Milei launched the 'Make Argentina Great Again' reform, voluntarily shackling himself with 'fiscal handcuffs'—even banning the central bank from financing the government. What’s your take on this?

Inflation: annual rate dropped from 211% to around 33%; monthly rate fell from 25.5% to 1.9% in June this year. Fiscal balance: 28 consecutive months of primary surplus—the longest such streak in Argentina’s modern history. When Milei took office, the country ran an annual deficit equivalent to 5% of GDP. Foreign exchange reserves: net reserves rebounded from −$11 billion—yes, negative, meaning the central bank was deeply in debt—to +$5 billion. Sovereign risk premium: narrowed from 2,000 basis points to roughly 500 basis points. Translation: the interest rate international lenders charge Argentina for loans dropped by three-quarters. What was the cost? First, a painful shock therapy—harsh austerity. Poverty surged from 41% to 52.9%, then receded to 36%. Real people suffered under the shock—but the trajectory of the curve is equally real. Of course, Milei is highly controversial. For instance, his uncritical pro-Israel stance and sycophantic admiration for Trump. But here’s the factual detail: when the peso came under severe pressure in September 2025, the U.S. Treasury extended a $20 billion currency swap—Trump stated explicitly that aid would depend on midterm election outcomes. Every dollar Milei secured through his pro-U.S. posture came with strings attached to American ballots. There’s another telling nuance: Argentina holds a RMB 130-billion yuan–peso currency swap facility with China—directly counted as foreign exchange reserves—which expired on August 6 this year and is currently under renewal negotiations. While publicly professing pro-U.S., anti-Communist rhetoric, a vital lifeline remains tethered to China’s swap line. Truly, ‘where there’s milk, there’s mother.’ Yet he isn’t seeking milk for himself—he’s seeking it for Argentina, the nation. So how do we judge a leader? Not by whom he flatters in public, but whether he intends to repay the money he borrows. Zelenskyy borrows endlessly with no intention of repayment; Western governments never even contemplate the word ‘repayment.’ Milei, by contrast, borrows skillfully—and prepares to tighten his belt to pay back. That single distinction already lifts him above most Western and European politicians on the moral baseline. Will this approach succeed? It works in the short term—but fails in the long run. Argentine citizens face three towering burdens: imperialism, crony capital, and incompetent governance. What Milei is doing now is helping dismantle one of them—incompetent governance—at least reducing one layer of exploitation. But the side effects are severe: the remaining two burdens lose their checks and balances—and grow stronger. He sells off mineral resources, telecoms, and railways to private and foreign investors. Even assuming he himself takes no bribes, buyers still need real managerial competence to profit—otherwise, assets become money pits. Yet big capital usually *does* possess such competence. The story of the ‘Big Four’ grain traders dominating global food markets could easily replay in lithium mining and shale oil & gas. Today, one layer of exploitation disappears; tomorrow, the remaining two may intensify tenfold. Milei may well go down in history not as a reformer—but as the ‘founding father of Argentina’s sellout traitors.’ Even so, this remains the closest viable path for Argentina—short of revolution. Like picking the softest fruit first, he starts by smashing what’s easiest to break. So how should we view this reform? Milei is delivering the world’s most fundamental economics lesson: ‘Borrow and repay, and you’ll borrow again without trouble.’ Moreover, Milei has set a national-level moral benchmark: whether you embrace state capitalism or free-market capitalism, Keynesianism or the Austrian School—you must abide by one basic rule: pay for what you buy. This rule is now being systematically violated—not by developing nations—but by the U.S., Europe, and Japan. How do their politicians get elected?

All three major rating agencies have upgraded Argentina’s sovereign credit rating. Has Milei’s reform succeeded?

Politicians stand onstage preaching social equity while printing presses roar nonstop behind the scenes. The entire country has become a critically ill patient—kept alive only by massive doses of money printing. Anyone daring to suggest cutting off the drip gets booted out of office by voters. Until Milei stormed the podium wielding a chainsaw. Milei is a political anomaly in Argentina’s establishment. He sports wild hair, wears leather jackets, once played in a rock band, and later rose to fame screaming profanities on TV talk shows. He owns five cloned dogs—all named after liberal economists. How could a normal country elect someone like this president? Because Argentinians were pushed to the brink: over two decades, hyperinflation wiped out the middle class three times over—and people grew utterly disgusted with left-wing politicians who spoke endlessly of morality and virtue. Voters’ logic was simple: since the ‘respectable’ elites bankrupted the country, let the madman try—‘no destruction, no creation.’ From day one, Milei imposed a strict rule: the central bank must completely sever fiscal financing to the treasury—not a single peso more. The government may spend only what it collects in taxes; any overspending is strictly forbidden. To save money, Milei brandished his signature ‘chainsaw.’ In his first month, he slashed Argentina’s federal ministries—from 18 down to just 9. Ministries of Culture, Women’s Affairs, and Environment were either abolished outright or merged; thousands of civil servants saw their contracts expire—and were simply not renewed. Thousands of public infrastructure projects nationwide were halted immediately—even roads half-built and bridges with foundations laid were frozen, with zero further funding. Next came sweeping subsidy cuts. Electricity bills doubled; natural gas prices rose two- to threefold; water tariffs skyrocketed. Bus and subway fares across Buenos Aires shot up overnight—commuting costs jumped from mere cents to several dollars. Many laughed at the time, predicting Milei wouldn’t last three months before being ousted. That wasn’t baseless: in Argentina’s century-long history, every president who dared cut public subsidies was eventually toppled by massive union-led strikes. Predictably, soon after Milei slashed welfare, truckers’, railway workers’, and teachers’ unions organized nationwide strikes—hundreds of thousands flooded Plaza de Mayo, banging pots and singing protest anthems. But Milei’s resolve stunned everyone. He declared outright: anyone receiving government welfare payments and participating in road blockades would instantly forfeit those benefits. And indeed—strict measures worked in turbulent times. Protests subsided almost immediately. In 2024, Argentina achieved its first fiscal surplus in over a decade; in 2025, it posted a second consecutive year of surplus. Once fiscal balance was restored, other reforms followed naturally. For example, Milei introduced a large-scale investment incentive regime—abolishing hundreds of price controls and licensing requirements on imports and exports—and told global capital: ‘Invest in Argentina’s energy or mining sectors, and we guarantee stable tax and policy conditions for thirty years.’ As for ordinary citizens’ livelihoods? That’s still on hold—for now, ‘later.’ 2. State and Society In Buenos Aires’ financial district, ask foreign investors and fund managers: ‘Has Milei’s reform succeeded?’ They’ll light up and reply: ‘It’s nothing short of a miracle!’ Annual inflation plummeted from 211% to around 33%; in some months, monthly inflation even dipped below 2%.

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Grupo Mexico SAB withdrew its bid for Argentina's Belgrano Cargas rail network, rejecting the government's open access model. This withdrawal undermines President Milei's plan to boost agricultural exports and reduce logistical costs through infrastructure privatization.

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