¡Buenos días from BA! This is the Rorshok Argentina Update from the 14th of August twenty twenty-five. A quick summary of what's going down in Argentina.

There’s only one place to start this week: the ongoing tension between President Milei and Congress. On Friday the 8th, the president delivered a national address, strongly defending his use of veto power against bills passed by Congress that boosted pensions, disability benefits, university funding, and hospital support.

He said that Congress was using what he calls noble causes as an excuse to pass laws that would make the government go bankrupt. He also reiterated his commitment to his chainsaw policies, vowing to cut down any fiscal measures that he believes threaten the country’s path to a balanced budget.

Following up on that promise, Milei announced a landmark bill that aims to permanently ban the financing of public spending with monetary issuance from the Central Bank. He described the practice of printing money to cover deficits as a scam, and the primary cause of Argentina’s chronic inflation. This proposal is a cornerstone of his economic platform, but given the current friction, it is set to face a monumental battle in Congress.

The government’s tough fiscal stance is also creating ripples in the financial markets. Luis Caputo, the Economy Minister, restricted the subscription of new short-term Treasury notes, known as LECAPs. This move came as the government faced maturities of around fifteen trillion pesos (about 1.5 billion dollars), and it aims to prevent a cycle of taking on new short-term debt just to pay off old debt.

As a result, yields on Argentina’s peso debt soared to record highs ahead of a key auction, signaling nervousness among investors about the government’s ability to manage its finances without relying on the Central Bank.

This financial pressure is also hitting the private sector hard. A recent report shows that President Milei’s foreign exchange reforms have triggered the most significant wave of corporate defaults since twenty twenty. Many companies that hold debt in dollars are struggling to make payments due to the new currency landscape. Economists from the University of Buenos Aires have argued that the country’s apparent shallow recovery is dangerously propped up by taking on more and more debt.

While local companies struggle, a strange paradox is unfolding in Argentina’s most famous industry. For the first time, Argentine meatpackers have begun importing beef, specifically from Uruguay, to supply the domestic market. The reason? The president’s strong peso policy has made it more profitable for producers to export their high-quality beef, leaving a gap in local supply that is now being filled with imports.

Speaking of meat exports, there’s trouble on the other side of the Andes. Chile’s agricultural authorities have halted all meat imports from Argentina’s Patagonia region. The decision came after Chilean officials found issues with the cold chain integrity during inspections at a border crossing. This freeze on imports is a significant blow to Patagonian producers who rely heavily on the Chilean market.

And looking across the Pacific, a new report confirms that Argentina’s exports to China fell by 15% in the first half of twenty twenty-five compared to the same period last year. The drop is mainly due to lower sales of key agricultural commodities.

Also related to imports, with Children’s Day coming up, toy makers are seeing a big jump in imports, with volumes up 100% and values increasing by 80% in the first half of the year compared to twenty twenty-four. A toy industry representative said average spending sits around 25,000 pesos (which is about twenty dollars), but licensed products at big chains can hit 40,000 (about thirty dollars).

Children’s Day is a popular celebration dedicated to kids, held on the third Sunday of August. This year, it falls on the 17th. Families give gifts to their children and often spend the day together at parks or special outings. Shops and malls run big sales and promotions in the lead-up, and toy stores see their busiest season of the year.

Now, an update on the contaminated fentanyl case, which we reported on last week’s show: the death toll has risen to ninety-seven people. Authorities are still investigating the source of the contaminated drug and looking into HLB Pharma and Ramallo, two labs linked to the batches.

In other news, a new report by the National Observatory of LGBT+ Hate Crimes has highlighted a concerning trend since President Milei took office: a significant increase in attacks on the LGBT+ community. The study points to a sharp rise in hate speech, discrimination, and physical violence, which it links to the government’s anti-rights rhetoric. Activist groups are calling for stronger protections and a clear condemnation of the violence from public officials.

But it wasn’t all somber news on the societal front. Argentina’s marine scientists wrapped up the groundbreaking three-week expedition exploring the deep waters of the Mar del Plata canyon, captivating a global audience with live streams that drew tens of thousands of viewers.

The team dove nearly 4,000 meters deep, revealing new and rarely seen marine species and capturing the imagination of kids and adults alike. The scientists, mainly from Argentina’s CONICET, the National Scientific and Technical Research Council, and public universities, connected with audiences through educational live commentary and even inspired school activities during winter break.

Despite recent government budget cuts to science, the mission received international praise, including a feature in The New York Times, highlighting its significance for Argentine research. Now, the expedition’s vessel heads to Uruguay for its next adventure.

On that note about national treasures, the cultural world is mourning a major loss this week. Daniel Divinsky, the influential publisher and editor who co-founded Ediciones de la Flor, passed away at eighty-three. He was most famous for being the first person to publish the iconic comic strip Mafalda in book form, turning it into a global phenomenon.

As co-founder of Ediciones de la Flor, he helped shape Argentina’s cultural identity by championing humorists like Fontanarrosa, Caloi, Maitena, and Liniers, as well as politically charged works like Rodolfo Walsh’s Operation Massacre or Operación Masacre.

On a more forward-looking cultural note, Buenos Aires is gearing up to host arteBA twenty twenty-five, its biggest contemporary art fair, from the 29th to the 31st of August at Centro Costa Salguero in Buenos Aires City. The event will showcase over 400 artists from sixteen countries. The program includes talks, book presentations, and a food station promoting social inclusion, along with several awards honoring influential figures in the region’s art scene.

You can buy tickets for arteBA twenty twenty-five online through the fair’s official website. Prices start at 7,000 pesos (about five dollars) for students and go up to 10,500 (eight dollars) for the general public.

Check out the link in the show notes.

If Ted Talks are more your vibe, TEDxRíodelaPlata turns fifteen this year and is marking the occasion with a new edition of its ideas festival on the 28th of September at the Buenos Aires Convention Center. The theme this year is Time. The day will feature over twenty-five speakers and musicians across four curated segments that mix science, creativity, conversation, and live music.

Tickets are already on sale, with full-day and half-day options available: 75,000 pesos (about fifty-seven dollars) for a full day and 45,000 (thirty-four dollars) for a half day.

Tap on the link in the show notes for more info.

And finally, some good news for football fans. France Football just dropped the shortlist for the twenty twenty-five Ballon d’Or, and two Argentines made the cut: Alexis Mac Allister and Lautaro Martínez. With Messi sidelined by injuries at Inter Miami and veterans like Di María, Dybala, and De Paul out of the spotlight, the new generation had to carry the flag.

Mac Allister shone at Liverpool, helping the club clinch the Premier League title, while Martínez led Inter Milan to another Champions League final, though they suffered a crushing defeat to PSG. The awards ceremony will take place on the 22nd of September in Paris, streaming on Disney+ in Argentina.

Aaand that’s it for this week! Thank you for joining us!

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¡Nos vemos la próxima semana!