Making Argentina Great Again
The aid continues to grow.
While the US government remains shut down, and while millions of Americans face substantial health care cost increases, the Trump administration is more than happy to help out their ally in Argentina, you know, as any “America first” regime might do.
As Judd Legum reports at Popular Information: UPDATE: Taxpayer bailout of Argentina may grow to $40 billion.
On September 24, Treasury Secretary Scott Bessent announced a $20 billion bailout for Argentina. Under that plan, Bessent will swap taxpayer dollars for Argentine pesos. President Trump admitted that the bailout, even if it succeeds, will provide little benefit to Americans. But as Popular Information first revealed, the bailout is critical to the economic fortune of hedge fund billionaire Robert Citrone, a personal friend and former colleague of Bessent, who has invested heavily in Argentine assets.
Meanwhile, via the AP: US ranchers oppose Trump’s plan to import more Argentine beef and experts doubt it will lower prices.
President Donald Trump ’s plan to cut record beef prices by importing more meat from Argentina is running into heated opposition from U.S. ranchers who are enjoying some rare profitable years and skepticism from experts who say the president’s move probably wouldn’t lead to cheaper prices at grocery stores.
To which I say: What? International trade is good now?
See also, Krugman, Argentina and Rural America’s Awakening.
The attempt by Trump and Scott Bessent, the Treasury secretary, to rush $20 billion to Argentina isn’t a big deal compared with the planned savage cuts to crucial programs. But it’s a graphic demonstration of the administration’s hypocrisy. After all the America First rhetoric, all the insistence that spending must be slashed, suddenly we’re sending lots of money to a foreign nation in which we have no real interest except for the fact that its president is a MAGA favorite. I don’t know how many voters are aware that these moves are in large part an attempt to bail out Bessent’s hedge-fund buddies, but I think the sense of something wrong and corrupt is leaking through.
Furthermore, from farmers’ point of view, Argentina is a rival — a big soybean exporter at a time when Trump’s trade war has locked our own farmers out of China’s market.
I have been to Argentina several times. I really like BA; it’s Paris with palm trees. I like Bariloche; it’s like a town in Tyrol with warm weather and sunshine in February and great skiing in July. I don’t know why their economy is such a mess. Locals smile when you ask them, but mix of corruption and Peronism are the main suspects. Trumpism is not unlike Peronism with our own version of Evita. Pouring US dollars into the place to help a Trump pal does not strike me as a good idea. Whatever happened to checks and balances in US governance?
@Slugger:
Who knew that Donald Trump could play the parts of both Juan and Evita!
Doubtless Millei having supported within the adminstration is a key motivator.
And the contrast with attitudes to Canada, Brazil, Colombia and Mexico is galring.
However, imho, this is a classic example of doing a sensible thing for a bad reason.
Millei’s attempt to stabilise the Argentinian economy is not, at base, a bad thing, either in intent or in much of its execution.
Considering the problems of the peso and the Argentinian bonds relates largely to the prospect of the Peronists returning to power, it makes sense to give Argentina a chance to avoid a financial crisis.
Dial down the outrage. this is not about helping the population of a low income country, nor is it about propping up a budding autocrat neck-deep in the orange ass’s ass.
This is about protecting the ill-considered investments of hedge funds managed by people friendly with Besssent.
And, really, if you cannot support using public funds to safeguard billionaires’ money, then are you a real American?