Argentina's Financial Crisis, US Labor Market Inflation, and Trump's Unexpected Surrender | Weekly Business Briefs w/ Martin Perdomo

Prepare to be enlightened on Argentina's current financial crisis and the extreme measures proposed by economist Javier Millay to rescue the economy. We dissect the gravity of the situation where inflation has skyrocketed to 115%, poverty engulfs 40% of the population, and the country teeters on the precipice of its sixth recession in a decade. Millay's audacious strategies - a switch from pesos to dollars, slashing government spending, and eradicating Argentina's central bank - bring hope but also raise eyebrows. 

Additionally, we turn the spotlight on the rising demands of American workers requesting record high wages for new roles, indicative of inflation in the labor market. And, in an unanticipated political twist, we report on former President Donald Trump's plan to surrender himself at a Fulton County jail as per his $200,000 bond agreement and other release conditions. With additional co-defendants consenting to bond terms and Trump forbidden from using social media against them, this development promises a riveting saga.

Transcript

Speaker 0: 0:00

If you thought inflation rate in the US is high, take a look at Argentina's at 115%. American workers are demanding more to take on a job and former President Donald Trump turns himself in. These are the top three headlines in this week's weekly business brief. First up, according to the Morning Brew, argentine politician and economist Javier Millay has a plan to save Argentina's economy. If you thought 9% inflation was wild, consider the demolition of purchasing power. In Argentina, where inflation is over 115%, the largest denomination peso banknote is worth under $3. The an ice cream price is doubled in a month. The country, where 40% of the population lives in poverty, is headed for its sixth recession in 10 years.

Speaker 0: 0:53

Millay's supporters see his policy ideas as extreme, but hope they would provoke a necessary jolt to a broken system. Here are some of the drastic actions Millay said he pursue if elected Dollarization, or the process of switching the national currency from pesos to the US dollar. Of note, the Argentine government tried a similar policy in the 1990s and it ended in a disaster, but dollarization has seen more success. And Ecuador, in El Salvador, eliminating Argentina's central bank, which he believes is the worst garbage that exists on earth. Quote cutting government spending by shutting down public programs like the health, environment and education ministries and making citizens pay for public health care system.

Speaker 0: 1:42

Up next, reported by CNBC, american workers are demanding almost $80,000 per year to take on a new job. The amount of money most workers want to accept a job reach a record high this year, a sign that inflation is alive and well, at least in the labor market. According to the latest New York Federal Reserve Employment Survey, released Monday, the average reservation wage, or the minimum acceptable salary offered to switch jobs, rose to $78,645 during the second quarter of 2023. That's an increase of about 8% from just a year ago and it's the highest level ever in the data series that goes back to the beginning of 2014. Over the past three years, which entails COVID-19 pandemic era, the level has risen more than 22%. The number of significant and the wages increasingly have recognized as a driving force in inflation. While goods prices have abated since the pushing over inflation to its highest level in more than 40 years in mid 2022, other factors continue to keep it well above the Fed's targeted rate of 2%, like housing we talked about this last week and the business brief and housing accounts for 80% I think it was our 40% of. It was some ridiculous number of the weighted average for inflation in the reports.

Speaker 0: 3:16

Lastly, mr Trump plans to turn himself in on Thursday at a Fulton County jail reported by CNN. Of course CNN reported this. Former President, donald Trump, plans to turn himself in in a process at the Fulton County jail on Thursday, following his agreement earlier Monday at a $200,000 bond and other release conditions. I'll be going to Atlanta, georgia, on Thursday to be arrested. End of quote.

Speaker 0: 3:46

Trump wrote on to social, confirming CNN's earlier reporting from the two sources familiar with the plan. Several co-defendants in the sweeping Georgia racketeering case have also agreed to the terms of their bond agreement with the district attorney's office. The release conditions outlined in Trump's bond order are more extensive than those laid out in others approved earlier Monday in the case. Unlike some of his co-defendants, a former president is explicitly barred in the order from using social media to target his 18 co-defendants in the case, as well as any witness and the 30 unindicted conspirators. The Fulton County election subversion case marks the first time the release conditions for Trump have included a cash bond and a prohibition on intimidation through social media. Of course Donald Trump loves to use social media to leverage his voice and get his point across and of course, we all know his delivery not necessarily the best. And this has been your weekly business brief. I'll see you guys next week. Appreciate you guys, listening and watching Peace out.