How Javier Milei is beating inflation

"Once inflation gets down to a low enough level, that will give President Milei enough political support to continue to push his broader reform agenda," says the Cato Institute's Ian Vasquez.

Note: As indicated onscreen, the Milei clips in this video were translated and overdubbed by an AI tool.

[Riggsnic_co]

The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?

[gingerkilkus]

My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in our country.

[Dollymix]

Who would ever have guessed that when you stop printing money out of thin air you cause lower inflation.

[ignaciokairuz]

What's unique about Milei among almost all past century Argentina's president's is that he's has the clear water goal of lowering government spending no matter what ( he makes that clear pretty often 😅 ) and that he's practical enough as to postpone many libertarian policies in order to make this change not only economically possible but politically possible.


Greetings from Argentina!

[cameltotem]

He’s fixing the problem which means he will be voted out in the next election to the candidate who will promise free stuff.

[mcnoided]

So not spending a shitload of money on useless stuff is good for the economy. Who would've thunk it.

[LoughBellis]

I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.

[hnhl]

It's not only that Milei's measures have drastically reduced inflation. It's that the official inflation rates before his election were false, since the Peronist government was using price control mechanisms to hide inflation. Most importantly, the fake exchange rate that kept the official price of the USD around 400 pesos, or in relative terms, a 200% distortion. As soon as he got into power, Milei immediately regularized the rate to basically the real market one, around 1000 pesos. And although he still hasn't been able to undo all of the price controls the Peronists put in place, he has undone many of those, which obviously has had an immediate short term impact on the nominal prices of many goods, contributing to the inflation rate under Milei. And even with that in mind, he is still crushing the results of the Peron mafia, obviously.

[KaiserFlash]

The main difference between Keynesian economists and Austrian economists is that the Austrians are right.

[leondonald]

High inflation is followed by uncertainty and panic, making me wonder if it's time to liquidate my $200k portfolio, or maybe consider some defensive investments. I've heard analysts emphasize on value stocks performing good, what stocks exactly can be the ultimate hedge?

[watchdealer]

“A successful entrepreneur is a hero.”
-Javier Milei 🙏🏽

[LiamSpires]

Watching this, all I can think is that I wish we had serious adults running our country as well. Our politicians just seem so petty compared to this guy.

[alexsteven.m]

Crash! Crash! Recession! Inflation! It’s getting depressing. I have about $100k in emergency fund and I have been seeing good news about the stock market and would like to gain from that since I can’t let my savings be corroded by inflation. What stocks should I into as a newbie to safely grow my money.

[MollyOKami]

Fighting inflation is like weight loss. People think it's "hard" (not to say it's "easy") because, not only does it not happen overnight, but we're so attracted to the "fun things" that got us to the problem. No one really WANTS to give up the things that make us, well, DISTRACTED, really, from the problem, but the problem IS killing us, so, in order to solve the problem that would, ultimately, do us far more good, we must CHOOSE the "hardship" whether it's the pleasure of fast food whenever the mood hits you or the nice tax-payer-funded program that we don't have to think about for diet & exercise or cutting programs & taking up more ACTUAL charity. The only real difference is that the inflation hurt more people than just one person (the person doing the damage is also the person who directly suffers the most), so there are many people who stand to benefit from screwing-over a "fellow citizen" without really feeling the pain of the taxes it imposes on others.

[sirrodneyffing]

"Nobody" expected it? Anyone familiar with 'Austrian School' knew full well he could turn round that economy, if he could push his reforms through.

[Saephaan]

How people didn't expect than an economist would be a better fit for beating inflation than a politician...

[th_CAV_Trooper]

Let me guess. He lowered spending and debt. Economics is so easy I can't believe it's a university major.

[alfredosaint-jean]

Nobody expected that? What about the majority of argentinians that voted for him?

[michaellowe]

I guess the race is on to fix Argentina before the WEF hit squad takes him out.

[JawaThePwn]

The woman in this video sure contributed such insightful wisdom to the conversation.