### Summary
Inflation in Argentina has reached 113%, pushing 40% of the population into poverty, as the country faces an economic collapse that could see the far-right return to power under Javier Milei, a rock-singing former sex coach who has threatened to abolish the central bank.
### Facts
- 💸 Argentina is experiencing an economic collapse with annual inflation reaching 113%, its highest in over 30 years.
- 💰 Inflation has pushed 40% of the population into poverty as soaring prices outpace wages.
- 📉 The crisis escalated when the central bank raised interest rates to 118% to halt a sell-off in government bonds and the Argentine peso, which hit a record low against the dollar.
- ⬇️ Inflationary pressures forced officials to devalue the peso by 18% on Monday, which some economists believe may fuel further inflation, possibly reaching 150%.
- 🏛️ The far-right, led by Javier Milei, a rock-singing former sex coach, has gained popularity and threatens to abolish the central bank if they come to power.
- 🌎 This serves as a stark contrast to the inflation battle faced by the Bank of England, where inflation stands at 6.8% and interest rates have been raised to 5.25%.
### Summary
🇦🇷 Argentina's right-wing populist presidential candidate Javier Milei assured the International Monetary Fund (IMF) that the country would not default on its debts if he is elected.
### Facts
- 🗳️ Milei, who gained popularity by criticizing the political establishment, became the surprise frontrunner in Argentina's national primaries.
- 💰 Argentina currently has a $44bn loan program with the IMF and Milei assured officials that the country would continue to make payments and not default on its debts.
- 🗣️ During a virtual meeting with IMF officials, Milei outlined his economic proposals, which include fiscal adjustments, opening up the economy, labor law reform, spending cuts, and ending the Central Bank.
- 🇨🇱 The peso devalued and consumer prices surged after Milei's victory, causing market uncertainty.
- 🤝 The IMF also met with Patricia Bullrich, the main opposition coalition's presidential candidate, as part of routine engagements with political and economic stakeholders.
- 🗳️ Milei and Bullrich will compete against Minister of Economy Sergio Massa in the October elections, where a candidate needs to secure at least 45 percent of the votes to win outright.
The shift to a dollar-based economy in Argentina following Javier Milei's win in the preliminary elections is expected to bring price stability and potential benefits for the pet food industry, including easier importing and increased foreign investment, although short-term economic instability may lead to lower consumer spending.
Argentinian libertarian candidate Javier Milei, who is a bitcoin advocate and calls for the abolition of the central bank, won the Argentinean primary election, raising broader questions about the global experience for cryptocurrency holders in inflation-prone countries.
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María Barro, a domestic worker in Buenos Aires, supports the idea of dollarizing Argentina's economy as a hedge against inflation and the devaluation of the local peso, but is undecided about voting for libertarian candidate Javier Milei due to his aggressive style; Milei's dollarization plan has sharply divided opinion, with supporters arguing it is a solution to inflation while detractors say it would sacrifice the country's ability to set interest rates and control money circulation.
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Argentina's outgoing president, Alberto Fernandez, has laid criminal charges against presidential candidate Javier Milei, accusing him of "public intimidation" after Milei criticized the Argentine peso; Milei responded by accusing Fernandez of dirtying the electoral process as the country's already-heated election campaign continues.
Despite Javier Milei leading the polls and proposing dollarisation, Argentina's economic problems are deeply rooted in political issues and require more than just a quick fix.
Argentina's powerful Kirchner political dynasty is facing a decline in their dominance as far-right outsider Javier Milei gains popularity due to voter anger over high inflation and economic crisis, threatening to disrupt the country's political power dynamics.
Argentina prepares to vote in presidential elections with libertarian Javier Milei in the lead, reflecting voters' anger at inflation, rising poverty, and a sliding peso currency, as Milei pledges radical economic measures such as privatization and dollarization, though a second-round run-off is expected.
Anti-establishment candidate Javier Milei, known for his pro-Bitcoin stance, is trailing in second place in Argentina's presidential election and will face economy minister Sergio Massa in a run-off vote.
Argentina's ruling Peronist coalition performed well in the general election, setting the stage for a run-off vote between Economy Minister Sergio Massa and far-right radical Javier Milei, leading to policy uncertainty and potential volatility in Argentine assets.
