We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.
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“Argentina’s Javier Milei has made a horrible mistake”, says Ambrose Evans-Pritchard in the Telegraph. The article can also be read here.
A year after his landslide victory, Milei is still not letting market forces set the peso exchange rate, and it now looks as if his crawling dollar peg will continue into the middle of next year. He has jammed the process of macroeconomic cleansing.
Argentina is now among the most expensive countries in the world, close to Norway on the Big Mac index. It costs almost twice as much to buy a hamburger in Buenos Aires as it does in Tokyo, even though the pampas are full of cattle, while the rice terraces of Japan are not.
The peso is as overvalued today as it has ever been in Argentine history, or very close. This has suppressed inflation temporarily to a monthly rate of 2.4pc – so has economic contraction – but has in the process strangled the traded sectors of the textile, shoe and toy industries. Car parts, electronics, metallurgy, and heavy manufacturing are the next dominoes.
[…]
He should have taken his chainsaw to currency and capital controls on his first day in office. He is now trapped. Either he claws back lost competitiveness by means of deflationary wage cuts for year after year – nigh impossible in any democracy – or he lets the peso find its level and unleashes a fresh inflation, shattering his reputation at home and abroad as the Friedmanite purist who tamed prices.
A commenter called Krassi Stoyanova says, “Well, Ambrose, having listened to Milei and his plans for the Argentine economy, I have far more confidence in him than I do you.”
I want to agree. But, truth to tell, I do not have a good understanding of this branch of economics. Some of you guys do. What do you think?
Daniel Ortega, remember him?
Ortega was one of the leaders of the Nicaraguan Sandinista National Liberation Front (Frente Sandinista de Liberación Nacional, FSLN) that overthrew the dictator Anastasio Somoza in 1979, thus ending 43 years of rule of Nicaragua by the Somoza dynasty.
For a while Sandinista rule in Nicaragua was popular at home and admired worldwide. A often-repeated line from left wing sources was that its success represented “the threat of a good example”, the good example being of a country thriving despite the opposition of the United States, which had supported Somoza, as it did many right-wing dictators in Latin America.
The admirers included teenage me. Not that I followed every twist and turn of Nicaragua’s politics, but, at first, it all sounded good. Land reform. Education. Healthcare. If I had known then what I know now “price fixing for commodities of basic necessity” might have told me what was coming, but I did not know then what I know now.
Several years went by and a few discordant notes started to spoil the chorus of praise. The forcible ejection from their ancestral lands of the Miskito Indigenous people (at that time everyone, even the Guardian, called them “the Miskito Indians”) was one ugly incident that I remember noticing. This Time article from 1983, “Nicaragua: New Regime, Old Methods” gives many other examples of Sandinista human rights abuses.
That said, the Sandinista National Liberation Front of that era under the leadership of Daniel Ortega still had enough decency left to hold an election and, having lost it, leave.
I will spare you a blow by blow account of Nicaraguan history from 1990 to the present day. You can read Wikipedia as well as I can. Suffice to say that half a lifetime later the reference books once again list the Sandinista National Liberation Front as the ruling party of Nicaragua and Daniel Ortega as its leader, and this time he has no plans to ever leave.
“Nicaragua: Ortega and wife to assume absolute power after changes approved”, the Guardian sorrowfully reports.
The Geneva-based UN human rights office in its annual report on Nicaragua warned in September of a “serious” deterioration in human rights under Ortega.
The report cited violations such as arbitrary arrests of opponents, torture, ill-treatment in detention, increased violence against Indigenous people and attacks on religious freedom.
The revised constitution will define Nicaragua as a “revolutionary” and socialist state and include the red-and-black flag of the FSLN – a guerrilla group-turned political party that overthrew a US-backed dictator in 1979 – among its national symbols.
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One of the Tintin books – remind me which – starts and ends with a picture of a couple of thuggish cops patrolling a shanty town. The only significant difference between the two scenes is that the party symbol on the police uniforms has changed.
Update: Thank you JJM, who supplied the name of the book. It was Tintin and the Picaros. ¡Viva [Tapioca / Alcázar] !
First time is happenstance, second is coincidence and third is enemy action. As it happens Bolivia has a third natural resource which, currently, is in high demand. Lithium. Those salt flats up at 12,000 feet and so on. One of the great deposits of easily extractable lithium they are. So, why aren’t they being extracted?
Because the government has insisted that they’re a great natural resource. Therefore, rather than greedy capitalists extracting and shipping out those batteries should be made up at 12,000 feet. Even, in fact, the cars that use the batteries.
The result is obvious – the lithium isn’t being extracted, the batteries aren’t being made and nor are the cars. Because idiot fuckwits are in charge of what happens to Bolivia’s natural resources of course.
– Tim Worstall
The UK experienced a nationwide blackout after its main energy plant failed, officials said.
Its power grid collapsed at around 11:00 (15:00 GMT), the energy ministry wrote on X.
Grid officials said they did not know how long it would take to restore power.
This follows months of lengthy blackouts on the island – prompting the prime minister to declare an “energy emergency” on Thursday.
Other stories
Fuel in the UK to become five times more expensive
The UK laments collapse of iconic sugar beet industry
‘The violence is getting out of hand’: Crime grips the UK’s streets
Friday’s total blackout came after the UK’s final coal-powered fire station, the last on the island – went offline. Prime Minister Sir Keir Starmer said the situation was his “absolute priority”.
That’s all bunk, er, the future: Here is the real news, from the BBC:
Cuba experienced a nationwide blackout after its main energy plant failed, officials said. Its power grid collapsed at around 11:00 (15:00 GMT), the energy ministry wrote on X. Grid officials said they did not know how long it would take to restore power. This follows months of lengthy blackouts on the island – prompting the prime minister to declare an “energy emergency” on Thursday.
Fuel in Cuba to become five times more expensive
Cuba laments collapse of iconic sugar industry
‘The violence is getting out of hand’: Crime grips Cuba’s streets
Friday’s total blackout came after the Antonio Guiteras power plant in Matanzas – the largest on the island – went offline. President Miguel Díaz-Canel Bermúdez said the situation was his “absolute priority“. “There will be no rest until power is restored,” he wrote on X.
Earlier on Friday, officials announced that all schools and nonessential activities, including nightclubs, were to close until Monday.
Non-essential workers were urged to stay home to safeguard electricity supply, and non-vital government services were suspended. Cubans have also been urged to switch off high-consumption appliances during peak hours, such as fridges and ovens, according to local media.
Don’t worry folks, non-vital government services suspended? it won’t happen here.
In response to the CMN, Tom Greatrex, Chief Executive of the Nuclear Industry Association, stressed the importance of new investments in nuclear power. Tom Greatrex said: “Without fresh investment and decisions on new nuclear projects at Sizewell C and Wylfa as well as Small Modular Reactors, these warnings will become more commonplace and we will have to continue relying on volatile gas markets to fill the gaps in supply, threatening out energy security and driving up bills and emissions.”
Over the seas and far away, President Milei of Argentina has abolished a government function, that of INADI, the purpose of which was easily comprehensible from its name in Spanish, the Instituto Nacional contra la Discriminación, la Xenofobia y el Racismo the newspaper La Nación has this report, and I quote.
“Disolvimos el INADI. Ente ideológico de uso político partidario. Despedimos a los empleados y devolvimos el edificio. Nuestra gestión se concentra en achicar el Estado y cerrar los organismos innecesarios. No creemos en la utopía del Estado eficiente. Vamos por más, mucho más”, escribió el ministro de Justicia.
” ‘We have dissolved the INADI. An ideological entity of partisan political use. We are dismissing the staff and are taking back the premises. Our management will focus on shrinking the State and closing unnecessary organs. We do not believe in the utopia of the efficient State. We will be doing more, much more.’, wrote the Ministry of Justice.”
Looks like he means what he says. On one YT video (in Spanish) I saw a comment to the effect of ‘If there isn’t a government Department for Breathing, will we all be asphyxiated?’.
… hope and prayers for the freedom fighters in Venezuela. Hoping for a Nicolae Ceaușescu style exit for Nicolas Maduro.
No Parliament can repeal the laws of economics. Whilst, to quote Hirohito ‘We must endure the unendurable.‘, there is a real Prester John in the faraway land of Argentina, where a zero weekly inflation rate in food prices has been registered for the first time in 30 years, and a truly libertarian President is doing great things.
So let us adapt and cherry-pick the words of Winston Churchill:
‘…And even if, which I do not for a moment believe, this island or a large part of it were subjugated and starving, it will carry on, until, in God’s good time, the New World, with all its power and might, steps forth to the rescue and the liberation of the Old…‘.
But if that doesn’t come to pass, it will just be more of the same, faster, until what can’t carry on any longer, doesn’t.
I cannot add to this article by Fran Ivens in the Telegraph: “How Argentina’s ‘chainsaw man’ Javier Milei slashed rents by 20pc”
Rents in Argentina have fallen 20pc since President Javier Milei scrapped a “destructive” cap for landlords in December.
Under four-year rent controls, landlords fled the market in their thousands and rents increased 286pc, fuelling an even deeper housing crisis.
Since the legislation was scrapped, rents have fallen and the number of properties that are available for rent has increased significantly, according to industry body the Argentine Real Estate Chamber.
The drastic change in outlook for the country’s rental market adds further weight to arguments that even with the aim of reducing the burden on renters, rent caps often have the opposite effect.
The rules, introduced in 2020 by then-president Alberto Fernández, included a mandatory lease term of three years and a limit on rent to an average growth rate of the consumer price index and the wage index. This cap was set by the central bank.
Even before the new legislation came into force, the effect was significant. Unsure of how much and when they would be able to increase rents, landlords hiked their pieces to try and avoid being caught out.
Worsening the situation, 45pc of landlords decided to sell their properties in the wake of the announcement significantly reducing the amount of accommodation on offer and further pushing up prices.
In the 12 months to February 2024, rents increased 286.7pc in Buenos Aires, according to rental platform Zonaprop. There was also a currency aggravation. While many use dollars in Argentina as a hedge against the peso that has been losing value, the law mandated that rental payment must be in the local currency.
Over the past five years, the Argentinian peso’s value against the dollar has decreased by around 95pc.
Javier Milei, President of Argentina, is a very odd person. He has four dogs. Now, you may think there is nothing particularly odd about that. But these dogs are clones. They are clones of the late Conan, Milei’s first mastiff, who was named after Conan the Destroyer. The clones are named Murray, Milton, Robert and Lucas apparently after famous economists. Sadly, they are not so famous to me. Yes, Murray is doubtless Murray Rothbard and Milton, Milton Friedman – men who incidentally did not necessarily see eye to eye on monetary matters – but otherwise I am stumped. Robert? Surely not Skidelsky? Lucas? A complete blank. And no Adam, Ludwig, Friedrich or Henry? Truly Milei is an odd person.
Probably the most important man of the 21st Century, if only for his potential to do good, Argentine President-elect (as I write) Javier Milei sat down with Tucker Carlson for an interview, (excerpt provided) at which he discussed the Pope, the murderous Castros and architecture amongst other points (that socialists are evil and think they are ‘God’). The interview was done with Mr Carlson asking questions in English and Señor Milei’s replies in Spanish are sub-titled (accurately I would add) and presumably interpreted in real time.
This segment is just over 9 minutes long, and it is well worth watching. We have all the indications that he is the real deal, he says that he is prepared to die for his beliefs, let us wish him a long and productive life and Presidency.
Javier Milei elected in Argentina is being called “far-right“?
So, presumably he is obsessed by identity groups and demands everyone must be viewed collectively according to the status of their group; wants pervasive state control over every aspect of life (everything within the State, nothing outside the State, nothing against the State); wants a state directed economy; and will refuse to have further elections after this one?
Or does he sees all rights as individual rights; wants to slash the size of the state; reduce taxes; wants to promote free enterprise; and has no problem with elections?
Because our media class seem to think both of those things are “far-right”
“‘In a lot of the world, the clock has hit midnight’: China is calling in loans to dozens of countries from Pakistan to Kenya”
– Bernard Condon and the Associated Press in a major article for Fortune magazine.
Here are some excerpts from the article that struck me:
In the past under such circumstances [debtor countries being unable to make interest payments], big government lenders such as the U.S., Japan and France would work out deals to forgive some debt, with each lender disclosing clearly what they were owed and on what terms so no one would feel cheated.
But China didn’t play by those rules. It refused at first to even join in multinational talks, negotiating separately with Zambia and insisting on confidentiality that barred the country from telling non-Chinese lenders the terms of the loans and whether China had devised a way of muscling to the front of the repayment line.
And
Along with the usual mix of government mismanagement and corruption are two unexpected and devastating events: the war in Ukraine, which has sent prices of grain and oil soaring, and the U.S. Federal Reserve’s decision to raise interest rates 10 times in a row, the latest this month. That has made variable rate loans to countries suddenly much more expensive.
All of it is roiling domestic politics and upending strategic alliances.
In March, heavily indebted Honduras cited “financial pressures” in its decision to establish formal diplomatic ties to China and sever those with Taiwan.
Last month, Pakistan was so desperate to prevent more blackouts that it struck a deal to buy discounted oil from Russia, breaking ranks with the U.S.-led effort to shut off Vladimir Putin’s funds.
And, which I did not expect, → Continue reading: China calls in the loans
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Who Are We? The Samizdata people are a bunch of sinister and heavily armed globalist illuminati who seek to infect the entire world with the values of personal liberty and several property. Amongst our many crimes is a sense of humour and the intermittent use of British spelling.
We are also a varied group made up of social individualists, classical liberals, whigs, libertarians, extropians, futurists, ‘Porcupines’, Karl Popper fetishists, recovering neo-conservatives, crazed Ayn Rand worshipers, over-caffeinated Virginia Postrel devotees, witty Frédéric Bastiat wannabes, cypherpunks, minarchists, kritarchists and wild-eyed anarcho-capitalists from Britain, North America, Australia and Europe.
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