Argentina’s Peso Slumps: Is Milei in Trouble?

[@Ar1AnX1x]

rest in peso

[@lachlanchester8142]

‘Remained in weight’ lol

[@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

[@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 !!!

[@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

[@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.

[@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

[@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

[@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.

[@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.

[@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*

[@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.

[@willmcreavy9623]

The 100% year on year figure includes much of last years high. If month on month inflation stays the same yoy would drop to slightly over 40% which is pretty good by Argentinian standards. Year on year inflation figures are usefull for more stable economies as there are annual events that might be inflationary, seasonal harvests, christmas shoping ect but i think yoy figures for argentina arent really usefull in this case

[@MovieRiotHD]

As long as M2 is stable or drops then the value of pesos should rise unless people drop the peso altogether.

[@LisaAndersen-j7k]

Thank you very much.

[@zeq9021]

In every Argentina video you use the same wrong peso bill

[@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.

[@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.

[@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).

[@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.

[@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.

[@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 🙄

[@kerrynball2734]

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

[@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

[@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.

[@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

[@dx3217]

I love that from all latin american things that couls get into front news. Everything rotates around this man like come on.

[@vintagegenious]

This man is one of the most inhumane person in this world. You just need to read his long hate speech at Davos

[@Zapata-Cuahtemoc]

Its been like less than a two years calm down

[@TheIrishny]

Barely a year.

[@yibithehispanic]

TLDR is the hurrying kind, calm down Milei himself said that he can't fix a 40 year crisis in just some months, we need to expect for the next reforms

[@uhohhotdog]

Borrowing more money isn’t going to fix anything

[@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

[@MSMrk9]

Guys please fix the TLDR animation at the start of the videos!

[@jandjyoungs3900]

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

[@TRyan3]

ty

[@Crosettof]

This video has a lot of mistakes.

[@hashbrown777]

Instead of lowering the official rate which they can directly control but end up just chasing the crashing peso, why dont they just go into the black market and just start buying up all the pesos to raise it up to the official rate?

[@randommess-d5t]

You need to use your dollar reserves to do that, same thing the bank has been doing but illegally

[@ungreatfulduck750]

Don´t see anywhere mentioned how Argentina has the people living under poverty raise from 38% to 50% or something along those lines. But I guess that contradicts the portrait of savour of economy you guys seem to want to create here, cool, cool, cool.

[@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

[@thepax2621]

Sounds like a though problem for the chainsaw guy 🤷🏻‍♀️

[@ReyZar666]

as and Argentinian, i will explain what is going on with and example that we all can relate to, let say you didnt do your dishes, the longer you wait to deal with it the longer will take you to wash, the more you try to avoid it, well imagine now that you have been doing so since 70 years,.. then one day you wake up you realize you are living in a shithole, and you decide to start working on it, you truly believe that you can fix it in 1 year??? also this isnt about "fixing it" as of a 1 on done thing, this is about making sure we NEVER GO BACK to such and issue, what Milei is doing is revolutionizing the country into something i, in my 30 years of been alive in this world havent seen in Argentina not only that i was 100% sure that Argentina was going to be another Venezuela/Cuba, this is bigger than just 'dollarizing' the economy, he want to go a step further and make sure the currency is just another currency in the market, in other words killing the money machine once and for all, and letting the market decide for it own, and to do so he need to fix the economy, make us credible again, and capable of paying debts, and most importantly make sure Socialism stay the FCK AWAY OF OUR SOILS, NO MORE SUBSEDIES NO MORE MINISTERS of some weird BS, NO MORE TAXS IMPOSE BY THE STATE, as i said before this isnt a one and done, nor that 1 issue, this is in my opinion a revolution of ideologies, culture, politics, and finally an economic change in our country, what Milei is doing is not only something that will became a part of Argentina history, but also something that the Western world is looking at, and trying to copy, like for example DOGE, what i thing we are seen is a Western world sick and tired of Wokism and Socialism ideologies, and really really worried about the Economy and China, as the modern URSS, whom doesnt seem to slow down. Times Are Changing, and if you dont believe me then wait and see.

[@cesarwcruz]

Please, for the love of Godsomebody needs to point out that the inteo song is really not good.

[@a-complished4406]

Maybe mElón Muskat can help out with his money.. at a price 😅, he’ll be copresident like in the US

[@samuxan]

He could easily get a bailout or several since he has been doing what the IMF ask other countries to do. Good for the country, not so much for its people

[@segiraldovi]

bro, lowering inflation is good for people, keep in mind that inflation levels 1 year ago when the recent one had just started were brutal. Products changed prices every day, there was literally economic activity because saving your money was stupid since it lost half of its value every 4 months. The mere fact that you know that things are not going to change in price every month allows you to plan and this opens up a huge range of possibilities.

[@samuxan]

@segiraldovi yes, but there is no use in paying a bit less for groceries when you have to pay for things that used to be provided or subsidised by the government and are now gone

[@mkmrys]

Dollarisining economy 😅

[@marcanthony8873]

Dollarize

[@thorstenschmidt21]

Rich getting richer. Poor get what?

[@NotSoFakeTaxi]

Stupid gets stupider?

[@dwayne_]

Average commie sentence

[@NotSoFakeTaxi]

You can’t lift people out of poverty when the economy is broken. You need rich people to provide jobs and lift the communities. Capitalism has lifted more people out of poverty than any other system. Argue with you toes.

[@Indian_Tovarisch]

So talking about poor people is commie​@@dwayne_

[@zacharyhenderson2902]

Richer

[@nicok5548]

Argentinean here: currency went from 1500 to 1000. So appreciated 50%. This channel is very picky with its data because it blinded by its leftism. Argentina under a libertarian (the opposite of the left) is prospering

[@geminusleonem9365]

That's a lie. Just a straight up lie. Argentinins sucking up Caudillos never ceases to amaze me

[@RubizeeDontMiss]

Just going to make assets less attainable for 95% of the country. The rich keep getting richer. Yay Milei!

[@henrybatten3315]

Respectfully Libertarianism isn't the opposite of left wing, you get left libertarians and right libertarians.

[@m_elite]

He's right, they're the opposite, everything from fascism , his bullshitism and centrism are all capitalist right wing government systems , the opposite of left wing, just one little question, does he know how the average argentinian live , poverty rates or even how Argentina infrastructure looks like, the stock market can be healthy that doesn't mean anything for your average Joe

[@nicok5548]

@ tell me 1 left libertarian! The left ideology does not work so they rely on authoritarian measures to impose it (media control, lawfare, regulations, forcing people how to live their lives)

[@JSK010]

Isn’t a weak(er) currency actually good for a commodity exporting country like Argentinia?

[@Swordphobic]

Its bad for the locals that don't own a commodity exporting business as their income loses buying power.

[@ssuwandi3240]

It's good considering its abundant energy. The opposite of Brasil. Milei's engineering the debts control deserves a Nobel.

[@Swordphobic]

@ What do you mean the opposite? Brasil is doing pretty similar spending cuts, its just not as radical because it doesn't really need to. Its cutting benefits for the disabled, health and education just like Argentina. The difference is that argentinians actually voted for neoliberal policies, while brazilians voted against it and yet that's what they got on the plate.

[@Zenkrypt]

it's good, but such a rapid decrease in the value can be dangerous and it affects those with the lowest wages more, when a commodity increase in price by purchasing parity.

[@JSK010]

@ loses purchasing power only abroad. How many trips to Paris to these "non commodity exporting business owners" do they take?

[@EclipseZer0]

People mentioning poverty don't even know the latest data: poverty has fallen to 38% and extreme poverty to 8-9%. That is below the rates when he came into office. Also GDP has probably risen since it had already recovered to pre-Milei data back in October. The only thing left is keep lowering inflation, which is sitting at a 35% yearly rate, but going down. Milei has done a miracle in Argentina, yet leftists still refuse to admit it. Anti-statism has worked, and we will see more politicians copy his policies in the near future. Milei, despite being personally crazy, is simply a genious economist and actually very clever politician, as he has shown during last year. PS: it is worth mentioning that the dollar is becoming stronger, which makes it more difficult for the official exchange rate to catch up with the blue rate. If the dollaer becomes stronger, that's not Milei's fault.

[@themountain59]

I don't know where you get your numbers from but inflation sits still at 67%, poverty rate at 15.6%and the GDP at 12.054$ which basically the same as in 2022. 😏. Source: IMFWorld economic outlook. Still 25% of Argentinians would like to emigrate in 2025....I wonder why that is?🙄

[@marcosdulci]

do a better research anglo

[@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!!!"

[@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.

[@Shokman08]

Just one comment,he created the recession himself... then he got out of this recession with more than 200k jobs lost due to become one of the most expensive countries in the world...

[@shahankhan7685]

Gold and silver will be a better replacement Even the Yuan because it's an export currency.

[@ErnestoHerrera2002]

*Pretends to be shocked*

[@simplyepic1732]

lovely stuff

[@yuitdelsilencio]

Saying that Milley has done well in 2024 it's like saying u don't give a damn about the millions of argentinians who have descended into the worst poverty you can imagine

[@MarktYertd]

--Well, A right politician restoring Argentina's economy-who would have thought that couldn't be achieved?, so right is right.

[@colincampbell4261]

Wrong - extreme poverty has increased massively. 40% of people in dire straights.

[@tgrey_shift..mp334]

You would think, but the solution us more nuanced than "right versus left" A large part of Milei's policies lies in Austrian Economic thought! Look into Ludwig Von Mises or Carl Menger for more information! Milei really is quite educated in such topics, to my research! Hope this peaks your interest! :)

[@chrisdouglas1158]

​@colincampbell4261 increased poverty was always going to happen , mile said it woukd and it hit a high of over 50% but its already comming back down to 40% as you yourself stated as the economy improves, so actually it's correct

[@Swordphobic]

@@tgrey_shift..mp334 You mean that school of economics that is largely based on ideology and ignores material facts? Yeah... I doubt he'll reach the end of his term.

[@thebaron6481]

@@chrisdouglas1158 december reports mentions to be already around 38%.

[@Schmuck.Sandwich]

Why the vocal fry???

[@NotSoFakeTaxi]

He’s still doing really well in office. He was facing a near impossible task

[@deProfundisAdAstra]

0:35 "On the black market"? What relevance does that have?

[@haadiP]

because thats the real exchange rate, no government intervention just supply and demand

[@deProfundisAdAstra]

@@haadiP It's not "the black market", it's an open exchange. "Black market" explicitly means it's illegal, and it was called that in the video because they want to associate as many negative things with free markets as possible.

[@haadiP]

@ it is a black market becuase 1. its outside of government regulations and 2. its illegal under the law but not enforced

[@deProfundisAdAstra]

​@ If it's outside government regulation, how is it illegal? That's what "illegality" means. I'm happy to look at any citations you might have, but I'm unaware of Argentinian laws against currency exchange, regulated or otherwise.

[@haadiP]

@@deProfundisAdAstra Decree No. 609/2019 requires all foreign currency conversions to be traded under the central bank

[@AndrewNunez-o5h]

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Jesus is the king 👑 I'm forever grateful for the gift of financial stability and wealth. Ms Maria Frances and her team have made me who I am today