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Argentina’s First Budget Surplus in 123 Years

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Armstrong Economics By Martin Armstrong

Argentina has posted its first budget surplus in 123 after President Javir Milei took office and demanded an abrupt halt to government spending. Governments worldwide should carefully take note.

Milei proudly announced:

“The deficit was the root of all our evils — without it, there’s no debt, no emission, no inflation. Today, we have a sustained fiscal surplus, free of default, for the first time in 123 years. This historic achievement came from the greatest adjustment in history and reducing monetary emission to zero. A year ago, a degenerate printed 13% of GDP to win an election, fueling inflation. Today, monetary emission is a thing of the past.”

Economic emissions should become a coined phrase as it is far more harmful than anything government is currently trying to conquer.

 

Argentina was forced to stop printing money back in 2022 after inflation surpassed 60% in July of that year, and their currency became utterly worthless. The central bank raised rates to nearly 70% to no avail as government continued borrowing. The problem with socialism is that they eventually run out of other people’s money. The government was spending over $6 million daily on social programs, but the poverty rate continued to rise, and around 57% of the working population could not find jobs. There were mass strikes since their money could not fund basic goods. Even if they could find employment, what incentive would the people have when the currency is worthless? Since they had no way to pay off their debt, the government simply continued to print more and devalued its own currency in the process.

Javir Milei was called a right-wing extremist for denouncing socialism and promising to curtail government spending and social programs. He understood that socialism COULD NOT WORK. It took President Javier Milei of Argentina a mere two months to push his nation into a surplus. The Economy Ministry declared that the government posted a $589 million surplus back in April, the first surplus in a decade. Milei referred to the government as “a criminal organization,” and recognized that the public sector needed to shrink as 341,477 people were on the government payroll when he took office.

Referred to as the “gnocchi” after the Italian pasta dish that is commonly served on the 29th of the month, the same day as payday, are the individuals in Argentina on the government payroll who do absolutely nothing. They were installed by politicians in exchange for favors. Critics claim he is firing at random, but the Milei Administration has assured the public that selecting those who will be laid off will be an “extremely surgical task, done so as not to make mistakes.”

Argentina_election_results_Milei_wins 11 20 23

Milei has already eliminated useless agencies such as the Ministry of Culture, Ministry of Health, Ministry of Labor, and Ministry of Social Development. In his words, Argentina is currently a poor country and cannot afford these departments that do absolutely nothing to improve the nation’s economic conditions. He has cut the Cabinet in half and no one has noticed a difference.

Milei removed price controls and devalued the currency by 54%. Transport and fuel subsidies were eliminated. It was noted that these measures would at first hurt PPP before the economy could begin to heal. Imagine inflation cooling in February at 276% — the situation was dire. The International Monetary Fund awarded Argentina a $44 billion credit program. The nation is beginning to stabilize very slowly, and it took decades of deteriorating economic conditions for someone to come in and clean house.

He has called his measures a form of “shock therapy” for Argentina’s economy. Milei agreed to devalue the nation’s peso from around 350 to 800 pesos per USD. He has eliminated quotas on imports and exports and removed the licensing that was difficult to obtain. There is a temporary rise in taxes for non-agricultural trade that brings it on par with industry standards. Transportation and energy subsidies have been eliminated.

Milei is the same man who stood before the crowd at Davos and criticized their glorification of socialism. “The main leaders of the Western world have abandoned the model of freedom for different versions of what we call collectivism,” Milei said to a hostile crowd at Davos. “We’re here to tell you that collectivist experiments are never the solution to the problems that afflict the citizens of the world—rather they are the root cause.”

Those in charge want us to believe that capitalism equates to greed while collectivism is seen as a form of social justice but, of course, requires the money of others. Free enterprise is under constant attack, and Milei is one of the only world leaders fighting for its existence. “Social justice is not just. It doesn’t contribute to the general well-being,” Milei said to Davos, citing that socialism is “intrinsically unfair” and forces the state to attack the people for taxes. “Can any of us say that they voluntarily pay taxes?” he asked the crowd.

He was once called the Donald Trump of Argentina. We can hope that Donald Trump will take swift action to reduce government spending. DOGE appointee Elon Musk congratulated Argentina’s president when news of the budget surplus broke. Unfortunately, America is too far in the hole to recover by slashing programs or cutting government. It would be a massive step forward but our deficit has been permitted to run wild for too long to be tamed.

Business

FDA bans highly used food dye

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FDA Finally Bans Cancer-Linked Red No. 3 Food Dye

By Nicolas Hulscher, MPH

The Food and Drug Administration (FDA) announced on Wednesday that it is banning the use of Red No. 3, a synthetic dye responsible for the vibrant cherry red color in foods and beverages, citing its association with cancer in animal studies:

The dye is still used in thousands of foods, including candy, cereals, cherries in fruit cocktails and strawberry-flavored milkshakes, according to the Center for Science in the Public Interest, a food safety advocacy group that petitioned the agency in 2022 to end its use.

Food manufacturers will have until Jan. 15, 2027 to reformulate their products. Companies that make ingested drugs, such as dietary supplements, will get an additional year.

This ban was LONG overdue. Unfortunately, the other synthetic food dyes that have also been linked to serious deleterious health effects still remain on the market. A few months ago, I summarized the harm linked to synthetic food dyes — outdated FDA standards expose Americans to toxic food dyes linked to cancer, neurobehavioral issues, and other health risks, demanding urgent regulatory action:

Synthetic Food Dyes: A Half-Century of Harm

·
November 25, 2024
Synthetic Food Dyes: A Half-Century of Harm
 

by Nicolas Hulscher, MPH

 

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Batada et al found that nearly half (43.2%) of grocery store products contained artificial food colorings (AFCs), with Red 40 (29.8%), Blue 1 (24.2%), Yellow 5 (20.5%), and Yellow 6 (19.5%) being the most common. Candies (96.3%), fruit-flavored snacks (94%), and drink mixes/powders (89.7%) had the highest prevalence of AFCs, while produce contained none.

Oliveira et al summarized the deleterious health effects linked to synthetic food colorings in children: neurobehavioral disordersallergic reactionscarcinogenic and mutagenic potentialgastrointestinal and respiratory issuestoxicitydevelopmental and growth delays, and behavioral changes.

Sultana et al illustrated the specific health hazards associated with particular synthetic food dyes:

Miller et al conducted a systematic review of the potential neurobehavioral impacts (activity and attention) of food dye consumption. They included 27 clinical trials of children exposed to synthetic food dyes and found that 16 of 25 challenge studies (64%) demonstrated evidence of a positive association, with 13 studies (52%) reporting statistically significant findings. The authors concluded, “Current evidence from studies in humans, largely from controlled exposure studies in children, supports a relationship between food dye exposure and adverse behavioral outcomes in children, both with and without pre-existing behavioral disorders.” They also noted that:

“Animal toxicology studies were used by FDA as the basis for regulatory risk assessments of food dyes [25]. All current dye registrations were made between 1969 and 1986 based on studies performed 35 to 50 years ago. These studies were not designed to assess neurobehavioral endpoints. Dye registration was accompanied by derivation of an “acceptable daily intake” (ADI) based on these studies. FDA ADIs have not been updated since original dye registration, although there have been several reviews of specific effects since then, the latest in 2011.”

Synthetic food dyes, widely prevalent in U.S. products and lacking nutritional value, rely on outdated FDA approvals despite evidence of widespread toxicity, carcinogenicity, and adverse neurobehavioral effects, strongly warranting urgent regulatory action to protect public health.

While the FDA has finally made a decision that will benefit public health, they are still allowing the dangerous COVID-19 genetic injections to be administered to all individuals aged 6 months and older despite far exceeding criteria for a Class I recall. The immediate removal of unsafe and ineffective gene therapy injections should be the first priority before anything other product bans.

Nicolas Hulscher, MPH

Epidemiologist and Foundation Administrator, McCullough Foundation

www.mcculloughfnd.org

Please consider following the McCullough Foundation and Nicolas Hulscher on X (formerly Twitter) for further content.

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Business

You Now Have Permission to Stop Pretending

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Why Meta’s decision to abolish DEI might be a turning point

Last week, Mark Zuckerberg, the CEO of Meta, formerly Facebook, made a stunning announcement. He was abolishing the company’s DEI programs and discontinuing its relationship with fact-checking organizations, which he admitted had become a form of “censorship.” The left-wing media immediately attacked the decision, accused him of embracing the MAGA agenda, and predicted a dangerous rise in so-called disinformation.

Zuckerberg’s move was carefully calculated and impeccably timed. The November elections, he said, felt like “a cultural tipping point towards once again prioritizing speech.” DEI initiatives, especially those related to immigration and gender, had become “disconnected from mainstream conversation”—and untenable.

This is no small about-face. Just four years ago, Zuckerberg spent hundreds of millions of dollars funding left-wing election programs; his role was widely resented by conservatives. And Meta had been at the forefront of any identity-based or left-wing ideological cause.

Not anymore. As part of the rollout for the announcement, Zuckerberg released a video and appeared on the Joe Rogan podcast, which now functions as a confessional for American elites who no longer believe in left-wing orthodoxies. On the podcast, Zuckerberg sounded less like a California progressive than a right-winger, arguing that the culture needed a better balance of “masculine” and “feminine” energies.

Executives at Meta quickly implemented the new policy, issuing pink slips to DEI employees and moving the company’s content-moderation team from California to Texas, in order, in Zuckerberg’s words, to “help alleviate concerns that biased employees are excessively censoring content.”

Zuckerberg was not the first technology executive to make such an announcement, but he is perhaps the most significant. Facebook is one of the largest firms in Silicon Valley and, with Zuckerberg setting the precedent, many smaller companies will likely follow suit.

The most important signal emanating from this decision is not about a particular shift in policy, however, but a general shift in culture. Zuckerberg has never really been an ideologue. He appears more interested in building his company and staying in the good graces of elite society. But like many successful, self-respecting men, he is also independent-minded and has clearly chafed at the cultural constraints DEI placed on his company. So he seized the moment, correctly sensing that the impending inauguration of Donald Trump reduced the risk and increased the payoff of such a change.

Zuckerberg is certainly not a courageous truth-teller. He assented to DEI over the last decade because that was where the elite status signals were pointing. Now, those signals have reversed, like a barometer suddenly dropping, and he is changing course with them and attempting to shift the blame to the outgoing Biden administration, which, he told Rogan, pressured him to implement censorship—a convenient excuse at an even more convenient moment.

But the good news is that, whatever post hoc rationalizations executives might use, DEI and its cultural assumptions suddenly have run into serious resistance. We may be entering a crucial period in which people feel confident enough to express their true beliefs about DEI, which is antithetical to excellence, and stop pretending that they believe in the cultish ideology of “systemic racism” and race-based guilt.

DEI remains deeply embedded in public institutions, of course, but private institutions and corporations have more flexibility and can dispatch with such programs with the stroke of a pen. Zuckerberg has revealed what this might look like at one of the largest companies. Conservatives can commend him for his decision, while remaining wary. “Trust but verify,” as Ronald Reagan used to say, is a good policy all around.

Christopher F. Rufo is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

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