If elected, Milei would enact shock devaluation of 200% or more.
That would - as Argentine history has repeatedly shown - immediately translate to a wave of hyperinflation.
8% monthly rates (of which Argentines are no strangers to) would, as bad that is, be looked back on as "the good old days" - with monthly inflation skyrocketing to 55% or more according to a leaked prospectus from Milei's own campaign.
And the pain would be felt even before he takes office of December 10th - as businesses would, if Milei wins on Sunday, move quickly to dramatically mark up prices in anticipation of his "shock" measures.
But wait, there's more: said shock would be followed by sudden capital flight deregulation - which in a dollar-poor economy like Argentina's would almost certain lead to a "huge sucking sound" of hard currency out of the country.
Dollar insolvency would, of course, only further fan inflationary flames - as the peso quickly nosedives even further.
Collapse and riots would probably soon follow - with the neo-fascist Milei likely to order troops to fire on rioters (as many of his surrogates have already threatened to do).
So - who would benefit? The same ones who've benefited before in such crises: dollar-hoarding elites, who would now only enjoy purchasing power-on-steroids - but also the opportunity to buy bankrupt firms and many other distressed assets at fire-sale prices.
Not surprisingly, their ring-leader - Trump's pal Mauricio Macri - is managing Milei's campaign, and has done what he can (and luckily, he's an idiot) to try to corral otherwise-reluctant center-right voters to his fold.
That said - we'll see.
Argentine voters - like U.S. voters - often fall victim to wishful thinking. So it could go either way.
Thanks for finding this, Sl8. Makes one want to cry for Argentina.
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