Trump set to bail out Argentina, irking some in 'America First' camp

[Yo_Mama_Been_Loggin]

President Donald Trump’s decision to give Argentina a $20 billion financial lifeline has stirred anger among some of his most loyal supporters and raised questions about the limits of his “America First” approach to the global economy.

The president’s customary allergy to using taxpayer money to help other nations makes the Argentine rescue especially noteworthy. Since taking office in January, Trump has slashed U.S. foreign aid programs, slow-walked military assistance for Ukraine and demanded that close allies like South Korea and Japan pay for a greater share of their defense.

But the administration last week showed no hesitation about saving Argentina from its latest economic misfortune. It’s not that the Latin American nation is vital to the global economy. Though it was among the world’s richest countries in the early 20th century, today its annual output is roughly equal to Michigan’s.

The U.S. intervention stems from a blend of political and economic considerations. Trump is a fan of Argentine President Javier Milei, a libertarian whose attacks on government spending and red tape have made him a folk hero to the American right. This month, however, Milei’s party was trounced in provincial elections in Buenos Aires, raising doubts about his ability to retain a legislative majority in Oct. 26 midterm elections. Treasury Secretary Scott Bessent says Milei needs “a bridge to the election” so that he can win a renewed mandate for reform.

https://www.msn.com/en-us/money/markets/trump-set-to-bail-out-argentina-irking-some-in-america-first-camp/ar-AA1NsmtA

I'd venture a guess the vast majority of Americans who are aware of this are irked by it.

[JI7]

1. They got rid of their black population and gave refuge to Nazis

8

[Prairie Gates]

2. Why are they in economic trouble in the first place? Don't they have a genius MAGA economist in charge?

[underpants]

5. Yes. He has lowered inflation from 289% to 34%

He cut 50,000 government jobs


Currency is the root of Argentina’s problems. The overvalued peso, which has lifted Argentines’ living standards, has hurt exports and led to a wider trade deficit. That has worked against efforts to rebuild foreign currency reserves, leaving the government short of the dollars it needs to service its $250 billion foreign debt.

Milei squandered a significant amount of dollar reserves to buy pesos in the open market in an effort to sustain the currency’s value, fearing a decline would fuel the inflation that he is trying to eradicate.

[Prairie Gates]

6. Sounds like his miraculous inflation reduction was a temporary illusion, in that case

Like all libertarian economics, it sounds good in relation to its own internal system of claims, but is a catastrophe in real world conditions.

[peppertree]

9. That - plus the fact that it was from 160% not "289%" (Milei - like Trump - likes to move the goalpost a lot)

Inflation was (an already awful) 160% before he took office; but jumped to 289% after his shock devaluation on December 12th, 2023 - leading to a sharp drop in living standards (which, before he took office, were second only to Chile in the region).

As all Argentines (even small children) know, shock devaluations bring an immediate jump in prices - in fact, often days before it's announced, once it becomes certain.

Inflation did indeed slow afterward - but mostly because the 12/2023 shock forced households and business to sell dollars en masse to keep afloat. And as all Argentines also know, a stable dollar quote is sure to bring down inflation - all the more so, if activity crashes.

Milei always conveniently leaves out those two very obvious facts.

And now - after the requisite short-lived recovery (Argentines call these veranitos - little summers) - his debt-fueled currency bubble is popping in real time, as dollars stampede out of Buenos Aires.

Just as other, similar Argentine bubbles did - mostly under similar right-wing regimes - in 1981, 1989, 2001, and 2018.

With the 2018 crisis involving two of the very same miscreants (!): Trump (the sugar-daddy enabler) and Argentina's money-launderer Finance Minister, Luis Caputo.

Cry for Argentina, Prairie Gates - because they never learn.

[Bernardo de La Paz]

3. Farmers have been promised $20 billion but Argentina got it lickety-split. . . . nt

[Johonny]

8. Argentina sell the crops to China

That the US farmers used to, but Trump bailing both sides out because . . . Who the fuck knows?

[GoCubsGo]

4. They should be more than "irked," as should the rest of us.

He wants to bail out Argentina to the tune of tens of billions, while cutting healthcare and other services from American citizens? We should all be fucking enraged.

[underpants]

7. No kidding. Bessent publicly stating that we're buying the election for him.

Milei is an icon for MAGA. Trump is going to create massive homelessness and even worse healthcare.