The election of Javier Milei as Argentina’s president is a classic Great Unmooring event. Don’t get me wrong – I am totally rooting for the guy and I am not saying this is a Bad ThingTM. In fact, I think Milei is absolutely right to take a flamethrower to the Argentine central bank and entrenched public sector. But it is a profound unmooring all the same, not just for Argentina but for the world.
You will be told that it’s a left/right thing, and you will believe it. And that’s why Milei will fail. Not because a shock treatment of currency dollar-pegging and public sector-slashing can’t work, but because everyone knows that everyone knows that it can’t work.
Yes, it’s our old friend Common Knowledge.