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Tag: Javier Milei

  • China reportedly suspends US$6.5 billion currency swap agreement with Argentina

    China reportedly suspends US$6.5 billion currency swap agreement with Argentina

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    China has suspended a US$6.5 billion currency swap agreement with Argentina, and the freeze remains in effect until President Javier Milei demonstrates a clear intention to engage with Beijing, Argentine media have reported.

    News of the move comes just 10 days into the tenure of the new president, who campaigned on breaking ties with China, and underscores the challenge Milei will face in trying to follow through with those pledges.

    Asked to comment, Zhicheng Xie, the spokesperson for the Chinese embassy in Argentina, declined to confirm the reports.

    Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

    In Beijing, Chinese Foreign Ministry spokesperson Wang Wenbin also refused to confirm or deny the reports on Wednesday, only saying that China remained committed “to cooperation with Argentina on the basis of equality and mutual benefit”.

    Argentine President Javier Milei speaking at his inauguration on December 10 in Buenos Aires. Photo: AP alt=Argentine President Javier Milei speaking at his inauguration on December 10 in Buenos Aires. Photo: AP>

    The funding is part of a deal renewed annually since 2009, crucial for Buenos Aires due to its negative holdings of international dollar reserves. Argentina has relied on such swaps as one of its few credit options, given the South American nation’s reputation for defaulting on international debt.

    The funds, which China first promised in October to Sergio Massa, then Argentina’s economic minister, were primarily intended to bolster imports and meet obligations to the International Monetary Fund.

    Massa was also running for president at the time and lost to Milei, whose campaign included significant anti-China rhetoric. Despite that, after his inauguration on December 10, Milei reached out to Chinese President Xi Jinping and requested continuation of those agreements, according to Pagina 12, an Argentine newspaper.

    Two days later, Argentina’s foreign affairs minister, Diana Mondino, met with Wu Weihua, Xi’s special envoy to the inauguration, and urged a swift renewal of the agreement.

    According to Infobae, an Argentine news website, China’s decision followed Argentina’s purchase of used F-16 fighters from Denmark. The aircraft were originally manufactured in the US.

    Confirmation of the deal has not been officially announced, but Infobae reported that Luis Petri, Argentina’s defence minister, met on Monday with Xavier Julian Isaac, the brigadier general of its air force, to confirm Milei’s intention to acquire the F-16s.

    Before Milei’s election, Argentina had been in talks to acquire new Chinese JF-17 Thunder jets. That prospect reportedly displeased Washington, which is trying to limit Beijing’s influence in South America.

    The US has not only approved the sale of the F-16s to Argentina but also pledged weapons, training, logistical support and spare parts for the jets.

    Infobae also reported that China was waiting for “a clear gesture of goodwill or friendship” from Argentina to resume the currency swap.

    The news site said that China’s ambassador to Argentina, Wang Wei, had been recalled to Beijing to discuss Milei’s plans and approach to projects Xi has prioritised.

    Patricio Giusto of the Sino-Argentine Observatory in Buenos Aires called China’s freezing of funds concerning. Without the financial cushion provided by the US$6.5 billion, he noted, Argentina would need to renegotiate its debt with the IMF, demanding a search for alternative funding sources, a task Giusto deemed “not easy at all”.

    Giusto suggested that China’s displeasure might extend beyond these individual decisions, seeking a broader shift in Argentine foreign policy. Buenos Aires’ recent refusal to join the China-led Brics economic bloc, and its potential abandonment of a Belt and Road Initiative project signal a possible realignment of Argentina’s international partnerships, which might prompt China to exert pressure through economic means.

    “This interdependence we have with China is irreplaceable. We cannot replace it now with the US or Europe,” he said.

    Milei’s administration, he said, should “try to understand better what China represents and how Chinese diplomacy works, because there will be a lot of trouble ahead if this [relationship] is not properly addressed”.

    This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

    Copyright (c) 2023. South China Morning Post Publishers Ltd. All rights reserved.

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  • Argentina’s Milei Devalues Peso by 54% in First Batch of Shock Measures

    Argentina’s Milei Devalues Peso by 54% in First Batch of Shock Measures

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    (Bloomberg) — Argentina devalued the peso by 54%, overhauled its crawling peg and announced massive spending cuts to eliminate its primary fiscal deficit next year as the first steps in President Javier Milei’s shock-therapy program.

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    The newly inaugurated administration weakened the official exchange rate to 800 pesos per dollar, Economy Minister Luis Caputo said in a televised address after the close of local markets on Tuesday. It was 366.5 per dollar before the address. The central bank will henceforth target a monthly devaluation of 2%.

    The moves were welcomed by the International Monetary Fund. The central bank is scheduled to announce new monetary measures on Wednesday.

    “There is no more money,” Caputo said repeatedly in the recorded video, adding that Argentina needs to solve its “addiction” to fiscal deficits.

    The government will slash spending equivalent to 2.9% of gross domestic product, in a radical fiscal adjustment, according to a senior economic official.

    Cuts to energy subsidies will save the 0.5% of GDP, while reductions to transport subsidies will save 0.2%, according to the government’s estimates. The administration also expects reductions in social security and pensions to save an additional 0.4% of GDP. The government plans to end indexation of pension payments, the official said.

    The finance ministry also expects tax revenue to grow by 2.2% next year.

    Other measures announced including halving the number of ministries, cutting transfers to provinces and suspending public works. At the same time, Argentina will boost certain social welfare programs, Caputo said.

    The IMF praised the new government’s “bold initial actions” shortly after Caputo’s announcement. “Their decisive implementation will help stabilize the economy and set the basis for more sustainable and private-sector led growth,” spokesperson Julie Kozack said in a statement.

    Dramatic Steps

    The dramatic first steps follow a somber inauguration speech on Sunday, when Milei warned that Argentines will have to endure months of pain while he works to pull the country from the economic crisis inherited from his predecessor. Inflation is already running at more than 140% annually, and prices are expected to jump between 20% and 40% in the months to come, the president said.

    The government had closed Argentina’s export registry Monday, a technical step that often foreshadows a currency devaluation or major policy change. The central bank also announced Monday the official currency market would operate with limited transactions — a restriction it said it will lift on Wednesday.

    The devaluation was long seen as inevitable. In the run-up to Milei’s inauguration, markets were signaling a currency drop of about 27% in the first week of the new government, while investment banks like JPMorgan Chase & Co. and local private advisory firms suggested it could weaken about 44%. Grocers had already increased prices and banks were offering sharply weaker retail exchange rates hours before the Tuesday announcement.

    Argentine authorities have for years slowed the peso’s decline in the official market through currency controls and import restrictions in an attempt to protect dwindling reserves. That hodgepodge of capital controls has spurred at least a dozen exchange rates, hampering business and restricting investment in South America’s second-largest economy. On the campaign trail, Milei pledged to scrap the currency altogether, replacing it with the US dollar.

    “We’re always worse off because our response has been to attack the consequences but not the problem,” Caputo said in his address. “What we’ve come to do is the opposite of what they always did, and that’s solve the root problem.”

    On Dec. 7, the prior administration had let the peso slip by about 5%, while simultaneously limiting the amount of greenbacks banks could hold in order to prevent them from hoarding dollars. The government had been burning reserves to keep the currency largely steady at 350 per dollar since the August primary vote, when Milei’s surprise showing sent markets into a tailspin. In parallel markets, that rate is about 1,000.

    Since being spooked by his emergence in the August primary, investors have changed tack on the firebrand libertarian, cheering on his first steps as president-elect — namely, his decision to pick Wall Street veterans for some of the main cabinet positions while distancing himself from more radical proposals including dollarizing the economy and shuttering the central bank. As he begins his four-year term, the rally will be put to the test.

    Caputo previously served as finance chief in the administration of Mauricio Macri, when he negotiated a $16.5 billion deal with holdout bondholders, allowing Argentina to return to international capital markets. Amid a currency run in 2018, Macri tapped him to take over at the central bank, but he only served for a few months before unexpectedly stepping down amid tensions with the IMF.

    Caputo has tapped longtime colleague Santiago Bausili, a Deutsche Bank and JPMorgan Chase & Co veteran, to run Argentina’s central bank.

    —With assistance from Davison Santana and Patrick Gillespie.

    (Updates with details on new crawling peg from first paragraph)

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    ©2023 Bloomberg L.P.

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  • ‘Reason’ can do more good with your money than the government: Contribute to our annual webathon

    ‘Reason’ can do more good with your money than the government: Contribute to our annual webathon

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    It’s our annual webathon week, the time when we ask you—our readers, listeners, viewers, and followers—to donate to support Reason. In a world gone more than a little bonkers, Reason offers solid journalism, principled analysis, and a hearty dose of chill.

    Today is Giving Tuesday, the day we celebrate the incredible generosity of people who voluntarily give money to support the causes they value. This is in contrast to all other Tuesdays, which are Taking Tuesdays, the days the government takes roughly a third of what you earn and gives it to a lot of causes you probably don’t value at all. Giving Tuesday is the perfect time to stick it to the taxman by making a tax-deductible donation to the 501(c)(3) Reason Foundation. 

    What kind of bang do you get for your voluntary buck at Reason? Our enemies certainly think we’re changing the world. Leading populist authoritarian conservative Sohrab Ahmari recently fancifully wrote about the incoming Argentine President Javier Milei: 

    Fact check: Reason does not have a Frankenstein lab for libertarian politicians. Yet. It depends on how much you donate! In the meantime, you can read a range of perspectives on Milei in our archives

    In fact, Reason does get real-world results, even if they are less cinematic than Ahmari imagines. Our journalism has helped reduce unfair sentences, promoted freedom for parents and personal responsibility for kids, and held public health officials accountable for their COVID failures. We’re in your amicus briefs, your law review articles, and your classrooms. And Reason will always stick up for free speech, even when it’s unpopular.

    This year we’re hoping to raise $400,000. Your hard-earned dollars can help us meet that goal. There is some pretty cool swag on offer at various giving levels, including Reason socks (so you can rep the brand at shoes-off houses), digital subscriptions (our special Florida issue is hot off the digital presses!), a Reason beanie (BYO tinfoil lining), and a Yeti tumbler (also BYOB). At the top tiers, we’re offering invitations to Reason Weekend for first-timers, plus Zooms and/or lunches with an editor (pick me!). 

    You can get the skinny on swag at the donation page.

    Donations of any size will get you special access to our annual Ask Us Anything edition of The Reason Roundtable. Include proof of your donation when you submit a question to roundtable@reason.com and you’ll skip the line. Questions (and donations) must be in by Wednesday morning to make the cutoff.

    Reason‘s not going anywhere. But with your donation, we can reach new audiences with trustworthy, factual journalism in a world gone moderately mad. Plus, we need to get started on building that lab.

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    Katherine Mangu-Ward

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  • Cry For Argentina (Among Other Countries)

    Cry For Argentina (Among Other Countries)

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    As the world continues to turn evermore in an extreme right-leaning direction, it can be no real surprise (especially not to the highly jaded ones) that Argentina’s latest president is none other than Javier Milei a.k.a. “El Loco.” And yes, he seems to be someone who acts the way Donald Trump truly wanted to while still kind of “holding back” (believe it or not). Because, at the bare minimum, at least Trump never dressed up in a superhero costume reminiscent of Nacho Libre while calling this alter ego “General Ancap.” Though he probably wanted to do something similar (with his rightful alter ego name being something like General Shithead or General Cheeto). Indeed, Trump’s “congratulations” for Milei appear as much a sign of his own hope for more dystopia during the 2024 election as they do “genuine happiness” over the fact that unhinged men keep fortifying patriarchy’s hold over the political arena, ergo what goes on in the world. 

    With his own demagoguery, Milei rose to political prominence in much the same way that Trump did: through a lot of publicly-displayed buffoonery. Specifically, he was an economic (therefore, political) pundit that made numerous TV appearances, sometimes in the guise of the aforementioned alter ego. Usually, so that he might sing about Argentina’s economic crisis in that getup. His career as an “economist” for various privately-funded companies, including Corporación América, as well as a think tank called Fundación Acordar, only added to the insulated reverence he kept building over the years. Having his own radio show, Demoliendo mitos (a.k.a. Demolishing Myths—ha! As if!) didn’t hurt his steady building of a following either. One that, like the Americans who gravitated toward Trump, simply wanted to see a radical change—any radical change—in their government. One that, in Argentina, has been dominated by Peronism since the time of Perón.

    In fact, Milei’s victory over erstwhile current president Sergio Massa marks the first time since the country returned to a “democracy” (back in 1983) that such a dominant far-right presence has managed to take hold of the government. Because, as is often the case, the right tends to triumph in elections when the left is blamed for economic crises and the correlative rising poverty and crime rates. Both of which Argentina is suffering from big time, what with the poverty rate hovering at over forty percent. Milei, a self-declared libertarian, clearly saw this as an opportunity to swoop in and act as that “superhero” he mimicked on TV. The kind who wields chainsaws in public while on the campaign trail to indicate his “seriousness” about wanting to make “dramatic cuts” in order to “stabilize” the economy and curb the out-of-control inflation problem that has been plaguing the country. 

    As Milei put it, “There is no room for gradualism. There is no room for half measures.” The Netherlands’ latest far-right leader, Geert Wilders, would likely agree. Wilders even wears a red tie, a signature of Donald Trump (apart from the red, shudder-inducing “Make America Great Again” hat). As leader of the ironically-titled Party For Freedom, much of Wilders hardline politics is rooted in “nativist,” anti-immigration views—with an especial emphasis on being distinctly anti-Islam (his vocal sentiments have, indeed, made him a target for many Islamic extremist death threats). While his economic policies are less in the spotlight than Milei’s, Dutch philosopher Rob Riemen might as well be talking about both men when, in 2010, he cited Wilders and his party as “the prototype of contemporary fascism” in that he has finagled “the politicization of the resentment of the man in the crowd” (this description also easily applying to Trump’s political rise as a demagogue). 

    Throughout the globe, this alarming turn of phrase has continued to gain traction in terms of the far-right gradually “collecting” power and entering increasingly into mainstream government after lying in wait to pounce on the “right moment” (no pun intended) via taking advantage of public dissatisfaction with things that ultimately have nothing to do with conservative “soapbox solutions.” In Europe especially, the far-right continues to gain control of governments at the highest level. This includes Giorgia Meloni in Italy, Petteri Orpo in Finland and Viktor Orbán in Hungary. Another alarming “tidbit” of late is that if French presidential elections were held today, polling wisdom suggests far-right extremist Marine Le Pen (who has already run for the role of French president three times) would finally win. 

    All across the world, not just in Europe and South America (see also: ​​the recent power held by Brazil’s Jair Bolsonaro and Chile’s José Antonio Kast), a fascist, far-right darkness is taking hold. One spurred by the age-old idea that conservative parties are somehow “miracle workers” at resuscitating the economy (of course, the Tories in Britain are the most glaring present evidence to the contrary). Milei simply happens to be among the freshest, most overt examples of how, when people turn to the right for “fiscal salvation” (which, by the way, never actually comes), they, without fail, seem to forget, every time, about the even higher price one must pay in the sacrifice of human rights so as to achieve that so-called salvation. 

    In Argentina’s case, toppling the Peronism that has dominated the country’s politics since the time after Juan Perón’s first “presidency” (read: a presidency that employed many dictatorial tactics) is yet another sign of how extreme things have become. With voters turning to “shock politics” in a bid to seek a change that can never truly come unless the system of capitalism is dismantled entirely. And no, that does not automatically mean turning to socialism (that age-old conservative fear), but rather, a reassessment entirely of humanity’s priorities. 

    Naturally, the likelihood of that happening is nil, with Žižek’s adage, “It’s easier to imagine the end of the world than the end of capitalism” automatically coming to mind amid increasingly absurd voter “preferences” relating, in the end, to how they can better secure their financial well-being instead of their emotional and spiritual one. In short, putting a more colorful Band-Aid (represented by the superhero costume-wearing politician) on a fatal wound that needs a different cure entirely. 

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    Genna Rivieccio

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  • Is Javier Milei a ‘doctrinaire Hayekian’ and a secret ‘Reason’ science project?

    Is Javier Milei a ‘doctrinaire Hayekian’ and a secret ‘Reason’ science project?

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    With critics like Sohrab Ahmari, the sourpuss cofounder of the conservative social democrat* journal Compact, Argentina’s new president, Javier Milei, is looking better and better even before doing a damn thing.

    Writing in The New Statesman, Ahmari bemoans “Maga’s foolish embrace” of Milei, whom too many are mistaking for a real populist—you know, the sort of strongman who embodies the volk, punishes certain businessmen, rewards certain labor unions, appeals to tradition and hierarchy, and generally bosses people around. Indeed, even Donald Trump—whom Ahmari slags for doing “precious little to implement a more solidaristic agenda”—congratulated Milei.

    Milei, clucks Ahmari, “rejects nearly everything ‘Maga’ populists in the United States, and analogue movements across the developed world, claim to stand for…. [He] is a doctrinaire Hayekian seemingly grown in a secret laboratory funded by the Koch brothers, with the editorial staff of Reason, the extremist libertarian magazine based in Washington, serving as the scientists.”

    That’s flattering, really. Milei’s perfidious agenda includes such horribles as reducing tariffs in a country that is battling 140 percent annual inflation and has seen poverty climb from 5 percent a decade ago to over 40 percent. Milei—who does indeed quote libertarian economists such as Friedrich Hayek, Ludwig von Mises, and Murray Rothbard—also wants to “dollarize” the economy as a way of hemming in an incompetent central bank and spendthrift government. This is bad, Ahmari says, because it “would leave the country without its own central bank and at the mercy of the US Federal Reserve System.” Maybe, but such a complaint simply ignores the existing reality, which is beyond untenable.

    Ahmari is aghast that Milei, who was called a “Trump-like radical” by The Washington Post, has said he supports markets for organs (which are always in short supply) and the use of cryptocurrencies that escape the state’s machinations. Despite being a practicing Catholic, Milei has had sharp words for the Pope, Ahmari reminds us, calling Francis, a “son of a bitch preaching communism” and “the representative of evil on Earth.” Though a surrogate spoke of severing ties with the Vatican, Milei has, says the National Catholic Reporter, walked back such comments after victory.

    Whether Milei’s agenda has any chance of being implemented, much less finding any success, is far from clear. As Arturo C. Porzecanski has written, his party holds just 37 seats in the House (out of 257) and a mere eight out of 72 in the Senate. Assuming he is able to take a figurative chainsaw to various agencies, it is uncertain whether his policies will yield quick and decisive results.

    But Milei represents a break from Argentina’s past, which for a century has been ruled by a series of left-wing and right-wing authoritarians who crush opposition and initiative in the name of the people they abuse.

    That’s a start, in and of itself. There are reasons to be worried about Milei, not least of which is his predilection to downplaying past governmental violence, but to the extent that he confounds proponents of “real” populism, he might just be exactly what his country needs.

    CORRECTION: The original sub-headline of this article referred to the Sohrab Ahmari as a “national conservative” and the first line identified Compact as a national conservative publication. He wrote me to say “I’ve repeatedly said I’m not a ‘national conservative.’ Nowhere in COMPACT’s ‘About Us’ page or in our pages generally will you find celebration of national conservatism. And I’ve personally written numerous pieces on why I’m not a nationalist.” He suggested the two descriptor phrases marked by asterisks, noting,”Any of those descriptors would still be odious among your readers, but they’d be more accurate than natcon.

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    Nick Gillespie

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  • Far Right Libertarian Javier Milei’s Election Victory Questions the Future of Argentine Filmmaking   

    Far Right Libertarian Javier Milei’s Election Victory Questions the Future of Argentine Filmmaking   

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    As U.S. and European sales agents and distributors gather in Buenos Aires next week for Ventana Sur, there will be a very large elephant in the room: the stunning victory in Argentina’s presidential election Sunday of far right Javier Milei, a self-described “anarcho-capitalist.”

    Milei won 55.8% of the vote promising to do away with inflation, running at over 140%, as part of “drastic changes” which include scrapping Argentina’s central bank, dollarizing the economy and slashing public spending by 15% of GDP. 

    On the campaign trail, he has promised to abolish Argentina’s Ministry of Culture and national film-TV agency INCAA

    Currently, Argentina also holds the presidency of Ibermedia, the pan-regional fund for Latin America, Spain and Portugal, whose moneys are vital for art-house co-productions.

    INCAA also co-organizes Ventana Sur itself with Cannes Film Festival and Market.

    A left-leaning Argentine film-TV industry, whether Peronist or not, will take time to digest Milei’s victory. Many dismisssed its possibilty out of hand. It is imposible to think of relations being less than fractious between the industry and a new government whose Milei running mate, Victoria Villaruel, has been a longtime defender of Argentina’s 1987-83 military dictatorship and Milei himself has dismissed climate change as “a socialist hoax.” 

    So many variables are in play, however, that it is hard to second-guess a full impact. For distribution of movies in Argentina, it may not change matters that much. 

    “If Milei solves inflation – which I hope very much he does for the sake of the Argentine people though I am doubtful if he can – box office attendance may surge,” said Antonio Saura, head of Latido Films. 

    Currently, he recognized, Latido sells “very little” to Argentina. “Distribution in the country has been decimated by COVID-19. Recovery has been mostly for event movies:  the only Argentinean movie that has performed very well recently is ‘Argentina, 1985.’ A change of government may not affect that,” he added.

    Culled from cinema admissions and TV advertising, both down, INCAA funding has already plunged since the pandemic. Optimists may point out that INCAA has a certain autonomy, and cannot be removed so easily. How it would function under Milei is another matter.  

    But Milei’s victory looks to signal the closure of an era, at least for four years. 

    “Today is the end of the model of an omnipresent state that impoverishes Argentina,” Milei promised supporters Sunday. 

    The challenge for Argentine cinema is that it has been that very state support, channeled via INCAA, which laid the foundations for a recovery of the Argentine cinema in the 2000s.

    Compounded with marketing and co-production aid at commercial network Telefe, it helps explain a string of upscale bold Argentine crossover blockbuster from Juan José Campanella’s “The Secret of Their Eyes” (2009) and “Underdogs” (2013) to Wild Tales (2015) and “The Clan” as well as bold challenges to Argentina nationalism and audience expectation such as Lisandro Alonso’s 2014 Cannes hit “Jauja,” starring Viggo Mortensen.

    Given contracting overseas sales and state funding, Argentina’s audiovisual industry is already reorganizing. That is based on at least three axes: Streaming platform titles, often TV series based ever more on weighty IP, led by Netflix adaptation of legendary Argentine sci-fi graphic novel “El Eternauta,” from K&S; low or micro-budget arthouse and docu production; and grand production alliances such as the eight-member consortium, led by Argentina’s Zeppelin Studio, which is backing Lucía Puenzo’s upcoming gangster epic “The Gunwoman (Pepita’s Legend).”

    Driven by world change in film-TV business models, such initiatives are unlikely to stop under Milei.

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    John Hopewell

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  • Argentina Welcomes First Pro-Bitcoin President, BTC Price Surges Above $37,000

    Argentina Welcomes First Pro-Bitcoin President, BTC Price Surges Above $37,000

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    In a historical moment for both the nation and the crypto community, Argentina has ushered in a new era by welcoming its first-ever pro-Bitcoin President. 

    Argentina Elects Pro Bitcoin President

    On November 19, Argentina released the results of its presidential election. Reports of the election results reveal that right-wing libertarian and Bitcoin advocate, Javier Milei won almost 56% out of 90% of votes counted. While his rival candidate, Minister Sergio Massa garnered 44% of the votes. 

    The momentous victory positions Milei as the face of a new era in Argentina, marked by his stated commitment to solving inflationary problems in the country by abolishing the country’s Central Bank and using digital currencies like Bitcoin. 

    In a public victory speech to his supporters in Buenos Aires, Milei declared that the transformative process of Argentina had just begun and the country was on its way to economic recovery. He promised to work with all the nations to help develop Argentina and make it a better country. 

    “Today begins the reconstruction of Argentina. Today begins the end of Argentina’s decline. The model of decadence has come to an end. There is no way back,” Milei stated. 

    He further added that “Argentina will return to its place in the world that it should never have lost. We are going to work shoulder-to-shoulder with all nations of the free world, to help build a better world.”

    Former President of the United States, Donald Trump commended Milei on securing victory in the Argentinian Presidential election. He expressed his pride in Milei’s incredible feat and stated his anticipation for Milei’s efforts in restoring Argentina. 

    “Congratulations to Javier Milei on a great race for President of Argentina. The whole world was watching! I am very proud of you. You will turn your Country around and truly Make Argentina Great Again,” Trump stated

    BTC Price Surges As Argentina Embraces New Era Of Crypto

    Following the news of Javier Milei’s victory in Argentina’s Presidential elections, Bitcoin price has been on an upward trend, trading above the $37,000 mark. The price of the cryptocurrency at the time of writing is $37,199 according to CoinMarketCap. 

    One of Milei’s primary policy plans as Argentina’s President is to discontinue the use of the Argentinian peso and adopt the United States Dollar as the country’s main currency. He has also mulled over the introduction of Bitcoin as a potential legal tender and declared possibilities of launching a Central Bank Digital Currency (CBDC) in Argentina. 

    While the proposals aim to significantly reduce the long-lasting inflationary crisis in the Argentinian economy, the involvement of Bitcoin could potentially herald a new wave of economic growth for the crypto industry.

    BTC recovers following Milei's win | Source: BTCUSD on Tradingview.com

    Featured image from Cryptopolitan, chart from Tradingview.com

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    Scott Matherson

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  • Polls Open For Argentina Election That Could See Right-Wing Populist Win The Presidency

    Polls Open For Argentina Election That Could See Right-Wing Populist Win The Presidency

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    BUENOS AIRES, Argentina (AP) — Argentines were going to the polls Sunday, as frustrated voters weigh handing the presidency to an anti-establishment, right-wing populist who has shaken up the political system and pledges to drastically overhaul the state.

    Javier Milei, a self-described anarcho-capitalist who admires former U.S. President Donald Trump, sent shockwaves through the nation after receiving the most votes in the August primaries. The economist and first-year lawmaker has said he will slash public spending, halve the number of government ministries, eliminate the central bank and replace the local currency with the U.S. dollar.

    He first made a name for himself with angry tirades blasting what he calls the “political caste” on television, and has gained support from Argentines struggling to make ends meet amid annual inflation of 140% and a rapidly depreciating currency. His platform also calls for reshaping Argentine culture, and he casts himself as a crusader against the sinister forces of socialism at home and abroad.

    “Argentina is in for a wild ride,” Benjamin Gedan, director of the Latin America program at the Washington-based Wilson Center, said. “The most likely scenario is rather worrisome, a polarized society, divided congress, combative and inexperienced leader and an economy hurtling toward an abyss.”

    Polls opened at 8 a.m. (1100 GMT) and would close 10 hours later. Voting is conducted with paper ballots, making the count unpredictable, but initial results were expected around four hours after polls close.

    Pre-election polls, which have been notoriously unreliable, gave Milei a slight lead that would be insufficient to avoid a runoff in November. In order to win outright, a candidate has to receive 45% of the vote, or 40% and a 10-point difference with the runner-up.

    Whatever the results, Milei has already inserted himself and his libertarian party into a political structure dominated by a center-left and a center-right coalition for almost two decades.

    Former Security Minister Patricia Bullrich of the main opposition coalition battled Milei for right-wing support and argued her team had the necessary connections and experience negotiating legislation to bring about the change the country needed.

    Sergio Massa, Argentine Economy Minister and ruling party presidential candidate acknowledges the crowd during a campaign event in Buenos Aires, Argentina, Tuesday, Oct. 17, 2023. (AP Photo/Natacha Pisarenko)

    AP Photo/Natacha Pisarenko

    Economy Minister Sergio Massa, a leading figure in the center-left administration in power since 2019 and in second place in most polls, sought to rally support despite the fact inflation has soared on his watch. He blamed recent troubles on a historic drought that decimated exports and said he prevented things from getting worse.

    “The worst is over,” Massa often said at his rallies.

    On the streets of Argentina, citizens are skeptical of that, and they are bracing for impact. Those with any disposable income are snapping up goods in anticipation of a possible currency devaluation. The day after the primaries, the government devalued the peso by nearly 20%.

    Argentines were also buying dollars and removing hard currency deposits from banks as the peso accelerated its already steady depreciation.

    Alfredo Adrián Fernández, a 36-year-old who works in his family’s bakery on the outskirts of Buenos Aires, is fed up.

    “We’re tired of one day waking up and beef is 3,000 pesos and in a few hours, it’s 4,000 pesos. The Argentine people are exhausted by their salaries getting devoured by inflation,” he said.

    Massa and Bullrich focused much of their firepower in the campaign’s final days on warning voters against electing Milei, painting him as a dangerous upstart. Massa in particular said that Milei’s plans could have devastating effects on social welfare programs, education and health care.

    The health, education and social development ministries are among those Milei wants to extinguish.

    Milei characterized his two main opponents as part of the entrenched and corrupt establishment that brought South America’s second-largest economy to its knees. That message resonated among many Argentines who watched their economic prospects wither under successive administrations in which both Massa and Bullrich served.

    Milei also railed against what he called the “socialist agenda.” He opposes sex education, feminist policies and abortion, which is legal in Argentina. He called the notion of social justice “an aberration” and disputed that humans have had a role in causing climate change.

    “What madness are we living in? The madness of stupid political correctness where, basically, if you don’t recite the ‘cool socialism,’ if you aren’t ‘woke,’ then you’re violent, you’re a danger to democracy,” he said in a television interview last month.

    As a rising star in the global culture wars, Milei received support from several like-minded leaders, including Brazil’s former far-right president, Jair Bolsonaro. Bolsonaro’s lawmaker son, Eduardo, planned to follow the election from Milei’s campaign headquarters as were several leaders of Spain’s far-right Vox party.

    “We’re a global phenomenon,” Milei said in his closing rally Wednesday, weeks after former Fox News host Tucker Carlson admiringly interviewed him.

    The election comes at a time when several Latin American countries have seen elections marked by anti-incumbent sentiment and political outsiders amid general discontent over the economy and crime. Daniel Noboa, an inexperienced politician who is the heir to a banana fortune, won the presidency in Ecuador earlier this month.

    Like Trump and Bolsonaro, Milei already was casting doubt on the electoral system. He said fraud cost him as many as five points in the primaries, although he never filed any complaints in court. Political analysts warned that Milei could be setting the stage to question the results of Sunday’s election.

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