Javier Milley, a 52-year-old member of the Argentine Congress, is an economist and the founder and leader of the Freedom Forward Party. He is rebellious and crazy in appearance and behavior, he often gives speeches in the street with a chainsaw, he advocates the use of economic shock** to solve the economic crisis in Argentina, and he also demands the destruction of the Argentine Central Bank, the abolition of the peso, and the introduction of full dollarization. He is an extreme right-winger, he opposes everything left and the right that is not right enough, he opposes China, Cuba, Brazil and Venezuela, he also opposes the liberals and progressives in the United States. He opposes abortion, gun bans, environmental protection, and he also opposes half of Argentina's sector. He's not really an economist, he's more of an internet celebrity who relies on exaggerated words and deeds to attract young Argentines. On November 19, he ended with 55With 95% of the votes, he was elected as Argentina's new **, which attracted global attention. His election has a lot of similarities with the style of Trump in the United States.
Argentina's economy is in very bad shape, with slow economic growth over the years and inflation reaching 1427%, the peso continues to depreciate, prices skyrocket, and the wealth of Argentines has shrunk significantly. Many Argentines no longer trust the peso and prefer to exchange it for items because they fear that the peso will turn into waste paper at any time. Argentina** has no effective measures to improve the economic situation, which has caused the people to lose confidence. So they pinned their hopes on an eccentric economist like Milley to save Argentina's economy.
However, Milley's claim is unrealistic, and it is impossible for Argentina to burn the ** bank, scrap the peso, and fully dollarize, as he said. There are a lot of difficulties in doing so. First of all, Argentina's debt is under great pressure, with its external debt reaching $276.7 billion at the end of 2022, while Argentina's foreign exchange reserves are only $32 billion. Argentina does not have access to international credit and does not have enough dollars to replace the pesos. Second, Argentina's agriculture has been affected by drought, agricultural income and exports have fallen sharply, and the backbone of Argentina's economy has been shaken. Finally, the Argentine peso exchange rate has sharpened**, and from the beginning of the year to now, the official exchange rate has fallen by almost 50%, reaching 350 pesos per dollar. The black market exchange rate is even lower, said to be 600 pesos per dollar. In such an economic environment, Argentina does not have the capacity to achieve full dollarization.
Historically, General ** served as mayor after the liberation of Shanghai, and he also faced difficulties in replacing the old currency with yuan. At that time, the people of Shanghai lacked living materials, speculative businessmen and foreign capital took advantage of the opportunity to make profits, and Kuomintang agents secretly sabotage. However, with the strong support of the state and the most effective measures, there were no major riots in Shanghai in the end. If Milley wants to replace the peso with dollars, he may have more problems than **. It is still unknown whether he, a new ** with perverse words and deeds, can have enough ability and ability to deal with Argentina's problems and lead Argentina out of the predicament.
Argentina currently owes China $12 billion, equivalent to 86 billion yuan, who should pay this money?This is also a tricky question.