by Mish Shedlock, Mish Talk:
Inflation is in Argentina is still high. Yet, President Javier Milei approval rating is still above 50 percent. Why? And what about the US?
What’s the Proper Focus?
Should we focus on Milei’s disapproval rating or approval rating? I suggest the latter.
Donald Trump (46%), Joe Biden (40%), Kamala Harris (44%) would love to have 50 percent approval ratings.
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French president Emmanuel Macron (26%), Canadian Prime Minister Justin Trudeau (31%), and German Chancellor Olaf Scholz (18%) would be singing halleluiah if they could get to 35 percent.
Milei Lays Out Clearer Currency Path
Bloomberg comments Milei Lays Out Clearer Currency Path as His Popularity Begins to Dip.
Argentine President Javier Milei outlined the government’s path out of currency controls in greater detail Monday, a policy decision that could have a big impact on his wavering approval ratings.
In his Wall Street debut as president, Milei told investors at the New York Stock Exchange restrictions would be lifted “when the rate of inflation in the macroeconomic program is zero,” according to a transcript of his remarks sent by his press office hours after the event. He didn’t specify when that would be exactly.
Then the libertarian economist clarified his thinking. He explained that monthly inflation today is actually around 1.5% if you subtract the impact of “induced inflation” on Argentine prices from the current headline figure of around 4%. He listed international inflation, the crawling peg currency devaluation and capital controls as driving factors of the phenomenon.
“When that 1.5% disappears,” Milei said, “the money overhang will have disappeared and, without any problem, we’ll be able to open up the currency controls.”
Argentines enduring another grueling recession this year are growing increasingly impatient with Milei. Although still high historically, the president’s approval rating ticked down in September to 53% while his disapproval rating rose four percentage points to 47%, the highest since he took office, according to the latest monthly poll published by Buenos Aires-based consulting firm Poliarquia.
With inflation cooling dramatically on Milei’s watch, Argentines now see unemployment — not price increases — as the country’s biggest problem, according to the survey. Nearly half of respondents said their incomes aren’t enough to make it to the end of the month.
Musk Rings NYSE Opening Bell Meets Milei
Earlier today Milei rang the opening bell on the New York Stock Exchange (NYSE).
Then he met with Elon Musk.
