Argentina —  means money.

The anarcho-capitalist is campaigning with a chainsaw, vowing to upend Argentina’s establishment, which he describes as a “political caste” of “useless parasites.” It’s “no time for nice words and good manners,” he avers, noting that, as the Wall Street Journal reports, “the caste is trembling.” The anger, if strident, is understandable, with Perónism, a leftist hybrid of nationalism and statism, having ravaged the once-thriving Argentine economy.

Poverty stands at 40 percent in a country that once vied with America as a contender for economic superpower status. Inflation is running at a catastrophic 138 percent, devastating Argentines’ buying power and driving a black market in dollars. No wonder Mr. Milei wants to ditch the country’s debased peso, which he calls “a currency emitted by Argentine politicians” that isn’t even “worth excrement,” because the pesos can’t be used as fertilizer.

The real path toward restoring sound money in Argentina would be to restore a peso convertible into gold or silver, as opposed to merely adopting a fiat dollar. Yet Mr. Milei’s proposed “dollarization” — making the greenback Argentina’s sole legal tender — is something of a step in the right direction. It would mark a sea change for a country that has been notorious for its lax monetary and fiscal policies after it abandoned its gold standard.

That was in 1929. Since then, Argentina’s currency has fallen in tandem with the country’s economic prospects. As the 20th century began, both America and Argentina “were young, dynamic nations with fertile farmlands and confident exporters,” journalist and historian Alan Beattie has observed, and “Argentina was among the 10 richest economies in the world.” Emigrants fleeing Europe were often torn, he noted: “Buenos Aires or New York?”

Argentina’s prospects dimmed during the Great Depression. Instead of following America’s path by embracing global trade, Argentina fell prey to the siren song of Perónism. This regime of corporate cronyism and big government, as economist Lawrence Reed explains, “expanded the power of labor unions, spent lavishly on welfare schemes and waged class warfare against the rich,” and drove Argentina’s economy into the ditch.

One of the most insidious aspects of Perónism is how it inverted the formula of “negative rights.” These are enshrined in America’s Constitution to protect against the predations of the government, as seen in, say, the First Amendment, which opens by saying “Congress shall make no law . . .” By contrast, Eva Perón justified the socialist takeover of the economy and a bloated welfare state by saying “Where there’s a need, there’s a right.”

Mr. Milei is, in the Financial Times’ telling, running on a platform that is as far from Perónism as it gets, calling for “unfettered free markets,” free trade, and “giving primacy to private property and individual freedom.” The fact that he has named his dogs after economists like Milton Friedman, Robert Lucas, and Murray Rothbard suggests he has an awareness that political liberty is not possible without economic liberty.

Whether or not Mr. Milei wins the presidency in Sunday’s first round of voting, as he suggests is a possibility, or at all, his candidacy is a bright spot on a continent that has lately drifted toward the shoals of neo-Marxism. Observers call it a “pink tide.” The Argentines have the opportunity at the ballot box to buck this leftward trend, choosing sound money and individual liberty and putting their country on the path to prosperity it left decades ago.

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What economic issue did Milei want to address?

The current annual inflation rate in Argentina is 211 percent.

Title:

Content: Argentina’s New Libertarian President, Javier Milei, Is on a Collision Course With His Country’s Powerful Labor Unions

Unions have promised a ‘total strike’ across the country Wednesday to protest Mr. Milei’s efforts to rein in a once-powerful central government and put Argentina on a path to prosperity.

Argentina’s new Libertarian president, Javier Milei, is on a collision course with his country’s powerful labor unions, a conflict that will come to a head Wednesday when the unions have promised a nationwide “total strike” to protest austerity measures enacted by Mr. Milei since he took office last month.

Union leaders speaking to the Financial Times say they expect as many as 200,000 people to take to the streets of Buenos Aires because the new president is “breaking the social contract” by passing an emergency decree that rolled back worker protections, deregulated many industries and began allowing employees to opt out of union-provided health care.

Around 40 percent of the country’s 13 million workers belong to labor unions that have for decades enjoyed considerable political clout under successive governments headed by leaders of the Peronist movement launched by strongman Juan Peron in the 1950s. That power evaporated overnight when Mr. Milei moved into the Casa Rosada, Argentina’s equivalent of the White House, on December 10.

The leader of Argentina’s Construction Workers Union, Gerardo Martínez, told the Financial Times that he hopes the strike —the earliest ever faced by a newly elected president — will force Mr. Milei to roll back some of his reforms and come to the bargaining table with the unions.

“We are aware that inflation [needs to come down.] We are embarrassed to have a country with this level of poverty,” Mr. Martínez said. “But we can’t accept that the cost of reaching economic stability falls solely on the backs of workers and the middle class.”

The tousle-headed Mr. Milei, who famously brandished a chainsaw during the campaign while promising to slash government spending and eliminate entire departments, has made good on some of those promises early in his tenure. He has slashed energy and transport subsidies and sent a bill to Congress that would privatize many of Argentina’s poorly managed state-run enterprises.

Mr. Milei already has backtracked on other issues, however, in an effort to secure the support of moderates in Congress, including taking off the table a plan to privatize the state-run oil giant, YPF.

While perhaps not exactly enamored by some of his fellow countrymen, Mr. Milei has become the darling of international free-marketeers since his full-throated defense of capitalism and the power of entrepreneurship to lift countries out of poverty during the annual World Economic Forum at Davos last week.

In a speech that has since been translated into dozens of languages, Mr. Milei stunned the normally left-leaning audience at Davos by blaming the decades of economic malaise that has plagued Argentina on the “collectivist” policies of his predecessors. Government, he said, is not the solution to what ails societies. Government is the problem, he said.

“The case of Argentina is an empirical demonstration that no matter how rich you may be, how much you may have in terms of natural resources, how skilled your population may be, how educated, or how many bars of gold you may have in the central bank — if measures are adopted that hinder the free functioning of markets, competition, price systems, trade and ownership of private property, the only possible fate is poverty,” he said.

As much as 40 percent of Argentina’s population is described as living in poverty, and inflation is currently running at a rate of 211 percent annually, the highest rate in 32 years. In Latin America, only Venezuela faces worse inflation than Argentina.

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As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

The current annual inflation rate in Argentina is climbing toward 300%.

Title:

Content: Skip to Content

In initial victory for Argentine President Milei, Senate gives overall approval to key reform bills

By ISABEL DEBRE
Associated Press

BUENOS AIRES, Argentina (AP) — Argentina’s Senate has approved key state overhaul and tax bills proposed by President Javier Miliei, delivering an initial legislative victory to the libertarian leader in his efforts to deliver on his promises of radical change.

Senators voted 37 to 36 late Wednesday to give their overall approval to the overhaul bill after 11 hours of heated debate as protesters urging lawmakers to reject Milei’s harsh austerity clashed with police outside Congress. The lawmakers still must approve individual measures in an article-by-article vote that will stretch throughout the night.

In a reflection of the fierce backlash to the legislation and deep polarization gripping Argentina’s Congress, Vice President and head of the Senate Victoria Villarruel cast the tiebreaking vote in favor of Milei’s agenda.

The legislation delegates broad powers to the president in energy, pensions, security and other areas and includes several measures seen as controversial, including a generous incentive scheme for foreign investors, tax amnesty for those with undeclared assets and plans to privatize some of Argentina’s state-owned firms.

If the Senate approves the articles with modifications, the lower house still has to okay them before Milei can claim passing his first law since entering office last December.

As Senators pored over the bills, protesters in downtown Buenos Aires hurled sticks, stones and Molotov cocktails at police who fired water cannons and tear gas to disperse the crowds.

The fiery right-wing economist rose to power on promises he would resolve Argentina’s worst economic crisis in two decades, with annual inflation climbing toward 300% and a recession deepening.

But his political party of relative novices holds just a tiny minority of seats in Congress and he has struggled to strike deals with the opposition.

Senators approved two bills, a tax package that lowers the income tax threshold and a 238-article state reform bill that passed the lower house of Congress in late April after weeks of negotiations.

Initially dubbed the “omnibus bill” because of its more than 600 articles, the watered-down version at hand still delegates broad legislative powers to the president in energy, pensions, security and other areas.

The proposal’s immense scope — and staunch opposition to it — has limited progress.

“We have the weakest president we’ve ever seen who is trying to pass the biggest bill we’ve ever seen,” said Ana Iparraguirre, an Argentina-based analyst at Washington strategy firm GBAO. “That’s the contradiction.”

Unlike previous Argentine leaders since the return of democracy in 1983, Milei has failed to pass a single piece of legislation during his first six months in office. Instead, the populist outsider has relied on executive powers to slash state spending and sweep away economic restrictions.

“Today, it’s almost more important for Milei to demonstrate that he can pass laws in Congress than what he passes,” said Lucas Romero, director of Synopsis consultancy.

The package has faced tough resistance from the left-leaning Peronist movement loyal to former president Cristina Fernández de Kirchner, which has dominated Argentine politics for the last two decades and holds sway over the country’s powerful trade unions.

Thousands of bankers, teachers, truckers and workers from a range of other unions converged around Congress throughout the day, banging drums, blasting trumpets and chanting, “Our country is not for sale!” and “We will defend the state!”

“If this law passes, we are going to lose so many of our labor and pension rights,” said 54-year-old teacher Miriam Rajovitcher protesting alongside her colleagues, middle-class Argentines who say they’ve had to reconfigure their lives since Milei slashed their school budgets and devalued the currency, sending inflation soaring. “I am so much wor0se off.

The rally took a tense turn when hundreds of riot officers pushed back with their shields against angry protesters trying to surge through a barrier.

Police used pepper spray, water cannons and tear gas against the huge crowds while demonstrators set two overturned cars ablaze and threw Molotov cocktails.

Dozens of protesters were being treated by medics in the streets and police said 20 officers had been injured in the clashes. At least five Peronist lawmakers said they were hospitalized after police sprayed pepper spray in their eyes.

“Today the government is declaring war on the Argentine people,” Peronist lawmaker Cecilia Moreau told reporters outside Congress.

The presidency called protesters “terrorists” and accused them of “attempting to carry out a coup d’état” by disrupting Congress.

The Peronist bloc controls 33 out of 72 seats in the Senate while Milei’s party, Freedom Advances, holds just seven seats. The bill needed 37 votes from the 72 total legislators in the Senate to get a majority and ended up with a 36-36 tie.

Analysts say that foreign investors and the International Monetary Fund, to which Argentina owes a staggering $44 billion, are closely watching Wednesday’s vote to see whether Milei can build consensus with his opponents to deliver on his ambitions.

Wednesday’s article-by-article vote will stretch for hours, with analysts expecting lawmakers to further weaken the most divisive sections of the bills.

One of the most contested measures is an incentive program to spur foreign investments that offers lucrative tax breaks for 30 years, no import tariffs and other perks for big corporations that critics say go too far.

“What this law is hurting most are the pockets of workers, not the big companies that are just going to get richer,” said 36-year-old Juan Barreto, a bank employee jostling amid crowds of his fellow union members.

Argentina’s unions have also voiced vehement opposition to measures that would make it easier for companies to fire employees as well as plans to privatize some state-owned companies. The question of which ones will head to auction has generated intense debate.

Backlash to the tax bill has centered on an amnesty that would allow Argentines to register undeclared assets at home and abroad without paying heavy taxes, as well as a lower income tax threshold to boost revenue.

Frustrated by legislative resistance, the president has moderated his previous all-or-nothing approach. Earlier this month, in a bid to break the impasse, Milei fired his politically inexperienced Cabinet chief and replaced him with Interior Minister Guillermo Francos, a career politician skilled at congressional wheeling and dealing.

In recent weeks, Argentina has gotten a taste of what awaits if Congress fails to pass the bills.

Sovereign bonds have tumbled. The country’s currency, the peso, has depreciated as well, widening the gap between the official and black market exchange rate to nearly 40%. The peso was trading at 1,255 per greenback on the informal market Wednesday, a rate far lower than earlier this year.

Even as the IMF has praised Milei’s agenda and released tranches of frozen loans, the fund has held back from striking a new deal with Argentina.

Meanwhile, Milei has been in Silicon Valley rubbing shoulders with billionaire tech executives Elon Musk, Tim Cook and Mark Zuckerberg. The meetings however, have not produced any announcements of substantial investments.

“What you’re seeing in the last three weeks is the market and investors getting a little nervous,” said Marcelo J. García, Americas director at geopolitical risk firm Horizon Engage. “The market is saying, ‘Show me that you can govern.’”

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What economic issue did Milei want to address?

The current annual inflation rate in Argentina is over 200%.

Title:

Content: Argentina markets edge lower after Milei's key reform bill diluted

Credit: REUTERS/AGUSTIN MARCARIAN

By Walter Bianchi

BUENOS AIRES, Jan 29 (Reuters) - Argentina's bond, currency and stock markets edged lower on Monday, though they avoided a sharp slide after the government was forced to pull a key fiscal section from its major "omnibus" bill aimed at reforming the country's embattled economy.

The South American country's libertarian President Javier Milei agreed on Friday to yank changes to taxation and pensions from the mammoth bill that is working its way through Congress, where the government's minority bloc faces stern opposition.

That should make passing the bill easier, but it also removes key reforms aimed at cutting spending and boosting state revenues to help meet a zero-deficit target this year as the government looks to trim high debts and bring down inflation that is running above 200%.

"We consider that with the exclusion of the fiscal package it is more likely Congress will approve the 'Omnibus Law'," Portfolio Personal Investments said in a note, adding that the hit to markets should be limited as long as the bill moved ahead.

"We would hope that there are no major points of conflict and that it can be approved quickly. Otherwise, it will be a very bad sign for markets."

Argentina's S&P Merval stock index .MERV was down more than 1% on Monday, led by energy and financial sectors, while sovereign bonds also slid around 1.1% on average. The peso currency in parallel markets widely used to access dollars also edged lower.

"The attention this week will remain on the politics, as the extraordinary sessions in Congress move ahead and with the expectation of possible announcements," local settlement and clearing agent Puente wrote.

Congress is set to discuss the omnibus bill on Tuesday.

Milei took office in January pledging to revive the country from its worst economic crises in decades with tough austerity and cost-cutting measures, but he faces a major challenge from opposition lawmakers and street protests.

(Reporting by Adam Jourdan; Editing by Paul Simao)

((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

The current annual inflation rate in Argentina is over 140%, as indicated by the latest October inflation figures, which have reached a 32-year high.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

What economic issue did Milei want to address?

Javier Milei was inaugurated as Argentina's president on December 10, 2023.

Title:

Content: Argentina sees the light with Maverick Javier Milei – Ivo Vegter

In a surprising turn, libertarian firebrand Javier Milei secured Argentina’s presidency after a second-round victory against his left-wing rival. Vowing to end decades of socialist mismanagement, Milei, an outspoken economist, faces challenges in implementing radical reforms, including abolishing ministries and dollarising the economy. While hailed as the world’s first libertarian president, Milei’s uphill battle involves legislative opposition and managing economic pain amid promises of a freer, market-oriented Argentina. Skepticism remains, awaiting the true impact of his ambitious plans in a nation grappling with deep-rooted economic struggles.

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Argentinians see the light

By Ivo Vegter*

It took a second round of voting, but the libertarian Javier Milei has defeated his Peronist rival to become president of Argentina.

A month ago, Javier Milei unexpectedly lost the first round of the Argentinian general election to his left-wing Peronist rival, Sergio Massa, after the latter had cynically promised zero taxes as a way to bribe voters.

In my column on the lessons South Africa could draw from that election, I said: ‘Let’s hope Argentinians see the light before Massa and Milei face off in the run-off election.’

Happily, they did see the light.

After decades of economic malaise under a government that for most of the last 30 years has been socialist, corrupt, wasteful and incompetent, leaving Argentina eighth from last in the Fraser Institute’s Economic Freedom of the World Report 2023, they elected Milei, a libertarian firebrand, in the biggest landslide since Juan Perón’s election in 1973.

Milei becomes the first libertarian president, not only of Argentina, but in the world. The closest precedent that comes to mind is that of Calvin Coolidge, the small-government conservative president during the Roaring Twenties in the US, but Milei is far more radical than that.

‘“oday the reconstruction of Argentina begins’, he said, after winning 56% of the vote in the head-to-head race. That was also his first lie as president-elect, since he doesn’t actually take office until 10 December, but we’ll let that slide.

Radical

To describe Milei as radical would be putting it mildly. He has described the country’s ruling elite as thieves and the government as ‘a criminal organisation’. He has promised to abolish ten of the government’s 18 ministries. He said he would do away with the central bank and dollarise the Argentinian economy.

‘The model of decadence has come to an end’, he told his supporters. ‘There’s no going back. We have monumental problems ahead. Inflation, lack of work, and poverty’.

Milei is an accomplished economist, and largely follows the Austrian School of individualist free-market economics. He has variously described himself as an anarcho-capitalist and a minarchist (an anarchist who accepts the legitimacy of a small government dedicated to protecting life, liberty and property).

He has been extraordinarily outspoken on the evils of socialism and statism, and how they turned Argentina from a once-wealthy world power into an over-indebted, poverty-stricken, underdeveloped basket case.

Mainstream media

The mainstream media, with its largely left-leaning bias, has compared Milei to former presidents Donald Trump of the US and Jair Bolsonaro of Brazil.

‘Argentina set for sharp right turn as Trump-like radical wins presidency’, trumpeted the Washington Post

‘Argentina Elects Javier Milei in Victory for Far Right’ was the headline in the New York Times, which added: ‘Argentina’s next president is a libertarian economist whose brash style and embrace of conspiracy theories has parallels with those of Donald J. Trump.’

The ‘embrace of conspiracy theories’ is a particularly vicious jab. Readers would have to follow a link to find an explanation, and it turns out that the Times only referred to Milei’s allegations of polling irregularities, which have not been tested.

It is entirely plausible that Argentina’s electoral system is less secure than that of the United States, and that the incumbents – who went as far as abolishing taxes in order to engineer a win – might have been involved in some electoral skulduggery.

Allegations of election fraud are very common on all sides of the political spectrum, and do not, in and of themselves, rise to the level of the debunked claims of Trump, and his attempt to derail the orderly election of his rival.

Authoritarians

More importantly, both Bolsonaro and Trump are alt-right populists. They are moral authoritarians – not liberals – and appeal to collectivist – not individualist – principles such as nationalism and protectionism. They have often, rightly, been described as fascist, which is just as antithetical to libertarians as is left-wing socialism.

That both former presidents expressed their support for Milei has a lot more to do with shared anti-socialist positions than any real congruence in their political philosophy.

Milei has himself rejected the right-wing label, and indeed, his classical liberalism (for which ‘libertarian’ in the American sense is a synonym) does not yield to a simplistic left-right analysis. Rather, it falls on the liberal end of an authoritarian-liberal scale, and on the progressive end of a conservative-progressive scale.

Sour-grape-ish

Milei does have some views that are questionable, or traditionally associated with the conservative right, such as his anti-abortion stance and his rejection of climate alarmism.

Neither define him, however, and both are issues on which libertarians can and do disagree.

By similar logic, Milei’s promise not to dismantle Argentina’s extensive social welfare programmes does not make him some sort of left-winger.

In focusing on incidental agreements between Milei and leaders like Trump and Bolsonaro, and ignoring the fundamental philosophical differences between the former’s individualist, free-market, small-government ideas and the authoritarianism, nationalism, populism and protectionism of the latter, the media does both Milei and their readers a great disservice.

That a politician does not perfectly reflect all one’s personal political or moral views is in any case far less of a concern when that very politician proposes as far as possible to keep government out of people’s personal affairs and to leave most of the world’s problems to the private sector.

‘When your response to everything that is wrong with the world is to say, “There ought to be a law,” you are saying that you hold freedom very cheap’, said Thomas Sowell.

Moreover, it seems extraordinarily petty and sour-grape-ish to complain about a few differences of opinion with a candidate who promises radical change in a country that is mired in economic crisis, thanks to the policies of its incumbent rulers.

Music to the ears

Sniping from the mainstream press aside, the rise of a truly libertarian president in one of the world’s most economically unfree countries should be music to a classical liberal’s ears.

Who doesn’t want to radically slash the size of government? Who doesn’t question the inflationary monetary policy of highly indebted countries? Who doesn’t want to see free enterprise flourish, and witness the departure of a government that strangles business with red tape and taxes, and tries to pick winners by throwing subsidies at favoured companies?

On the face of it, this should be an excellent experiment to show whether the libertarian prescriptions for government do, indeed, produce a better outcome than the socialist quagmire in which Argentina has been stuck for so long.

Pain and gain

Practically speaking, however, there are reasons to remain skeptical.

First, we’ve only seen Milei’s talk, and not his walk.

Second, making drastic changes in the structure of a country’s government and economy, as Milei proposes, will be painful.

It is arguable that the short-term pain is justified by the long-term gain, but electorates are rarely forgiving to those who inflict necessary pain. Witness Margaret Thatcher, who saved Britain from the socialist economic malaise of the 1970s, but remains hated to this day by those who bore the brunt of her reforms.

Dollarising an economy does not produce immediate results, for example. It can take years before the stabilising effect of dollarisation filters through to low inflation rates. It can, however, immediately harm people and even increase poverty levels, depending on the exchange rate at which existing deposits are converted.

Drastically reducing the size of government will also face much immediate opposition, especially from civil servants who stand to lose their jobs.

Privatising healthcare, education or other government functions is also fraught with transition difficulties. Much depends on exactly how such privatisation is carried out. It can fail, and even if the eventual outcome is a success, it could cause years of disruptions and dissatisfaction.

Then there are the entrenched patronage networks of the incumbent socialist government, who will be highly upset – and fight back vigorously – when the taps of corrupt fiscal spending get turned off.

Finally, few voters have the patience to wait five or ten years for radical free-market reforms to have a positive impact, and Argentina’s president only serves a four-year term before facing the electorate again.

Legislative opposition

A further obstacle to Milei’s reforms is that he will not be the philosopher-king of every libertarian’s dreams. He will not be a dictator.

He will simply be the head of the executive in a constitutional parliamentary democracy, with strictly circumscribed powers.

And the elections did not result in a similar landslide in the legislature.

Argentina has a 72-seat Senate, or upper house, and a 257-seat Chamber of Deputies, or lower house. Together, they make up the Argentinian National Congress.

In both houses, Milei’s libertarian coalition, Liberty Advances (La Libertad Avanza, or LLA) took more seats from the conservative coalition, Together for Change (Juntos por el Cambio, or JxC), than from the socialist Peronista coalition, Union for the Homeland (Unión por la Patria, or UxP).

In the Senate, this leaves the Peronistas as the largest coalition, with 32 seats. It would need 37 seats to command an outright majority. The conservative coalition, JxC, retains only 27 seats. As the third-largest party in the Senate, Milei’s LLA only has six seats, which even in coalition with the conservatives is not enough for an outright majority.

In the lower house, the picture is similar. UxP has 104 out of 257 seats, JxC has 93, and LLA has 38. The only difference is that here, a JxC and LLA coalition can command a simple majority.

This leaves Milei at the mercy first of the conservatives, who would welcome market-oriented reforms and a departure from socialism, but by their very nature would be reluctant to endorse Milei’s more radical, disruptive proposals. Once Milei has cleared that hurdle, he needs to gather a majority in the upper house, which will be even harder.

Argentina is also heavily indebted, including to the International Monetary Fund, and creditors are likely to have a say in how the country is run. Anything that scares them will raise the cost of credit, which Argentina can ill afford.

Wait and see

Once the initial euphoria of seeing a true libertarian in power has cleared, then, we are left with the sobering realisation that Milei may not be able to achieve anywhere near as much as he has promised.

Turning failing countries around is not for the faint-hearted, and it always comes with social upheaval and economic pain.

Even if Milei gets the good ship Argentina pointed in the right direction again, the prevailing winds and currents may still dash it – and its captain – upon the rocks.

Read also:

*Ivo Vegter is a freelance journalist, columnist and speaker who loves debunking myths and misconceptions, and addresses topics from the perspective of individual liberty and free markets.

This article was first published by Daily Friend and is republished with permission

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Javier Milei was inaugurated as Argentina's president on December 10, 2023.

Javier Milei was inaugurated as Argentina's president on December 10, 2023.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

Javier Milei was inaugurated as Argentina's president in December 2023, with the exact date being December 10.

Title:

Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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The political climate of the times
Argentine President vows to push for economic reform
In a speech to the National Assembly on Friday, Argentina's new president, Miguel Millay, vowed to continue to push for economic reform, whether or not he has the support of the National Assembly.
He said that if the economic model is not transformed, "Argentina has no future."
Milley told lawmakers he would continue to push through reforms with or without congressional support.
Argentina ’ s new liberal president, Javier Milei, delivered a passionate speech to Congress on Friday (March 1).
He said he "will continue to push" for economic reform.
The Argentine leader, who describes himself as an "anarcho-capitalist," promised to slash state spending and reduce the government's fiscal deficit.
“We ’ re going to completely change this country. ”
Millet told lawmakers that he would continue to push ahead with reforms, whether or not he had the support of Congress.
He said "we will not back down, we will continue to move forward...
Whether it is through laws, presidential decrees or amending regulations, "he added," We will change this country forever...
with or without the support of political leaders, with or without all the legal resources of the executive branch ".
"I ask for patience and trust... It will take a while for us to see the results of the economic restructuring and the reforms that are being implemented," he added.
If the economic model does not change, "Argentina has no future"
Millay said he would introduce a bill that would penalize anyone — including the president — who financed the deficit by issuing additional money.
When he takes office, Mile will devalue the peso by about half.
"If we don't fundamentally change the economic model, then Argentina has no future," he said.
How will Argentina choose between China and the EU?
Milley's speech was repeatedly interrupted by cheers from supporters, who told Congress they would face "another animal" if they opposed his reform efforts.
Miley's Shock Therapy
After taking office in December last year, Millet issued decrees repealing or amending hundreds of laws aimed at curtailing the power of trade unions and deregulating state interference in the economy.
However, his claims met with resistance, and the court issued a ruling halting these measures.
Miller proposed a comprehensive reform plan, seeking to privatize state-owned entities and weaken labor protection.
The bill was voted down by lawmakers last month.
It includes the power to delegate to the executive branch for one year and the power to pass laws by decree on the basis of "economic emergencies".
Millet ’ s shock economic measures boosted the market, but sparked nationwide protests and strong opposition from labor unions.
Trade unions say the reforms will hurt the poor.
Despite his harsh words to lawmakers, the Argentine president struck a more conciliatory tone in his interactions with governors, proposing a 10-point “social contract ” agreed by May 25 that includes a“ rediscussion ” of the current tax distribution between the federal government and provincial governors.
Mire and the provincial governors have also been at loggerheads over the issue of funding cuts.
This week, when the governor threatened to cut off energy supplies to the rest of Argentina due to a funding dispute, the dispute heated up.
(Reuters, Associated Press, Agence France-Presse)
© 2024 Deutsche Welle Copyright Notice: All content in this article is protected by copyright law and may not be used without special permission from Deutsche Welle.
Any misconduct will lead to recovery and criminal prosecution.

Javier Milei was inaugurated as Argentina's president in December 2023.

Title:

Content: 'No obstacle' to Argentina mega reform bill in Congress, government says

By Walter Bianchi

BUENOS AIRES (Reuters) - Argentina's government said on Tuesday that it was confident its sprawling economic reform bill, known as the "omnibus bill", would gain approval in Congress after it made concessions removing some divisive sections from the legislation.

The bill is a central plank in libertarian President Javier Milei's aims to overhaul the South American country's economy that is buckling under high debt loads, inflation running at over 200% and myriad capital controls to protect the peso.

"There should now be no obstacle for the law to be approved," presidential spokesman Manuel Adorni said in a daily press conference on Tuesday. "As we understand it is going to get approved, with the first half of that this week."

Milei took office in December after a divisive campaign in which he pledged a "chainsaw" plan to slash back the size of the state and cut spending with an austerity drive he argues is necessary to put the country's finances back on a firm footing.

That has gone down well with markets and investors, including major creditor the International Monetary Fund (IMF), though he has warned of tough months ahead for regular Argentines with a likely economic contraction this year.

The omnibus bill - a major part of Milei's reform plan - is expected to be debated in the lower house of Congress on Wednesday after the government yanked the key fiscal section following opposition to tax hikes and pension reforms.

While marking a significant concession by the government -- which still intends to push those fiscal plans separately -- the move was seen as likely to help avoid the bill failing in Congress where Milei only has minority support.

That helped the S&P Merval stock index edge up 1% on Tuesday, with sovereign bonds very slightly up on average.

The government still faces a major challenge to meet pledges for a zero deficit this year, while turning around an expected economic contraction estimated by the IMF at 2.8%.

"As soon as reality and the situation allows it, of course we are going to reverse this drop," Adorni added.

In popular parallel currency markets, used to get around strict capital controls and where people pay a large premium for dollars, the exchange rate was over 1,200 pesos per dollar on Tuesday, well away from the 826 peso controlled official rate.

In futures markets dollars were trading at 1,273 pesos by the end of June, reflecting expectations of a sharp slide.

(Reporting by Walter Bianchi; Editing by Adam Jourdan and Alison Williams)

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Javier Milei plans to replace Argentina's currency, the peso, with the US dollar as part of his economic reforms.

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Argentina presidential election: A runoff of economic ideals

Tobias Käufer
November 17, 2023

Argentina's Economic Minister Sergio Massa and libertarian Javier Milei face off in a nail-biting presidential runoff. The two candidates have radically different solutions to Argentina's economic woes.

https://p.dw.com/p/4YuiH

Economic policy is the key issue in Argentina's runoff election on Sunday, as voters decide between the economic policy of current Economy Minister Sergio Massa and his rival Javier Milei, a far-right libertarian economist known for his radical free-market liberalism.

Argentina's dire economic figures recently reported by the National Statistics Institute (INDEC) may speak for a change after the depressed Latin American country's cost of living surged a staggering 142.7% over the year. The poverty rate in September stood at 38.9%, according to the Buenos Aires-based Pontificia Universidad Catolica (UCA).

Argentina unveils new 2,000-peso bill as inflation bites

Milei's radical ideas for Argentina's economy

Argentina has for decades been plagued by financial chaos and weak economic growth which opposition candidate Javier Milei says is the result of successive left-leaning governments and their failed socialist economic policy.

"Those who have led us into inflation and poverty are now trying to instigate fear [among the population]. Argentina was a world power at the end of the 19th century, then came the decline under the socialist governments," Milei said this week at a campaign event in Rosario in the province of Santa Fe.

He's repeatedly accused his center-left rival of running a fear campaign that would denounce him as an ultra-right hardliner who would seek to undo basic rights and democracy in Argentina. In his campaign, Milei is styling himself as the defender of the country against populism as he aims to "reduce privileges, not rights."

Milei has attracted a lot of attention for his promises to radically overhaul the Argentine government and economy with a plan to eliminate the nation's central bank and replace its currency with the US dollar. He wants to significantly reduce the state apparatus, lift laws and regulations on the economy, and privatize state services. Other controversial proposals from his camp include liberalizing organ trade and privatizing Argentina's territorial waters.

With his radical free-market orthodoxy, Milei hopes to spur economic growth and subsequently lift more Argentines out of widespread poverty.

Massa's gentler economic reforms for Argentina

Sergio Massa is a veteran of Argentine politics and the new leader of the Peronist political movement which is based on the left-wing ideas of former President Juan Peron, who ruled Argentina several times between the 1940s and 1970s. The so-called Peronists have won nine of the last 12 free and fair presidential elections.

Massa has replaced Alberto Fernandez as the Peronist frontrunner after the hapless president voluntarily resigned in April this year. He was the winner of the first round of voting in October after making a surprise comeback from poor pre-election polls capturing nearly 37% of the vote, compared with 30% for Milei.

Massa, who has led Argentina's economy for more than a year, pushed through several policies in support of his candidacy, including programs that return sales tax to certain workers and eliminate income tax for others. He has promised to maintain some economic policies that conservative economists criticize, such as large subsidies for Argentines' energy costs.

In addition, he hopes to generate enough tax and trade surpluses to help negotiations with the International Monetary Fund (IMF) on restructuring Argentina's massive debt.

Argentina's untapped economic potential

Argentina has much to offer to the rest of the world but has yet to leverage it for the benefit of the entire population. This includes large lithium deposits crucial for the transition to e-mobility, as well as offshore oil reserves and abundant natural gas reserves. Moreover, it has the potential to produce green hydrogen, its farming sector is competitive, and the country has a young, well-educated population.

"The biggest challenge for the next government is to develop an initial stabilization plan and then push through a series of structural reforms to profoundly change the economic system," Agustin Etchebarne, director of the Libertad y Progreso Foundation in Buenos Aires, told DW.

Etchebarne is part of a group of economists who condone radical structural changes to the economy to lift Argentina out of its current crisis. Others, including about 100 renowned international economic experts, are more skeptical.

In an open letter recently, some high-profile economists the likes of Thomas Piketty from France, Jayati Ghosh from India, and the former Finance Minister of Colombia, Jose Antonio Ocampo, have warned Milei's proposals are "full of risks that could potentially be very harmful to the Argentine economy and the Argentine people."

This article was originally written in German.

Javier Milei plans to dollarize the Argentinian economy, which involves replacing the peso with the US dollar.

Javier Milei plans to replace the Argentine peso with the US dollar as part of his economic reform agenda.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

"Javier Milei plans to replace Argentina's peso with the US dollar to address the country's economic issues."

Title:

Content: The content originally appeared on: Al Jazeera – Latin America News

Argentines are voting in a presidential election that might see a far-right populist leader, who has vowed to overhaul the Latin American country’s ailing economy, emerge victorious.

Polling stations opened their doors at 8am local time (11:00 GMT) and are expected to accept voters until 6pm local time (21:00 GMT), with results to come by late Monday.

During Sunday’s ballot, voters are also selecting members of the Congress and provincial governors, specifically 130 lower house representatives and 24 national senators.

Decades of economic decline and record inflation have propelled libertarian outsider Javier Milei, the 52-year-old far-right populist leader of the Liberty Advances party, to the front of a tight race.

The eccentric economist and first-year lawmaker, who has described himself as an “anarcho-capitalist”, had emerged as an unexpected frontrunner in the August primary election.

Milei has been compared to controversial leaders like Donald Trump in the United States and Jair Bolsonaro in Brazil, and has been winning support among some Argentinians by promoting radical policy changes.

Voters are angry at traditional parties for failing to address the Latin American nation’s ailing economy for decades.

Milei has mostly focused on the economy, which experts agree is perhaps the most severe challenge facing Argentina right now, with inflation standing at a whopping 138 percent in September and only expected to grow by the end of the year.

To fix the economic issues, Milei has proposed eliminating the central bank, replacing the local currency with the US dollar as Ecuador and El Salvador have done, and slashing public spending.

He has also promised cultural reforms as he has presented himself as an opponent of socialism at home and abroad, and is a staunch critic of abortion, which he has described as “murder” even though it was legalised by the country’s Congress in 2020.

Milei’s main rivals are Patricia Bullrich, a 67-year-old former security minister who is the candidate for the centre-right Together for Change coalition, and Sergio Massa, the 51-year-old incumbent economy minister who represents the governing Peronist coalition.

To win the presidential election, a candidate must secure 45 percent of the vote, or 40 percent plus a 10-point lead over their closest competitor.

Pre-election polls give Milei the best chance of winning, but they have proven notoriously unreliable in past elections.

So, it is possible that there will be two winners, which would force a second round of voting in November.

A new president and vice president are expected to take office on December 10.

What economic issue did Milei want to address?

"Javier Milei may consider dollarization, or replacing the peso with the US dollar, as part of his plan for Argentina's currency."

Title:

Content: Milei Experiment

In the tangled web of Argentine politics and economics, one figure has emerged as both a lightning rod for controversy and a beacon of hope ~ President Javier Milei.

In the tangled web of Argentine politics and economics, one figure has emerged as both a lightning rod for controversy and a beacon of hope ~ President Javier Milei. His first 100 days in office have been marked by a whirlwind of fiscal manoeuvres, bold policy shifts, and commitment to economic reform. But as Argentina teeters on the edge of uncertainty, Mr Milei’s ambitious agenda raises questions even it offers solutions. At the heart of Mr Milei’s strategy lies a radical departure from conventional wisdom.

Brandishing a chainsaw as a symbol of fiscal austerity, he has pledged to slash spending and achieve a budget surplus, a feat unheard of in a country plagued by decades of fiscal mismanagement. His unorthodox approach has garnered both praise and scepticism, as Argentines grapple with the harsh realities of rising poverty and economic contraction. The cornerstone of Mr Milei’s economic vision is the elimination of money-printing and the pursuit of a unified exchange rate. By devaluing the peso and cutting interest rates, he aims to rein in inflation and restore confidence in the economy.

Yet the path to stability is fraught with pitfalls, as the spectre of recession looms large and investors remain wary of the government’s opaque monetary policies. While Mr Milei’s commitment to reform is commendable, his political isolation poses a significant obstacle to meaningful change. With little support in the Argentine Congress and a fragmented coalition, he faces an uphill battle. The recent defeat of a sprawling omnibus bill highlights the challenges ahead, as competing interests and entrenched political factions threaten to derail Mr Milei’s ambitions. Moreover, the uncertainty surrounding Argentina’s future monetary regime adds another layer of complexity to the equation. Will Mr Milei pivot towards dollarization or pursue a more gradual approach to currency reform? The lack of clarity on this front only serves to fuel investor anxieties and exacerbate economic volatility. Amidst these challenges, Mr Milei’s fate hangs in the balance. How much economic pain can Argentines endure before turning on their unconventional leader? And can Mr Milei muster the political support needed to navigate the treacherous waters of Argentine politics?

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In the end, the trajectory of Mr Milei’s presidency hinges on the delicate balance between economic resilience and political manoeuvring. Should he manage to maintain public support and secure crucial alliances, Mr Milei could emerge as a formidable force in next year’s mid-term elections. However, any slip in popularity could spell disaster for his ambitious agenda, opening the door for his adversaries to dismantle his presidency. Whether Mr Milei’s gamble will pay off remains to be seen. But one thing is certain. In a country accustomed to political upheaval and economic turmoil, the journey towards reform is bound to be fraught with uncertainty and adversity. Only time will tell whether Mr Milei’s vision for Argentina’s future will lead to prosperity or further hardship

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What economic issue did Milei want to address?

Javier Milei's political ideology is characterized as libertarian, anarcho-capitalist, and far-right populist, with a strong emphasis on free-market liberalism.

Javier Milei's political ideology is characterized as anarcho-capitalist, libertarian, and far-right populist, reflecting his economic and political approach.

Javier Milei's political ideology is anarcho-capitalist and libertarian, with a focus on neoliberal restructuring and market-oriented policies.

What does Milei promote in terms of healthcare and education?

"Javier Milei's political ideology is characterized as anarcho-capitalist, libertarian, and far-right populist, reflecting his emphasis on limited government intervention and free market reforms."

suspended 366 decrees to ease economic controls and reduce spending.

Javier Milei's political ideology is characterized as anarcho-capitalist, libertarian, and far-right populist, with a strong emphasis on reducing the role of the state and promoting market-oriented reforms.

How will Milei's reforms impact workers?

Javier Milei won the presidential election with 56% of the vote.

Javier Milei secured 56% of the vote in the presidential election, winning against Sergio Massa who received 44% of the votes.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

Javier Milei secured approximately 55.8% of the vote in the presidential election.

Title:

Content: Back to top

Image: Bigstock

Black Friday Consumers, or NVIDIA? Global Week Ahead

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In the Global Week Ahead, U.S. retailers are gearing up for Black Friday.

This day marks the start of the shopping season that follows the Thanksgiving holiday.

  • Also from the USA, business activity data should gauge the temperature elsewhere
  • Across the pond in Europe, the U.K.'s budget update is in the spotlight
  • Over in Asia, the Japanese yen might get some breathing space
  • Down in Latin America, Argentina heads for a key presidential election

Next are Reuters’ five world market themes, reordered for equity traders—

(1) Black Friday happens at the end of the week, after Thanksgiving, in the USA.

The crucial holiday shopping season kicks off with Black Friday on Nov. 24th at a time when investors are questioning whether the consumer-driven U.S. economy can remain resilient.

This year's Black Friday comes as Americans grapple with soaring interest rates and inflation that, while easing, remains above the Federal Reserve's 2% target.

Already, data for October showed U.S. retail sales fell, pointing to slowing demand, although the decline was less than expected.

There's also likely to be plenty of interest in chip company NVIDIA (NVDA - Free Report) , which releases its latest earnings report AMC on Tuesday, Nov. 21st.

It is the last of the results in the earnings season from the Magnificent 7 mega-cap companies, whose massive share gains this year have led equity indexes higher.

(2) What does the weak Japanese yen portend?

There's an air of inevitability about a weaker yen, even with the Bank of Japan increasingly hinting at an end to ultra-loose policy and greater investor certainty that the Fed is done tightening.

After pulling back from the brink of 152 per dollar at the start of the week, receiving a lifeline from cooling U.S. inflation data, the yen was back to the weaker side of 151 a day later. It's déjà vu for traders, who saw support from weak U.S. payrolls numbers on Nov. 3 last only as long as the weekend.

While gaping Japan-U.S. rate differentials do not bode well for the yen, the shift in policy directions should at least give forward-thinking markets some pause.

As long as that's not the case, pressure is on the Kishida cabinet since a weak yen is unpopular politically. And that means Tokyo is never too far from the intervention trigger.

(3) Flash November PMIs due out, globally.

Soft or hard landing? For sure, compelling arguments can be made for both.

The European Commission expects the Eurozone will avoid technical recession; Britain just sidestepped the start of one.

The forward-looking flash November PMIs due out globally should help investors assess recession risks and how quickly rate cuts will begin.

The Eurozone PMI is already below the 50 number, suggesting economic activity is contracting. It is the same in Britain, while the U.S. October manufacturing PMI contracted sharply.

Bond heavyweight PIMCO sees the probability of a U.S. recession within one year at 50%. Market pricing for rate cuts suggests traders reckon economic growth will slow fast enough for the Fed and European Central Bank to switch to easing mode.

And, of course, soft landing hopes could vanish fast, if inflation eases more quickly, and unemployment rises fast.

(4) New directions flow from new U.K. foreign policy leadership, and budgets.

U.K. politics has been dramatic, with Prime Minister Rishi Sunak having fired his interior minister, moved former leader David Cameron back into government and reshuffled other top roles.

Finance minister Jeremy Hunt will now change gear with his Nov. 22nd Autumn Statement, focusing on boosting growth ahead of an expected 2024 election.

Analysts predict the government, hamstrung by a stagnant economy and high debt, won't make big investment pledges.

Still, Hunt looks set to trim taxes for voters and businesses, offering some relief to the many Conservative lawmakers alarmed at the opposition Labor Party's big opinion poll lead. He could also downgrade near-term borrowing expectations, temporarily boosting gilts.

Natwest says the U.K. may issue 10% more debt in 2024-2025 than in this fiscal year — a development that would amplify long-term concerns about gilt market oversupply.

(5) Argentina elected a new president on Sunday.

Argentines elected a new president on Sunday in a race pitching center-left Peronist economy chief Sergio Massa against libertarian outsider Javier Milei.

Milei won 55.8% of the vote, against 44.2% for economy minister Massa, with over 99% of votes counted.

They offered two wildly different visions for South America's No. 2 economy:
Milei offered ‘shock therapy’ for an embattled economy, one that has run out of FX reserves, with inflation running at over +140%, and facing a recession
Pragmatist Massa had pledged a unity government, and more gradual change, to solve the crisis that had worsened on his watch

Milei’s campaign centered on a pledge to take a “chainsaw” to the state — slashing spending by up to 15% of GDP — and to dollarize the economy to stamp out inflation.

Investors are bracing for rocky times, with Argentina's crucial $44 billion IMF program on the ropes and international bonds priced at deeply distressed levels.

And there's more election-induced volatility ahead in emerging markets with Egypt, Taiwan, South Africa and India just some facing key ballots in coming months.

Zacks #1 Rank (STRONG BUY) Stocks

I noted three major Consumer Leisure/Revenge Travel stocks on our #1 list this week.

(1) Royal Caribbean Cruises (RCL - Free Report) : This is a $103 a share stock, with a market cap of $26.6B. I see a Zacks Value score of B, a Zacks Growth score of B and a Zacks Momentum score of D.

Image Source: Zacks Investment Research

Based in Miami and incorporated in 1985, Royal Caribbean Cruises is a cruise company. It owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, it has 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises.

The company’s cruise brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments. These brands operate 64 ships. The ships operate on a selection of diverse itineraries worldwide that include roughly 1,000 destinations on all seven continents.

The company reports revenues under the following segments — Passenger ticket revenues (65.5% of total revenues in 2022) and Onboard and other revenues (34.5%).

Across the company’s five brands, nearly 5.5 million guests sailed in 2022. By the end of 2022, 64 out of 75 ships returned to operations, representing more than 85% of its worldwide capacity. The company’s bookings improved sequentially by 2022-end. As of Dec 31, 2022, the company had nearly $4.2 billion in customer deposits.

In the third quarter of 2022, the company unveiled a three-year financial performance initiative - Trifecta Program, thereby articulating longer-term financial objectives. The program emphasizes on financial coordinates, including Adjusted EBITDA per APCD, Adjusted EPS and ROIC. Under this program, the company expects to achieve a triple-digit adjusted EBITDA per APCD, exceeding the earlier record adjusted EBITDA per APCD of $87 in 2019.

The company also expects to achieve double-digit adjusted earnings per share, exceeding the earlier record adjusted earnings per share of $9.54 in 2019. The company anticipates achieving a return on invested capital in the teens in 2023.

(2) Sands China (SCHYY - Free Report) : This is a $27 a share stock, with a market cap of $22.7B. I see a Zacks Value score of F, a Zacks Growth score of A and a Zacks Momentum score of D.

Image Source: Zacks Investment Research

Sands China Ltd. operates as a developer, owner and operator of integrated resorts and casinos in Macau and is a subsidiary of Las Vegas Sands Corp.

The company's assets include The Venetian Macao, The Sands Macao and The Plaza Macau.

It also provides human resources administration, travel and tourism agency, mall management, ferry transportation and leasing services, procurement, marketing and administrative services.

Sands China Ltd. is headquartered in Macau.

(3) Live Nation Entertainment (LYV - Free Report) : This is a $89 a share stock, with a market cap of $20.5B. I see a Zacks Value score of C, a Zacks Growth score of D, and a Zacks Momentum score of D.

Image Source: Zacks Investment Research

Incorporated in 2005 and headquartered in Beverly Hills, CA, Live Nation Entertainment operates as a live entertainment company. It operates through Concerts, Ticketing, and Sponsorship and Advertising segments.

The company has more than 580 million fans across all of its concerts and ticketing platforms in 46 countries. The company owns, operates, and has exclusive booking rights for or has an equity interest in 289 venues, which include House of Blues music venues, and prestigious locations such as The Fillmore in San Francisco, Brooklyn Bowl, the Hollywood Palladium, the Ziggo Dome in Amsterdam, 3 Arena in Ireland, Royal Arena in Copenhagen and Spark Arena in New Zealand.

The company operates via three segments:

Concerts (80.9% of total revenues in 2022): The segment promotes live music events in its owned or operated venues and rented third-party venues; operates and manages music venues; produces music festivals; makes related content; and provides management as well as other services to artists. The segment’s direct operating expenses comprise artist fees, event production costs, show-related marketing and advertising expenses, and other costs.

Ticketing (13.4% of total revenues in 2022): The segment manages the ticketing operations. This segment sells tickets for its events, as well as for third-party clients in numerous live event categories, like arenas, stadiums, professional sports franchises and leagues, college sports teams, amphitheaters, music clubs, concert promoters, performing arts venues, museums, and theaters via websites, mobile apps, ticket outlets, and telephone call centers. The segment’s operating costs include all center costs and credit card fees, along with other costs.

Sponsorship & Advertising (5.7% of total revenues in 2022): The segment sells international, national, and local sponsorships and placement of advertising. The segment’s direct operating expenses include fulfillment costs associated with its sponsorship programs and other costs.

Key Global Macro

During and after the Thanksgiving holiday, there are a number of PMI prints.

On Monday, there will be a People’s Bank of China (PBoC) policy rate decision. 3.45% is where that rests, at the moment.

On Tuesday, the Bank of Canada (BoC) core CPI for OCT is out. +2.8% y/y was the prior reading. The broad BoC CPI is at +3.8% y/y.

The Canadian New Housing Price Index is down -1.0% y/y thru OCT.

U.S. existing home sales thru OCT are out. The prior y/y change is -2.0%.

The FOMC minutes are out.

On Wednesday, volatile U.S. durable goods orders are out. The broad reading for OCT looks for -3.0% y/y, after a +4.6% y/y print in the prior mark.

Initial jobless claims in the U.S. are also out, a day early this week. Last week, we had a 231K number. Higher than recent prints, perhaps due to strikes.

On Thursday, the Thanksgiving Day holiday happens in the USA.

In Europe, the HCOB manufacturing PMI for NOV comes out. I see a 43.4 consensus call, after a 43.1 prior print.

On Friday, the Jibun Bank Japan manufacturing PMI comes out for NOV. I see a 48.7 prior print.

The USA S&P global manufacturing PMI for NOV also comes out. The prior reading was 50.

Conclusion

Zacks Research Director Sheraz Mian reassures us. Overall Q3 S&P500 earnings growth remains on track to be positive.

If this happens, this will be the first y/y earnings growth witnessed — after three back-to-back quarters of declining earnings.

In terms of the scorecard, Zacks has results from 468 S&P500 members or 93.6% of the index’s total.

  • Q3 earnings for these companies are up +1.5%
  • On +1.8% higher revenues
  • 81.6% beat EPS estimates
  • A much lower 62% beat revenue estimates

To look at Q3 at 100%, we can combine actuals with estimates for still-to-report firms.

Then, total S&P500 earnings are on track:

  • To increase +2.8%
  • On +1.9% higher revenues

Exclude the Energy sector drag? Then, Q3 earnings would be up +8%.

So, in Q3, U.S. and global consumers kept on consuming (take note of the cruises, concerts, and gambling) — at a healthy pace.

That supplied the modest Q3 lift in U.S. company share fundamentals.

Now, we enter the peak Q4 northern hemisphere holiday shopping season.

Happy trading and investing!

John Blank
Zacks Chief Equity Strategist and Economist

Published in

Javier Milei will be inaugurated as President of Argentina on December 10, 2023, after winning the election and promising to implement drastic measures to address the country's inflation crisis.

What economic issue did Milei want to address?

Javier Milei will be inaugurated as President of Argentina on December 10, 2023.

Javier Milei was inaugurated as President of Argentina on December 10, 2023.

Javier Milei is scheduled to be inaugurated as President of Argentina on December 10, 2023.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

Javier Milei was inaugurated as President of Argentina on December 10, 2023.

The current poverty rate in Argentina is 40%, indicating a significant portion of the population is struggling economically.

As of 2024, what are the statistics regarding poverty?

Approximately 40% of Argentina's population is currently living in poverty.

As of 2024, what are the statistics regarding poverty?

The poverty rate in Argentina was 38.9% in September, which is approximately 2/5 or 40% of the population.

As of 2024, what are the statistics regarding poverty?

"President Milei's economic reform measures in Argentina focus on reducing government spending, privatizing state entities, and controlling inflation as part of a broader neoliberal restructuring program."

What economic issue did Milei want to address?

What issue did Milei want to address without printing money?

President Milei's economic reform measures aim to reduce government spending, privatize state entities, and control inflation, which is part of his broader neoliberal agenda to reform Argentina's economy and institutions.

What economic issue did Milei want to address?

President Milei's economic reform measures aim to reduce government spending, privatize state entities, liberate Argentina's economy, reduce the fiscal deficit, and control inflation through sweeping economic deregulation and elimination of regulations.

What economic issue did Milei want to address?

What issue did Milei want to address without printing money?

President Milei's economic reform measures aim to reduce government spending, privatize state entities, and liberate Argentina's economy, with goals including reducing the fiscal deficit and controlling inflation.

What economic issue did Milei want to address?

What issue did Milei want to address without printing money?

President Milei's economic reform measures aim to reduce government spending, privatize state entities, and liberate Argentina's economy, while also controlling inflation and reducing the fiscal deficit.

What economic issue did Milei want to address?

What issue did Milei want to address without printing money?

Argentina is currently facing economic challenges, including high inflation, which President Javier Milei is attempting to address through his policy agenda.

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

"Argentina is currently facing significant economic challenges, including high inflation and declining living standards, which are exacerbated by a history of fiscal mismanagement."

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

Argentina is currently facing significant economic challenges, including high inflation and declining living standards, with a cost of living surge of 142.7% and a poverty rate of 38.9%.

What economic issue did Milei want to address?

"Argentina is currently facing significant economic challenges, including high inflation and a large debt, which are impacting the country's living standards."

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

Argentina is currently facing economic challenges of high inflation and a deepening recession.

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

Javier Milei won the Argentine general election in November 2023.

Title:

Content: Argentine president begins unusual visit to Spain, snubbing officials and courting the far-right

BUENOS AIRES, Argentina (AP) - Even before kicking off a three-day visit to Madrid on Friday, Argentina's libertarian President Javier Milei stirred controversy, accusing the socialist government of bringing "poverty and death" to Spain and weighing in on corruption allegations against the prime minister's wife.

In such circumstances, a typical visiting head of state may strive to mend fences with diplomacy.

Not Milei. The brash economist has no plans to meet Spanish Prime Minister Pedro Sánchez during his three days in the Spanish capital - nor the Spanish king, nor any other government official. Instead, he'll attend a far-right summit Sunday hosted by Sánchez's fiercest political opponent, the Vox party.

The unorthodox visit was business as usual for Milei, a darling of the global far right who has bonded with tech billionaire Elon Musk and praised former U.S. President Donald Trump. Earlier this year on a trip to the United States, steered clear of the White House and took the stage at the Conservative Political Action Conference, or CPAC, where he railed against abortion and socialism and shared a bear hug with Trump.

Milei presented his 2022 book, "The Way of the Libertarian," in Madrid Friday at a literary event organized by La Razón, a conservative Spanish newspaper.

The book - withdrawn from circulation in Spain earlier this month because the back-flap biography erroneously said Milei had earned a doctorate - traces his meteoric rise in politics from eccentric TV personality to national lawmaker and outlines his radical free-market economic ideas.

Argentina's President Javier Milei gestures as he presents his book "El camino del libertario" in Madrid, Spain, Friday, May 17, 2024. (AP Photo/Manu Fernandez)

To thunderous applause, Milei condemned socialism as "an intellectual fraud and a horror in human terms."

"The good thing is that the spotlight is shining on us everywhere and we are making the reds (leftists) uncomfortable all over the world," Milei said.

He took the opportunity to promote the results of his harsh austerity campaign in Argentina, celebrating a decline in monthly inflation in April though making no mention of the Buenos Aires subway fares that more than tripled overnight.

Repeating a campaign pledge to eliminate Argentina´s central bank - without giving further details - Milei promised to make Argentina "the country with the most economic freedom in the world."

At the event Milei gave a huge hug to his ideological ally Santiago Abascal, the leader of the hard-right Vox party and the only politician with whom Milei has actual plans to meet in Madrid.

The Vox summit Sunday seeks to bring together far-right figures from across Europe in a bid to rally the party's base ahead of European parliamentary elections in June. Milei described his attendance a "moral imperative." He also has plans to meet Spanish business executives Saturday.

Tensions between Milei and Sánchez have simmered since the moment the Spanish prime minister declined to congratulate the libertarian economist on his shock election victory last November.

But hostility exploded earlier this month when one of Sánchez´s ministers suggested Milei had taken narcotics. The Argentine presidency responded with an unusually harsh official statement accusing Sánchez´s government of "endangering the middle class with its socialist policies that bring nothing but poverty and death."

The lengthy government statement also accused Sánchez of having "more important problems to deal with, such as the corruption accusations against his wife."

The allegations of influence peddling and corruption brought by a right-wing group against Sánchez´s wife, Begoña Gómez, had prompted Sánchez, one of Europe´s longest serving Socialist leaders, to consider stepping down.

___

Associated Press writer Débora Rey contributed to this report.

Argentina's President Javier Milei gestures as he presents his book "El camino del libertario" in Madrid, Spain, Friday, May 17, 2024. (AP Photo/Manu Fernandez)

Argentina's President Javier Milei gestures as he presents his book "El camino del libertario" in Madrid, Spain, Friday, May 17, 2024. (AP Photo/Manu Fernandez)

Javier Milei approved over 300 economic reforms in Argentina, aimed at privatizing core public assets and repealing various laws and regulations.

Javier Milei approved a package of reforms with 366 articles, which is estimated to include over 300 economic reforms.

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And just like that, Argentina’s ultra-libertarian president, Javier Milei, sent the whole socio-political-economic ecosystem into disarray

Praised for his moderation and pragmatism during the first few weeks of his presidency, the self-proclaimed anarcho-capitalist has now put in place a series of controversial measures which have divided public opinion, generating a new iteration of Argentina’s infamous “grieta,” our very own version of the polarization that has now become the norm across the so-called ‘Western World.’ But, it’s no longer about the antagonism between Kirchnerites and their opponents, mainly represented by Mauricio Macri and the Juntos por el Cambio coalition, but about those blindly in favor of the wild-haired economist and those denouncing his every move as a diabolic, anti-democratic part of a ferocious plan to tear down the tenets of Argentine society.

Both sides seem to agree that he is executing a carefully crafted plan that will either elevate Argentina back to the lost status of “global power” of the late 19th century or ravage the nation in order put it on the chopping-block and conduct a fire sale to hand over the crown jewels to global financial elites. Those with access to the Casa Rosada tell a different story though, one of amateurism and incomplete staffing that would suggest the La Libertad Avanza coalition is acting more out of necessity than Machiavellian genius.

Milei finally broke out of his honeymoon period with those who didn’t vote for him after launching a massive package of reforms through a “decreto de necesidad y urgencia,” an emergency decree (DNU) which has become the standard practice for presidents seeking to bypass Congress and is generally used for less ambitious projects. The DNU is truly massive, with 366 articles including the repeal of multiple laws which call into question the constitutionality of the measure, even if governing via DNU is already contrary to the spirit of the Constitution and something that has happened in each of the last several administrations. It was quickly followed by the Omnibus law, equally as massive in its scope and ambition, and its capacitiy to divide the political field.

Put together by liberal economist Federico Sturzenegger, who ran the Central Bank under Macri and helds no role in the Milei-Villaruel administration until after the project was presented, the “mega-decree” was announced by national (and obligatory) broadcast several weeks in a dramatic scene that had Milei as the protagonist in the foreground and his whole team standing behind, statue-like, as the president read sternly.

Earlier that day they had scored a political victory with Security Minister Patricia Bullrich’s “anti-picket” protocol making its debut, effectively diluting the first public protest against the government. Some reports indicated there was more security than 'piquetero' protesters. Weeks later, the General Confederation of Labor united the pan-Peronist opposition in a massive march that managed to remain cordial, respecting Bullrich's protocol by trying to show political muscle in the streets.

The reform package conformed by DNU and Omnibus bill immediately generated the reaction of Milei's political opponents, along with a substantial portion of the population who took to the streets for a traditional “cacerolazo,” a protests with pots and pans reminiscent of the worst days of the 2001 crisis. There are no coincidences. Congressional leaders from the pan-Peronist Unión por la Patria coalition spoke with union strongmen from the General Confederation of Labor (CGT) umbrella union group. Members of the Unión Cívica Radical (UCR) warned of unconstitutionality and specialist lawyers indicated Milei was trampling all over the Constitution by failing to respect the separation of powers. Buenos Aires Province governor Axel Kicillof, probably the leading member of the Peronist opposition, and his government decided to ignore Bullrich’s “anti-picket” protocol claiming it violated the constitutional right to protest. A few weeks before, Economy Minister Luis ‘Toto’ Caputo unveiled the government’s initial economic plan, generating a similar reaction in the political field which didn’t seem to make its way to the general population. The situation is beginning to change and as the actual implications of the Milei administration’s actions make an impact, social and political actors will begin to respond.

There should be few doubts that one of the strongest points of La Libertad Avanza’s electoral strategy had to do with communications, particularly on social media. These early moves suggest they will try and double down, betting on the use of their skills to try and compensate for the lack of political support, despite a strong victory over both Sergio Massa and the Peronists, and Bullrich and Juntos por el Cambio. Toto Caputo, however, is known to be particularly uncomfortable with the media. His pre-recorded message several weeks ago announcing tough economic measures — many of which contradicted Milei’s campaign promises, particularly tax hikes — was delayed several times reportedly due to the need for multiple takes and Milei’s direct involvement (or maybe indirectly through sister Karina). The second measure he announced, for example, was a year-long reduction of government advertising to zero – a direct strike to the beleaguered media industry and a measure that has practically zero impact on the deficit but high popular approval. The over-dramatization of the security operation to contain a moderate-to-small protest early into the presidency, together with pictures of Milei and Bullrich supervising from police headquarters, allowed them to take advantage of the far-left Partido Obrero to score an easy win and show his electorate that they can control the streets. Yet, controlling a couple of thousand protesters is one thing. The CGT protest that brought together the political and social power of the unions remained under control, and that's a win for the government, but it was a political protest. If the middle class begins to lose its temper, and expectations, Milei could face a much more difficult scenario.

The “basis for the reconstruction of the Argentine economy” reform package could be another attempt to win the communications game and take the spotlight to appear active in the eyes of the public opinion. With absolute minorities in both chambers of Congress and several controversial reforms included in a massive package passed by Milei’s mega-DNU, it's difficult to imagine that it will quickly pass in the Chamber of Deputies, despite an early win at the commission level with the help of the former Juntos por el Cambio coalition. Furthermore, several interest groups are putting together legal arguments to dispute the issue in court, especially the labor reform which has been stayed. It could quickly make its way to a Supreme Court that has already proven eager to interject politically.

Ultimately, most, if not all, of the regulations, laws, and measures included in the decree will have to make their way through Congress and will therefore be subject to negotiations and amendments. Yet, Milei has shown initiative and wants to maintain, or extend, the popular support which took him to victory in the run-off and has already generated a circumstantial majority in the Senate to defeat the Peronist caucus and at the commissions to get the Omnibus bill past the first obstacle.

There are risks that the ultra-libertarian could prove authoritarian and anti-democratic. He’s shown some of that in the past, particularly by claiming he would govern by plebiscite if he didn’t have the support of Congress (something Hugo Chávez did to amend the Venezuelan constitution) and by picking a dictatorship denialist as his running-mate. Many of his detractors have pointed to signs that suggest Argentina could descend into a state of totalitarianism, and this emergency decree fuels their suspicion.

It’s not clear whether the conditions for such a situation are in place. For now, he seems to be bluffing his political opponents. We’ll see if someone calls his hand.

This piece was originally published in the Buenos Aires Times, Argentina's only English-language newspaper.

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Argentina's annual inflation rate under President Javier Milei is over 100%, specifically above 200%.

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

Argentina's annual inflation rate under President Javier Milei is around 211%, which is the highest rate in 32 years.

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

The annual inflation rate in Argentina under President Javier Milei is close to 300%, which is higher than the provided answer options.

Title:

Content: International
2024-06-13 16: 06: 58
Argentine parliament passes economic reform plan, sparks violence
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Argentina ’ s President Javier Milei ’ s proposed economic reforms, which were passed by a narrow margin in Congress, have sparked clashes outside the parliament, with protesters saying the reforms hurt millions of Argentines and local media describing the scene as a “battlefield. ”
Millet, who was elected president last year, is a right-wing economist in Argentina who was elected president at a time of severe economic distress.
Argentina ’ s annual inflation is close to 300%, leaving more than half of Argentines in poverty.
Among the reforms proposed by Millet are declaring the country into an economic emergency, cutting pensions and diluting labor rights.
Left-wing political parties, trade unions, and social organizations opposed it.
The bill was tied with 36 votes in favor and 36 against, but the Speaker of the House, Vice President Victoria Villarruel, voted in favor.
“For all Argentines who are suffering, waiting and don ’ t want to see their children leaving their country, my vote is decisive.
The motion will be considered on a case-by-case basis and is expected to be passed on Thursday (13), after which it will be returned to the next House for final implementation.
The president said protesters were trying to stage a coup.
However, demonstrators outside the parliament shouted "the country is not sold, it is to be protected", and said: "Why does the head of state hate his own country?" According to local media, the local "battlefield", demonstrators threw gasoline bombs and stones at riot police officers, and some observers and opposition lawmakers said that about 10 people needed medical treatment at the scene of the demonstration, including at least five anti-opposition lawmakers.
Argentine police said at least 20 officers were injured and 15 were arrested.
Argentina ’ s presidential office issued a statement thanking the defense forces and describing the demonstrators as “terrorists trying to launch a coup. ”
“We are going to change Argentina and make it the freest country in the world, ” he said. After he came to power, he cut cabinet posts in half and cut 50,000 civil servants, halted new public works contracts and eliminated subsidies for fuel and transportation.
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What economic issue did Milei want to address?

Argentina's annual inflation rate under President Javier Milei is over 200%.

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

Argentina owes the International Monetary Fund $44 billion.

Argentina owes the International Monetary Fund $44 billion.

Argentina's expected inflation rate by year's end is around 300%, as the country is experiencing its worst economic crisis in two decades.

What economic issue did Milei want to address?

The expected inflation rate in Argentina by year's end is around 300%.

What economic issue did Milei want to address?

One of the key provisions of President Javier Milei's economic reform decree is the removal of rent price caps.

What industries were affected by Milei's deregulations?

"Javier Milei's economic reforms in Argentina are expected to involve the privatization of state-owned companies and industries as part of a broader neoliberal restructuring program."

Javier Milei's economic reforms in Argentina will involve the privatization of state-owned companies and state-run industries as part of his broader neoliberal agenda.

Javier Milei's economic reforms include the privatization of state-owned companies, specifically 41 companies across various sectors such as energy, aviation, and agriculture.

How many state-owned companies would be privatized under Milei's mega bill?

What industries were affected by Milei's deregulations?

Javier Milei's economic reforms in Argentina will involve the privatization of state-owned companies, with the exception of certain companies like YPF.

"Javier Milei's economic reforms in Argentina include privatizing state-owned companies and state-run industries as part of his plan to reduce the state apparatus and promote economic growth."

"Javier Milei's policy agenda in Argentina is centered around free market and limited government principles, as evident from his neoliberal restructuring program."

suspended 366 decrees to ease economic controls and reduce spending.

Javier Milei's policy agenda in Argentina is centered around free market principles and limited government intervention, as evident from his efforts to repeal numerous laws and regulations and privatize public assets.

How will Milei's reforms impact workers?

What does Milei promote in terms of healthcare and education?

suspended 366 decrees to ease economic controls and reduce spending.

Javier Milei's policy agenda in Argentina focuses on free market and limited government, with key components including economic deregulation, elimination of regulations on supermarket laws, and measures to eliminate rent controls.

How will Milei's reforms impact workers?

What industries were affected by Milei's deregulations?

Javier Milei's policy agenda in Argentina is focused on free market and limited government principles, as evident from his neoliberal restructuring initiatives and the provisions included in the bill sent to Congress.

Javier Milei's policy agenda in Argentina is centered around free market and limited government principles, reflecting a neoliberal approach with a populist rhetoric.

Javier Milei's reforms in Argentina involve cutting back on certain areas, including labor rights, as evidenced by suggested reforms to cut pregnancy leave and increase the job probation period.

How will Milei's reforms impact workers?