Davos is underway. I know this because Maria Bartiromo is there. As always, it appears that her hair was done by Westinghouse. If Davos is important, it is because it has become a grand celebration of general aviation. During the week-long meeting, Davos’ airport looks like the Aspen airport on any given weekend.
The participants arrive, all eager to tell the rest of us how to live. Or how to conduct our businesses. I have a word of advice for those of you who play the stock market: If you see a CEO from one of your companies at Davos, sell.
The theme of this year’s meeting is “Rebuilding Trust”. Whom are we supposed to trust? It appears that chainsaw-wielding Javier Milei, Argentina’s new president, does not trust Davos that much. Imagine Klaus Schwab’s chagrin as Milei criticized the WEF’s "socialist agenda, which will only bring misery to the world". Good for him. He addresses an issue that is relevant rather than emulating the Davos crowd who have spent the last decade droning on about globalization, a trend that is no longer a trend.
It is worth quoting a portion of his speech: “The case of Argentina is an empirical demonstration that—no matter how rich you may be, or how much you may have in terms of natural resources…or how many bars of gold you may have in the central bank—if measures are adopted that hinder the free function of markets, free competition, free price systems, if you hinder trade, if you attack private property, the only possible fate is poverty.” Of course, we have always known all this; and, if we didn’t, we should have. Our own Milton Friedman said it best many years ago: “There is no such thing as a free lunch.”
I have been harshly critical of Argentina in the past. Years ago, I concluded a post on this board by noting that Henry Kissinger, when asked about the strategic importance of Argentina, replied with his typical acerbic wit, “Argentina is a dagger pointed at the heart of Antarctica”, adding that, “…My attitude with respect to this sad place derives from the certain knowledge that nothing of serious consequence will occur there in our lifetimes.”
It always made me sad to say these things because, in fact, Argentina is a spectacular place if one refers to the country’s women, its natural history, or its wine. But too much goes on down there that falls into the category of falta de seriedad. Argentine citizens deserve a break, and maybe Javy will give it to them. I’m rooting for him.