1) And the Winner in the Argentina Elections is...Trump?

Yesterday's election results in Argentina could hardly have been more at odds with the predictions from the media. We were told over and over that Argentine voters would overwhelmingly repudiate the "shock therapy" of free marketeer Javier Milei and his La Libertad Avanza party.

Instead, Milei and his coalition partners decisively defeated the Peronist party.  Milei will have the votes to uphold his presidential decrees, and should have enough votes from allied parties to pass legislation.

Milei will hopefully also refinance the country's debt at lower interest rates, reduce taxes, and dollarize Argentina's economy.  That's something Unleash Prosperity co-founder Steve Forbes has said is the biggest unfulfilled promise of his presidency, so far.

We've been predicting since Trump's comeback election one year ago that Trumpian "power to the people" candidates would start to sweep to victory all over the world, and given this result and the upheaval in Japan and perhaps Britain next, it is happening.  

Juan Grabois, a top candidate for the socialist Peronist party, claims his party lost because "the campaign chief of La Libertad Avanza is named President Donald Trump."

And Treasury Secretary Scott Bessent's strategy of supporting Milei's reforms has paid off.  Yesterday, Bessent slammed Democratic Senator Elizabeth Warren as an "American Peronist" and he accompanied his post on X with an AI-generated image of the poster from the musical "Evita," with Warren's face in place of Peronist icon Eva Perón.

Congrats to the Argentine voters to have the courage to dump the Peronistas who bankrupted the country and threw the nation into poverty - though Hollywood romanticized their rise.

2) Outrageous Headline of the Week

This headline was delivered this morning to our doorstep and it couldn't be more misleading. It's symptomatic of how the media and the globalist institutions like the IMF and World Bank define downsizing government as "austerity."

But Milei is delivering prosperity, not austerity, by cutting out-of-control government spending and needless bureaucracy and rules. Dollarization and tax rate cuts are also pro-growth, not pro-austerity. By the way, the BBC also led with this same fatuous spin on the election results from Buenos Aires.

At least they fixed it on the WSJ website!

3) Why Gold Prices Keep Rising

The Visual Capitalist website may offer some insight into two mysterious and troubling trends: first, the 60% rise in the gold price over the last year - even as inflation has moderated; and second, the fall in the dollar.  The chart shows that since around 2020, foreign central banks (mostly the Chinese) have been selling U.S. government bonds and transferring that money into purchases of gold.

For the first time since 1995, these central banks hold more gold than U.S. Treasuries.

Larry Kudlow has said he suspects this is an aggressive and orchestrated attack on the dollar by President Xi in Beijing.  

He may be right, but China may be crazy.  Beijing's futile attempt to replace the dollar as the world reserve currency will fail miserably. In times of global crisis and turmoil, investors buy MORE, not fewer, dollars as a flight to safety. Anyone who would rush off to invest in BRICs (Brazil, Russia, India, and China) as a more stable alternative is likely to suffer large losses over time.

4) Inflation in Trump 2.0 Remains Tame

The latest month-by-month inflation chart from one of our economic chart makers, Jeff Chasney, shows moderate inflation of less than 3% so far in Trump's second term. (We want to nudge that down to the Fed target of 2%.)  The big bulge of 9% inflation under Biden corresponded with the $4 trillion post-COVID spending binge.

What's the lesson? Printing money and dumping it out of helicopter windows isn't "free."

5) Get the Government Out of the Air Traffic Control Towers

In the last 40 years, a total of 98 countries have taken their air traffic control systems away from government control and created entities similar to separately managed toll roads or utilities.  Canada, Britain and Italy have completely privatized their systems.  The benefits include a guaranteed revenue stream, much faster modernization and a better workforce.

A new Inspector General's report from the Transportation Department lays out how the U.S. has misspent $40 billion under the NextGen program over the last two decades with results so meager it's being shut down.

During President Trump's first term, he came close to convincing Congress to finally create a new air traffic control model.  It's time for him to restart that effort and finally improve air safety and reduce flight delays.  The alternative is for the U.S. to stagger on with a management model that almost all of the rest of the world has abandoned.

6) Finally An Honest Reporter

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