This guy feels like a breath of fresh air. We’ll see if he makes it to the October election. From Tyler Durden at zerohedge.com:
After sending local capital markets into a tailspin and triggering a currency devaluation with his shock win in Sunday’s country’s presidential primary, Argentina’s leading presidential candidate Javier Milei – a self-described anarcho-capitalist – added to the shock factor on Wednesday when he pledged to close the nation’s central bank while saying he would make every effort to avoid a default on the country’s sovereign debt if he wins the October vote.
Milei, a radical libertarian, told Bloomberg News his bold fiscal adjustment would boost Argentina’s reputation and credit profile, making a default unnecessary.
His plan includes slashing spending by at least 13% of GDP before mid-2025 by dramatically downsizing public works, reducing the number of ministries, removing subsidies and capital restrictions that would allow businesses to transact in US dollars. More drastically, he also plans to shutter the central bank which he said has “no reason to exist”, and dollarize the $640 billion economy.
“I will make every effort to avoid a default, obviously,” Milei said in a two-hour-long interview in Buenos Aires Wednesday. “If you do the fiscal adjustment that’s needed, the financing will be there.”
Milei triggered a market shock when the presidential candidate – largely viewed as an outsider without serious chances for the position until now – came out ahead in the primary, seen as a barometer for presidential elections in a country where polls are notoriously unreliable. The slump forced the government to devalue its tightly controlled official exchange rate by 18% when markets opened Monday.
This could become interesting. We will see if he has enough bodyguards.