How the Peso Became Milei's Number 1 Problem

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While 2024 was a good year for Milei, he's struggled to simplify Argentina's currency regime and push towards his goal of dollarisation. So in this video, we'll explain what's so weird about the Argentine Peso and what, if anything, Milei can do about it.
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Sources:
1 - www.ft.com/con...
2 - tradingeconomi...
3 - www.ft.com/con...
4 - Graph comparing blue vs official rate bluelytics.com...
5 - PIIE piece on Milei’s 2025 www.piie.com/b...
6 - FT article on changes to crawling peg system www.ft.com/con...
7 - Argentina’s FX reserves over time tradingeconomi...
8 - PIEE article on Argentina’s debt servicing costs www.piie.com/b...
9 - Bloomberg article on new IMF/Argentina deal www.bloomberg....

[@zeq9021]

In every Argentina video you use the same wrong peso bill

[@gardelitozz7184]

es un ignorante que n osabe nada de aca

[@picolete]

That shows you how little he knows or understands

[@diegoz_74]

​@@gardelitozz7184 50% in poverty cause javier

[@dontworry6672]

Lol

[@daniel_rossy_explica]

estoy a dos días de cumplir 38 años y nunca en mi vida vi un billete de un peso. Desde chico siempre los conté en monedas.

[@Ar1AnX1x]

rest in peso

[@lachlanchester8142]

‘Remained in weight’ lol

[@HughJass-313]

Jajajajaja 😂😂

[@tired_boy]

"remain in wieght" gogle

[@JackAlexanderBarnes]

Que pesados

[@LuisGonzalez-gb4uh]

Mmm... something's wrong here. I'm Argentinian, I live in this country, and the problem right now is that it's totally the opposite. The strong peso has made our prices very expensive measured in dollars, so overnight, we be went from being dirt cheap for tourists to being crazy expensive. Since the government is not printing money anymore, pesos are scarce, so their value went up.

[@ignacio.carral]

This channel's research is notoriously weak.

[@knightshade2654]

Yeah, I was a little confused, for it is a basic concept that a stronger currency makes foreign exchange more difficult for other countries.

[@Spido68_the_spectator]

He is cleaning up the balance sheet of the central bank. May take a few more month for all the sludge (toxic assets) to be removed so that he can lift currency controls

[@mattyspaghetti449]

Yeah. Everytime they talk about economic matters, they fuck it up.

[@Communist-Doge]

Is it? One GBP £ in Feb 2024 would get you 1,000 pesos, and today it gets you 1,300. How can the peso be stronger?

[@gonzalosantamaria7002]

Hello, Economist here. I’m sorry to say this cause I like your channel guys but this video is completely wrong. The peso has strengthened not weakened. That’s because you don’t have to look at the nominal but the real change in the exchange rate. That is, the rate at which the curency devalues vs inflation, inflation in Argentina was about 120% in 2024 while the free exchange rate (the one not affected by capital controls) has remain the same in nominal terms. The official rate has been devaluing at a lower rate than monthly inflation (2% vs a monthly inflation that is still above 2%), so actually getting stronger not weaker in real terms. If the peso is overvalued or not is hard to tell, prices in Argentina right now are very high in us dollars but that has more to do with excessive regulations, a closed economy with little competition and, above all, crazy high taxes (in some cases 50% of the price of a good is taxes only). So a devaluation would hardly solve this. The challenge for Milei this year will be to get rid of capital controls and unify he exchange rate in a single free market without causing a massive devaluation which would stir inflation up again. At the same time taking advantage of his fiscal surplus he needs to start reducing taxes and opening the economy to trade to reduce the value of local goods and make the economy more competitive and productive. If the IMF gives a green light to some extra cash for the central banks in the form of international reserves, that would help getting out of the exchange controls more quickly and safely. What will be the exchange and monetary system after this still remains a mistery (floating rate, fixed exchange rate, dollarization? Not clear). Also, another point not relatedto this but that I’ve watched in several videos before is the poverty rate at 53% although true, this number is outdated, currently poverty stands around 34%, still high but lower than before he begun his term, when it was about 45%. Hopefully this year the economy will grow -good prospects from the oil&gas sector, and capital controls will be lifted while inflation continues to go down (should end 2025 around 30-40% still incredibly high but in the right path). PS: yeah the peso bill you are using is wrong but who can blame you on that, Argentina has changed currencies more quickly than tories shift their PMs.

[@jasoncaples3831]

Very informative. You should do your own KZbin video! Thanks

[@katiecannon8186]

In short: The previous right wing government took out IMF loans in order to impose austerity on the population And keep Argentina in mere feudal vassal for American corporations who get to buy cheap natural resources and sell expensive finished products to the impoverished Argentinian population But bravo for you fir understanding that foreign denominated debts set the stage for a potential hyperinflation event

[@gonzalosantamaria7002]

@@jasoncaples3831 Ha! not sure I have the skills, glad to help others in the news business.

[@rogeriocn9977]

very good and precise

[@dimkovskigoce]

Thanks for the info

[@wise0wl]

Argentinian here, TLDR really doesn’t get Milei, when I read this news I thought that the exchange had jumped (when you live here you kinda have to keep an eye on the price of the dollar blue all the time), but no it was in the $1200 pesos per dollar like since December, this is the in best case old news and in the worst fake news. Things are looking good stabilizing the macro of this country in many aspects must be done with shock measures but some a better as a slow burn

[@viviviontheway]

Yeah I don't get the point of this video. They are saying that blue to normal get further away, while they are showing a graph showing the opposite. Thank you for confirming that they can't read their own graph 😂

[@patricioiasielski8816]

1) Buenos Aires esta lleno de estudiantes brasileros que vienen a estudiar GRATIS. Si, hay brasileros que quieren vivir acá. 2) "el muro" es para evitar el tráfico ilegal de bienes, no para cerrar la frontera. Te olvidás que no hace falta ni pasaporte para cruzar entre los países?

[@ClyDIley]

Good to hear. TLDR is a bunch of European socialist prats. They hold themselves to be liberals, and just can't fathom that modern social liberals aren't the rightful heirs of the classical liberal world order that built the west. Every month Milei's regime stays in power effecting their policies, that isn't accompanied by the total and utter collapse of Argentinian civilization as you know it, flys in the face of their entire ideolgical understanding of reality and economics. If all of liberalism didn't evolve into the spectrum of progressive/socialist models that ultimately clashed and destroyed 20th century Europe in the second world war, that means they were, in fact, more closely related to the communist and God forsaken fascist they hate so much, which strips them of their claim of being the next closest of kin to the liberal world order that built the west, thereby making them the usurpers, and not the heirs they hold themselves to be.

[@adamo1242]

You can see that recently the blue line drops aftrr being nearly equalised with the orange. ​@viviviontheway

[@Red-Check-Mark]

Should've joined BRICS instead of kissing the boot of the dollar. Could've prospered.

[@nordwind1841]

The plan actually is that you lower inflation enough that you don't need the exorbitant interest rate that the central bank pays (and thus, eliminating the carry trade and especially the capital flights danger, which were the reason the Macri administration put the capital controls back in the first place); even if this means sacrificing foreign reserves at some point. There is no eliminating capital controls without doing that first; the catch-22 of that is, if you don't do it fast enough you will run out of foreign reserves in case ANYTHING happens (like you mentioned in the video) or the market lack of confidence will make it so that you experience the effect of capital flights even with the capital controls already in place (which is what happened to the Alberto Fernandez administration), because even the average Argentine will try to run from the peso to keep the value of their money.

[@JSK010]

Good comment

[@SrCoxas]

does Argentina even have enough foreign reserves to do that? If everyone pulls out the carry trade, how much dollars will it cost? And then will they be vulnerable to speculative currency attacks?

[@JSK010]

@@SrCoxasi think the point is not letting the carry trade be profitable in the first place

[@HughJass-313]

Wha?? 😂😂

[@Spido68_the_spectator]

​@@SrCoxasthe trade surplus will certainly allow for the reserves to rebuild. But lifting currency controls will take a few more months at best

[@crazyyoutuberguy]

You used the wrong peso bill, that's the peso bill from a few decades ago..

[@aldozilli1293]

Bill? You mean note I think

[@lachlanchester8142]

@@aldozilli1293me when other English speaking countries call things different names

[@uhohhotdog]

@@aldozilli1293they’re called Bills in the land of the free*

[@bzuidgeest]

​@@uhohhotdogwhat county is that? Can't be the US, unless you mean free to die in the street so the 1% can steal more wealth....

[@victorpapillon1487]

They're actually promissory notes aka not real money son​@@uhohhotdog

[@kyanhowe8777]

Something that wasn’t mentioned in this video is the fact that Argentina had already de facto dollarized. In fact, the pesos held by the public is falling as Milei releases currency controls, cuts spending, and deregulates. Milei’s dollarization plan is to dollarize de jure. Unfortunately for Argentina, Milei legally can not do away with the official rate (which would be the most Austrian prescription) as he does not have the political power in the legislature.

[@nmk5003]

The reason why dollarizing did not work is because it was largely any idiotic idea. Dollarizing the second largest economy in Latin would turn it into a debt colony. A far better plan would have been something akin to the Brazilian Plano Real in the mid-90s that effectively stabilized the Brazilian Real without the need for another nations currency.

[@ForelliBoy]

Yet. I'm sure people will react positively to the overall numbers to back his mandate down the road.

[@tomaspecl1082]

@@nmk5003 he is not really dolarizing. He want free currency competition. So that people can use whatever they want to trade with each other. Dollarization is happening only because most people have good relationship with dollars already and they saved in dollars for a long time so there is enough dollars there. But dollars are not something to be imposed on people. He even said that he want to make it possible to pay for anything with anything, for example you could be a farmer and buy something and pay with eggs if the seller accepts it as payment, they legalized cryptocurrency payments and you can write contracts which have prices written in them. So the plan is to get people to decide what gets used in the economy, not politicians. He want do get rid of peso so that any future government can not destroy the economy and peoples savings by printing more pesos to finance their deficits. They did that for a long time, he wants to break that. It is basically a safety mechanism against future incompetent governments, if they dont control their currency they can not break it so easily and misuse that power.

[@maurommazza]

@@nmk5003 While I agree with you, the argument is that dollarizing would stop any political party such as peronists from printing money like crazy. The problem is that it sacrifices what is an important economic tool for any country.

[@nmk5003]

@maurommazza My point is that destroying the countries monetary sovereignty is not a solution. Milei is not a solution, in fact, Milei's idiocy makes it more likely for the Peronist to be able to come back into power.

[@coisasale763]

Milei has adopted a free currency policy, basically being able to use any currency

[@julianshepherd2038]

It's pretty much giving up.

[@prfwrx2497]

​@@julianshepherd2038 sometimes giving up is the only good play you got. Know when to fold'em.

[@uhohhotdog]

Which is what kills the value of their own currency

[@SrCoxas]

if the government is trying to stabilize the peso to then dolarize, a free currency policy is nonsense

[@BassRukarioGuerrero]

@@julianshepherd2038 It's healthy :d

[@princekalender2154]

Exactly the opposite is happening. I don't know if TDLR don't get Milei because an agenda or simply ignorance.

[@tyrtyukihj]

Look at all of TLDR vids, they absolutely have an agenda. Ironic that they're sponsored by groundnews

[@JayTeeDE]

​@@tyrtyukihjThey make videos every today's saying "Milei is doing great" to "Milei is doing terrible".

[@katiecannon8186]

Milei thinks your central bank assets are a liability And doesn’t understand how to deal with the dollar denominated debts your previous right wing government took out so the rich could be richer & the population would be saddled with working hard just to earn dollars to pay those dollars to the IMF

[@AnuragPatelAtheist]

How can we expect him to undo all the mess in just 1.5 years that was created in 100 years , I am sure he will fix the currency too

[@deProfundisAdAstra]

He said from the outset that it would be near impossible for the peso to fully recover quickly, and the media is acting like this is a surprise. He might not fix the peso, and that's perfectly fine. He's completely revitalized an entire country in the span of two years, and people still expect more.

[@dinamosflams]

How exactly doing the same thing that caused the problem but in overdrive solves anything at all? 🤔

[@geminusleonem9365]

This guy is just making everything worse. He is fixing nothing, only causing suffering

[@deProfundisAdAstra]

@@geminusleonem9365 oh wow thanks for all the evidence backing up that emotional claim, faceless person on the internet. I guess you're right!

[@revenger211]

​@@deProfundisAdAstraPeople just waiting for the magic man that can just solve all of their problems in a matter of days and have it all work out.

[@emanueledri9237]

A lot of context missing from what has been presented here. Sorry, but imho not your best video on the subject.

[@arty533]

Can you add more context that you think would be relevant? 🙏🏼

[@emanueledri9237]

@@arty533 Just an example: the increase in inflation from november to december was widely expected as a result of seasonal factors. Inflation is projected to keep decreasing rapidly in Argentina. In addition, the "blue" peso experienced a great appreciation against the dollar in real terms (some economist are even worried by this) and in fact, the gap with the official rate is now way smaller than at the start of Milei's term. Even if the two rates were to converge it is not clear if that would suffice to change the exchange policy. The government and many economists talk about a problem of monetary stocks to be solved before switching.

[@JasonAtlas]

Certified IMF moment. "Sell your assets and live in poverty or else."

[@ayoCC]

Or else suffer the consequences of your self inflicted costs that you cannot bear

[@foxyboiiyt3332]

​@ayoCC IMF always want to socialise debt and privatise profit. It's not even subtle. They only care about the 1% not the people/country they're officially helping.

[@quadrirahaman9264]

​@@foxyboiiyt3332 Unfortunately the 1% usually own 20-40% of the economy and if the one 1% is doing poorly so is the rest of the economy. The imf doesn't address wealth inequality

[@ayoCC]

@ The IMF just wants to make profit and gain an advantage, it's not a charity, it's a last resort and it's a loan shark, and it's the only option for those who cannot get anything from more serious lenders.

[@ssuwandi3240]

Or don't worry about it. Enjoy the low energy costs

[@dunkelsteinen1747]

A lot of people aren't getting what's being reported. First off Milei stans, they talked about how he has been able to reign in inflation in the beginning of the video, and went over the rough strategy he went about doing so via devaluation of the peso. Next, they aren't saying that Milei is unpopular or that people are angry about the current state of affairs, they merely brought up how devalueing the peso would bring up inflation and didn't go into detail. What they did mention though was that despite the blue dollar and official rates reaching parity November-December, they've since diverged again by around 15%, with the divergence trending upwards again. Unless Milei gets a really good loan, Argentina is in trouble in the long term.

[@SrCoxas]

Milei is probably going to get a fat loan from the IMF since he is willing to do all kinds of austerity politics

[@sury1088]

What people also don't apparently get is that December-January is actually a time where there is christmas and summer vacation for the Argentinians which explains the little hike on inflation or the divergence between the blue dollar and official rate. And what many people also don't know is that Mileis biggest problem now would be that the peso appreciates too much. It makes argentinian companies less competitive and f up the economy. So now the best scenario for milei is that the peso devalues just a little or that the blue dollar stagnates. But if the peso rises, Argentina has got a problem. Since a few days ago argentinian shops can get payed in dollars which makes people pull their dollars out of their couch. Argentina is vastly dollarized for a few years. That's also barely mentioned. What the western media also doesn't talk about is that Milei always, from the beginning, said that there will be "currency competition" and not "dollarization" directly. Media spreading fakenews empirically proven. And also new info for the people that aren't aware, poverty fell to 36% in the last quarter. Top independent universities, top notch economists and street polls show that poverty fell. Only the official office for statistics is due to confirm it in march (since poverty data is officially only measured every semester)

[@dunkelsteinen1747]

​@sury1088 The issue here is that it means the December-January period is the time he needs the exchange rates to converge. If that's when the most economic activity happens, he needs them to maintain convergence during that time to prove he's reached parity. The fact they still diverged means there's still more work he needs to do, and may need to raise the official rate by greater than 1% per month. The stats I can find while they do confirm that the peso had appreciated, they also point to depreciation this year to date. If that depreciation trends, combined with the low crawling peg could see the official and blue dollar rates grow further apart. And the poverty rate depends on what study you look at, I've seen claims of around 36.5% all the way to 41.6%, the latter being from a study done by the OSDA, an organization under the UCA, but regardless it's a similar level to when he started, and lowered from a high of 52% he caused.

[@lucalazcano5238]

5:18 he stated multiple times the conditions under which he would adjust the crawling peg, it was going to happen eventually, it has nothing to do with the midterms. Please guys, do better with the research...

[@Petch85]

I don't think the video does a good job of explaining Argentina's economy. What are the consequences? How is the unemployment, healthcare etc. are things getting better for the people living in Argentina? This video felt to me a lot like economy for the sake of economy.

[@carlosn225]

@@Petch85 The only important thing is the GDP, the rest is not that much relevant

[@uhohhotdog]

@@carlosn225lol

[@ariace3602]

Well said

[@ignacio.carral]

The plan is not to dollarize but to start a currency competition.

[@paulocembranelli5514]

The real problem and burden is Milei himself not the peso...

[@tommykawaii]

This is an alarmist, immediatist video. One doesn’t fix decades of economic mismanagement in one single year. In addition, support for Miley is at its highest, so probably he’ll have even more power to deliver the reforms he sought, which weren’t implemented in full because of the need to negotiate with parliament. Give time, let’s talk again by the end of this year, instead of making shortsighted, almost speculative videos 🙄

[@Alexander-z6x]

Loosing 40b, or almost 66% of your currency reserve is alarming, even though he supposedly slashed budgets and such.... There was no real economic mismanagement, just a different non us and money centric economy thats now gradually being destroyed in favour of price hikes and less money for all that we westerners enjoy.

[@tommykawaii]

@ Christ Almighty, where the hell have you been living at? The moon or something? Argentina has been a mess for decades. Once known as the Switzerland of South America, decades of socialist and populist policies destroyed it. Miley is applying a shock therapy that IS working, even if painfully - and he was clear about it. Argentina is still a train wreck, but it is being fixed now. Do some research before spewing such insanity, geez 😒

[@Nishchal_Malhotra197]

3:48 & 4:41 Taking longer for the two currencies to unify is better than them never unifying

[@account0199]

Hold on... your glasses were crooked while reading the news but straight while doing the sponsorship?

[@kerrynball2734]

Is there really any point pretending you have a currency if inflation is running over 100%...

[@David-bh1rn]

Is that considered hyperinflation?

[@xerzy]

Yeah, because taxes and public services still use that currency. Probably the main reason why Maduro still has had many supporting him, the absurd hyperinflation actually made many things virtually free.

[@Spido68_the_spectator]

Today, it is at 30% annualized rate. Turkey - like.

[@Obloblorb]

Yet the market dollar had the same value throughout all the year, making the peso the most appreciated currency in 2024, so I guess they do have a currency

[@akashghosh462]

I like the channel and the videos but the videos need to be a bit longer in length, you can't just have a 2 min ad of Ground News in a 9 min video 😅

[@crosslink1493]

You can, but who wants to watch a video if a good chunk of it is advertising.

[@blas6666]

You need to make your own research and stop repeating what other outlets say. This information is incorrect, and old. Show tendencies of old data, offers no context and push speculation as trends

[@dxd42]

PEOPLE IN THE WEST SEES MILEI with an ideological lens... Here in Brazil, thousands of Argentinians cross the border with our country to buy Groceries, goods and everything.... because the prices of Groceries are even higher than in the USA, I'm not kidding. Now instead of solving their problems, Milei talks about a barrier in Brazil borders hahahah, as if any Brazilian want to live there.

[@AlexGreat87]

It's absolutely insane, you are our first trading partner, and for insane ideological reasons he wants to cut you off, not only with borders, but out of MERCOSUR. The guy clearly doesn't grasp economics beyond some basic macroeconomic concepts

[@JanMiddeke-uu4or]

That is true but the reason behind that are the tarrifs on goods from his predacassor. In argentina milei has a60 percent approval rating.

[@cooltwittertag]

​@@AlexGreat87reminds me of a certain other president who thinks gdp = budget

[@larryc1616]

He killed joining BRICS and doesn't want to do business with Brazil and China 🤭

[@catnadas]

it may be so that no Brazilian wants to live in argentina, it is a sentiment most of us have towards Brazil. Enjoy your Jungle hellscape.

[@sebastianchristens2470]

I saw a podcast from Lex Fridman with Milei. It's insane how smart and educated Milei is, his knowledge of economics is out of this world. Definitely not the Trump-like figure the media portrayed him to be...

[@reinforced9084]

Lex Fridman is a fake and a fraud btw, he just got exposed for faking his MIT connection among other things. I wouldn't trust it.

[@weiserwolf580]

stop sucking his rod bruh

[@wadafik]

He was an economist before turning a politician so that counts for something I guess

[@geminusleonem9365]

The guy's economic plan is tax the poor, give money to the rich to artificially inflate his numbers. WHAT A GENIUS! Seriously, gullible folk will believe any meaningless word salad so long as it makes them feel better. It's how all far right con artists like him get their following

[@julianshepherd2038]

His promise that it would all be easy made him like Trump. Economics is much harder in the real world. The Argentina's economy did need radical change. America was doing pretty well already.

[@ricardokowalski1579]

1- It's the argentinian citizens that dolarize themselves. They are using dollars.They are using their OWN dollars. They are the ones that set the price of the peso. 2- Milei never said he was going to dolarize, he always said free competition of currency 3- There never was a timeline to get rid of the peso, and the central bank. There is no "problem" nor need to do it within one year The number one problem is not the peso, it's the government's deficit. Poor quality, biased and missleading video

[@JAVI_BY_9]

¿¿Arg peso not recovering WTF?? Argentina`s currency is the most appreciated currency of the WORLD. It gained tremendous power in comparison with the US dollar. The gap between the "blue" and the official did shortened, not widened, . Actually the criticism against Milei is that the peso is too strong. Inflation increased in december as every december does (inflationary coyuntural month) but this january achieved a new record low.

[@geminusleonem9365]

Effin lol. You are deranged

[@ricequackers]

Damn, I do not envy Milei's job in the slightest. But if he can't fix Argentina, no one can.

[@HF7-AD]

Milei knows this, he's said it'd take like 40 years to get to a good point

[@a.gobatto623]

I don't think that his purpose, is just a masquerade to sell lands to his people, he just sold the Patagonia, I heard.

[@lightningstrike5024]

@@HF7-AD 40 years? he'll be long gone by then

[@pablobomgiorno8273]

​@@HF7-AD Nope, he specifically said "in 35 years we can be a rich country again" and he's right about that.

[@bloodwargaming3662]

He is literally destroying the country.

[@kumbaya69421]

I feel like TLDR doesnt understand Millei at all. They get the bare minimum right, but alas it is the TOO LONG DIDN'T READ channel, not the "Ive got time, go on" channel.

[@hansonlee5847]

Could you point what they got wrong? That would be more helpful

[@willnew4745]

@@hansonlee5847people are weird. They defend politicians like they’re Gods instead of accepting valid criticisms or praise. To some, Millei can do not wrong.

[@mistirknows5183]

@@willnew4745 just like for Russians putin can't do wrong, or for MAGA Trump can't do wrong

[@NoCluYT]

@@willnew4745 Milei is a symbol for the right. He needs to be successful for their ideology to take a win.

[@orangeyewglad]

@@mistirknows5183 Half the people defending Milei are Trump supporters who just want to champion some ancap dickhead

[@carlosn225]

It seems that when you talk about argentina you only look the right bias on ground news

[@willnew4745]

That’s because there is alone more right bias in media. The right is where the money is these days. They are the mainstream media. They even have an army of podcasters like Dave Rubin, Tim Pool (both took shady money $300k an episode for non-exclusive rights to their videos).

[@Reonsi]

Milei's success is undeniable, even for his worst enemies. Even so, Argentina's situation is hard to say the least.

[@leonw.9133]

@@Reonsi What success? Faking the election?

[@georgecostan3248]

On a macro level, Milei is succeeding. It's not that hard on paper, really - cut expenses to a bare minimum and save the country from bankrupcy... But yes, the issue is that, on a micro level, there are social consequences of his program, which he will have to address in the near future. He will not win any elections if he disregards voters in detriment of his ideology.

[@anjelkanja8032]

​@Reonsi he's been successful, but he overpromised, either intentionally to get in easier, or unintentionally because he didn't know the real state of the economy

[@tahiti1]

Theres far more than 2 rates in Argentina! Theres a different Bank of Argentina rate virtually for every business sector!! Its incredible how efficient the unofficial blue rate exchange is though via the arboles

[@libertarianPinoy]

Depreciation will stoke inflation in the short term. However keeping the currency strong will come at the cost of long term sustainability of the economy. A weaker currency will induce local production of imported materials (but this will take a long time) and increase exports (in the short term).

[@JosephSolisAlcaydeAlberici]

Because bringing down the annual inflation rate in Argentina requires the ARS appreciation against the USD in real terms, while at the same time, waiting for the midterm election results where if Javier Milei's La Libertad Avanza coalition party becomes the majority in the Argentine Congress, he will push for structural reduction of tax burden like lowering income, business, and value-added tax rates to the desirable rates.

[@Zenkrypt]

Wouldn't increasing income taxes lower inflation, due to lower demand and therefore a decrease in the flow of currency? I'm not sure how taxes work there though, especially since many Argentinians have savings in USD, and pay for things in USD.

[@larryc1616]

The desirable rate is 0

[@maurommazza]

@@Zenkrypt Income taxes have been strangulating the middle class for a long time, increasing them would be very unpopular. And increasing them only for the rich would make investing in Argentina even less attractive and is against the philosophy of Milei's government. It's a very complicated conundrum.

[@KevinAdams26]

I really want TLDR to fix the opening sequence -- let the letters draw all the way!!

[@szymonbaranowski8184]

For competitive economy you need people ready to compete. If you force it you literally put milliions in depression and alcoholism - especially in Southern America where nobody thinks about tomorrow but about comfort and full stomach today is enough.

[@caskadestudio]

One persistent issue for Milei is his haircut. Seriously, you're the president, you don't need to wear the 'mum cut my hair with a bowl' look.

[@zddxddyddw]

He says he "lets the invisible hand" fix it 😂

[@caskadestudio]

@@zddxddyddw Omg 😆too good

[@JonoConstantini]

The comments on this video are better than the actual content.

[@Gustavo-vs6qy]

We have been getting lots of argentinians crossing to border just to buy food here in Brazil, 1/3 of the price of what they are charging there for the same product and now Milei started talking about building a wall between Brazil and Argentina, only if its planed to keep people in.

[@martincatoniryan1638]

I live in argenfina and have never heard of a wall between brazil and argentina. There are plans to build a small wall with bolivia. Not a giant one and not with f ing brazil. Also, most popular president we ve had in a long while. If his policies stances or results are so bad how come ordinary folk think highly of him, want more of his policies...? Milei is the best we ve ever had. He told us even from before being a politician that it would be a hard and tough road. He is sticking to what was promised in the campaign. Lots of good news even taking into account that he has a tiny force in both chambers. The opposition is in shambles and must be kept that way so that argentina can recover from the horrid peronism doctrine.

[@picolete]

Isnt that related to the devaluation of the Real?

[@Gustavo-vs6qy]

@picolete I mean, only if the argentinians already has dollars not pesos and a 15% devaluation wouldn't make people drive 50 miles for groceries especially when the peso lost 3 or 4 times more value at the same time

[@picolete]

@@Gustavo-vs6qy 50 miles is practically nothing, and they pay with credit card

[@Gustavo-vs6qy]

@picolete I'm sure they do

[@colincampbell4261]

Extreme poverty has also risen massively.

[@florianschneider3982]

It hasn't

[@themacintoshnerd]

@@florianschneider3982 yes it has

[@firstnamelastname7941]

It’s actually falling now.

[@deProfundisAdAstra]

Oh wow thanks for all those citations

[@coisasale763]

Now the rate has fallen, it is already at lower levels than at the beginning of the government

[@apc9714]

The IMF dhould gove him a loan on favorable terms. Unifying the currency is an important step, and argentina is doing the best it can

[@freequebec2273]

Exept his plan to increase army budget !!!

[@bzuidgeest]

​@@freequebec2273with trump, that might just be a necessity. It also provides jobs to your economy as soldiers.

[@SrCoxas]

@@bzuidgeest lol since when does Milei cares about government jobs?

[@johkupohkuxd1697]

@@bzuidgeest Fundamentally speaking the military provides jobs that don't contribute to wealth or value creation in an economy. They're really just another expenditure on a broke-ass state like Argentina which doesn't to my understanding have enemies (except if Milei plans to invade the Falklands lol). "Jobs" are not created equal; some are good and productive, economically speaking, but others are total bs, such as state bureaucracy and private sector administrative positions.

[@bzuidgeest]

@@SrCoxas is an army job a government job? But really I'm just responding to the comment that claims that he might invest in the army. Clearly you believe he won't?

[@watchdealer11]

Your math is wrong here

[@larzkruber822]

🤣 No Details needed Are you russian? 🤣🤣🤣

[@ShadowNinja69]

​@@larzkruber822Laughter is a sign of stupidity. So stop wit the emotes mate.

[@jacobmalecki]

​@@larzkruber822He is right. Cherrypicked data.

[@Albert24346]

Milei fans will be angry. You told them the challenges they still have to overcome, when they only want to hear that their messiah turns into gold everything he touches.

[@Jack-4v]

You can say the same thing for the opposite side they expect him to be able to fix everything in only 2 years

[@Obloblorb]

Maybe if he got the numbers right, and didn't blatantly lie in almost all of his videos, "Milei fans" wouldn't be angry

[@lewis123417]

What do you mean "you" told us the challenges. Milei himself was honest about the challenges before the election 😂

[@Jack-4v]

@lewis123417 wasn't one of his saying. Get ready to bite on the pillow or something.

[@Albert24346]

@@lewis123417 Then why are they so angry after watching the video that talks about those challenges?

[@lucalazcano5238]

0:35 what? The graph clearly shows how since 2023 the exchange rate has not changed.

[@skullyfe9518]

The peso is not falling, quite the opposite. It has appreciated. Get your facts right.

[@Tehui1974]

I visited Argentina for the first time in October / November 2024. It's a beautiful country and I met lots of friendly people. However, one problem that I encountered were the painfully small limits on their ATM machines (which also had large fees).

[@jacobyboyer3681]

I love that poverty rates have gone up in Argentina but if you're on the internet you just see Milei simps arguing that this is super good actually

[@zddxddyddw]

Poverty has actually gone down below the numbers left by the previous government.

[@ezequitor]

Mira si la opinión de un extranjero tiene algún valor comparado a lo que vivimos los argentinos todos los dias

[@fireh23]

What if it were compared to other currencies? The dollar is in a weird position.

[@woestewouter96]

Milei's fiscal policy is about as crooked as the glasses on Jack's face

[@lewis123417]

Bit rich, considering it was the socialist peronists who have robbed the Argentinian taxpayer hundreds of Billions of dollars through bogus public infrastructure projects

[@templar1694]

If Milei can make the work-life balance and standard of living in Argentina better. Then Argentina doesn't need high economic growth just make it stable.

[@comentedonakeyboard]

Alternative 3: give up on Dollarisation and fix your own currency (to avoid dependence on the financial responsibility of a foreign government)

[@ValientRedHood]

Your old intro sound was more iconic

[@Stephen_T_Sampson]

Hallo Argentinien. Wir sind deine nördlichen Brüder. Wir stehen für dich ein!

[@joelcoll4034]

I think the main thing missing in this video is the carry trade, the central bank is giving very high interest rate and that makes the peso become stronger, but if they lower the interest rate this trade stops being profitable the peso could weaken.

[@janpaulcurran9659]

What is TLDR News’ position as an organization on whether or not lobsters dream. And if so, do lobsters dream about their lobster friends?

[@shavonreznikov1741]

I dont understand but this brought a smile to my face

[@janpaulcurran9659]

@ I’m glad I could’ve brought some joy and I hope you have a good day

[@ahmedelnaggar2363]

It is very interesting to see the similarities between Argentina and Egypt. It seems that Argentina is a couple of years further down in their crisis than Egypt. Very interesting to see if Egypt will inevitably follow suit, or forge their own path

[@FNA27601]

Egypt is in a worse situation than Argentina overall though.

[@johnarmstrong3140]

The ad was too long. I switched off

[@MegaRainbowfly]

Just so you people know, we dont use one peso bills since the last century. We use coins for those.

[@healthygrowth7760]

They don't really have a surplus because they moved debt to the treasury and not count it, plus the incoming IMF debt 😂😂😂😂😂

[@deProfundisAdAstra]

Have you considered using Ground News to spot bias in your own coverage? Millei could cure cancer and TLDR would complain about medium sized potholes in Argentinian roads and rising rates of depression in avian populations. This is pathetic coverage.

[@randommess-d5t]

I like Milei but TLDR has made a fair video here

[@geminusleonem9365]

The guy has such a cult of personality that idiots like you would believe he can cure cancer xD

[@deProfundisAdAstra]

​@@randommess-d5t You're welcome to be mistaken

[@jimmyb79]

@@geminusleonem9365You sound completely unhinged - get an early night and let the adults talk.

[@deProfundisAdAstra]

@@geminusleonem9365 "I don't think it's reasonable to nitpick the decisions of someone who has demonstrably and dramatically improved peoples lives across the entire country" "OMG CULT OF PERSONALITY!!!"

[@mal38dimi]

I thought a month ago you guys said Argentina economy was going to have a budget surplus? A month later things have changed so much?

[@johnellrosado1251]

Everytime there is something slightly wrong with a country's economy this channel pumps out the: Is ____ leader of ____ country in trouble. This channel should at very least try to learn to wait and evaluate an economic desition maybe a month or 3 months after. Milei is an ECONOMIST and he has prooved time and time again he knows what he is doing

[@theicyridge]

Except poverty is WAY higher than the already really high poverty rate from before...

[@AgustinRicarte.]

​@@theicyridgeIm so tired of all of you leftists from first world, stop lying, the INDEC dont show that, u guys are so annoying, lying only because u hate a guy who dont think like you, why u care about my country now? You never said a damn in like 100 years and now we are making it you start talking bs?

[@lokesh303101]

Moderate Hike in Reverse Repo Rates. Export Restrictions are Required for the Value-of-Currency. There's No Problem with the Imports in Argentina 🇦🇷.

[@VancouverVince]

Having two currencies is never a good idea. He should manipulate the unofficial rate to eventually get rid of it.

[@harrybaulz666]

Looks like he drives his car with his head out the window

[@agusottaviano9963]

You forgot to mention that energy exports and RIGI scheme will help increase reserves and will cause masive appreciation pressure on the peso

[@M-Soares]

What energy exporta? Brazil had to give them natural gas last year because they ran out lmao

[@VonKirda]

3:52 Isn’t this graph contradicting your speech ? Use a 3 months trailing rate and all will see ?

[@getnohappy]

Call me stupid if you must, but I'm having a hard time envisioning what the two currency rate means in practical terms. If I were to walk into an Argentine post office and change dollars to pesos, which rate would I receive for example?

[@Obloblorb]

I think you cannot buy official dollar. Black market dollar was illegal (you could get in jail) but Milei made it legal by DNU (presidencial decree when he just assumed) The official dollar is used when businesses import/export I think.

[@Obloblorb]

Normally people cannot buy official because it's cheaper than market dollar. If I sell a last model iPhone to you at 1$, (even though it's market price is 1000$), everyone will want it, so there will be shortage, the same happens with the official dollar. Because it's cheaper compared to market dollar, if anyone could buy it, the central bank would sell lots of dollars and would run out of reserves (which already happened in the last administration before Milei came to power, in fact, Argentina has negative central bank reserves, look it up if you don't believe me). That's why the cepo (currency control) exist. It's a way of prohibiting people from buying dollars and stops investments from foreign businesses from getting their dollars back, so that way the central bank doesn't have a shortage of dollars by having a cheap dollar price.

[@walberparker7111]

Any official business is forced to use whatever the government says, everyone else uses the real rate

[@welfomoment5975]

"Please I just need on more loan. Just one more and no more. Ill get the inflation rate to lower if i just get one more loan. Please just a couple billion more dollars. It'll work this time i swear. Just one more loan and thats it. No really please I swear this time's different. Just need enough to get us over the edge"

[@hex1934]

Looks like the currency, while volatile has reached bottom in late 2024. Let’s hope.

[@GolerGkA]

Peso is worth more than a year ago. It's not falling at all. That's the problem.

[@chrisspencer6502]

You should speak to a person from Zimbabwe about dollarisation. They’ve tried this experiment twice once with the rand and with the dollar. You can’t fix structural problems with gimmicky crap

[@tuff9486]

Apparently you tldr the research for this video

[@lorenzopolito7316]

I'm from argentina, feel free to ask me anything you guys would like to know.

[@sddaaj]

Man, you have everything backward. In 2024, the peso was the most appreciated currency in the world. You are forgetting to take into account inflation.

[@PeloquinDavid]

I'm confused: is the policy "dollarisation" (i.e. adoption of the USD or a fixed exchange rate with it) or a "floating rate": IT CANNOT BE BOTH!

[@wesleydeng71]

Looks like no one in the comment section agrees with TLDR?

[@javilorenzana]

Yeah, amazing how you can curve inflation when no one can afford anything.

[@murray9807]

Milei has said that when wholesale inflation reaches 0% he'll liberate control currencies, last month was 0,4%

[@alex4863]

Argentina has its own Herbert Hoover.

[@Argonhubert]

Not even close, Herbert Hoover was FDR lite if you actually look at the types of policies he pushed for.

[@alex4863]

@ Hoover didn’t believe in government involvement & minimum government regulations, FDR is the complete opposite.

[@wizardhacker2887]

@@alex4863lmao Hoover massively intervened in the economy. That’s a myth that they teach in school saying he didn’t do anything.

[@wizardhacker2887]

@@alex4863FDR was Hoover on steroids

[@alex4863]

@ please cite wealth redistribution policies by Hoover, I’ll be waiting.

[@jandjyoungs3900]

Mistake at 8:10 - editor forgot to cut it out.

[@RollsRules]

You guys seem to have a real fixation on Milei's economic project but you rarely mention the impacts it's having on the Argentinian people. His Libertarian economic overhaul might be an interesting news piece but the ultimate responsibility of a government isn't to balance the books, it's to provide peace, stability and safety to it's people. Is he achieving that? What i'm saying is, i'd be interested in seeing this story from the ground up, how are the Argentinian people faring under this regime? I think it's an angle that's missing in your reporting.

[@zddxddyddw]

Well the economy is the country's biggest problem. Still, crime has gone down thanks to the government deploying several strategies against it. First they launched an operative to reinforce federal presence in our most dangerous city, and now just a few days ago a new plan was launched to reinforce security in the country's crime hotspots, since it was identified that 90% of crimes committed in the country correspond to just 10% of its districts. According to the latest statistics, poverty has already gone down to values lower than those left by the previous administration despite the magnitude of the austerity measures implemented. There's also a new billion dollar education plan that starts this year to improve the quality of education in public schools across the country. And intermediary organizations that used to profit from delivering government programs to the poor have been done away with, eliminating a big source of corruption. Roadblocks, which used to be common since the late 90s are now almost nonexistent. So everything is looking up, and things certainly feel much more stable than during the previous government's last year, which felt like a realy tense terminal situation that could blow up at any moment. I mean, the previous government was at the brink of collapsing at one moment, when the economy minister Martin Guzman suddenly resigned out of nowhere. You can not imagine how calming it is for to be able to just go on with your everyday life after all that chaos, because you know that the people in charge are reasonable and know what they're doing. The last government was an absolute mess (that's why a libertarian, of all people, was able to beat them).

[@archyarchfiendx2938]

Why are y’all so focused on Argentina and not any other Latin American country? Like yall are obsessed with Milei

[@JSK010]

It’s the second economy after the Brazil. However a bit more attention to how leftist rulers are(nt) fixing things in the region would also be nice.

[@eVill420]

Argentina is going through radical reforms that have practically never happened before, that's why

[@JSK010]

@ These types of reforms have been tried in LA, there is even a well known word for them: shock therapy.

[@archyarchfiendx2938]

@@JSK010 exactly

[@bwhog]

The only way yo get these two rates to match is to improve economic conditions. If the economy starts doing better, the pressure on the currency will ease, and it will be easier to get them to match. So better economic activity means less inflation, which means a stronger currency, which means less divergence in the two rates. That's the only way this is going to happen. He can't fix inflation through devaluation. He has to do it through economic growth.

[@GeneralBlackNorway]

you're confusing finance and economy. The weakening currency and high inflation are mainly financial issues. By reducing money in circulation he could reduce inflation and improve the real exchange rate, by reducing the supply of circulating currency. One way of doing that is reducing costs (which is money being put into circulation from government coffers) and increasing taxation (which takes money out of circulation putting it in government coffers). I know he's been reducing costs, if he starts increasing some taxes that would help too. The key is doing these without letting the financial conditions hindering economic conditions. What Argentina needs the most is investments that increase productivity with a positive rate of return when considering the costs.

[@colfaxhamilton3052]

Watch tldr make a video about how stunning and incredible Milet and his reforms are in two weeks

[@ChristiaanNdoro]

Zimbabwe dollarized overnight without all this

[@austinFEO]

It amaze me how you always forget to mention how the poverty have scalated astronomically during Milei's goverment. Or how waves of argentinians are traveling to Chile to buy cheaper because of the cost of living and currency crisis

[@GueroMexicanGT]

TLDR makes a positive video about Milei one month then a negative video the next month every single time. Why don’t y’all wait a few months between making videos about Milei/Argentina???

[@Lukas4182]

Why hasn't he simply lifted the peg when the two rates briefly met? It feels like it should be his first priority to have a true, fair and interchangable exchange rate.

[@ezequitor]

Because we are already kind of in a dollarised economy. And all of us would run to a bank to exchange our shitty pesos for USD the first day. This would imply a bank crash. The government is setting the bases still to avoid this market crash. There's just not enough USD liquidity yet

[@Lukas4182]

@ezequitor what's the rate that they show in this video? You can't buy USD for that price, only sell, right? Is there any official rate for which you can buy?

[@kravovchik]

3:48 his glasses 😂💀

[@windsong3wong828]

When the nation balances its budget, the economy will stabilize. Argentinia had been printing too much monies and that gave rise to runaway inflation. Cut out all subsidies to balance the budget will stabilize the economy. It’s a no brainer. The economy will crash but the economy will slowly recover after the shock.

[@zddxddyddw]

The budget is already balanced, that's why there are twin surpluses. And money printing also stopped last year.

[@AdamAuxier64]

I’m in Argentina now, I’ve visited 12 times in the past 15 years. The money situation is a mess. I went to an ATM last night. Got 50000 pesos out which is the maximum allowed, but it debited my account for 107000 pesos. The total withdrawal was $54.98 usd. Which is annoying. You have to understand that historically property has always been sold in US dollars while everything else is done in pesos. Most Argentinians have two bank accounts, a US one and a Peso one. Most Argentinians convert some of their paycheck to dollars for long term savings and pesos for that weeks spending. This system favors the rich who earn dollars or euros abroad, then exchange to pesos on the blue market and use it to buy goods cheaply.

[@shinjiikari4629]

4:04 past YoY inflation is misleading though. MoM inflation is currently sitting at 2.7%, and going down, which is roughly 38%/Y.

[@Bravo0neCharlie]

This channel does not portrays two sides of the coin, but rather the one side that suite their own political agenda. Disliked 👎🏼

[@Albert24346]

Actually you're angry because he didn't say only the side of the coin that you like.

[@santo3720]

​@@Albert24346and you are happy because they said the side you like 🙄

[@NoCluYT]

This channel is often very forgiving to the right wing. You should be happy he didn't absolutely tear apart Milei.

[@larryc1616]

Truth hurts. Cope

[@JustinSh.]

@@santo3720 so you both are stupid.

[@gincegeorge1047]

Argentina had a huge defecit.Cutting down the spending is one way to tackle the crisis.It will take some sacrifice.It will take years or a decade to see the result.

[@joelcoll4034]

We are already seeing the results, he stopped hyperinflation

[@gincegeorge1047]

@@joelcoll4034 I am talking about poverty.Most argentinians rely on goverment subsidies.Socialism always creates lazy and incompetent people.

[@marcosdulci]

do a better research anglo

[@di380]

Milei is playing a game that he will never win ☠️

[@JMM-t9j]

What are these people talking about ? Milei's plan is working

[@Zapata_C]

Its been like less than a two years calm down

[@TheIrishny]

Barely a year.

[@Peter-qn3vj]

These cycling and repeating graphics are nauseating