US ready to support Argentina's currency with 'large and forceful' action

reuters.com

10 points·jpster··5 comments

It shouldn’t just happen when nations align with our president’s philosophy, but we should do more of this. I suppose the difficulty is in doing this in a sustainable way. I don’t want Argentina to collapse if we pull back our support. I imagine failed states around the world might have turned out much better with a little support from the US, even the socialist ones.

> [Treasury Secretary Scott Bessent] said the Trump administration hoped to solidify what it sees as a rightward shift in Latin American countries, including potentially Colombia.

This is the part where the US officially turns itself into a third-world banana republic, by actually aligning their currency to those failed states.

The US dollar has already dropped by 10% since this new administration took power, so why not completely tank it?

> by actually aligning their currency to those failed states

Argentina’s economy is the size of Michigan’s [1][2]. (14th.) Its entire dollar reserves are less than half of the budget of New York City [3][4].

The impact of many single tariffs vastly outstrips the maximum effects of a swap line with Argentina on the U.S. dollar.

[1] https://en.m.wikipedia.org/wiki/Economy_of_Argentina

[2] https://en.m.wikipedia.org/wiki/List_of_U.S._states_and_terr...

[3] https://www.reuters.com/world/americas/argentinas-central-ba...

[4] https://council.nyc.gov/budget/wp-content/uploads/sites/54/2...

The monthly inflation of the last precedent was 13%, now it's only like 2% or 3%.

The price of the dollar goes up and down mysteriously. We had some restrictions that caused a fake official price, but this is a graph of the unofficial exchange rate https://dolarhoy.com/historico-dolar-blue (press 3Y).

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