Javier Milei at Expoagro: “The disinflation process is strong, in February it will be 15%”

“Congratulations to all the heroes who are here, who manage to produce despite the brutal tax pressure they have, they are heroes”, began Javier Milei in his speech in front of a group of producers, the setting he chose for his visit to Expoagro 2024. The response was loud applause.

The president made José Luis Espert sit next to him. Milei’s visit was the flavor that was missing from an Expoagro in which everyone agrees in defining the moment that the agricultural sector is experiencing as “super optimistic”.

The arrival of the helicopter and the human whirlwind that accompanied him on a brief visit to the exhibition inaugurated today were the sign that the President is on the field a very important supporting force.

The President had asked the organizers in advance to speak alone with some producers. The place chosen was the large tent, small compared to the number of people who showed up to listen to him.

In the front row, Guillermo Francos, Karina Milei, Manuel Adorni, Juan Pazos and Fernando Vilella with the Expoagro authorities.

All was well until the middle of his speech. the power went out and the situation made organizers and guests nervous. There were 20 anxious minutes until the electricity came back on and the President spoke again.

As he did in his speech before Congress last Friday, Milei began by saying that inflation was 15,000% when he took office and explained his hyper-orthodox adjustment plan and exchange rate sincerity.

“We fired 50,000 public employees, cut public works and began the cleanup of the Central Bank, which we received with 11 billion dollars in net reserves and today we bought 9 billion,” he explained.

“We had a goal of reaching zero deficit by the end of the year, but we saw that we could reach primary balance in January.”

Milei said that of the 22 crises Argentina experienced, 20 were due to fiscal deficits. “We are applying a super tough policy“He admitted.

“The zero deficit is very important, “Don’t be fooled by the usual liars.”

“The country will become solvent, and that will subsequently translate into lower interest rates. And that implies that taxes can be lowered,” he promised.

“We achieved a positive result in financial terms in the first month, it has never happened. In the world no one has achieved the fiscal adjustment of 6 points in one month”, celebrated the President.

“The IMF praised us. Look at the cruelty of the previous government which left us the leliq equal to three times the monetary base, we had the crisis in our faces and 11 days after our inauguration we had to pay the IMF and there wasn’t a dollar.

“Since we have been in government, the monetary base has not changed, it is set at 10 billion, we absorb it through the Treasury and Bopreal,” he explained.

“We still have the same monetary liabilities, but we have 9 billion dollars more, the system is healthier. We also receive a debt from importers of 42 billion. The consequence of these measures is a sharp drop in inflation. If in December it gave 30% it was already a large number and it gave 25%. And in January he gave 20% and in February, Despite the increase in bills and prepaid rates, it will be around 15%. “The disinflation process is strong.”

Milei said the real decline in spending was 30% in January and 36% in February. “Fiscal adjustment continues, that is blender and chainsaw”.

“After a long time the country risk decreases, the gap has completely disappeared. The stabilization process works very strongly. Since the dollar is just another price in the economy, there is no transition,” he explained.

If many economists had studied, they would realize that the dollar is a financial asset and grows first. At some point inflation will collapse.