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I have no money left in my hand, do you know that I am starting to think of China when it hurts? The currency has depreciated by 54 percent, and Milley's first gift package has come to power. As the saying goes, governing a big country is like cooking a small meal, so even if you reform, you have to take it slowly, after all, for a country, stability is everything.
However, Argentine's Millet did the opposite, how radical and how to come. First slashed state institutions, and now they want to fully embrace dollarization, but the dream is beautiful, but the reality is very skinny. The peso plunged 54% on the day, and inflation took off directly. It can be said that Argentina's economy has taken off again. The peso fell by 54 percent, but did you want to continue the currency swap and exchange the peso for the renminbi with half of the depreciation? Should the mainland bail out or not help the 180-degree change before and after Millai?
Currency depreciation of 54%, ask China?
Currencies are known as a symbol of a country's strength, yet the currencies of some countries are a rollercoaster. When the economy is stable, do you want to hug the thigh of the United States, but the currency depreciates by 54% but you want to expand the currency swap with China, exchanging the depreciated peso for the strong yuan?
As the saying goes, there are three fires when a new official takes office. And Argentine Milley can be said to have set fire directly when he took office. The first step was to cut Argentina's institutions in half almost entirely, which is understandable if this was to improve institutional efficiency and reduce bloat.
But it is difficult to understand the 54% depreciation of Argentina's currency. We know that at the moment when the dollar is raising interest rates, global currencies are basically weak now. Moreover, in order to cope with the loss of foreign exchange, countries are constantly raising interest rates, the purpose of which is to prevent the sharp depreciation of currencies, which will cause foreign exchange loss.
And similar to it is Turkey's Erdogan. But Turkey did not hold out for long. However, Turkey is not similar to Argentina, because Turkey, as a European foundry, can attract European basic or industrial industries through corresponding operations.
But what is there about Argentina? And Argentina has a long trade deficit. Argentina's trade deficit reached $4.387 billion in the first half of this year, according to relevant data restrictions.
In addition to the trade deficit, Argentina's foreign exchange reserves are now in jeopardy. Because we all know that no one wants the straw paper in their hands. Moreover, the main factor in the instability of the Argentine economy is that the currency depreciation is too severe. This has led to the flight of a large amount of capital against US dollars.
Moreover, this year, when Argentina was short of foreign exchange and could not repay its foreign debts, it still borrowed China's renminbi to repay the loans. The aim was to secure foreign exchange reserves and thus stabilize the Argentine currency, but Milley's first step was to break this and accelerate the depreciation of his own currency.
In the name of it, the depreciation of the currency has accelerated Argentina's trade exports and reversed the trade structure, but can this really be achieved?
We all know that before Milley came to power, he said that he wanted to be close to the United States and stay away from China and Brazil. Unfortunately, China and Brazil are Argentina's top three trading partners, which means that Argentina wants to break off cooperation with its own trading partners while at the same time expanding its exports, but can this be achieved?
Don't forget that the United States is also an exporter of soybeans and crude oil, so it can be said that the two countries are in competition in terms of trade structure. And the most important reason is that the United States is still raising interest rates, and its spending power is already decreasing, so is Milley saving Argentina? Milley is just killing Argentina.
However, when the currency depreciates, capital cannot be controlled, do you think of China again? We know that the depreciation of the local currency will inevitably lead to capital flight, and this will accelerate the depletion of foreign reserves. Now, Argentina wants to borrow the yuan to stabilize Argentina's economy, and it can only be said that Milley is thinking a little too much.
And now the peso has depreciated by 54%, and foreign capital is fleeing, but remembering the RMB swap. What did Milley do earlier? And we have made it very clear that cooperation is possible, but it must be based on a stable relationship between the two countries.
Only by cooperating with China can we have a future
A gentleman does not stand under a dangerous wall, this is a choice that every person and every country will make, and it is also the choice of the country to pursue advantages and avoid disadvantages. But the final result of Chao Qin and Duchu is inevitably to become an outcast.
We often say that people cannot stand without faith, and so do nations. For a country, if it wants to cooperate with other countries, the most basic thing is to maintain faithfulness, if there is no faithfulness, then what countries dare to cooperate with?
Even in India, which has a demographic dividend, many countries and enterprises will evaluate their trustworthiness when they cooperate with it. After all, the failure of cooperation is a loss at most, and if there is a problem in Xinyi, it will be a loss with a share of interest.
And is the current Argentina really credible? We know that Milley's claim is very different from the claim of the previous Argentine authorities.
Moreover, Milley is extremely pro-American, while China and Pakistan are very average for their trading partners. And Brazil is also its neighbor, so what Milley is doing really needs to be considered.
After all, we can't be sure that the first day of cooperation will suddenly turn around on the second day. After all, his idol is Trump. So in general, we need to re-evaluate it.
If the foundation is not firm, the earth will shake the mountains. The foundation of the Sino-Arab currency swap is the Sino-Arab relationship, but in the hands of Milley, the Sino-Arab relationship still needs to be considered.
And we know that, in addition to Milley's ever-changing attitude, Milley's policy ideas will also lead to a lot of change in Argentina, and this is something that needs to be considered.
The essence of Sino-Arab cooperation is the consideration of the common interests of the two countries. And now Milley is unclear about his claims, and even less prepared for the consequences. We also can't predict what problems this operation will bring. What's more, Milley's heart is in the United States, if the United States gives Milley a candy in the future, will Milley abandon us again?
Therefore, Argentina still has to think clearly about what it chooses to embrace the United States now. And if you want to cooperate with China, then return to the track of Sino-Arab cooperation, and we will not accept it. After all, the renminbi is not blowing in the wind.
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