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Milei to Introduce Bill Jailing Anyone Who Orders the Central Bank to Print Money to Cover Deficit

Argentina’s President Javier Millay announced Thursday night that he will submit a bill to Congress that would punish central bank officials who issue money to the national treasury to finance budget deficits with prison terms.

Millay, interview It said on the news channel Todo Noticias that its purpose is to define the practice of printing banknotes. Seigniorage — as a criminal offense.

“This bill defines seigniorage as a criminal offense and states that if a central bank directly or indirectly funds the national treasury, the central bank governor, board of directors, national president, and the officials who vote for it will end up in prison. I’m going to be put in,” Millay said.

Millais said the purpose was to “prevent the creation of currency to fund the Treasury,” which the previous government of former Socialist President Alberto Fernández succeeded to during his disastrous four-year presidency. He pointed out as follows. printed This is equivalent to 18 percent of Argentina’s GDP in peso terms.

The bill is part of Millay’s “shock therapy” plan to revive Argentina’s economy, a South American country that has fallen into a hyperinflationary spiral after nearly two decades of socialist rule and recorded record inflation rates. .

The bill would help reduce public spending to the point where the central government can finance its operations with its own resources without having to rely on the Argentine Central Bank to issue money.

“We have strong commitments on the fiscal front and zero deficit is non-negotiable,” Millais said. “If the deficit is zero, no more debt will be taken on. If no more debt is taken on, the debt-to-commodity ratio will remain constant or decrease, resulting in an increase in solvency.”

Millais said a bill to penalize seigniorage would be introduced in parliament in the short term, but did not give a specific date.

“We plan to transfer the money once the conditions for market opening are in place, the central bank has been reorganized, and the basis for currency competition with the peso is in place,” he said.

During the interview, the Argentine president said he had mentioned the bill to International Monetary Fund Deputy Managing Director Gita Gopinath, with whom he had just concluded a meeting before the interview. Millay said Gopinath was “pleasantly surprised”.

“I think she was surprised by my level of Orthodoxy,” Millais told an interviewer. “The foundation has committed to continuing to work with us, and that means supporting the program.”

“If the program needs it, we’ll need to talk about it,” he continued. “The foundation’s position is to work with us, and they are strongly committed to our success, want us to succeed, and are willing to support us. For them, this It’s a symbolic event.”

In Argentina, your invoice will look like this: presented It was submitted to Congress for debate by the country’s representatives, senators, president, and people, allowing Millais to present a vast array of content. omnibus He will submit a package of legislation to Congress in December that includes most of the sweeping reforms he plans to make to the Argentine state.

The omnibus bill was approved by the House in February and sent back to committee for consideration. was denied Regarding the article-by-article voting that took place several days after approval.

Christian K. Caruso is a Venezuelan writer who chronicles life under socialism. You can follow him on Twitter here.

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