Argentina's newly-elected, dollar-loving president Javier Milei delivered his inaugural speech on Sunday, issuing a warning to the country to brace itself for aggressive fiscal cuts. As the nation grapples with soaring inflation and recurring recessions, Milei emphasized the need for a shock adjustment to stabilize the economy.

In his speech, Milei reiterated his staunch belief that there is no alternative to a shock adjustment, stating that the country is faced with a dire financial situation and a scarcity of funds. The comment echoed his previous statements justifying his plans for bold economic reforms.

Having secured victory in a closely contested run-off election against Sergio Massa, Milei, a political outsider, has consistently vowed to slash government spending in order to curb the skyrocketing prices. Recent data revealed that Argentina's inflation surged to a staggering 143% in October.

Pointing fingers at the outgoing government, Milei accredited them for leading the country towards hyperinflation. Swearing to avert such a catastrophic scenario, he pledged to take considerable measures, including fiscal cuts amounting to approximately 5% of Argentina's Gross Domestic Product (GDP). These cuts are expected to primarily impact the state, rather than the private sector.

Surprisingly, Milei did not mention the US dollar in his inaugural speech, indicating a potential shift away from one of his more radical campaign promises. Initially, the libertarian economist had proposed replacing the Argentine peso with the greenback as a bold move to revive the country's destabilized economy, which has been plagued by excessive printing of pesos to address the nation's mounting debts.

Since his election, Milei has demonstrated signs of pragmatism, diverging from key economic advisor and proponent of dollarization, Emilio Ocampo. Moreover, he has appointed moderate rivals to prominent positions within his Cabinet, indicating a more measured and balanced approach to governing.

As Argentina looks ahead to Milei's administration, expectations are high for the implementation of bold economic reforms and fiscal austerity measures. The new president's resolve to address the country's economic woes will be closely monitored by both local and international observers, as the nation seeks stability and a path towards sustainable growth.