One bankrupt nation bails out another bankrupt nation:
Anyone know why?
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during a government shutdown
friends just gots to be friends.
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Trump likes the authoritarian leader of Argentina.
From the Buenos Aires Herald:
Trump calls Argentina’s Milei his ‘favorite president’
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Bessent’s friends called in some favours!
JimA
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According to Bessent, investors who are betting against the peso must have sinister political motives against Milei. That is, they can’t be pulling their money out to save their bottom line because this latest iteration of Argentine economic strategy is clearly failing, as so many have done in the past.
A new post by Matthew Klein explains the full extent of the scam: When outside players like the IMF or, now, the U.S. Treasury department lend money to the Argentine government, the money promptly flows right out again as investors — both domestic and foreign — take advantage of attempts to prop up the Argentine peso by engaging in capital flight, pulling their money out of the country. In other words, US taxpayer money is propping up the peso, allowing hedge funders to sell their Argentine assets at inflated prices, after which the peso will promptly fall again.
One of the people who urged Bessent to intervene on Milei’s behalf is Bessent’s old friend and former colleague Rob Citrone, a hedge-fund billionaire who bet big on Milei’s success and bought more Argentine assets just before Bessent’s announcement. Will Citrone take advantage of Bessent’s taxpayer-backed bridge loan of late September — because that’s all it is — to take his money and run? If he doesn’t he’s a fool, because that’s what all the smart money is doing. Argentina is currently burning through billions of dollars in reserves to defend the peso as everyone rushes for the exits.
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Some suggest that it’s a foreign diplomacy move to counter China. China already has a similar $18 billion swap line in place with Argentina. By offering $20 billion, the US is trying to maintain more influence.
Others suggest that in TFG’s world, friends matter more than isolationist America First supporters. After touting Milei for being some kind of economic genius, TFG’s administration now finds itself in the position of bailing him out to save face…for now.
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It’s so Argentina survives long enough to sell its soybeans to China, which is no longer buying them from the US since the imposition of tariffs. Then we can also bail out the soybean farmers who are suffering because of the tariffs. Its the bestest allocation of money in history.
Pete
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Good intelligent informative thread on what is underneath it all a “fascistinating” subject.
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