Alfonso Pratt Gay Explains Why Sergio Massa Is The ‘Minister Of Reserves’

yours Strong criticism of Sergio Massa’s management in front of the Ministry of Economy, Former head of the treasury during the Macrista administration Alphonso Pratt Gay He was named as the leader of the repair front “Minister of Reserves” and challenged it to minimize inflation. Also, he considered that Use the “Patch Plan”.

Convinced that it is difficult to find a “well-armed economic argument or reasoning” in the mass, Pratt Gay discussed the economic ministers chosen by the president. Alberto Fernandez. After that he said Martin Guzmán, the first, was the “debt minister”. Because he was only talking about the obligations that Argentina had with the Paris Club and the International Monetary Fund (IMF).

“He came in with the little story that debt in pesos was different from debt in dollars, and he ended up leaving because there was a huge fuss about peso debt. If the central bank didn’t bail him out, we know how it would have ended,” he said of Guzmán. business communityby LN+With Jose Del Rio.

how Silvina Batakis He did not elaborate, insisting that his time in the executive branch was too short. “The right to travel collides with the right to work, it doesn’t seem to collide with the iPhone.” Only the minister lied. That’s how he hinted at the phrase that the former head of the economy uttered during his portfolio, just after the photo of the current head of Banco Nación in the shop was circulated in recent hours and on social networks. Manzana from New York.

And it was at that moment that he addressed the crowd. “He is positioning himself as the ‘minister of reserves’, he does not talk about other things that are not reserves.”Pratt Gay complained. “This government did not have a minister in charge of inflation. It appears implicitly in Masa’s speech. When he went to Congress the other day, because they asked a question, but the topic didn’t even come up, he remarked. In this regard, he also pointed out that a 7% monthly price increase “crystallized” in the economy during the massive administration. “More than the roof, it was the floor,” he asked.

Convinced that there is “no time horizon at all” in Argentina, Pratt Gay pointed to three moments of “strong emission” that influenced the acceleration of inflation after the pandemic. He spoke for the first time “Golan Moment” or “Platite Plan”. He described it this way between the primary and general elections last year. “[El Gobierno] said: “We need a little more money.” There, the central bank issued more than a million pesos between the first and the general.

Then he assured that “Guzman’s Rescue Plan”, When the central bank issued a billion and a half pesos, “to keep debt securities from depreciating in pesos.”

And now, according to the former Makrista minister, “Booking Plan”. Regarding the latter, he noted that the soybean dollar allowed the masses to restore them, but at “a huge cost” because, he said, it was “a very serious matter” for the central bank to buy dollars at 200 pesos and sell them. 140. “Even the government itself admits that the exchange rate is a problem, but politically, Christina [Kirchner] Does not give the mass a solution to correct this problem. Then the questions deepen,” he discussed.

In addition, he compared soybeans to dollar futures, a policy during the Kirchner administration in which dollar futures traded cheaply. “These tons of soybeans that have been sold will not be sold in the coming months. A bit like the future dollar. They borrowed some dollars that the central bank does not have to give to importers at an exchange rate that is unstable over time.“- he raised.

After that, he analyzed the three moments together. “This is what adds to the dynamics of inflation. If you add Golan’s “Platita Plan”, Guzmán’s bailout and Massa’s reserves, you will have more than 3 billion pesos, almost the amount that is already circulating in the economy,” said the former head of the Treasury. “Citizens understand this very well, economic actors are watching and the conclusion they can draw is that When there is a problem, it will come out. As long as they issue, inflation will rise. [Entonces dicen:] “I prefer to get rid of the peso”“, he explained.

With all these considerations in mind, Pratt Gay made an ironic comment about the “Patch Plan”: “When I look at mass management, Aside from the memes coming out of the smoke, which are quite true, You need to add another one which is a patch. This is not a program or anything like that. This is a patch without a fixed rate on another patch, What is happening to the government? They should be more creative than patches because they accelerate the phenomenon“.