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Argentina's new ** Milley, as soon as he took office, announced the launch of an economic policy based on shock**, which plunged the Argentine economy into complete turmoil.
In order to maintain stability, Milley flew to the United States for help as soon as possible, however, Biden, who was busy with **, did not give him substantial help.
At this time, Milley remembered China's goodness again, and began to send a letter to the Chinese side, opening up $5 billion.
Hugging the thighs of the United States and spending Chinese money, Milley thinks too beautifully.
Dollarization of the economy
In the early days of his election campaign, Milley made arrogant remarks, claiming that he would completely end Argentina's cooperation with China and completely stand on the side of the United States.
Milley said and did so, and as soon as he announced his inauguration, he immediately embarked on a series of shock-based economic policies in the hope of fully dollarizing his economy.
However, the reality was completely beyond Milley's expectations: this rush to achieve results had a huge negative impact on the Argentine economy.
At present, the Argentine economy is facing a total shutdown, and 11 of the country's 23 provinces have declared an economic emergency and are planning to reduce public spending.
Recently, Argentina ** reported: The governors of several provinces have revealed that their local ** will not be able to pay the salaries of employees in December this year.
Among them, the governor of St. Louis Province said bluntly: This is the first time in 40 years that the local government cannot afford to pay the salary in December, and the salary in January next year is also worrying.
In addition to these 11 provinces, the other 12 provinces have not yet declared a state of economic emergency, but the general environment remains unchanged and will not last long.
After all, the reason for the turmoil in Argentina's economy is that its old economic system is collapsing and a new economic system has not yet been established.
After Argentina's new ** came to power, it first announced that the original 18 ** departments would be cut in half and turned into 9, and the missing ** functions would be taken over by private individuals.
Later, it announced that its local currency, the peso, would depreciate against the US dollar, by nearly 54%, and that was not all, Argentina** also planned to depreciate by 2% every month thereafter.
This series of moves has exacerbated inflation in Argentina, with prices falling by 100% and the economy at risk of collapse.
However, on December 15, the Argentine Minister of Economy still said that Millet**'s attitude towards the dollarization of the domestic economy will not change, and they will continue to promote this goal.
For the dollar to replace the peso, the value of the peso must be repeatedly damaged in the worsening inflation, reducing its holdings, and Millet is doing this, but ignoring an important fact.
That is Milley**, it is difficult to pass the dollarization program in the country at one time.
In addition, although the more the peso loses its currency value, the smoother Milley** will implement economic dollarization in Argentina, but Argentina's realization of economic dollarization will also mean that it no longer has financial sovereignty and will completely become an economic colony of the United States.
This is not alarmist, first, there are examples of shock in Eastern Europe, and the above problems have arisen after Russia, Ukraine and other countries allowed Western capital to infiltrate financial sovereignty.
In addition, the United States and other Western capital have no intention of defending Argentina.
In fact, after Milley won Argentina**, his first stop was to go to the United States, but in the face of Argentina's request for help, the United States did not provide substantial help.
Milley's U.S. was blocked from asking for help
At that time, although Milley won the election, he had not yet officially taken over the position of Argentina**.
Therefore, Milley's visit to the United States can only be regarded as a "private visit", although it is not too formal, but it also reflects the deterioration of Argentina's domestic economy.
Considering that Milley implemented full dollarization after his election, the purpose of his visit is very obvious, which is to get the United States to help solve Argentina's economic problems.
Unexpectedly, in the face of Argentina, the United States did not intend to take a hand.
According to Milley's spokesman, Milley met with the White House and some ** of the US Treasury Department during this trip, but did not meet Biden.
Obviously, the United States has no interest in cleaning up the mess for Argentina, not to mention, ** is imminent, Biden still has a bunch of things to deal with at home.
Therefore, Milley's visit to the United States can be described as dismal.
However, the cold attitude of the United States also made Milley see some things clearly: the United States is unreliable, and at the critical moment, China is still reliable.
That's $5 billion
After returning from the United States, Milley immediately sent a letter to the Chinese side, asking for China's support, speeding up the currency swap between China and Argentina, and further expanding the currency swap agreement between the last Arab and Chinese countries.
In addition, Milley also met with the official Chinese delegation, and there has been a noticeable change in attitude towards China.
In this regard, Argentina** said: Milley is eagerly seeking to repair relations with China.
Not only that, at the inauguration ceremony of Milley, Milley also expressed special thanks to the presence of the Chinese special envoy and promised to pursue the "one-China principle", emphasizing the importance that Millay attaches to China.
When referring to the economy, Milley also pointed out that the economies of China and Afghanistan are highly complementary, and Afghanistan is willing to continue to strengthen economic and trade cooperation with China.
It can be seen that the trip to the United States brought about a major change in Milley's attitude towards China, especially in the field of economic cooperation, and the purpose of Milley's letter is also economic.
Before Milley took office, he said that Argentina's economic predicament must be implemented, but gradual reforms require money, and Argentina has no money.
Therefore, Milley hopes that China will allocate funds to aid Argentina.
We know that China and the Arab States have previously reached a three-year currency swap agreement of 18 billion US dollars, the last Arab ** has used 11.5 billion US dollars, and now Milley will use another 5 billion US dollars, not only that, Milley also hopes to further expand the content of the agreement.
Although the peso is depreciating, Argentina, as a major agricultural and mineral country, has the ability to repay the interchangeable RMB arrears in kind.
Therefore, in response to Milley's request, on December 13, Chinese spokesperson Mao Ning said: China also attaches importance to China-Arab relations and is willing to promote the stable and sustainable development of the China-Arab comprehensive strategic partnership.
The implication is that China can continue to cooperate and exchange with Argentina. However, in view of the uncertainty of Argentina's new **, it will take time for the original mutual trust between China and Argentina to be restored.
We hope that Milley will establish a correct understanding of China as soon as possible and cooperate with China in a pragmatic manner. Only in this way can we establish healthy and stable bilateral relations.
Reference: China asks Argentina to clarify its position on China**Response to The Paper.
Argentine Minister of Economy: The dollarization plan remains unchanged!Reference message.
11 provinces in Argentina have entered a state of economic emergency and announced plans to control and reduce public expenditures, reports Globo.com.
Argentina was elected ** Milley visited the United States and met with Clinton but could not meet Biden Observer.com.
Foreign media: Argentina's new ** "180-degree U-turn on China's stance" Shangguan News.