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“The United States has already realized and is copying our model. In fact, Elon Musk has had conversations with [Argentina’s Finance Minister] Federico Sturzenegger on how to deregulate the American economy. [...] The 'Afuera!' and the 'Chainsaw' are export products."

~ Javier Milei, October 2024

Joel Bowman with today’s Note From the End of the World: Buenos Aires, Argentina…


And the cuts just keep coming!

While Argentina’s chainsaw wielding president, Javier Milei, takes his greatest exports to the United States of America this week, his administration continues the job down here at the End of the World.

On Friday, Milei’s administration posted a AR$523.4 billion (half a billion US dollars, give or take) financial surplus in October — the ninth consecutive month in which the national government registered a positive fiscal balance.

It’s all part of the whacky libertarian’s “zero tolerance” approach to deficit spending, which, to the ill-concealed shock of squirming Keynesians the world over, appears to be working. (Spare a thought for former Enron consultant Paul Krugman, visions of trillion-dollar coins still dancing in his empty head.)

The surplus news came just a few days after inflation fell to its lowest level since Milei took office, from a high of 25.5% per month in December, to just 2.7% in October.

(Source: Econométrica, based on figures from the National Institute of Statistics, INDEC)

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Free Markets, Free Minds and Free People

Meanwhile, Milei’s chainsaw continues to hack back the taxes, regulations and red tape in the broader economy down at this End of the World. Here’s the latest, from DevDiscourse:

In a bid to bolster economic openness, Argentina will partially eliminate taxes on goods bought abroad, a move announced by a senior official on Friday. This policy shift is part of the sweeping economic initiatives being spearheaded by libertarian President Javier Milei.

The changes, set to take effect in December, aim to make international products more affordable for Argentine consumers. Under the new regulation, the tax-free limit on foreign purchases will increase to $3,000 from the previous $1,000 per package, detailed Economy Minister Luis Caputo.

There will also be a $400 tax free exemption on goods imported for personal use, a government spokesman confirmed.

Gee whizz! It’s almost as if free markets, free minds and free people are preferable to state coercion, collectivist misery and the cinder block cerebrums of the feckless bureaucrat class. Who woulda thunk?

And don’t look now… but the L-word (Liberty) appears to be catching on in high places. Said president elect Donald Trump after Milei delivered his speech at the CPAC gathering at Mar-a-Lago this week…

"His speech was beautiful, but the work he has done is really incredible."

Let’s hope the man with the motosierra can export his ideas of limited government to Musk, Ramaswamy and the rest of Team DOGE while he’s in town. (More on this in future Notes…)

As we’ve said many times in these pages, if it can happen in a place like Argentina, which was rotten to the core with the political caste just 10 months ago, it can happen anywhere…

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Final Notes…


The tide is turning, dear reader…

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And as always, stay tuned for more Notes From the End of the World

Cheers,

Joel Bowman

Joel Bowman ~ Notes from the End of the World
Joel Bowman ~ Notes from the End of the World