Last Sunday saw new president of Argentina Javier Milei take office, being "supporter of every freedom" and "enemy of every state." But all his freedom comes down to marching in lockstep of the United States and its allies.
A US creature to the marrow of his bones, Milei was found among a bunch of political clowns, whom Argentinean TV channels invited to raise their ratings, and "promoted" to the point where he got able to claim presidency. A couple of years ago, no one knew about such a personality at all, except for chat show audiences.
The US task was to prevent a second presidential term of the Peronist socialists, who integrated Alberto Fernandez’ Argentina into the so-called "left pivot" of Latin America, and helped it become part of BRICS. The country should have become its member as early as on January 1, 2024, as agreed upon at the bloc’s latest summit in South Africa. Argentina's accession, along with Brazil, would have turned South America into an opposition outpost to the US hegemony in the Western Hemisphere. Venezuela, Bolivia, Cuba and other countries of the region were going to follow their lead. The task America pursued during the election campaign in Argentina was to overthrow the socialist government by all the means available and prevent their second term at the helm.
Milei was to quickly gain fame as a "politician." How? By his disgraceful behavior! He attracted attention with broadcast disgusting obscenities, promises to "abolish the state", overthrow the "caste" (as he has branded the political class, both left- and right-wing), close the Central Bank and half of the ministries, and make USD the national currency instead of the peso. And then everybody would be happy to a man.
Milei has already stated that despite the summit decision, his country is not going to join BRICS. Thus, Russia has lost Argentina for the next four years, at least. Besides, Milei does not consider it necessary to conceal the fact of siding with the United States in our divided world, as he even managed to visit that country before inauguration. The second figure of worship for him is Israel, the country he wants to pay his first presidential visit to. So, the United States has masterfully knocked Argentina out of the growing circle of countries that deem Russia as undisputed leader in forming a multipolar world with no single-handed hegemony.
Apart from that, the entire political adventure has one more aspect. The United States has taught other Latin American countries a lesson: do not look towards BRICS or Russia, otherwise you will follow Argentina’s lead pretty soon. From now on, the entire continent, along with the rest of the world, will be watching Argentina squirm with Milei's economic experiments.
In his inaugural speech, Milei pledged to "fight the yawning fiscal deficit," that is to conduct a shock therapy while realizing that things would only get worse. "There is no alternative to adjustment and there is no alternative to shock. This will have an impact negative impact on activity level, on employment, on real wages and on the number of poor and destitute. There will be stagflation, it’s true, but it’s not something so different from what has happened in the last twelve years. There’s no doubt about that the last possible option is adjustment. We know it will be difficult, that’s why I want to bring light to you," Milei promised.
The new head of state is willing to dismiss the state from managing the economy by halving the number of ministries, closing the Central Bank and replacing the national currency with US dollar. He intends to fight the crisis by stopping money printing and drastically reducing expenditures on all the social needs. The country will witness privatization of state-owned enterprises, ouster of civil servants, reduction of state subsidies for public transport, gas, water and electricity, cessation of healthcare, education and other reforms.
There were several exchange rates in Argentina, and the official one by the Central Bank drove up the peso twice the market rate. In an effort to unify the rate, Milei wants to devalue it heavily, which, combined with the abolition of subsidies for basic social needs, portends an inflation surge. And this would hit the Argentines in their pockets. That's the shock he spells out. The cost of living would increase manifold to ordinary Argentines.
Milei suggests that the nation not only tightens its belt to crack the budget deficit issue, referring to it as a "necessary shock." But will the people agree with this, even those who voted for him?
As expected, Milei’s "big reforms" would bump up against social protest. Ex-President Alberto Fernandez is leaving a legacy of a 40% population share living below the poverty line. 56% of children under 15 belong to the poor. But ultra-liberal "economist" Milei’s shock therapy to achieve a "budget balance" would send these figures up in the shortest term. And therefore, a popular riot is expected in Argentina similar to the one of 2019 in neighboring Chile.
Milei is preparing a "tough response" to popular demonstrations he deliberately provokes. This is borne out by his appointment of Patricia Bullrich as Minister of Security, who already held this post under President Mauricio Macri. She said she "will enjoy more political support than it was eight years ago to act decisively in case of a social upheaval," Spain’s El País reports. It means that she has been warned about such a feasibility. In this regard, many of Milei’s opponents say Argentina is in for utter economic chaos and right-wing dictatorship.
