US now gets to use Argetine military bases and do exercises in Argentina.
Argentina has elections soon and Trump wants to help a fellow right-wing lunatic stay in power.
The Argetine stock market is crashing and American billionaires wanted a bail out for their investments in Argentina.
22
☆ Yσɠƚԋσʂ ☆ - 2mon
The whole$20 billion for Argentina is mostly a financial rescue operation for a failing ideological project. The roots of the crisis trace back to a $50 billion IMF loan in 2018, which was heavily influenced by the first Trump administration. That loan did little to stabilize the Argentine economy and instead enabled capital flight, allowing the wealthy to move their money offshore and leaving the nation with a crippling debt.
Into this crisis stepped Javier Milei, who won power on a platform of anarcho-capitalism. His actual policies involved immediate and brutal austerity, slashing government ministries, and a sharp currency devaluation. The promised economic miracle never materialized for ordinary people. Instead, poverty rates exploded to over half the population, real wages collapsed, and hunger reached historic levels. The only "miracle" was a temporary stock market surge fueled by fire-sale privatizations and crushed labor costs.
Now, with Milei's popularity in freefall and his party facing electoral defeat, the Trump admin is stepping in once again. This $20 billion is a swap line and a promise to purchase Argentine government bonds. This mechanism provides the hard currency needed for Argentina's central bank to pay back its debts to wealthy bondholders, many of whom are American hedge funds. Bessent, a former hedge fund manager himself, has even admitted the administration is pressuring US companies to promise investments contingent on a favorable election outcome for Milei. This is a clear attempt to artificially prop up the Argentine economy just long enough to influence the upcoming vote.
Milei is a key political ally for Trump, and his failure would be a blow to their shared libertarian-populist movement. Furthermore, powerful US stakeholders like Musk have a direct interest in Argentina's vast lithium reserves. It is no coincidence that the financial support comes alongside agreements granting the US military access to Argentine bases. The US taxpayer is being positioned to backstop risky bets made by wealthy speculators on a failed economic experiment, all while similar social spending is being cut at home.
19
knfrmity - 2mon
Remember when meddling in foreign elections was a bad thing?
5
LeeeroooyJeeenkiiins [none/use name] - 2mon
no, i don't, what year did the u.s. start doing anything differently
6
TankieReplyBot - 2mon
I found a YouTube link in your post. Here are links to the same video on alternative frontends that protect your privacy:
yogthos in economics
The real reason why Trump is bailing out Argentina with $20 billion
https://www.youtube.com/watch?v=HSt6LWjw0YUTldr for those at work?
The whole$20 billion for Argentina is mostly a financial rescue operation for a failing ideological project. The roots of the crisis trace back to a $50 billion IMF loan in 2018, which was heavily influenced by the first Trump administration. That loan did little to stabilize the Argentine economy and instead enabled capital flight, allowing the wealthy to move their money offshore and leaving the nation with a crippling debt.
Into this crisis stepped Javier Milei, who won power on a platform of anarcho-capitalism. His actual policies involved immediate and brutal austerity, slashing government ministries, and a sharp currency devaluation. The promised economic miracle never materialized for ordinary people. Instead, poverty rates exploded to over half the population, real wages collapsed, and hunger reached historic levels. The only "miracle" was a temporary stock market surge fueled by fire-sale privatizations and crushed labor costs.
Now, with Milei's popularity in freefall and his party facing electoral defeat, the Trump admin is stepping in once again. This $20 billion is a swap line and a promise to purchase Argentine government bonds. This mechanism provides the hard currency needed for Argentina's central bank to pay back its debts to wealthy bondholders, many of whom are American hedge funds. Bessent, a former hedge fund manager himself, has even admitted the administration is pressuring US companies to promise investments contingent on a favorable election outcome for Milei. This is a clear attempt to artificially prop up the Argentine economy just long enough to influence the upcoming vote.
Milei is a key political ally for Trump, and his failure would be a blow to their shared libertarian-populist movement. Furthermore, powerful US stakeholders like Musk have a direct interest in Argentina's vast lithium reserves. It is no coincidence that the financial support comes alongside agreements granting the US military access to Argentine bases. The US taxpayer is being positioned to backstop risky bets made by wealthy speculators on a failed economic experiment, all while similar social spending is being cut at home.
Remember when meddling in foreign elections was a bad thing?
no, i don't, what year did the u.s. start doing anything differently
I found a YouTube link in your post. Here are links to the same video on alternative frontends that protect your privacy: