Javier Milei: President of Argentina - Freedom, Economics, and Corruption | Lex Fridman Podcast

20 Nov 2024 (17 days ago)
Javier Milei: President of Argentina - Freedom, Economics, and Corruption | Lex Fridman Podcast

Introduction (0s)

  • Javier Milei is the President of Argentina, a Libertarian anarcho-capitalist, and an Economist who campaigned with a chainsaw symbolizing his promise to slash the corrupt bureaucracy of the state (22s).
  • He stepped into the presidency one year ago with the country on the brink of hyperinflation, deep debt, and suffering from mass unemployment and poverty (30s).
  • In just a few months in office, he achieved Argentina's first fiscal surplus in 16 years and brought inflation down to its lowest in 3 years (51s).
  • He represents the universal fight against government corruption and the fight for freedom, including economic freedom, political freedom, and freedom of speech (1m20s).
  • His presidency marks one of the most ambitious attempts at economic transformation in modern history, combining the rigor of an Economist with the passion of a revolutionary (1m50s).
  • The interview with Javier Milei was conducted with the president speaking Spanish and the interviewer speaking English, with an interpreter simultaneously translating (2m12s).
  • The episode is available overdubbed and subtitled in both English and Spanish, thanks to the support of 11 Labs (2m21s).
  • The interviewer, Lex Fridman, hopes to continue talking to many world leaders, including Vladimir Putin, Narendra Modi, and Xi Jinping, to explore who they are, how they think, and how they hope to help their country and humanity flourish (3m0s).

Economic freedom (3m27s)

  • The value of economic freedom is crucial for economic growth, as seen in the significant increase in per capita GDP over the last 2,000 years, particularly after 1800, which resembles a hockey stick graph (3m29s).
  • This increase in productivity and per capita GDP led to a sevenfold multiplication of the population over the preceding 200 years, resulting in increasing returns and the presence of monopolies and concentrated structures (4m13s).
  • Despite traditional neoclassical economic theory viewing monopolies and concentrated structures as negative, living standards have increased tremendously, and middle-income people now live better than emperors did in the Roman era (4m41s).
  • The percentage of people in extreme poverty has decreased from 95% to less than 10%, raising questions about how something that lifted many people out of poverty and improved human conditions could be considered bad for economic theory (4m59s).
  • Reading an article by Murray Newton Rothbard called "Monopoly and Competition" challenged previous understanding of market structure and led to a strong internal commotion, prompting further exploration of the Austrian School of Economics (5m30s).
  • This exploration involved reading at least 20-30 books, including works by Austrian authors such as Mises, Hayek, and Rothbard, which was a truly inspirational and revolutionary experience (6m3s).
  • Key books that had a significant influence and impact included "Human Action" by Mises, "The Principles of Political Economics" by Menger, and works by Alberto Benegas Lynch, which paved the way for approaching the ideas of freedom (6m47s).
  • The experience of reading these books challenged previous thinking and provided a deeper understanding of Austrian economics, which was previously limited to a vague idea and a few books, including "Money and Time" by Garrison (8m7s).

Anarcho-capitalism (8m52s)

  • The economics philosophy is based on the definition of liberalism given by Alberto Venegas Lino, which emphasizes the unrestricted respect for the life project of others, non-aggression, and the defense of the right to life, liberty, and property (9m28s).
  • This philosophy frames discussions within the terms of liberalism, leading to an ideal world of anarcho-capitalism, where the state and government are despised, and violence is rejected (9m22s).
  • In real life, a more practical approach is taken, advocating for minimizing state size and removing regulations, which is referred to as minarchism (10m30s).
  • The goal is to advance towards the ideal of anarcho-capitalism, with a focus on deregulation and structural reforms, such as the largest structural reform in Argentine history, which is eight times larger than the previous largest reform (10m52s).
  • The deregulation Ministry aims to eliminate between one and five regulations daily, with 3,200 additional structural reforms pending, which would make Argentina the freest country on the planet (11m8s).
  • The inspiration for this philosophy comes from various sources, including Milton Friedman, who identified three types of liberals: classical liberals, minarchists, and anarchists (12m12s).
  • The greatest inspiration in life is Murray Newton Rothbard, an anarchist, who represents the ideal of anarcho-capitalism (13m11s).
  • The approach is to try to advance further towards the ideal of anarcho-capitalism each day, despite facing criticism and challenges, and to focus on the progress made rather than comparing it to an unattainable ideal (13m22s).
  • The example of Ireland's market reforms, which transformed it from the poorest country in Europe to having a GDP per capita 50% higher than that of the United States, is cited as a demonstration of the potential benefits of these reforms (11m29s).
  • The concept of the "state condition" refers to adapting to current circumstances, understanding that some restrictions can be changed while others cannot, and working to modify those that can be altered in the short, medium, or long term (13m55s).
  • There are institutional restrictions, and some anarcho-capitalists criticize liberals with more violence, which is seen as the Nirvana fallacy, as it fails to acknowledge the current state of affairs (15m19s).
  • In Argentina, the most popular sport is soccer, and while the atmosphere in the stadium is joyful and festive, it does not determine the outcome of the game, which is decided by the players, illustrating the importance of getting involved and taking action (15m47s).
  • Many liberals, libertarians, and anarcho-capitalists are seen as useless because they only criticize and do not take action to lead the world towards freedom, and by leveling harsh criticism at those within their own ranks, they inadvertently support socialism (16m44s).
  • Power is a zero-sum game, and if those who support freedom do not have it, then the left will, making it essential to work together and not criticize those within their own ranks (16m56s).
  • There are cases of hypocrisy, such as anarcho-capitalists criticizing Murray Rothbard for suggesting that getting involved in politics is necessary to prevent socialists from advancing, while some of these critics propose agorism but fail to practice it when faced with consequences (17m29s).
  • Failing to take into account the restrictions of a situation only serves to support socialism, as it undermines one's own efforts and ideas (18m32s).

Presidency and reforms (18m45s)

  • Argentina's inflation rate was rising at 1% per day, equivalent to 3700% annually, in the first week of December, and accelerated to 7.5% annually in the first half of December, with wholesale inflation reaching 54% in December, equivalent to 177,000% annually if annualized (19m22s).
  • The country had not been growing for the previous 10 years, with a 15% drop in GDP per capita, and nearly 50% of the population living in poverty (20m1s).
  • The fiscal deficit was 15% of GDP, with 5 points in the treasury and 10 points in the central bank, which was endogenous monetary issuance (20m23s).
  • The central bank had interest-bearing liabilities equivalent to four monetary bases maturing in one day, and peso-denominated maturities amounting to $90 billion, with negative net currency foreign reserves of minus $1 billion and commercial debts of $50 billion (20m40s).
  • The government had company dividends held back amounting to $10 billion, and if they had instantly opened up the economy, it would have led to hyperinflation and increased the number of poor people to around 95% (21m13s).
  • To address these issues, the government reduced the number of ministries from 19 to 9, and later to 8, and laid off around 50,000 civil employees (22m26s).
  • They also stopped public works, eliminated discretionary transfers to provinces, diluted public sector wages, and eliminated economic subsidies by restoring utility rates to the right levels (22m57s).
  • The government achieved fiscal balance in the month of January, which was considered impossible by others, who said it would take a year to achieve and that it was only possible to adjust by one percentage point (23m55s).
  • The administration made a tough adjustment in the first month, cutting social plans linked to intermediation, which had a significant social impact, but offered support during the first and second quarters in office (24m1s).
  • One of the key actions taken was to eliminate "poverty managers," intermediaries who received assistance but had to provide a counter service, which was often extorted by a group called The Picos, and by removing this payoff, the recipients received double the resources (24m31s).
  • The administration also provided an additional boost to support those affected by the adjustment (25m12s).
  • As the administration achieved fiscal balance, the debt market began to be recreated, allowing debt to be transferred from the Central Bank to the treasury, resulting in an adjustment of approximately 10% of GDP (25m23s).
  • The administration implemented a fiscal adjustment at the Central Bank amounting to 10% of GDP, which was considered impossible by many (25m59s).
  • The administration claims to have made the biggest fiscal adjustment in history, with 15 points of GDP, most of which went back to the people as lower inflation rates and lower taxes (26m5s).
  • The country tax was temporarily raised but was lowered in September and will be eliminated in December, and import taxes will also be eliminated in December (26m27s).
  • The administration returned 13.5 points of GDP to the people, as the real tax burden is the size of the state, and this has allowed the private sector to be very dynamic (26m43s).
  • Wholesale inflation decreased from 54% to 2%, a 27-fold decrease, and annual inflation decreased from 177,000 to around 28% (27m18s).
  • Consumer inflation is currently at 2.7%, but due to central bank balance sheets and debt stocks, some controls are still in place, although restrictions are being eliminated day by day (27m42s).
  • The administration has a 2% monthly devaluation standard, and when subtracting international inflation, the true monetary inflation in Argentina is estimated to be 0.2% per month, or 2.4% annually (28m4s).
  • Argentina's inflation rate is being brought down to 2.5% annually, a significant achievement considering the country did not experience hyperinflation prior to implementing a stabilization program (28m39s).
  • Unlike previous instances, such as during the administrations of Alfonsín and Menem, where inflation reached 5,000% and 1,200% respectively, the current government did not resort to expropriation or compulsory debt exchange (29m24s).
  • The central bank's balance sheet was cleaned up, clearing a loss of $45 billion voluntarily in just 6 months, without controlling prices or fixing the exchange rate (29m41s).
  • Previous stabilization programs in Argentina typically adjusted rates before announcing the plan, but the current government implemented the plan without this luxury (30m11s).
  • Companies have increased their coverage of rates from 10% to 80% over the past few months, indicating a significant adjustment (30m30s).
  • The current disinflation process is considered more genuine and deeper than previous ones, such as the convertibility program, which was the most successful economic program in Argentina's history (31m30s).
  • The government has restored freedoms to Argentinians while implementing a structural reform eight times larger, with only 15% of representatives and 10% of Senators, within the first 6 months of government (31m45s).
  • The deregulation agenda continues daily, with 3,200 structural reforms pending, aiming to make Argentina the freest country in the world (32m8s).
  • The reforms already made have jumped Argentina 90 places in terms of economic freedom, with institutions similar to those of Germany, France, and Italy (32m26s).
  • The goal is to surpass the levels of economic freedom reached by Ireland, Australia, New Zealand, and Switzerland, making Argentina the freest country in the world (32m48s).
  • The current path is expected to multiply Argentina's per capita GDP (33m3s).
  • Argentina's economy has seen significant growth, with a 2.5 times increase in well-being when applying the relevant correction, and the country is expected to grow between 5 and 6% next year, with JP Morgan revising projections upwards (33m10s).
  • The true poverty rate in Argentina has decreased from 57% in January to 46% today, a reduction of 11 percentage points, without losing a single job in the process of inflation reduction (33m44s).
  • The country has made the largest fiscal adjustment in history, resulting in less inflation, fewer poor people, better real wages, and a higher GDP than when the current government took office (34m25s).
  • The dollar is currently below the levels it was when the government took office, making the economic numbers look phenomenal (34m46s).
  • The government's popularity and acceptance levels are currently above what they were when they took office, with plans to deepen reforms and make Argentina the freest country in the world (35m0s).
  • A recent work by Argentinian economist Juan Pablo Nicolini suggests that based on the government's fiscal actions, Argentina's GDP per capita could double in 10 years, growing at rates of 7% annually (35m28s).
  • The government has implemented various reforms, including the single paper ballot, open simultaneous and mandatory primaries, and the elimination of financing for political parties, aiming to restore freedoms and reduce fiscal pressure on Argentinians (36m33s).
  • The government has reduced fiscal pressure by 15 points and is working on a deep set of structural and regulatory reforms (37m30s).
  • A claim is made that any sensible liberal can perceive that a wonderful government is being delivered, which is considered the best in the history of Argentina, surpassing even that of Menem (37m58s).

Poverty (38m5s)

  • Argentina's poverty and unemployment rates have decreased, but the country still faces challenges due to radical reforms implemented to address inherited poverty and economic issues (38m6s).
  • The country had a total price control and a fiscal deficit financed through money printing, which led to artificially high demand and pressure on prices, distorting the true levels of poverty (38m56s).
  • The previous government measured poverty and indigence by income line, which was distorted due to price controls and inflation, showing poverty levels at 41% (39m45s).
  • The real poverty levels were higher than those shown, and the indicator was measured with a delayed form, making it difficult to address the issue (40m1s).
  • The country's economic situation was comparable to being alone on an island with $1 million, unable to buy anything due to empty supermarket shelves and unavailable products (40m28s).
  • An Argentinian Professor, Juan Carlo de Pablo, illustrated this situation with a joke about a man trying to buy a vase at a bazaar, highlighting the issue of prices not reflecting availability (40m54s).
  • The solution to address the issue was to make prices transparent and allow products to reappear, which led to a jump in poverty rates to 57% as the true cost of the basic food basket and poverty line became apparent (42m10s).
  • Argentina found its economic activity floor in April, and since then, the country has experienced a cyclical recovery, with real wages growing above inflation every month (42m30s).
  • Nominal wages in Argentina are beating inflation, with levels similar to those in November, and this trend also applies to pensions (42m45s).
  • The recovery of the stock cycle has led to a rebound in activity, contributing to more and better-paid jobs, with the informal sector experiencing the most significant wage growth (43m1s).
  • Poverty and extreme poverty are decreasing faster than expected due to the strong wage growth in the informal sector (43m11s).
  • Eliminating inflation removes the inflationary tax, and the real burden is the fiscal deficit, which was 15 points of the GDP (43m20s).
  • The country tax was temporarily raised but is now being lowered, with 15 points of the GDP being returned to the Argentinians (43m31s).
  • Eliminating inflation also removes the distortion of relative prices, leading to better allocation of resources (43m41s).
  • A strong fiscal adjustment has reduced the country risk from 3,000 basis points to 770, and Fitch raised Argentina's rating to Triple C (43m59s).
  • The lower country risk and interest rates have generated an increase in investment and consumption, putting the Argentinian economy in a flourishing moment (44m12s).
  • Structural reforms, including deregulating the economy and introducing new laws, are being implemented daily to sustain the economy's growth in the long term and free Argentinians from oppressive measures (44m26s).

Corruption (44m37s)

  • Argentina's corrupt political establishment has powerful people and groups opposing the current government's ideas, but the government has fought against corruption like never before, including removing middlemen who lived by stealing from the poor and cutting funding to those who blocked streets (44m39s).
  • When the government took office, there were about 9,900 roadblocks per year, which prevented free movement and were given social plans and money, but the government removed these middlemen and enacted an anti-blockade protocol, resulting in a significant decrease in roadblocks (44m59s).
  • The government also put an end to corruption in public works and discretionary transfers to provinces, which were often used for other purposes with obscure accounting (46m41s).
  • The Ministry of Human Capital has filed complaints in court against acts of corruption, and the government has condemned corruption, including the recent sentencing of Cristina Fernandez de Kirchner for corruption (47m23s).
  • The government has also discovered and addressed corruption in disability pensions, with some cities having more disability pensions than people (47m51s).
  • The government has restored freedom to the Judiciary and does not pressure them, as evident in the conviction of Cristina Fernandez de Kirchner and the condemnation of the 1992 and 1994 terrorist attacks carried out by Iran (48m11s).
  • The government's deregulation efforts have taken away privileges from politicians, companies, and power groups, and no one in Argentina has ever fought against corruption the way the current government has (48m36s).
  • The government has also removed official advertising, which has resulted in the media speaking negatively about the government despite generating positive news (49m2s).
  • Many journalists in Argentina dislike the X Network, a social media platform, because it allows people to express their opinions freely, which threatens the journalists' monopoly on information and their ability to extort money from individuals in exchange for silence (49m34s).
  • These journalists, who claim to defend freedom of expression, actually want to censor ideas they disagree with, particularly those from liberal libertarians, because they cannot compete with them on a level playing field (49m48s).
  • Socialists, who have killed 150 million people, cannot fight on equal terms and demand censorship on social networks to prevent the truth from being told, claiming it's hate speech when confronted with facts (50m16s).
  • Social media platforms, especially Twitter, have made it possible to expose politicians and the media, which is why journalists in Argentina are so violent and dislike the X Network (50m51s).
  • Journalists in Argentina have a history of extortion, using their power to blackmail individuals and businesses, and the X Network has taken away their monopoly on the microphone, removing their economic benefits (52m6s).
  • The majority of journalists in Argentina are liars, slanderers, and defamers, and if they were to regain their monopoly, they would likely demand money in exchange for silence (52m29s).
  • The loss of privilege and power is upsetting to these journalists, but it is a welcome change in the direction of freedom (53m7s).

Freedom (53m14s)

  • The fight for economic freedom, freedom of speech, and freedom in all aspects of life is crucial, as seen in the example of the Berlin Wall, which was built in 1961 to prevent people from leaving communist Germany for capitalist Germany, highlighting the failure of socialism (53m28s).
  • The official fall of the Berlin Wall in 1989 made it clear that socialism had failed, leading socialists to shift the discussion of class struggle from economics to other areas, such as gender ideology, environmentalism, and cultural Marxism (54m21s).
  • Liberals were the first to defend equality before the law and women's rights, with Jeremy Bentham advocating for equality before the law for women in 1750, but the left has radicalized these ideas, leading to female chauvinism and the fight against males (55m11s).
  • Assigning rights without considering the consequences can lead to worse results than the original problem, as seen in state interventions, and environmental policies are often used as an excuse to collect taxes and finance sinister ideas (55m50s).
  • The environmental agenda sets man against nature, and climate change policies are used to justify taxation and support parasitic bureaucrats, promoting the idea that there is no room for everyone on planet Earth, a concept that has been disproven and is considered murderous (56m29s).
  • Socialism has extended the class struggle into other aspects of society, creating divisions and fostering deceit, as seen in movements like Black Lives Matter, indigenous people against established communities, and LGBT agendas, all of which aim to absorb taxes (57m25s).
  • The ministry of women in Argentina failed to reduce femicides, and the number of femicides actually increased, despite the country having the most feminist president in its history (57m42s).
  • The battle for freedom and against corruption is fought on three fronts: economic, political, and cultural, with the economic front being about free enterprise capitalism, the political front being about a republican liberal democracy with checks and balances, and the cultural front being about the values of capitalism and the free market (58m21s).
  • Socialism has been successful in the cultural battle, infiltrating the media, culture, and education, and establishing what is considered politically correct, but it has failed economically, producing misery and disaster (58m55s).
  • Liberals and libertarians are good at economics, but they have neglected the cultural battle, which has allowed socialism to gain control of institutions, media, and culture, ultimately leading to the collapse of systems (59m32s).
  • The strategy to infiltrate the media, culture, and education was designed by socialists, including Gramsci, at the S Paulo forum in 1990, and has been successful in changing the discourse and establishing what is considered politically correct (59m44s).
  • The concept of freedom is often misused by those who claim to defend it but actually persecute those who think differently, which is a form of fascism (1h0m27s).
  • To succeed, one must fight on all three fronts: economic, political, and cultural, and convey the values of capitalism, the free market, and freedom to society (1h1m11s).
  • The example of Chile is given, where economic success was not enough to prevent the collapse of the system due to the lack of a cultural battle, allowing socialism to take control of institutions and ultimately leading to poverty (1h1m27s).
  • The fight against corruption is challenging powerful people and the establishment, but it is necessary to succeed in the battles on all fronts (1h2m16s).
  • The concept of life's potential is questioned in the context of living in slavery, referencing a song by Spanish singer Nino Bravo about Peter Fechter, an 18-year-old boy who was murdered while trying to escape from East Berlin to West Berlin (1h2m29s).
  • The story of Peter Fechter serves as an example of the importance of fighting for one's values and freedom, highlighting the pointlessness of living without it (1h3m35s).
  • A personal anecdote is shared about visiting Alcatraz prison in San Francisco, where the recreation yard, despite being the most pleasant area, was the hardest part for inmates due to its proximity to the San Francisco Bay, making them aware of the value of freedom (1h4m57s).
  • The fight for freedom is described as relentless, with Moses being cited as a hero who stood up against powerful forces to demand freedom for his people (1h5m52s).
  • The importance of freedom is emphasized, with a personal commitment to fighting for it and being at the forefront of the cause, even if it means dying for it (1h6m42s).
  • The idea that living without freedom is pointless is reiterated, using Peter Fechter's story as an example, and highlighting the brief moment of happiness he experienced while trying to escape (1h7m3s).

Elon Musk (1h7m26s)

  • Elon Musk is admired for his fight for freedom, particularly freedom of speech, and his unconventional approach to promoting these ideas, especially through his actions on Twitter, now known as X (1h7m27s).
  • Musk's efforts to raise awareness about the "Socialist virus" and the "woke virus" make him a hero in the history of humanity (1h8m11s).
  • Initially, it was expected that a conversation with Musk would be typical of a successful businessman, but he surprised by discussing demographics and growth, showing a deep understanding of the topic (1h9m8s).
  • During their first meeting, Musk brought up the topic of demography, and they started discussing demographics and growth, which was unexpected (1h9m46s).
  • Musk also showed a sense of humor, making a joke about the importance of having children, saying that "the four-legged ones don't count" (1h10m20s).
  • In their second meeting, Musk showed deep involvement in the cultural battle, particularly in the context of anti-Semitic demonstrations and harassment of Jews (1h10m56s).
  • Musk is described as a person of unconventional intelligence, charming, and well above average, with a great admiration for his fight for freedom (1h11m39s).
  • Musk is interested in the work of the ministry of regulation, which aims to remove regulations, and is working with others to replicate this model, including Donald Trump (1h11m57s).
  • The reduction of regulations, cutting public spending, and taking government out of the equation is seen as a way to increase freedom for the people, and Musk's efforts in this direction are appreciated (1h12m30s).
  • The outcome of the US election, with Trump's victory, is seen as a positive development, not only for the United States but also for Argentina and the world, as it is expected to lead to more freedom and a better world (1h12m38s).

DOGE (1h12m54s)

  • Heading the "Doge Department of government efficiency" involves implementing economic policies to increase efficiency, and the key advice is to "cut to the chase" and make swift decisions (1h12m57s).
  • In Argentina, certain powers have been delegated from Congress to the executive branch, allowing the government to resolve issues by decree, and this has enabled the Minister of Regulation, Federico Stena, to make significant changes (1h13m30s).
  • Minister Federico Stena has a counter in his ministry displaying the number of days the delegated powers will continue to be valid, and he has divisions focused on public spending cuts, government structure reduction, and removing laws that hinder economic progress (1h13m42s).
  • The government is removing between one and five economic restrictions every day, and the advice is to push this agenda to the limit and not give up, as it does not have a political purpose but rather aims to remove privileges (1h14m12s).
  • The people who will complain about these changes are those who are losing privileges, and they will have to explain to society why they are keeping those privileges (1h14m40s).

Donald Trump (1h14m56s)

  • Donald Trump allegedly referred to Javier Milei as his favorite President, and Milei admires Trump for understanding the nature of the cultural battle and openly confronting socialism and the "woke virus" (1h14m56s).
  • Milei also admires Trump's courage in the face of adversity, including attempts on his life and intense criticism from the media, which did not intimidate him (1h15m50s).
  • Milei relates to Trump's experiences with negative media campaigns, as he has faced similar treatment in Argentina, with the media invading his personal life, targeting his family, and spreading lies (1h16m40s).
  • Milei sees Trump as a true warrior who has kept fighting despite the odds, and he admires Trump's ability to win despite being unfairly criticized (1h20m2s).
  • Milei believes that Trump has been unfairly criticized for his opinions on protectionism and monetary policy, and that as President, he is entitled to give his opinion on such matters (1h20m46s).
  • Milei's meeting with Sylvester Stallone was inspirational, as Stallone's approach to perseverance in the face of adversity resonated with Milei's own experiences (1h16m56s).
  • Milei has faced intense media scrutiny in Argentina, including drones being sent to spy on him at his presidential residence, and false stories being spread about him and his family (1h18m22s).
  • Despite the challenges, Milei has continued to fight and has been inspired by Trump's example, seeing him as a Viking who has managed to win despite the odds (1h20m11s).

US and Argentina relations (1h20m56s)

  • Argentina's close relationship with the United States is important because the US represents the ideas of the Western World, a liberal democracy, and the free world, and Argentina has decided to be geopolitical allies with the US and Israel since the campaign (1h20m57s).
  • The campaign had three main points: the economic pillar, which included cutting public spending, economic freedom, deregulation, and competition of currencies; the policy on security, which involved fighting crime and strengthening security forces; and aligning with the US and Israel internationally (1h21m43s).
  • The economic policy was clear and is being fulfilled, with a focus on economic freedom and deregulation, and the idea of a competition of currencies, which was of interest to the people, particularly with regards to the dollar (1h22m1s).
  • The policy on security has also been fulfilled, with a focus on fighting crime relentlessly, strengthening security forces, and waging a tough battle against drug trafficking and narco-terrorism, resulting in the elimination of roadblocks and a decrease in crime (1h22m15s).
  • The main concerns of Argentinians when the campaign started were inflation and insecurity, but these issues are no longer mentioned as major concerns, and the current problem is corruption, unemployment, and poverty (1h22m55s).
  • The international policy approach was always clear, with a focus on aligning with the US and Israel, and this is reflected in the campaign rallies, where groups would come with flags of Israel (1h23m17s).
  • The values of the West and the civilization of the West are emphasized, and the idea is to bet on the US becoming a leader in the West again, with the goal of making America great again (1h23m35s).
  • A commercial alliance with the US is seen as a great idea, and there is a desire to deepen trade and investment ties, as well as to be part of NATO (1h24m30s).
  • The idea of dollarizing the Argentine economy is still considered, but it is framed as part of a broader concept of currency competition, where individuals can choose their own currency, and the central bank is eliminated (1h24m56s).
  • The proposed model involves the formation of a currency basket tailored to the needs of individuals, but the discussion of dollarization is not avoided, and currency competition is seen as a way to give people choices (1h25m29s).
  • Argentina has currency competition, allowing the use of any currency, and there is a concept of endogenous dollarization being discussed (1h25m46s).
  • To implement dollarization, the central bank needs to be cleaned up, which involves resolving the issue of the central bank's commercial debt, currently at $50 billion, and the dividend problem of $10 billion (1h26m3s).
  • A write-off was done to clean up the central bank's balance sheet by $45 billion, which is necessary before closing the central bank to avoid redeeming the whole central bank debt (1h26m15s).
  • The current regime has a fixed amount of money, with a non-growing monetary base, allowing people to use dollars for transactions and increasing the demand for dollars as the economy grows (1h26m39s).
  • As the economy grows, the share of dollars relative to pesos will increase, making it easier to close down the central bank in the future (1h26m57s).
  • Dollarization could have been implemented earlier by selling central bank bonds at 20 cents, which are now trading between 60 and 70 cents, but this was not done due to opposition from those who are ignorant in economics and have bad intentions (1h27m30s).

Messi vs Maradona (1h28m5s)

  • The greatest football player of all time is Lionel Messi, not Diego Maradona, due to his exceptional skills in all positions on the field, as supported by an article titled "Messi is Impossible" (1h28m5s).
  • Messi's talent is unmatched, with the ability to excel in multiple positions, unlike other great players like Cristiano Ronaldo, who excelled in only two areas (1h29m22s).
  • Messi's impressive goal-scoring record, even when adjusted for the era in which he played, surpasses that of other great players, solidifying his status as the greatest (1h30m20s).
  • Messi's genius on the field is not just about numbers or winning the World Cup, but also about the technically and physically impossible moves he makes, which defy human logic (1h30m48s).
  • The 1986 World Cup, where Maradona played, was an unforgettable experience, with his "Hand of God" and impressive performance against England being particularly memorable (1h31m17s).
  • Some humans, including artists and musicians, have the ability to "vibrate closer to God," creating works that are impossible to put into words, much like Messi's incredible football skills (1h32m21s).
  • The experience of connecting with something greater than oneself, such as the Creator, is difficult to put into words and can only be enjoyed and appreciated, much like the Jewish tradition of not using the name of God. (1h33m18s)
  • Being a goalkeeper in football is a unique and valuable experience that provides a solitary training environment and a high level of responsibility, as the goalkeeper is the only player who can use their hands and is often the most affected by a goal being scored. (1h34m15s)
  • The skills and temperament developed as a goalkeeper, such as being alone and making decisions with significant consequences, can be applied to other areas of life, including being the President of Argentina, where decisions have a significant impact on millions of people. (1h36m21s)
  • The combination of being a goalkeeper, studying economics, and being trained in liberalism has provided valuable tools and experience for being the President of Argentina, and is part of the "University of life" that has prepared for this role. (1h36m47s)

God (1h36m58s)

  • Carrying the hope of a nation on one's shoulders can be personally tolling, involving defamation, insults, and attacks every day, but living without freedom is pointless (1h37m1s).
  • The secret to life is to carry on despite the blows and punches one takes, as stated by Sylvester Stallone, and this mindset has helped in persevering through challenges (1h37m23s).
  • In Argentina, politics and mass media often attack individuals from behind their backs rather than directly (1h37m45s).
  • Faith has been a fundamental element in life, especially in recent times, with a focus on the teachings of Judaism and the study of the Torah (1h38m3s).
  • The study of the Torah has provided a strong background to face and overcome adversities encountered in the last few years (1h38m32s).
  • God is considered the Creator, the maker, and is referred to as "the one" (1h38m50s).
  • The Invisible Hand of the market and the hand of God are seen as being in perfect sync (1h38m58s).

Elvis and Rolling Stones (1h39m5s)

  • The greatest rock star of all time is considered to be Elvis Presley, and a favorite band is the Rolling Stones, with great admiration for Mick Jagger, and a dream to meet him in person and play together with the band (1h39m20s).
  • Having a close friend whose band opens for the Rolling Stones may make it possible to meet Mick Jagger or watch a concert from the stage (1h39m55s).
  • Past experience with a tribute band has already caused some damage to the music, but the goal is to make events feel like attending a Rolling Stones concert (1h40m9s).
  • Being a showman is part of the approach to politics and life, with the goal of making events feel like concerts, such as a recent performance at Luna Park where a song called "Panic Show" was sung in front of 10,000 people (1h40m31s).
  • The nickname "El Loco" or "the madman" has been earned due to intensity and passion, but it's not considered a problem, and it's possible that the establishment is the one that's crazy for living contrary to the ideas of freedom (1h41m3s).
  • The nickname "El Loco" has been used since childhood, and it's not bothersome, especially considering that many people who have changed the world were initially considered crazy, such as San Martin, Michelangelo, and Einstein (1h41m44s).
  • The difference between a madman and a genius is success (1h42m41s).

Free market (1h42m45s)

  • The market is a process of voluntary exchange where individuals cooperate through the transfer of property rights, with private property being upheld, driving the allocation of resources (1h43m7s).
  • Socialism, as described by Mises, shows that without private property, prices cease to exist, and resources are diverted, making it impossible to make economic calculations (1h43m31s).
  • The free market is the best mechanism for resource allocation, implying that markets must be free from state intervention, allowing for free entry and exit, and competition (1h44m5s).
  • Competition is better understood in the sense described by Israel Kirzner, as free entry and exit in contestable markets, and is essential for the division of labor and social cooperation (1h44m33s).
  • In free market capitalism, success is achieved by serving others with better quality goods at a better price, making successful individuals heroes and social benefactors (1h45m1s).
  • Market failures do not exist in everyday life, but rather are a problem in the minds of economists, particularly those using neoclassical mathematical tools (1h46m6s).
  • The concept of a middle ground between capitalism and socialism is a trap, as any intervention tends towards socialism, leading to government failure and further intervention (1h46m43s).
  • The neoclassical approach, with its market failure theory, deals with mathematical problems rather than making the world a better place, and has been instrumental in increasing intervention (1h47m32s).
  • Economist Dr. Damian Rael, who studied under Kenneth Rogoff, is working on issues arising from interventions proposed by the mainstream, including the correction of market failures (1h47m54s).
  • A survey of search algorithms and policy recommendations conducted by Dr. Rael resulted in a map showing that the largest number of policy recommendations are left-leaning, providing empirical evidence for the idea that there is no middle ground between capitalism and socialism (1h49m27s).

Loyalty (1h49m46s)

  • The concept of loyalty is closely tied to unconditional love, as seen in the relationship between humans and dogs, who love unconditionally and are considered superior beings spiritually. (1h49m56s)
  • The name "Javier" in Hebrew means "loyal friend" or "faithful friend," and loyalty is a defining virtue, along with being decent. (1h50m6s)
  • Loyalty is not just about remembering those who have helped, but also about remembering those who have harmed, and it can be challenging to forgive those who have insulted, defamed, or criticized. (1h50m43s)
  • In politics, loyalty can be hurt by betrayal, but it depends on the individual's expectations of others, and sometimes people may not be expected to be loyal in the first place. (1h51m16s)
  • Politics often involves working with people who may not share the same values, and it's a cost-benefit analysis to decide whether to continue working with them or not. (1h51m50s)
  • The presence of traitors is a part of politics, but it's not a reason to give up the fight, and it's essential to continue fighting until the end. (1h52m9s)

Advice for young people (1h52m23s)

  • For young people who want to live a life with an impact, the key is to define what makes them happy and live consistently by that, rather than focusing on having an impact on the world (1h52m46s).
  • It is essential to never give up and never be half-hearted in pursuing one's goals and passions (1h53m6s).
  • It is better to take risks and try, even if it means facing failure, rather than not trying at all and living with regret (1h53m18s).
  • Being a perfectionist can lead to difficulties when things go wrong, but it is still important to take action and get things done, as inaction can lead to regret (1h53m40s).
  • The motivation to take action comes from a desire to do what needs to be done in the moment, without regretting not having done so (1h53m45s).

Hope for Argentina (1h53m49s)

  • There is hope for the future of Argentina and humanity, as more people are becoming aware of the importance of freedom through social media and the tech revolution, which could lead to a better world if people fight for it (1h53m50s).
  • A wave of freedom has been unleashed, despite efforts by bureaucrats and elites to enslave people, and this wave could bring about a more prosperous and peaceful world (1h54m28s).
  • The phrase "Viva libertad" or "Long Live Freedom" is a famous phrase that originated from book presentations, where it was used as a closing phrase, and it has since become a war cry (1h54m41s).
  • The phrase is often used at the end of presentations and speeches, along with two other phrases: "May God bless the Argentinians" and "May the forces of Heaven be with us", which reflect a deep faith in God and a quote from the book of Mabes (1h55m26s).
  • The phrase "Viva libertad" is a call to action and a reminder of the importance of fighting for freedom (1h56m10s).
  • The conversation ends with a message of gratitude and appreciation for the opportunity to discuss important topics, and a quote from George Orwell about the importance of telling the truth in times of deceit (1h56m47s).

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