Problems Accumulated in Massa
Economy Minister Sergio Massa has been nicknamed for a long time.”Ventagita‘ is probably best translated in English as ‘small advantage’. Recent developments seem to put a new twist on the term, as his advantages seem short-lived rather than trivial. That part of 2022 that Massa was asked to cover would rake in the central bank reserves’ patented “soydol” invention, keep inflation down slightly, keep the International Monetary Fund on bay, and this year in 2023 , which has brought us little but bad news so far, but things have clearly taken a turn for the worse lately.
When inflation hit 6% in January on St. Valentine’s Day (the day of massacre and romance), the editorial space recalled that the Book of Revelation identified 666 as the “Number of the Beasts” and called it tied to 6. After vice president Cristina Fernandez de Kirchner was sentenced to jail for corruption in the previous month of December, both the economic and judicial fronts surfaced, the apocalyptic number 6 attacked again to replace 666. He concluded by asking when it would be completed. The answer to that question came out last Tuesday when INDEC announced her February inflation rate of 6.6%.
In an interview published in the January 14th edition of the newspaper, Massa boldly predicted that April, just two weeks away, would see “three-point something” inflation. A year when annual inflation hits his triple digits, the super-minister’s “guess” looks like a ludicrous explosion of wishful thinking. But inflation in February wasn’t his only setback in a week, starting a global runaway from the Pacific coast (Silicon Valley banks) to the transatlantic banks (Credit Suisse). Additionally, a lumbar disc herniation conveniently sidelined President Alberto Fernandez. On the day that catastrophic inflation was revealed, Massa had not even half of the Frente do Todos presidential ticket in circulation, with his baby and everyone else in his arms. Given such an unfavorable situation.
Inflation starts on an upward curve in the first two months of the year, with signs of continuing this month (traditionally above-average cost of living figures), with damage limited to the first quarter No warranty. A persistent drought (one of its most immediate effects, this ferocious week’s surge in blackouts) has depleted future central bank reserves from grain exports to alarming levels, but this week’s The global financial crisis has made borrowing abroad more unlikely. Country risk dropped to 1,700 points in mid-January, and by mid-week he reached 2,400 points. This lack of alternatives, apart from perhaps pressure from the Kirchne faction of the ruling coalition, will make the printing of banknotes inevitable.”plan platitaA surge in public spending to buy back votes in this year’s elections.
The outside world frowns and smiles at President Alberto Fernandez by giving him one excuse after another for his poor performance with the coronavirus pandemic, the Ukraine war and the current global banking crisis. Clearly, this line is tripped by the fact that every country in the world is currently facing radioactive fallout, but in South America (always excluding Venezuela) only Chile and Colombia remain as they are. risk double-digit inflation this year and don’t care about triple digits now confirmed For Argentina – Monday’s Silicon Valley Bank collapse seriously blamed last month’s inflation announced the next day However, the potential damage from an international financial panic should not be underestimated or dismissed as feeble excuses. With the exception of Turkey, Argentina is the most vulnerable of all her G20 countries. It has long been said that Argentina’s problem is liquidity rather than solvency, but with the recent acceleration of bank digitization, the whole world is starting to realize that fact.
With all these daunting challenges ahead, Massa’s next ‘minor advantage’ could be to pull himself out of a struggling government and, like Martin Guzman did last year, or even winter out.