[nradov]

No, you're really missing the point. There were no loans being offered at the time the budget cuts were made. There were no loans to take. Their credit line had been exhausted. They had run out of other peoples' money. How are you not getting this?

[Daishiman]

No, I get the point because I've spoken to several specialists on the matter. The budget cuts Milei performed were far higher than what even the most conservative IMF program proposed.

There was no technical reason to cut budget to that level. It pure ideological motivation.

[IG_Semmelweiss]

>>> No, I get the point because I've spoken to several specialists on the matter. The budget cuts Milei performed were far higher than what even the most conservative IMF program proposed.

You clearly don't. There was 2100% annual hyperinflation on the day Milei assumed. "Specialists" said that cutting inflation to monthly single digits couldn't be done, period.

Milei did it in less than 6 months.

The current predicament is a political one, not an economic one.

He allowed Argentinians to finally experience the freedom of a floating exchange rate. Under normal circumstances, if the Argentinians decided they had enough of the peso and wanted to forcefully commit to the USD, they could do so at whatever rate was offered.

The political problem is that now there's an election this weekend, and he now has to explain why Argentinians (and investors) don't want pesos if the FX goes too high. He should not have put the govt in the position to defend a peso... that Argentinians themselves do not want.

After the election, there will be nothing to speculate against, the currency will find whatever equlibrium was needed, and the "specialists" will go back to their corner, where they hide for being wrong.

Again.