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re: $40billion to Argentina - what’s the purpose?

Posted on 10/21/25 at 10:04 am to
Posted by Ernaye
Member since Oct 2018
314 posts
Posted on 10/21/25 at 10:04 am to
Way I understand it, The Argentina economy uses the dollar and the Peso, when there is a shortage of dollars which is the case now it creates economic difficulties. So we are doing a currency swap give dollars for pesos. The value difference will made up into a loan. Its also a Geopolitical move cause China is very active in the region. But the real interest is Argentina has large Lithium Reseves and other rare earth materials. Our end game is we want the Lithuania and other reserves but mainly the Lithium.
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
36027 posts
Posted on 10/21/25 at 10:11 am to
It's us guaranteeing the IMF loans. Maybe not necessarily outright, but the #'s match up....almost. Bessent is running cover for his friends who stand to lose on the trades if things go south. Possibly giving them time to unwind their positions.

The risk is that the peso could precipitously drop. It already dropped 1% yesterday which in the currency world keeps traders up at night. Their foreign reserves are just above critical . A balanced budget kind of helps, but with Argentina who has a shite export balance that may not be enough in the mid term or long term.
Posted by TigerAxeOK
Where I lay my head is home.
Member since Dec 2016
35628 posts
Posted on 10/21/25 at 10:18 am to
quote:

Prop up the one democratic/conservative government in a sea of Socialism

Money well spent, IMO.

Far better than funding drag shows in Botswana.
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
36027 posts
Posted on 10/21/25 at 10:33 am to
You may live to eat the "money well spent" part. If the peso travels down to 1550 by Monday morning, no one will be happy.....except for maybe the Peronists who see it as making Milei a dead man walking. It's around 1460 - 1470 right now.

However if you travel to Argentina, a steak dinner will be cheap provided you bring dollars
This post was edited on 10/21/25 at 10:40 am
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
36027 posts
Posted on 10/21/25 at 10:51 am to
Us obtaining the lithium would not be a problem...providing they get it out the ground. They want an export market.....maybe. Right now their foreign reserves are at critical levels .....maybe only 5 billion USD. We are guaranteeing their IMF loan with this move, but if there is a scramble for dollars, the peso starts to suffer devaluing it and making dollars more valuable....but also in higher demand that the central bank there may not be able to cover....excluding the liabilities. No one really wants to guarantee Argentine debt.....and no one is seriously bullish on the peso
Posted by lake chuck fan
Vinton
Member since Aug 2011
21556 posts
Posted on 10/21/25 at 10:54 am to
quote:

Trump sells himself as a deal maker. If he can put his money where his mouth is he should get something for us out of this


How do you know we won't? Also, there benefits to be gained that aren't monetary, as already mentioned.
Posted by Tesla
the Laurentian Abyss
Member since Dec 2011
9138 posts
Posted on 10/21/25 at 11:08 am to
Milei is Netanyahu’s cousin. This is a bailout with our tax dollars by order of Israel.
Posted by SirWinston
PNW
Member since Jul 2014
101626 posts
Posted on 10/21/25 at 11:10 am to
Just got some beautiful Argentinian filets and ribeyes from Trader Joes. IMO they taste as good as any non Wagyu meat from anywhere
This post was edited on 10/21/25 at 11:12 am
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
36027 posts
Posted on 10/21/25 at 11:14 am to
What tangible thing could we get from Argentina that we couldn't also get from the Brazilians or Chlieans or Other countries down there? Argentina has no real strategic purpose for us. They are a commodity heavy nation where agricultural interests rule the roost. The have a stunted industrial sector because of it. They do however, have decent infrastructure in terms of roads and transportation.

The fear of the ChiComs coming in is waaaaaay overblown, they just wanted soybeans, they aren't buying much of anything else from them. In terms of belt road initiatives, the Chinese don't want to mess with South America.....unlike Africa it's too developed and the ChiComs can't really exploit it too much. You can get around quite well in Argentina....and Brazil so long as you aren't going deep into the Amazon. Modern port facilities is Brazil and at Lima
Posted by DaveyJones12
Member since Dec 2022
326 posts
Posted on 10/21/25 at 11:16 am to
quote:

In the larger scheme 40 billion is not that much


ok, lets take the $40B and give it back to the top 10% of taxpaying citizens then. I'll take my $2,600 and spend it with the local AMERICAN cattle ranchers, not that Argentinian bullshite trump is trying to push

$40B is not that much? GTFO here.
Posted by onepiecemayne
Member since Nov 2023
908 posts
Posted on 10/21/25 at 11:22 am to
To pay for their universal health care
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
36027 posts
Posted on 10/21/25 at 11:25 am to
You get me wrong, I'm not an advocate for this. But this is how they think. But in terms of currency swaps and guarantees they see this amount as something that could easily be covered. Drop in the bucket for us, economically stabilizing for them......until the next time.
Posted by Bamanjo
Member since Sep 2025
219 posts
Posted on 10/21/25 at 11:26 am to
When will you people realize that Trump dngaf about any of us regular folk
Posted by CharlesLSU
Member since Jan 2007
33272 posts
Posted on 10/21/25 at 11:32 am to
Interesting takes.

It does seem it’s something that could bruise US cattle farmers.

But, I also see virtue in trying to lock up the minerals.

Then, there is the possible grift by others to just get more wealthy.
Posted by TX Tiger
at home
Member since Jan 2004
38063 posts
Posted on 10/21/25 at 11:33 am to
quote:

Also why do all our "allies" get billions a year, do nothing in return,
Because in order for the US dollar to remain the global reserve currency, we have to flood the market with it - lest they join BRICS.
It's a bribe. Period.

quote:

We either are the greatest nation on earth and people should be paying us to be "allies" or have special treatment, or we are getting fleeced by our leaders who give out money left and right while we crumble from within.
This is what happens with fiat currency. The world eventually loses faith in it.

This is why the discussion of debt is all bullshite. It's nothing more than a vehicle in which government uses to further its control grip over the population.
This post was edited on 10/21/25 at 11:36 am
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
36027 posts
Posted on 10/21/25 at 11:38 am to
You do realize BRICS is a name we coined? They can't even attend their own meetings
Posted by BTROleMisser
Murica'
Member since Nov 2017
9818 posts
Posted on 10/21/25 at 11:40 am to
Powerbottom just can't stop powerbottomming.
Posted by Barstools
Atlanta
Member since Jan 2016
11279 posts
Posted on 10/21/25 at 11:43 am to
quote:

the conservative government is so awesome then why does it need to be propped up


To get them out of the hole socialism pit them in? Are you retarded or something?
Posted by TX Tiger
at home
Member since Jan 2004
38063 posts
Posted on 10/21/25 at 11:43 am to
quote:

You do realize BRICS is a name we coined? They can't even attend their own meetings
Yes, I was using that as an example.
The fact is, there are a growing number of countries that have grown weary of our fiat currency.
It's why we must hand out around $100 BILLION each year in "aid" to keep the market flooded with US dollars.

ETA: If we didn't dish out billions each year in bribes, IMO, the US dollar would no longer be the world currency.

It's also why we spent 20-plus years in the Middle East. Those "terrorist" countries just happened to also be dealing oil in currency other than US dollars. Just a coincidence I'm sure.
We tried bribing them but that didn't work. So regime change was the only answer before China and Russia got fully on board. IMO, that would cause a world war.
This post was edited on 10/21/25 at 11:52 am
Posted by ManBearSharkReb
Member since Dec 2018
5491 posts
Posted on 10/21/25 at 12:24 pm to
The dollar will eventually collapse.
Started with getting baited into endless wars in the Middle East after 9/11 then bailing out Wall Street in the financial crisis then shutting down the global economy for a virus with a 99.99% survival rate. The US has an unsustainable debt level and continues running a deficit that will eventually collapse the dollar. CBDC is coming regardless of what we tweet out.
You literally have facial recognition technology and other biometric data being used to ID people in every airport on earth now and no one ever agreed to it or even challenged its adoption. Same will be the case for CBDC.
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