US Launches Financial Rescue of Argentina, Treasury Buys Pesos
bloomberg.com
bloomberg.com
But, as an Argentinian, I’d like to clarify that this financial rescue is intended for Milei.
We will have midterm elections soon, and the government is doing whatever it can to keep the USD exchange rate down so it doesn’t impact inflation and public perception. But this type of “rescue” is a band-aid, and it’s usually bad in the mid-long term.
In 2018, the IMF took a similar action. They extended the largest loan in their history, to cover bonds and provide some respite to Macri at the onset of an election year.
And if you wonder why this happens, it’s a combination of politicians who put their desire to stay in power over their country, geopolitics (a country in debt with you is easy to control), and high interest rates from high-risk bonds.
Sadly is a cycle repeated over and over in my country. In fact, the economy ministry that we have today it’s the same one involved in the 2018 negotiations with the IMF.
Why
Because business is business. You help us, we help you.
Your farmers are collapsing and going bankrupt, your job creation is falling, you are cutting SNAP benefits and billionaires are getting tax breaks.
I just don't understand why so many Americans are on board with this.
The political reason is saving the image of corporatism. Argentina under Milei was hyped as the libertarian paradise to happen real soon now. Unfortunately it went down-under even faster, exactly as everyone with a brain expected.
America has practiced this trick well.
So it's a ploy to expand the military budget beyond what was allocated by Congress. Either way, that's a money sink, not an investment.
The structure of the system itself has flaws in the same way, because of that asymmetry, on the positive side it allows someone capable to do great things with the resources available, but equally when you have a rotten cancerous parasitic crop of leaders, it spreads that corruption and toxic love everywhere just like Hexxus as he gets out of the prison.
American's aren't on board when that sacred promise is broken by oathbreakers. It does take time for the abuses to accumulate before a population will be spurned to action, it always happens like this during the fall of empires.
The environment becomes so disadvantaged and rife with abuse that the average person understands that there is no out, you can't get away, there is only through. The same as was brilliant depicted in Andor.
People will starve, but the abuses are necessary to mobilize the population to action. It doesn't happen otherwise because the consequence is too great (existentially so).
Citizens used to mostly talk to each other and make for a slow moving consensus, with a small overton window of broadcast mass media anchoring people to the status quo. Now they have a constant stream of grade A bullshit propaganda pumped into their eyes every time they check their phone, complete with a simulation of social proof as well. Remember the first Trump term when the party of "from my cold dead hands" was enthusiastically cheering on the jackboots for doing the exact type of night time home invasion that runs roughshod over the idea of self defense ? That's the level of extreme cognitive dissonance that social media can support.
The people who shout down calls for student loan forgiveness are in full support of it if it helps ICE hit their recruitment targets.
Why wouldn't those same people, who want international aid to go to zero be fine with a multi billion bailout of a South American country?
America is effectively two different countries at this point.
My plan is to just die once my body eventually gives out. So far, on point.
> Trevor died from liver disease that would have been preventable if he had had access to health care. But until his dying breath, he agreed with the policies that prevented ACA improvements because he did not want his tax dollars to pay for Mexicans or "welfare queens".
Bread (McDonalds, BurgerKing) and circus (TV, streaming).
Could soneone post a screenshot or a summary, or is this just the same as the topthread archive links?
Just in varying wording in threads with varying citations.
https://open.substack.com/pub/paulkrugman/p/bailing-out-bess...
Gun to my head, I might actually say Argentina. Countries can’t go bankrupt after all, but shareholders can always get wiped out.
Yes they can, and they can default on their debts. Argentina has defaulted several times:
I assume I am misunderstanding something you are saying or we are just talking past each other.
Puerto Rico is not sovereign (either in the international sense, or even in the more limited US-specific legal sense that US states are), it is a dependent territory of the United States. PROMESA thus is no more, and aeguably less, of an exception than federal Chapter 9 municipal bankruptcy (which applies to agencies, instrumentalities, and subdivisions of states, though not to states as a whole.)
Either the meaning of bankrupt is one which doesn’t apply to countries, in which case it’s a complete red herring to the question of whether an investment in a country can lose money, or we use a looser definition of the term “bankrupt” which the responder generously did that would allow a country to go “bankrupt” and an investment in it could lose money.
Either way, the only useful claim, that the US cannot lose money by investing in Argentina is almost certainly false.
https://www.motherjones.com/politics/2025/09/trump-argentina...