After Argentina's new ** Milley came to power, his attitude changed 180 degrees.
This new **, known as the "Argentine Trump", shouted before taking office that he wanted to "fully dollarize", but on the day Milley took office, the United States did not even send a senior representative.
Milley wants to abolish the peso in Argentina and engage in "full dollarization", and now the United States ignores itself, what else can it do?
As a "political amateur", Milley finally understands now that the rivers and lakes are not fighting and killing, the rivers and lakes are sophisticated, and cruel words can't be put too early.
So he turned around and wrote a letter to China, asking China to support and accelerate the currency swap between the two countries and expand the currency swap agreement reached with China in the last session.
Good guy, he scolded us before he came to the stage, and now that the car hit the wall, he remembered to turn a corner, and he really gave the money together, right?
But China's response was also simple:
According to the Observer, China has suspended a currency swap agreement worth 46.5 billion yuan with Argentina.
Why pause?
Because the whole world saw 4 big words written on Milley's face: Running away with a bucket!
Speaking of which, the fact that Javier Milley was elected as Argentina's ** is very magical in itself.
On December 10, the day Milley was sworn in, half of the ** departments were dissolved on the spot, a total of 23 provinces in the country, 11 provinces sounded the alarm, declared a state of economic emergency, and the Argentine currency peso depreciated against the dollar in 10 days.
In a panic, some parts of Argentina even returned to the "barter" method.
This is equivalent to a heart patient who is about to die, and suddenly a "miracle doctor" comes and tells his family that I have a good trick, but he pulls out the ventilator trachea when he comes up, saying that he wants to let the patient go into shock** and get through.
It's not a neuropathy, is it?
At the beginning, Argentina was also considered a "rich family", with abundant finances and better welfare than the current Europe and the United States, but it was empty, failed in industrial transformation, failed to establish a money-making industrial system, and lived a worse day by day.
If you want to develop industry, you have to eat and eat all the people in the country for 30 years and save up your family little by little, but in Argentina, let alone 30 years, even if you make the people suffer for 3 months, you have to be driven out**.
The country as a whole has no money-making industries, and usually relies on selling agricultural products and borrowing money to support the family, and the economy is in a mess, and the foreign debt is accumulating higher and higher.
At the end of 2022, Argentina's external debt has reached more than 270 billion US dollars, accounting for 55% of GDP.
It is precisely because of this that the public will elect such a paranoid and crazy ** as Milley, mainly after more than half a century of continuous turmoil, everyone has completely despaired of this country.
Now Milley is in shock in Argentina, but you can't just shock, you have to be rich**.
After Milley took office, the first thing he did was to go straight to the United States to borrow money, but Biden didn't even see him, you owe more than $400 billion outside, who dares to lend you money?
Immediately after that, Milley went to Wall Street again, thinking about accommodating and seeing if he could postpone repayment, but Wall Street was resolute and only had four words - repay the debt on time!
Seeing that the United States could not count on it, Milley remembered that the Chinese are still "kind-hearted" and that it is absolutely impossible to have bad relations with China.
But we are not wronged, in Argentina's current situation, who will lend money to waste?
When China signed a currency swap agreement with Argentina, it was intended to "de-dollarize" and help the renminbi internationalize.
As a result, now that Milley has come to power, he is clamoring for the abolition of the peso and a full shift to "dollarization" in Argentina
Now, of course, Milley wants to expand the size of currency swaps, and his intentions are clear:
To put it bluntly, Argentina lent us waste paper, and China lent Argentina renminbi and took it back to exchange it for dollars.
When it's time to pay back the money after 3 years, Milley will pat his chest and start playing scoundrel:
Pay back?What money?Why should I pay back the money I borrowed with my ability?
Some people here may say that the so-called currency swap agreement is not borrowing pesos for pesos and borrowing renminbi for renminbi?Even if the peso depreciates into waste paper, Argentina will be able to return the yuan at that time.
But the key is that Argentina has a "glorious history" of 9 debt defaults, and even ** can be exchanged for 3 a day
The more critical issue is that one of Milley's ideas when he came to power was to abolish the peso in Argentina and use the dollar in the future.
Even the peso is going to be abolished, and now he is still coming to China to borrow yuan, what do you say he is going to do?
Sima Zhao's heart is well known to passers-by.
Some people may say again, aren't we Argentina's largest ** country, there are so many lithium mines in Argentina, as well as a series of agricultural products such as beef and mutton, just use them to pay off debts.
However, the ideal is very beautiful, but the reality is very skinny, Argentina does have lithium mines, and there are also agricultural and sideline products such as beef and soybeans, but they are not in the hands of Argentina at all.
If Argentina** wants to pay off these things, it can only print peps and ask domestic farmers and multinational agricultural giants to buy them, or buy them in dollars.
But now the peso is not much different from waste paper, who will sell it?If Argentina really had this ability, it would not have come to this point.
Taking a step back, if Argentina defaults, do we really go to the other side of the ocean to collect physically?
It's unrealistic to think about, so it's time for us to suspend the agreement and stop the loss in time, to see what Milley can toss Argentina into, and what results this giant social experiment can get.
As for borrowing money, it is absolutely impossible, and the landlord's family has no surplus grain, let alone lending it to such a scoundrel.
Write at the end:
Once upon a time, Argentina had a dream start, and their ancestors were once broad.
However, the whole country failed to seize the bonus period and complete the transformation from agriculture to industrialization, and in the end did not make any money, and owed a lot of foreign debt.
In the face of such a magical country that is mired in the abyss and has an unknown future, it is naturally impossible for us to take the risk of continuing to lend money to be the "wronged leader".
Kunpeng Project