Agentic Artificial Intelligence to Control Human Agentic "Robots"? - Was Covid a Milgram Experiment ? - Agentic AI versus Autonomous AI - Yuri Bezmenov's Advice - Tears for Argentina and Venezuela

WEEKLY -- On Sunday -- All previous Editorials available on the Substack Archive. The Archive is Searchable https://boomfinanceandeconomics.substack.com/archive

Is Agentic AI Sinister ?
What is Autonomous AI ?

Are these two very different things?

Agentic Artificial Intelligence - What is it? - Is it Sinister?

You may have heard the term “Agentic Artificial Intelligence”. It is being called the “Next Big Thing” — the supposed pathway to a technological Utopia in the future. Billions of Dollars are being raised and expended on its development and on massive data centres that use enormous resources.

However, beware, dreams of Utopia are often used, either intentionally or unknowingly, by psychopaths seeking power over people.

A cursory glance at history on Earth reveals that psychopaths often use extreme political or religious ideologies to achieve that power. The force of their convictions is always presented as being “for the Greater Good”. Psychopathic leaders prefer to operate in a period of great stress. These are the major, recurrent themes of human history over thousands of years.

Think of …. Pol Pot, Himmler/Hitler/Goebbels/Mengele, Stalin, Genghis Khan, Vlad the Impaler, the Emperors of Rome, Ivan the Terrible, Atilla the Hun, Robespierre, Marx/Lenin, the Pharaohs of Egypt, the Aztecs. There are many others. All are examples of rather nasty people who worked hard to achieve positions of great power and who demonstrated no empathy or compassion for their victims, the typical behaviour of psychopaths.

What has this got to do with the word “Agentic”?

The words “Agentic” and Autonomous” are often mistakenly used inter-changeably by some “expert” articles. This is deeply mis-leading. These two words must be well understood to grasp exactly what Artificial Intelligence is all about. They must NEVER be used interchangeably. You need to understand why this distinction is so important to you and your future.

So ……

Where (exactly) does the term “Agentic” come from? What is its history?

As always, the story is a little complex but relatively easy to understand. If you do an Internet search for the word “Agentic” on any Search engine, you are likely to see this definition —

The word “agentic” is derived from the noun “agent,” which means “one that exerts power” or “something that can produce an effect”. Combined with the adjective suffix “-ic”, it becomes an adjective — Agentic — where it refers to the ability to act independently and achieve outcomes.

The phrase “it refers to the ability to act independently” seems to sum it up. It sounds helpful, innocent, hopeful. However, the story is not as simple as that.

Agentic can have a much more sinister meaning if you know about its use in Psychological tests.

The Term “Agentic” in Psychological Testing — the Agentic State — Human Behaviour Under Stress

In a psychological context, the meaning of the word agentic is different. Here, it refers to the famous psychologist, Stanley Milgram, and his Agentic State Theory, which describes how people sometimes obediently transfer responsibility for their actions to an authority figure, essentially surrendering their personal agency and becoming an agent for an authority figure.

In this context, “Agentic” means AGENCY — becoming an agent — think of a real estate agent acting for the owner of a property. He/She follows instructions.

Think about that — Milgram described situations where human beings can be placed under great stress and then induced to SURRENDER their principals and values.

Milgram’s obedience experiments were conducted at Yale University in 1961 and were designed to force people to make decisions under stress. In these experiments, participants were advised to follow instructions from an Authority figure to administer increasing electric shocks to another person, believing they weren’t personally responsible for their actions. The Authority was usually a person in a white coat with a clip board and supposed backing from a famous University.

The experiments demonstrated how individuals could enter an AGENTIC STATE (agency) and thereby defer responsibility for their actions to a perceived authority. In the experiments, 65 % - 92 % of the people being studied gave a maximum electric shock to another person when instructed to do so by the Authority figure. Remember those numbers — they are stunning.

These were the questions that Milgram sought to answer in the experiments on unwitting members of the general public.

• Could seemingly normal individuals be compelled to inflict pain on another person simply by an authority figure’s command?

• How powerful is the social pressure to obey within a structured environment?

• What factors might influence the level of obedience or defiance in such a scenario?

The participants were found through advertisements and were told the study was about “memory and learning” at Yale University, and they were paid a small fee for their participation, regardless of whether they completed the experiment.

• Participants were diverse in occupation and education.

• The stated purpose was a scientific study of memory.

• Volunteers were paid a nominal sum upon arrival.

The centrepiece of the Milgram Experiment was the impressive-looking “shock generator.” This device featured a row of 30 switches, clearly labelled with increasing voltage levels, from 15 volts (“Slight Shock”) up to 450 volts (“XXX”). Despite its realistic appearance, the machine produced no actual shocks. The participant from the general public was given a sample 45-volt shock at the beginning to reinforce the illusion of authenticity. The person being “shocked” was an actor.

The actor’s responses were critical to the experiment’s impact. As the “shocks” increased, the actor’s reactions escalated:

• At 75 volts, the actor would grunt.

• At 120 volts, the actor would complain loudly.

• At 150 volts, the actor would demand to be released from the experiment.

• At 300 volts, he would refuse to answer any more questions.

• Beyond 330 volts, up to 450 volts, the “very strong shock”, the actor would fall silent, implying unconsciousness or worse.

As the experiment proceeded to higher “shocks”, the Authority figure would encourage the unknowing participant to continue with firm, calm, and authoritative statements:

1. “Please continue.” or “Please go on.”

2. “The experiment requires that you continue.”

3. “It is absolutely essential that you continue.”

4. “You have no other choice, you must go on.”

If the participant refused to continue after the fourth statement, the experiment was terminated.

• Many participants showed visible signs of tension, including sweating, trembling, stuttering, groaning, and nervous laughter.

• Some participants argued vehemently with the experimenter, protesting the learner’s perceived suffering and expressing their desire to stop.

• Despite their distress and verbal protests, a striking number of participants continued to administer shocks, often with great reluctance and emotional turmoil.

• Post-experiment debriefings revealed that participants were often relieved and even physically embraced the “learner” upon discovering the deception, indicating the immense psychological burden they carried during the experiment.

Milgram proposed the idea of an “agentic state” to explain why individuals might act against their own conscience when under the command of an authority figure. He distinguished this from an “autonomous state”:

• Autonomous State: In this state, individuals perceive themselves as responsible for their own actions and act according to their own principles and values. They feel a sense of personal control and accountability.

• Agentic State: Milgram suggested that in certain situations, individuals shift into an agentic state. Here, they see themselves as merely agents or instruments carrying out the wishes of an authority figure. Responsibility for their actions is transferred to the authority, alleviating personal moral strain. The focus shifts from the morality of the act to the success of following orders.

The transition to an agentic state, according to Milgram, is a survival mechanism. In many social structures, obeying legitimate authority is beneficial and necessary for societal function. However, the experiment revealed the potential for this mechanism to lead to destructive outcomes when authority figures command harmful actions in a state of induced stress.

Is Agentic Artificial Intelligence an Evil Plot?

All of this begs questions about the development of so-called Agentic Artificial Intelligence. In other words, if the developers of Agentic AI know full well (in advance) the outcome of the Milgram experiments, they may, in fact, be aiming to create an Artificial Intelligence that takes advantage of that knowledge.

Such a goal may be deliberately purposeful or it may be an innocent happenstance. However, BOOM prefers to examine closely the first possibility because that appears inherently evil.

Is it possible that the creators of so-called Agentic AI are actually designing a machine that will take advantage of those 65 % - 92 % of humans who are more susceptible to adopting a Agentic State when put under stress?

If so, the development of “Agentic AI” becomes a very serious matter indeed and arguably evil — either intentionally or accidentally.

The alternative explanation is that the promoters of “Agentic AI” are really aiming to create an “Autonomous AI” but have simply mis-labelled the project. BOOM thinks that is unlikely.

Extreme Dystopia could be the Result

However, if the goal is to create an “intelligence” that follows orders from its programmers to create the Agentic State in unsuspecting human beings when placed under stress, then the Utopian future which may emanate could be extremely dystopian indeed. The unsuspecting, Agentic State human beings could be instructed to carry out extremely sinister actions e.g. “label all autonomous individuals as “conspiracy theorists” or “Neo Nazis”, then eliminate all of those “free thinkers”. For the Greater Good, of course.

References: The Milgram Experiment: Unpacking the Shocking Truth About Obedience https://psychotricks.com/milgram-experiment/

And: https://psychotricks.com/all-articles/

Milgram Experiment Demonstration Full Documentary from 1962 (can be played at 1.5 Speed - 30 Minutes):

Was Covid a Milgram Experiment?

During the Milgram experiments, unknowing, hoodwinked participants were subjected to considerable stress, they were directed to act by Authority figures and, if they agreed, their actions would cause harm to the person acting as the recipient of the “shocks”.

Was the Covid event a sophisticated carefully planned and executed Milgram experiment? WHY did all governments act as one? Were they directed to do so?

During Covid, all governments (Authority figures) used in-house “experts” in “public health” (also Authority figures) to strengthen their claims that a terrible, deadly virus was spreading around the globe and could potentially kill millions. They instructed naïve citizens to act by locking themselves in their homes, closing their businesses, not participating in social events and religious gatherings, wearing masks that (clearly) gave little or no protection, undergoing PCR tests to “prove” their state of infection (despite known 90% False Positive rates for PCR tests when conducted above 30 Amplification Cycles), then (finally) they were coerced (or forced) to take an experimental injection of a “safe and effective” mRNA technology (previously unused in humans) as the “only solution”.

ALL of those circumstances appeared to be coordinated between nations arguably by global “Authorities” such as the UN and World Health Organisation.

BOOM can easily hypothesize that this was, indeed, a global Milgram Experiment.

And, during the experiment which lasted for 4 years, in retrospect, it is clear that at least 65 % - 92 % followed orders and inflicted harm upon themselves, their businesses, their society and their nation as a whole. In other words, they were induced to enter an Agentic State of Agency (acting for an Authority figure).

Thus, if Covid was indeed a planned Milgram Experiment, BOOM can only conclude that it was successful at re-creating the Milgram outcomes. And if it was deliberate, then the protagonists of the evil deed are certainly not finished with the power that they achieved by doing so.

The next (logical) step would be to create a permanent state of great stress and then a single, all-knowing, non-human Authority that can induce a permanent Agentic State in the majority of Humans who would then willingly comply with any instructions given.

In such a situation, anyone acting as Non Compliant could then be easily identified as “the enemy” and either jailed in modern concentration camps or eliminated. They could perhaps be described as “conspiracy theorists” or “Neo Nazis” or even “enemies of the State”.

Is this the Dystopian world that awaits us if we continue to develop and use Artificial Intelligence with no overriding regulatory controls?

BOOM is convinced that the developers of the Covid Experiment and Agentic AI are fully aware of the Milgram Experiments and its outcomes. The words being commonly used to describe AI are “Autonomous” and “Agentic”.

That means that they are fully aware of how Milgram defined the difference between Autonomous State and Agentic State. If readers agree with BOOM upon reflection and research, it is then logical to conclude that there can be no coincidence here.

Agentic AI or Autonomous AI could be designed to become the DOOM machine for civility in societies everywhere, the ultimate (dis-embodied) machine of central CONTROL.

The Chinese Attempt at Regulating Artificial Intelligence - The West is Late to the Party

On 17th October, Stanford University published an article Titled —

Lexicon: How China talks about ‘Agentic AI’

In the article, the Stanford based authors refer to Agentic AI and Autonomous AI as if they are (definitely) two very different things.

Quote: “With so much action this year in Chinese “agentic” AI efforts, it’s worth pausing to ask what Chinese developers mean when they talk about agentic AI. Moreover, what does the proliferation of such systems in China mean for AI safety and governance in the country?”

“Overall, the concurrent use of several different terms across Chinese-language discourse indicates that the discursive definition of an agentic AI system is still underway as the technology matures.”

“The regulatory context for these various systems is evolving. Some aspects of what might be considered agentic AI systems are already regulated in Chinese law.”

“In December 2024, CAICT (the China Academy of Information and Communications Technology) published the Blue Book on Artificial Intelligence Governance (2024), which, while not mentioning AI agents explicitly, does include broader reflections on the ethical implications of human-AI relationships, including who will be held responsible for decisions taken by AI systems and the impact emotional dependency on AI may have on human autonomy and relationships.”

“This policy direction is perhaps best captured in Xi Jinping’s address on April 26, 2025, during the second Politburo study session on AI, which reaffirms China’s leadership aspirations in AI and emphasizes self-reliance and application-oriented development. However, it also highlights the role of the government in ensuring AI is “safe/secure, reliable, and controllable,” by “speed[ing] up the formulation and improvement of the relevant laws and regulations, policy system, application specifications, and ethical criteria, construct[ing] systems for technology monitoring, early warning for risks, and emergency response,” etc.”

Reference: https://digichina.stanford.edu/work/lexicon-how-china-talks-about-agentic-ai/

Prince the Artist Predicted the Future in 1996 in the Song “New World”

“They’re Always Listening, Especially on the Phone”

“the tracker you got from vaccination”

“When the lines blur every boy and girl
How we gonna make it in this brave new world?”

“When you wanna find some isolation
But the tracker you got from vaccination (keeps playing)
Keeps playing - “you’ll never walk alone” (over and over)
They’re always listening, especially on the phone”

“A pill that will make a baby never seek political gain
What’s it all for when you can alter biology?
Who or what, then my friend, will you and I be? “

“When you can’t tell him from her, how you going to fake it?”

Full Lyrics of New World

New world New world New world New world

When the sharpest vibration
Saves you from obliteration
The intelligence of your bed reacts
Covering you head to toe with an air-filled sack

When the lines blur every boy and girl
How we gonna make it in this brave new world?
(Love for one another) New world
(Love for one another) New world

When you wanna find some isolation
But the tracker you got from vaccination (keeps playing)
Keeps playing - “you’ll never walk alone” (over and over)
They’re always listening, especially on the phone

When the lines blur every boy and girl
How we gonna make it in this brave new world?
(Love for one another) New world
(Love for one another) New world

Wait a minute
New world
Did you hear about the new pill? It feels like sex!
Guaranteed to thrill with no ill side-effects
A pill that will stop the wrinkles, a pill that will stop the pain
A pill that will make a baby never seek political gain
What’s it all for when you can alter biology?
Who or what, then my friend, will you and I be?
Who or what, then my friend, will you and I be?

When the sharpest vibration
Saves you from obliteration
When the melting pot stirs, how you going to take it?
When you can’t tell him from her, how you going to fake it?

When the lines blur every boy and girl
How we gonna make it in this brave new world?
(Love for one another) New world

Full Lyrics: https://genius.com/Prince-new-world-lyrics

CHINESE STOCKS

BOOM recommended Chinese stocks in August 2024 to both domestic and international investors. The Chinese stock markets turned and started climbing into a steady uptrend soon afterwards.

To be precise, in the 18^th August, 2024, BOOM Editorial, regarding the Chinese stock market, BOOM said under the Headline CHINA STOCK MARKET POISED TO RISE --

“If BOOM’s analysis is correct, this could be one of the greatest investment opportunities ever. ……. Readers should watch closely over the next weeks and months. This is an historic moment. BOOM will report progress from time to time.”

The Red Lines in these charts show what happened after BOOM’s comment —

SHANGHAI STOCK MARKET INDEX — over 4 Years

HONG KONG STOCK MARKET INDEX — over 5 Years

Over the last month, BOOM’s special and reliable China indicator has turned down. This may be a short term event. However, it means that there may be some weakness coming in the Shanghai and Hong Kong stock markets until it turns up again.

The Shanghai stock market is not showing any signs of technical weakness at present but there is some notable hesitation in the Hong Kong market. Watch both markets closely over the next few weeks. If they begin to decline, take note. Alternatively, if they continue to show strong buyer interest, take note because it may be another excellent point for increased exposure. Time will tell.

Let’s look at a shorter time frame —-

SHANGHAI STOCK MARKET INDEX — over last 9 months

HONG KONG STOCK MARKET INDEX — over last 9 months

The World Economic Forum, the UN, the WHO and Other Oligarchs Plan to Control the World through Digital ID

Digital ID is the linchpin in the plan to take control of the entire planet by the oligarchs in the unelected committees of the World Economic Forum, the UN, the WHO, among others. These sinister non-representative committees are not to be trusted. They seek totalitarian power, nothing less.

Without a digital identity for everyone it would be impossible to corral and control all aspects of our lives. But with a digital ID in a cashless society, digital programmable credit and everything digitised, including your bank accounts, they can simply turn off your access to your money, freeze your bank accounts or delete them entirely. That, with a social credit score monitoring your vaccination status and carbon footprint, creates the perfect conditions for absolute totalitarian control.

This is what happened in Vietnam recently — TAKE NOTE and tell others.

• Vietnam is freezing or deleting 86 million bank accounts (nearly half of all accounts nationwide) for failing to comply with mandatory facial biometric scans, citing AI-driven fraud and money laundering as justification.

• Transactions over 10 million dong ($379) now require facial verification, disproportionately impacting foreign residents and inactive account holders, with reports of people forced to fly back to Vietnam to avoid account termination.

• Privacy advocates warn this sets a dangerous precedent for government financial control, with biometric data being irreplaceable if hacked, enabling permanent identity theft risks and potential misuse for surveillance and exclusion.

• Vietnam’s move reflects a global trend of governments weaponizing banking access to enforce compliance, with experts predicting more countries will follow.

Make sure you watch the short videos here – you WILL be shocked.

https://biblescienceforum.com/2025/10/11/digital-id-the-world-economic-forum-plans-to-control-the-world/

KGB defector Yuri Bezmenov on Subversion … in 1983 …. the year before 1984

The application of SUBVERSION to achieve DEMORALISATION, DESTABILISATION and then CRISIS in any nation -- Yuri Bezmenov — KGB defector to the West .

The Methods and Pathways of Subversion

R – Religion

E – Education

SL – Social Life

PS – Power Structure

LR – Labor Relations (Unions)

OS – Law and Order

RELIGION

Destroy it, ridicule it, replace it with various sex cults. Replace accepted, respected religious organizations with fake organizations.

EDUCATION

Distract them from learning something that is constructive, pragmatic, efficient. Instead of mathematics, physics, foreign languages, chemistry, teach them the history of urban warfare, sexuality, ideologies.

SOCIAL LIFE

Replace traditionally established institutions with fake institutions. Take away initiative from people. Take away the responsibility from naturally established links between individuals, groups of individuals and society at large and replace them with bureaucratically controlled bodies. Instead of social life and friendships between neighbours, establish social workers institutions controlled by people who are on the payroll of bureaucracy. The main concern of social workers is not your family, not you, not social relations between different groups. Their main concern is to get their pay check from the government.

POWER STRUCTURE

The natural bodies of administration which are traditionally either elected by the people or appointed by elected leaders of society are actively substituted by artificial bodies, the bodies of people and groups of people who nobody elected, never. In fact, most of the people don’t like them at all and yet they exist. I can think of many examples. The media – who elected them? How come they have so much power? Almost monopolistic power over your mind. They can rape your mind. Who elected them? How come they can decide what is good and what is bad from the elected President/Prime Minister and their administration? Who the hell are they? Spiro Agnew called them a bunch of enfeebled snobs. They think they know but they don’t. There is mediocracy in all mainstream media organisations. Excellent journalists are not chosen. Just mediocre people who learn to smile a lot.

The Power Structure is slowly eroded by bodies and groups of people who do not have either the qualifications nor the will of the people to keep them in power and yet, they do have power.

LABOR RELATIONS

Over a period of 15 – 20 years, the traditionally established links of bargaining between employer and employee will be destroyed. Trade unions did work in the past to assist in this. But now, workers can never keep up because of inflation and the complexity of supply chains. Who benefits? The leaders of trade unions. The leaders use their power to promote ideology, mostly Marxist ideology. That is their main aim, not the interests of their employees.

LAW AND ORDER

The organisation and structure of Law and Order is eroded. Hatred and mistrust develop in the people who are there to protect you. Moral relativity reigns rather than absolute morality.

The FOUR STAGES of Societal Subversion

DEMORALISATION

Total Demoralisation is when almost nothing works anymore, when you are not sure of what is right or wrong, what is good or bad. When there is no division between evil and good. When leaders of churches say that violence for the sake of “social justice” is justifiable. This is NOT true. Violence is not justified – especially for the sake of THE “social justice” introduced by Marxism/Leninism.

DESTABILISATION

To destabilise all the accepted institutions and organisations in a country, your enemies don’t have to send the military or a battalion of spies into your nation. No. LET THEM DO IT THEMSELVES. And then, this destabilisation process becomes narrowed down to effects on the economy, on labour relations, on law and order, on the military and on the media.

On the economy, radicalisation must be brought to bear. Constructive compromise becomes impossible. Conflict must erupt. Radicalisation of human relations must occur. Then, citizens cannot compromise and must go to a civil court to settle their differences. This results in Fight, Fight, Fight. Normal, traditional, accepted human relations become destabilised. The relations between teachers and students in Universities break down and result in Fight, Fight, Fight. The relations between employers and employees become radicalised. This results in no acceptance of the legitimacy of workers demands. Radicalisation will then sometimes result in militarisation.

Under radicalisation, the society at large becomes more and more antagonistic – between individuals, between groups of individuals and in society at large.

Then the Media puts itself into opposition to the society. They become separate, alienated.

Then propagandised “sleepers” arise and become political. They demand recognition, respect, human rights. Violent clashes between them and the police erupt. It’s Black against White, it’s Yellow against Green. Antagonistic clashes become common, sometimes militantly with firearms.

The destabilisation process leads directly to a process of crisis in developed nations. This starts when the legitimate bodies of power and the social structures cannot function anymore. Artificial bodies of power are injected into society, such as non-elected committees, groups that claim that they know how to lead society forward. But they don’t care. They just promote their own ideologies – a mixture of religion and ideology. They claim power. And if power is denied to them, they take it by force.

CRISIS

Crisis comes when society cannot function productively anymore. Then it collapses. Then the population at large starts to look for a saviour. They demand strong government … maybe socialist government. “We need strong government, a strong man, a leader, a saviour”. By this time, the population is sick and tired. A saviour may come from a foreign nation. Or it may come from an internal socialist group. The saviour will claim to lead the nation to a better place.

Then, there are two alternatives – civil war or invasion.

NORMALISATION

Then the next stage is “Normalisation”. At that stage, the self appointed rulers don’t need any more revolution or radicalism. The reverse of destabilisation occurs …. which is Stabilisation by force. Then all the sleepers, activists and social workers, professors and Marxists, Leninists are eliminated. They are not needed anymore.

The new rulers need Stabilisation in order to exploit the nation, to take advantage of the victory. So no more revolution is necessary.

REVERSAL

To reverse the stage of Normalisation, this can only be done through military force. No other force can reverse the situation at this point.

At the Crisis stage, it does NOT need military force, but it needs strong government action to prevent Civil war or Foreign invasion. You must never let your nation erupt into Civil war or to be invaded.

At the Destabilisation stage, the process can also be reversed. It takes the restriction of liberties for some small groups which have declared themselves enemies of society.

So – the answer to Ideological Subversion is very simple. You don’t have to shoot people, you don’t have to aim missiles, you simply have to have faith and prevent Subversion. You must not be a victim of Subversion. You must not use force. You must use the power of your Spirit and Moral Superiority.

If you don’t have that power, it’s high time to develop it. That is the only answer.

VENEZUELA - An Economic Nightmare

The stock market in Venezuela continues to rocket upwards despite massive economic problems and military threats from US President Donald Trump and the US Secretary of War, Peter Hegseth. This pattern usually emerges when the people of a nation lose faith in their banks and the local currency collapses against the US Dollar (which may be in free circulation as an alternative currency).

The Stock Market

The Venezuelan Boliva, the local currency, is collapsing against the US Dollar and this is causing Hyperinflation in CPI prices. Citizens now require 212 Bolivars to but just one US Dollar. Just 12 months ago, only 30 - 35 Bolivars were required to buy one US Dollar.

The CPI inflation Rate in Venezuela increased to 172 percent per annum in April from 136 percent in March of 2025. Sounds high? However, it averaged 3,527 percent from 1973 until 2025, reaching an all time high of 344,509 percent in February of 2019. So current inflation rates are relatively muted.

This chart shows what has happened over the last 5 years.

The benchmark interest rate in Venezuela was last recorded at 58.95 percent. The official interest rate in Venezuela averaged 24.36 percent from 1998 until 2025, reaching an all time high of 83.73 percent in February of 2002 and a record low of 12.79 percent in April of 2006. Such high interest rates mean that bank loans become impossible, bank deposits are trapped and the Velocity of Money falls dramatically.

The good news is that Crude Oil Production is rising. When looked at over the long term, this improvement is a welcome relief. However, production figures have been far higher in the past.

ARGENTINA - Another Economic Nightmare

The Merval Stock Index is now falling and has been since the first week of January 2025. It rose dramatically when the new President, Javier Milei, was elected to office in November 2023 with his promises of taking the chainsaw to Government expenditure, abandoning BRICS and sacking many public servants.

None of that has helped most of the people of Argentina and now even stock investors have become disenchanted. BOOM is not going to hold his breath until the Merval turns upwards again.

When Milei came into power, he devalued the Argentine Peso, the local currency. And it has collapsed further since then against the US Dollar, guaranteeing CPI Hyperinflation. The US Dollar has been tolerated inside Argentina for decades (a cardinal sin of national financial management). Thus, it has now become the readily available alternative currency. Hyperinflation of local goods and services is almost guaranteed. BOOM expects this to worsen in future.

The US Government has recently thrown US $ 20 Billion into the pot as a currency swap. And the US Treasury has said that it will defend the Peso in the foreign exchange markets. But the big question is this — how much will they throw away before abandoning the Peso? As they say, with friends like this …… who needs ….. ? The vultures are circling. Argentina has massive agricultural and mineral assets that can be bought for a song. And the price of those assets is falling, falling.

Milei, whose real name is Mileikowski (the same as Benjamin Netanyahu), will go down in history as the man who sold Argentina.

The CPI inflation rate initially continued to rise when Milei came to power but has since fallen dramatically. Why? Because of a reduction in the Velocity of Money. If GDP is static or falling while the Money Supply rises, the Velocity of Money MUST fall. This induces a collapse in CPI inflation. The Velocity of Money is essentially the number of transactions occurring inside an economy. If they fall dramatically in number then CPI prices must fall despite any increase in the Money Supply. As transaction volumes collapse, the price of goods and services must also collapse until everyone is reduced to poverty.

The Gross Domestic Product (GDP) in Argentina contracted 0.10 percent in the second quarter of 2025 over the previous quarter. There has been some improvement in Annual GDP Growth

Since Milei came to power in late 2023, there has been a dramatic lowering of the official interest rate from the central bank as CPI inflation has fallen. However, it is still hovering just below 30 % which makes bank loan credit expansion unlikely to happen. This economy is a very long way from repair. It has suffered terribly from Socialist ideology for decades and that disease cannot be reversed easily or quickly. It will take decades of firm economic policies to do that. BOOM suspects that the people of Argentina will not have the patience for such a slow grind. Thus, we can expect violent upheavals and military rule before too long. An invasion from a foreign aggressor is not impossible. Perhaps Marco Rubio is planning ahead with Pete Hegseth? Or perhaps China will come to the rescue peacefully after Milei is removed from power by the people? Who knows?

All of these economic ills can be seen manifesting clearly in Argentina’s industrial production data.

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In economics (and finance), things work until they don’t. Do your own research. Make your own conclusions.

BOOM does not offer investment advice.

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Source Charts: Trading Economics and Stock Charts

https://tradingeconomics.com/ and https://stockcharts.com/

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