Bypassing congress, Argentina's Milei decrees sweeping economic deregulation and privatization measures

[peppertree]

Argentine President Javier Milei announced a barrage of legal and economic deregulation measures that will, if passed by congress, fundamentally alter the Argentine state’s role in society and the economy.

Among the announcements were the abolishment of laws regulating the rental market, supermarket supplies and state purchases. He also announced moves that pave the way to privatizing Argentina’s state-owned companies.

The measures will be implemented via decree - and are effective immediately, despite constitutional provisions barring decrees over fiscal or penal law.

The chief of staff then has 10 days to send it to Congress, where it will be debated in commissions before it is sent for debate by lawmakers.

Argentina's inflation crisis, which had reached 160% in November (the last full month of the center-left Alberto Fernández administration), has tipped into hyperinflation since Milei devalued the peso by a record 51% overnight shortly after taking office - with inflation now projected to reach 30% in December alone.

The announcement touched off a massive, left-wing demonstration in downtown Buenos Aires - with pot-banging cacerolazo protests later heard in middle-class, right-leaning neighborhoods in the capital and elsewhere.

Middle-class support had proven decisive for Milei's runoff election victory a month ago.

At: https://buenosairesherald.com/politics/milei-decrees-sweeping-economic-deregulation-and-privatization-measures

Buenos Aires residents respond to today's far-reaching price deregulation and privatization decree by far-right President Javier Milei with pot-banging cacerolazo protests - historically associated with right-wing, middle-class voters (a key Milei constituency).

The decree - which opposition lawmakers have slammed as unconstitutional - follows Milei's record, 54% overnight devaluation last week that has quickly tipped Argentina's inflation crisis into a hyperinflation crisis.

[enid602]

1. The three M's.

Milei does appear to be the third M; Menem, Macri and now, Milei.

[peppertree]

2. Argentines are always looking for "signs" - and they've certainly found one in that

All three, seem to spell misery - and each, more than the previous one.

But seriously - there's no doubt in my mind Milei's trying to force the dollarization of Argentina by way of a depression.

The biggest obstacle to that pipe dream of his, has always been not so much political - but the obvious fact that Argentina has 40 trillion pesos in deposits, plus 6 trillion in cash.

There is no way in hell he can find the dollars needed to compensate everyone for all that - unless (he believes) he can force businesses and families to burn through all those pesos themselves.

And the only way to accomplish that, is through a hyperinflation/depression.

I doubt he'll last long enough to impose his dollarization delusion - but one thing's certain: this mega-crisis he's inflicting on them, will take years to recover from.

Something Argentines are used to by now, at least.

[enid602]

3. Friends

Even if he amassed the dollars to accomplish ‘dollarization,’ couldn’t that potentially kill the dollar? Would it even be legal? I know some Caribbean and Central American countries have done it, but Argentina?

I’d lived in BA for a total of 4 years. Most of my friends there are similarly retirement aged. Living off $400 a month. Contemporaries. I can’t imagine what it must be like for the less fortunate. Guess I have to hope that Milei has some success.

[peppertree]

4. Right. Things are always tough down there - but this is out of the frying fan, and into the fire

The effect hasn't fully sunk in yet, because December (as you know) is Christmas Bonus month in Argentina.

Normally, Argentines use this bonus to deflect their upcoming vacation expenses - or at the very least pay off bills from previous months.

Not this time.

Milei's hyperinflation (Mi-perinflation?) has pretty much devoured this year's X-mas bonus.

And, as you alluded to, for nothing - because there's no way he can find the 50+ billion of dollars needed to fairly compensate everyone's pesos (even at the new, devalued rate!).

How do I know? Because his money-laundering Economy Minister Luis Caputo went to Wall Street, hat in hand, to beg for $30 billion - and he got nothing (other than little pats on the head, and lunch with Clinton - paid for by an Argentine billionaire).

Suffice it to say, as quickly as real wages are now plunging - and with mass layoffs now in the horizon - he might not last beyond March or so.

Much less, long enough to impose his pipe dreams.

Here's more footage from the cacerolazos - which are politically meaningful, because they're usually associated with the very kind of right-leaning, middle-class voters that were key to Milei's victory to begin with.

(so you can imagine how more left-leaning, working-class voters feel)

[enid602]

5. Coverage

Thanks. You must have the deluxe cable package. I thought Patricia wasn’t bluffing when she said protestors in the roadway will be met with jail and bullets. She’ll not be able to punish this many people.

People walking from Caballito and Almagro to Plaza de Los Congresos. Impresionante! Jose st watched the first third; I’ll watch the rest when I got a chance. Thanks again. How do you find nd entire news programs from Argentina?

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6. You're welcome. News coverage is definitely something Argentina always has a lot of.

As you know, there's a an array of cable and on-air news stations and/or programs - all over the country, and of a variety of political persuasions.

Though mainly center-right to right-wing, sadly.

Being on the center-left as I am (mostly), I often watch the Minuto Uno evening news on C5N cable news - which, like most cable news shows in Argentina, is available on YouTube in real time.

And thanks to the country's liberal fair-use laws, these shows - or portions thereof - are always available from any number of other sources.

Not surprisingly, Trump's pal Macri tried to have C5N shut down by using charges against its owners that were later found to have been trumped up.

Milei and his (pro-dictatorship) surrogates have already threatened to do likewise - especially against the smaller El Destape ('The Reveal' - https://www.eldestapeweb.com/).

The international press freedom mavens and 'papers-of-record'? Crickets.

That said - thanks as always for your interest, and for the insights Enid. Happy Holidays to you and yours.