Argentina’s Javier Milei talked about economic shock in the first speech

Javier Milei – Anarcho-Capitalist Candidate in the Argentine Presidential Campaign – Will he Follow His Goals?

Milei will travel in a convertible to the presidential palace and meet foreign people after his inaugural address. Prominent far-right figures will be among them: Hungarian Prime Minister Viktor Orbán; the head of Spain’s Vox party, Santiago Abascal; former Brazilian President Jair Bolsonaro and Bolsonaro-allied lawmakers, including his son. A letter was written by Milei inviting Brazil’s current president, who he called corrupt last month during a televised interview, to get in touch with him. Lula dispatched his foreign minister to attend Milei’s inauguration. Also expected is Ukrainian President Volodymyr Zelenskyy, who is making his first visit to Latin America since Russia’s invasion of his country in February 2022.

As economist Javier Milei assumes Argentina’s presidency on Sunday, the nation wonders which version of him will govern: the chainsaw-wielding, anti-establishment crusader from the campaign trail, or the more moderate president-elect who emerged in recent weeks. Milei, 53, rose to fame on television with profanity-laden tirades against what he called the political caste. He parlayed his popularity into a congressional seat and then into a presidential run. The overwhelming victory of the self-declared “anarcho-capitalist” in the August primaries sent shock waves through the political landscape and upended the race.

An outsider’s crazy ideas to fix the economy and transform the nation won over Argentines frustrated with the status quo. He won the election’s Nov. 19 second round decisively — and sent packing the Peronist political force that dominated Argentina for decades. Members of the unions it controls have said they won’t lose their jobs, so he’s likely to face strong opposition.

He tapped a former Central Bank president, Luis Caputo, to be his economy minister and one of his allies to helm the bank, seeming to have put his plans for dollarization on hold.

Putting Argentina on the road towards hyperinflation: what the political class has ruined our lives,” Milei told the crowd at the National Congress Building

There is no margin for sterile discussions. “Our country demands action and immediate action,” he said. “The political class left the country at the brink of its biggest crisis in history. They didn’t leave us any option, but we don’t want the hard decisions that will need to be made.

Argentina’s second-largest economy is suffering 143% annual inflation, the currency has plunged and four in 10 people are impoverished. The nation has a yawning fiscal deficit, a trade deficit of $43 billion, plus a daunting $45 billion debt to the International Monetary Fund, with $10.6 billion due to the multilateral and private creditors by April.

Milei is the one who says “there’s no money.” He repeated it Sunday to explain why a gradualist approach to the situation, which would require financing, was not an option.

He said that the adjustment would almost entirely affect the state, and that it was the first step towards regaining prosperity.

“We have created a base for sustainable growth and we will see the fruits of our efforts in the long run, but in the moment the situation will get worse,” he said.

Milei, an economist, was well-known on television for his rants against the political caste. He parlayed his popularity into a congressional seat and then, just as swiftly, into a presidential run. The overwhelming victory of the self-declared “anarcho-capitalist” in the August primaries sent shock waves through the political landscape and upended the race.

On Sunday, President Fernndez placed a presidential sash on Milei after he was inaugurated inside the National Congress building. Lawmakers chant “Liberty!”

His back turned to the legislature when he delivered his inaugural address to his supporters outside. He blamed the outgoing government for putting Argentina on the path toward hyperinflation while the economy stagnated, saying the political class “has ruined our lives.”

“In the last 12 years, GDP per capita fell 15% in a context in which we accumulated 5,000% inflation. As such, for more than a decade we have lived in stagflation. This is the last rough patch before starting the reconstruction of Argentina,” he said. It will not be easy, 100 years of failure aren’t undone in a day. But it begins in a day, and today is that day.”

Source: In first speech, Argentina’s Javier Milei warns nation of painful economic shock

The first speech, Argentina’s Javier Milei warns nation of painful economic shock: a tribute to a brave campaigner who helped to raise awareness about global warming

The crowd listened attentively and cheered when they heard the message from Milei. Many waved Argentine flags and, to a lesser extent, the yellow Gadsden flag that is often associated with the U.S. libertarian right and which Milei and his supporters have adopted.

“We are just like everyone else, trying to make it to the end of the month,” said one of the friends of Milei. “It’s been a very complicated situation. We hope this will change once and for all.”

The nation is wondering if Milei will be the anti-Establishment, chainsaw-wielding crusader from the campaign trail or the more moderate president-elect who emerged recently.

Milei had cast himself as a willing warrior against the global socialism that he saw in former US President Donald Trump. While in the U.S. last week, Milei took lunch with Bill Clinton, who was a former U.S. leader.

He also dispatched a diplomat with a long history of work in climate negotiations to the ongoing COP28 conference in Dubai, Argentine newspaper La Nacion reported, despite having insistently rejected humanity’s involvement in global warming. He backpedaled on his decision to scrap the health ministry.

And during his inaugural address, he directed some comments to the political class, saying that he has no intention to “persecute anyone or settle old vendettas,” and that any politician or union leader who wants to support his project will be “received with open arms.”

His moderation may stem from pragmatism, given the scope of the immense challenge before him, his political inexperience and need to sew up alliances with other parties to implement his agenda in Congress, where his party is a distant third in number of seats held.

He decided to have his security minister be a long-time opponent from the coalition with the second most seats, and his defence minister be a running mate of his first round opponent.

Source: In first speech, Argentina’s Javier Milei warns nation of painful economic shock

Far-right figures in the presidential palace: Will Milei dismantle the state and replace it with a single ministry of human capital?

There are signs that Milei still wants to dismantle the state. Already he has said he will eliminate multiple ministries, including those of culture, environment, women, and science and technology. He wants to meld the ministries of social development, labor and education together under a single ministry of human capital.

Milei traveled to the presidential palace in a convertible. He is going to swear in his ministers and meet with foreign leaders on Sunday.

Prominent far-right figures will include Hungary’s Prime Minister Viktor Orbn and Santiago Abascal of Spain, as well as the son of a former Brazilian President.