For Milei, there are 3 ways to finance a budget with a fiscal deficit and all of them are immoral.
The deputy gave indications of support for bitcoin, in his presentations in Congress.
The words of Milton Friedman, one of the main referents of economic liberalism, resounded yesterday in the Argentine Congress. “Inflation is always and everywhere a monetary phenomenon!” deputy Javier Milei shouted in his first speech, after taking office.
During the debate on the 2022 Budget (finally not approved by the Chamber of Deputies), the representative of the interblock La Libertad Avanza, exposed the reasons why that his political space rejects the financial plan presented by Kirchnerism, political space that currently governs Argentina.
Several epithets were used by Milei to refer to the budget in question: “unfeasible”, “not achievable”, “inconsistent”, “a disaster”, “a scandal”, “obsolete” and, mainly, “immoral”.
The libertarian liberals of La Libertad Avanza are never going to support a budget that has a fiscal deficit, because it must be financed and it is immoral. Above all, the main criticism about the fiscal deficit is that it is immoral.
Javier Milei, economist and national deputy of Argentina
For the representative of the City of Buenos Aires in the Chamber of Deputies, all forms of financing a budget with a fiscal deficit are immoral. As he explained during his speech, there are three possible ways to do it and none of them would be right.
First, it could be financed with debt, but that would punish future generations. “There are generations who were not born, people who did not even vote and we are charging the party with future taxes.”
As a second option, a budget with a fiscal deficit could be financed with monetary issuance. This – according to Milei’s explanation – would be unsustainable due to the inflation it would cause. “When that happens, not only is the operation of the economic system punished, but it hits the most vulnerable between 25 and 30 times harder,” said the deputy.
As the third and last option to finance a budget with these characteristics, Milei mentions the tax increase. As he has repeatedly said, in his opinion, taxes are theft, so he speaks out against their application.
“This time, the adjustment has to be paid for by politics”
“We, the only thing we are going to accept are budgets that are balanced,” he said to conclude. The media economist, who in his campaign criticized what he calls “the political caste,” argues that it is the state sector and not the private sector, which must limit its expenditures to avoid deficits:
As there is a deficit, a fiscal balance has to be reached, but that balance has to be achieved not on the basis of the private sector. It has to be achieved with the effort of politics. This time, the adjustment has to be paid by politics. Therefore, we, from La Libertad Avanza, are not going to accept this budget.
Javier Milei, economist and national deputy of Argentina
Inflation: a global monetary phenomenon
Inflation in Argentina reaches figures that exceed 50% year-on-year. According to the ranking prepared by Expansion.com, it is in third place worldwide, after Venezuela (1,197%) and Lebanon (173%).
As CriptoNoticias has reported, also countries with stronger currencies, such as the dollar, have seen a considerable increase in inflation in recent times.
The United States is experiencing levels of inflation that have not been recorded for 30 years. The cause is the monetary issue that since 2020 increased its pace with the supposed objective of alleviating the consequences of the COVID-19 crisis.
The evidence seems to confirm the words of Friedman, spoken by Milei from his seat as deputy: “inflation is always and everywhere a monetary phenomenon.”
Bitcoin: non-state antidote to the phenomenon of inflation
In this global economic context, many are those who see in bitcoin (BTC) an antidote that can protect the individual from the monetary phenomenon of inflation. It is that the cryptocurrency created by Satoshi Nakamoto, unlike the money imposed by the States, has an immovable monetary policy that was defined from its genesis.
There will never be more than 21 million BTC (90% of which has already been issued). In addition, the emission rate is constant with the exception of halvings. This is something that happens every four years and involves halving the number of coins that are issued every approximately 10 minutes.
It is true that the volatility of bitcoin can make it difficult for some to consider it a good store of value in the face of inflation. But, if you look at the price chart in the long term, you can see that its trend is upward since its birth.
Javier Milei brought bitcoin into Congress
Javier Milei – although he has never declared himself a bitcoiner – is a bitcoin connoisseur. Anyway, before even running as a candidate for deputy, he had expressed his doubts about the success that the cryptocurrency could achieve.
The problem is that you, by accepting cryptocurrencies, compete with politicians. What do you think a politician is going to want? Imagine a politician competing with the private sector, if you are a piece of excrement that you cannot get a job if you leave the public service. Do you think that politicians are going to be willing to have their currency compete against a currency issued by the private sector?
Javier Milei, economist, during a conference in 2018.
Actions such as that of the Salvadoran president, Nayib Bukele, who made BTC legal tender in his country; or the mayor of Miami, who receives his salary in bitcoin; They may make you think that Milei’s statement is losing its validity.
Even the now Argentine deputy gave a recent show of support for the cryptocurrency. A week ago, when he appeared in Congress to take his oath as a civil servant, Milei entered the premises with a notepad with the Bitcoin logo.
At the moment, Milei did not make any mention of possible bills related to bitcoin. Even so, the publication of that photo on his Instagram account earned him the congratulations of several of his followers.