Canghai works
First published in *** Creative Companion Reading
Accompany my country to counterattack
In the past, we used to use currency swaps with Argentina**. However, just in June of this year, we just completed a new ** agreement with a size of 130 billion yuan to 45 trillion Argentine pesos. In short, the Central Bank of Argentina granted us a credit 45 trillion pesos, which we can use directly when importing Argentine products. At the end of the 3-year credit period, we need to pay back Argentina 45 trillion pesos.
However, on December 10, 2023, Milley was sworn in Argentina** and began to adopt a series of extreme economic policies, as promised when he campaigned. Unlike the other ** candidates, Milley behaved unusually aggressively as soon as he took office.
On the first day, he abolished 9 departments and advocated anon-****ism, or completely free capitalism. Milley argues that some areas, such as energy and mining, social development, education, labour, women and culture, are unnecessary and will either be eliminated or merged. He halted most public projects, canceled tenders, cut a large number of infrastructure projects, and reduced subsidies for transportation and energy across the board. Milley bluntly said that Argentines will have to ask for more blessings in the future.
Most notably, however, he announced a 54% depreciation of the peso on the same day, leading to a rapid exchange rate**. This decision sent food products in Argentina soar by 40% and oil prices by 30% the next day. Eleven provinces declared a state of economic emergency the next day. This series of policies has led to a total chaos in the Argentine economy.
Milley's fans were deeply distressed because they were able to buy 100 catties of beef with their previous month's salary, while on the day Milley took office, they could only buy 170 catties of beef. It is expected that after a month, they will only be able to buy 100 catties, and after two months, there may only be 50 catties left.
In the face of people's dissatisfaction and crusades, Milley seemed to be unconcerned. He said that this is nothing more than shock**, otherwise how could it be possible to turn over. He used the phrase "Phoenix Nirvana reborn from the ashes" to describe the current chaotic situation, emphasizing how people can usher in a better tomorrow without experiencing a difficult situation. Milley's extreme approach has thrown the entire Argentine society into chaos and deepened uncertainty about the future.
Milley had just taken office** and flew to the United States in high spirits to meet with Biden. However, it was rejected by Biden. Why?It is reported that Biden expressed deep repentance:"I realized that I had made a serious mistake. We have been subverting the ** of other countries through color revolutions and incitement to populism, especially weakening the countries of South America, leaving them weak and impoverished, always under our control. But I finally realized that this was completely redundant!There is simply no need to spend so much money. If we don't do anything, they will dig their own graves faster!They die on their own faster than I can weaken them!"
So why did Milley devalue the Argentine peso?It turned out that his goal was to get rid of the Argentine peso, blow up the Argentine Central Bank and fully adopt the dollar. There have been doubts about Milley's assumptions, arguing that Argentina simply does not have enough dollars to carry out currency swaps, nor does it have dollars to support the economy. Moreover, Argentina is in debt and cannot print dollars on its own, how to cope?
Milley, however, explained lightly: "I'll teach you how to do it. For example, there was an Argentine mine worth 80 billion pesos, which was equivalent to $100 million, but I only had $10,000 on hand. You don't think that's going to bother me, do you?I only need to devalue the peso 10,000 times, isn't 80 billion pesos equal to 10,000 dollars?”
During the campaign, Milley proposed this plan, which won enthusiastic applause from Argentines. However, the decision caused a global shock. Argentina's total foreign exchange reserves are only $34.5 billion, and Milley plans to exchange large amounts of pesos by devaluing the peso like crazy and turning it into waste paper. Global capital is poised to look forward to Argentina's shock moment and buy its prime assets at low prices.
Biden had to shrug his shoulders and say, "Now you understand, right?."You always say that the United States brought down the Soviet Union, but in fact, the Soviet Union died on its own, and the United States could not stop it at all. ”
In June 2023, we signed a currency swap agreement with Argentina that is equivalent to borrowing 45 trillion pesos. At that time, 1 dollar was exchanged for 565 pesos, which was equivalent to us borrowing $7.9 billion. However, today 1 dollar is 800 pesos, and we only need to pay back 5.6 billion dollars. According to Milley's plan, it is expected that in a year's time, 1 US dollar will be exchanged for 1,800 pesos, and we will only have to pay back 2.5 billion US dollars. Considering that our currency agreement was signed for 3 years, depending on the rate of collapse in Argentina, after 3 years 1 dollar could be exchanged for 4,000 pesos, and then we would only have to pay back $1.1 billion. I borrowed $7.9 billion, and in the end I only had to repay $1.1 billion!Nothing was done in 3 years, and the net profit reached 6.8 billion US dollars!This is undoubtedly a good deal to make money lying down!It's so profitable!
Some lamented that the Jews wept bitterly and said that our operations were faster and more profitable than their usury. It seems like an abnormal gamble.
Looking back over the past few decades, in 1960, China's GDP was $59.7 billion, while Argentina's was only $24.4 billionAnd by 2022, China's GDP has reached 17$9 trillion, compared to only $630 billion in Argentina. In the past few decades, China has become a miracle of global economic development, but China modestly said: "Well, I don't seem to be doing anything, it's all up to my peers." ”
Rest assured, Argentina may not cry again in the future. Because it was already immersed in severe shock and deep coma, it could not extricate itself.