Make Argentina Great Again: US ready to support Argentina with 'large and forceful' action, Treasury chief says

essentialsaltes · Tuesday at 2:47 PM

WASHINGTON, Sept 22 (Reuters) - U.S. Treasury Secretary Scott Bessent on Monday said that "all options" were on the table for stabilizing Argentina, including swap lines and direct currency purchases, while underscoring President Donald Trump's confidence in Argentine President Javier Milei and his economic team.

Argentine financial assets rallied on Monday on the news, with U.S.-traded stocks up over 10% and the peso strengthening, after sharp drops in recent weeks that included international bonds declining more than 20% for the year through Friday.

Markets have been roiled by corruption allegations inside Milei's circle and a larger-than-expected loss in a local election in Buenos Aires, reflecting growing frustration with austerity measures and triggering investor concern over Milei's ability to continue to reshape the economy, with October midterm elections on the horizon.

Bessent, a former hedge fund executive, said he did not see a risk of financial contagion from the fallout and underlined Washington's confidence in Argentina's implementation of economic reforms.

Argentina in April signed a new $20 billion four-year loan deal with the IMF, where the U.S. is the biggest shareholder. The deal required the country to dismantle years-long currency controls and loosen its grip on the peso, but economists say the currency remains overvalued.

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

Going back to the oldies! Supporting potentially-corrupt rightwing governments in South America.

--

US announces it will do ‘whatever is necessary to support Argentina’

Treasury Secretary Scott Bessent says he is negotiating an economic bailout for Javier Milei amid market pressure against the far-right leader’s plan

A Trump bailout would bolster Milei’s hopes of stabilizing the South American country’s currency, reassuring the financial markets and improving his prospects for the October 26 legislative elections.

Richard T · Wednesday at 4:03 PM

I actually had high hopes that Argentina could move to more of a free market system. Their VAT system though similar to tariffs, is higher and wider than Trump's tariffs. I see electricity is taxed at a VAT of 27%. Leaving potential corruption aside, the task there was a bigger job than in the USA. Tough reforms can take years to turn a nation around. I would say that the USA is in that process now but higher and higher debt and continued spending is the real case of the USA.

Mileau too has more opposition in the legislative branch than Trump. Even with the USA help, I imagine the midterms will only make things worse for him. That we would lend money to affect his prospects is not founded in logic because it will be too little, too late unless the point is to give him two more years to fix things.

I find it interesting that Bessent said there would be no contagion. He means if financing and money goes out of control in Argentina, (such as occurred with Bear Stearns in the real estate collapse in 2008,) that it would not affect financiers in the USA. That bear stearns contagion was so great that the U.S. Federal Reserve loaned trillions domestically and around the world to avoid a financial collapse. For this Argentinian case, I doubt it is that severe. Usually when they make those kind of statements it must be a concern. Perhaps the USA is going to have to backstop some bad investments that USA investment firms made in Argentina? That could mean that we will support Argentina financially, not for their well-being, but so that US investment firms do not lose money. This is why I do not like investmant bankers in charge of the U.S. Treasury. I do see that Argentina got a 20 billion commitment from the IMF in April of 2025. I wonder what the US committment will be? Seems weird to help bail them out as we pay interest on that additional spending.

Bessent himself is quite a reach for Christian support. His lifestyle, business failings and wins, his lack of public service, and his ties to Georgy Soros seem good reasons not trust him in office. Scott Bessent - Wikipedia

I suppose Mileau has a small chance of turning around Argentina by the next Presidential election. Given the lack of support though, that chance seems quite slim. Argentina abused their own currency and soon it will completely dollarize. Though even the dollar is challenging and sending many to gold and commodities, I do believe that such dollarization will be a trend going forward as more and more nations go to the brink of their economies.

As to the contagion, ai or search could not answer questions as to who are the largest private bondholders. I did look up the history of the 2001 default with ai.
"In short, while Argentina’s default was a seismic event for emerging markets and global debt restructuring norms, it didn’t cause a significant downturn in U.S. equities. The American market was already under pressure from domestic factors, and Argentina’s troubles were seen as largely contained."
So the difference was that in 2001 the USA market had already collapsed due to 9/11. However, the current market is at all time highs so the results likely would be far worse if a collapse comes.

Sorry if I bored anyone concentrating on the possibility of "contagion." The governments of the world are rarely transparent on such crises. It certainly will not affect your US bank deposits and i doubt any US investment firm or bank will need a bail out. Events like this can roil stock markets though and their could be some poor results but mostly for Argentina. The amount of money of total private external debt is 108 billion according to AI.

FireDragon76 · Wednesday at 8:30 PM

One crook bailing out another...

essentialsaltes · Thursday at 3:32 PM

Why Is Trump Bailing Out Argentina?

This is about ideology and Trumpian fealty, not America’s interests

It’s true that the plan to aid Argentina looks quite a lot like Bill Clinton’s bailout of Mexico during that nation’s financial crisis of 1994-5. But we had a compelling interest in helping Mexico, which is our neighbor and one of our most important trading partners. We had just signed a free trade agreement with Mexico, and were also trying to bolster Mexico’s transition from one-party rule to genuine democracy.

Argentina, in contrast, is not systemically important to the United States. Argentina is a miniscule player in terms of US interests. The U.S. accounts for only about 1/8th of Argentina’s imports, less than its imports from the European Union and much less than its imports from China.

It’s definitely a lot less important, both strategically and economically, than Brazil, whose economy is more than three times as big as Argentina’s. Yet Trump has completely alienated Brazil, imposing 50 percent tariffs on the nation for daring to try and convict a former president who attempted to overturn his electoral defeat.

In February, Milei and Elon Musk shared the stage, wielding a chainshaw, during the Conservative Political Action Conference (CPAC.) And Milei has deftly played the part of the Trump acolyte, praising Trump’s tariffs and deportations at the UN, while attacking “left-wing infiltration” of American institutions.

wing2000 · Thursday at 5:49 PM

Hey soy bean farmers, get in line....behind Trump's amigo in Argentina.

The American Soybean Association, which has been lobbying for economic support for farmers, said that the “frustration is overwhelming.” The group pointed out that Argentina just lowered its export taxes so that it could sell even more soybeans to China, further undercutting the U.S. farmers who face high Chinese tariffs.

“U.S. soybean prices are falling; harvest is underway; and farmers read headlines not about securing a trade agreement with China, but that the U.S. government is extending $20 billion in economic support to Argentina,” said Caleb Ragland, the president of the American Soybean Association.

https://www.nytimes.com/2025/09/25/us/politics/trump-argentina-milei-bailout.html

Nithavela · Friday at 3:50 AM

Looks like Mister Chainsaw's economic polcies are so good that he needs the USA to bail his coutnry out.

But let me guess. This is all just trolling to trigger "the left", and many people on the right are once again slapping their knees at the predictable "howls of outrage" as their money is sent halfway across the world.

High Fidelity · Friday at 4:42 AM

Richard T said:
I actually had high hopes that Argentina could move to more of a free market system. Their VAT system though similar to tariffs, is higher and wider than Trump's tariffs. I see electricity is taxed at a VAT of 27%. Leaving potential corruption aside, the task there was a bigger job than in the USA. Tough reforms can take years to turn a nation around. I would say that the USA is in that process now but higher and higher debt and continued spending is the real case of the USA.

Mileau too has more opposition in the legislative branch than Trump. Even with the USA help, I imagine the midterms will only make things worse for him. That we would lend money to affect his prospects is not founded in logic because it will be too little, too late unless the point is to give him two more years to fix things.

I find it interesting that Bessent said there would be no contagion. He means if financing and money goes out of control in Argentina, (such as occurred with Bear Stearns in the real estate collapse in 2008,) that it would not affect financiers in the USA. That bear stearns contagion was so great that the U.S. Federal Reserve loaned trillions domestically and around the world to avoid a financial collapse. For this Argentinian case, I doubt it is that severe. Usually when they make those kind of statements it must be a concern. Perhaps the USA is going to have to backstop some bad investments that USA investment firms made in Argentina? That could mean that we will support Argentina financially, not for their well-being, but so that US investment firms do not lose money. This is why I do not like investmant bankers in charge of the U.S. Treasury. I do see that Argentina got a 20 billion commitment from the IMF in April of 2025. I wonder what the US committment will be? Seems weird to help bail them out as we pay interest on that additional spending.

Bessent himself is quite a reach for Christian support. His lifestyle, business failings and wins, his lack of public service, and his ties to Georgy Soros seem good reasons not trust him in office. Scott Bessent - Wikipedia

I suppose Mileau has a small chance of turning around Argentina by the next Presidential election. Given the lack of support though, that chance seems quite slim. Argentina abused their own currency and soon it will completely dollarize. Though even the dollar is challenging and sending many to gold and commodities, I do believe that such dollarization will be a trend going forward as more and more nations go to the brink of their economies.

As to the contagion, ai or search could not answer questions as to who are the largest private bondholders. I did look up the history of the 2001 default with ai.
"In short, while Argentina’s default was a seismic event for emerging markets and global debt restructuring norms, it didn’t cause a significant downturn in U.S. equities. The American market was already under pressure from domestic factors, and Argentina’s troubles were seen as largely contained."
So the difference was that in 2001 the USA market had already collapsed due to 9/11. However, the current market is at all time highs so the results likely would be far worse if a collapse comes.

Sorry if I bored anyone concentrating on the possibility of "contagion." The governments of the world are rarely transparent on such crises. It certainly will not affect your US bank deposits and i doubt any US investment firm or bank will need a bail out. Events like this can roil stock markets though and their could be some poor results but mostly for Argentina. The amount of money of total private external debt is 108 billion according to AI.

The problem isn't with the work that's been done, rather a lot of internal sabotage essentially to force him out.

FAITH-IN-HIM · Friday at 8:11 AM

Richard T said:
I actually had high hopes that Argentina could move to more of a free market system. Their VAT system though similar to tariffs, is higher and wider than Trump's tariffs. I see electricity is taxed at a VAT of 27%. Leaving potential corruption aside, the task there was a bigger job than in the USA. Tough reforms can take years to turn a nation around. I would say that the USA is in that process now but higher and higher debt and continued spending is the real case of the USA.

Mileau too has more opposition in the legislative branch than Trump. Even with the USA help, I imagine the midterms will only make things worse for him. That we would lend money to affect his prospects is not founded in logic because it will be too little, too late unless the point is to give him two more years to fix things.

I find it interesting that Bessent said there would be no contagion. He means if financing and money goes out of control in Argentina, (such as occurred with Bear Stearns in the real estate collapse in 2008,) that it would not affect financiers in the USA. That bear stearns contagion was so great that the U.S. Federal Reserve loaned trillions domestically and around the world to avoid a financial collapse. For this Argentinian case, I doubt it is that severe. Usually when they make those kind of statements it must be a concern. Perhaps the USA is going to have to backstop some bad investments that USA investment firms made in Argentina? That could mean that we will support Argentina financially, not for their well-being, but so that US investment firms do not lose money. This is why I do not like investmant bankers in charge of the U.S. Treasury. I do see that Argentina got a 20 billion commitment from the IMF in April of 2025. I wonder what the US committment will be? Seems weird to help bail them out as we pay interest on that additional spending.

Bessent himself is quite a reach for Christian support. His lifestyle, business failings and wins, his lack of public service, and his ties to Georgy Soros seem good reasons not trust him in office. Scott Bessent - Wikipedia

I suppose Mileau has a small chance of turning around Argentina by the next Presidential election. Given the lack of support though, that chance seems quite slim. Argentina abused their own currency and soon it will completely dollarize. Though even the dollar is challenging and sending many to gold and commodities, I do believe that such dollarization will be a trend going forward as more and more nations go to the brink of their economies.

As to the contagion, ai or search could not answer questions as to who are the largest private bondholders. I did look up the history of the 2001 default with ai.
"In short, while Argentina’s default was a seismic event for emerging markets and global debt restructuring norms, it didn’t cause a significant downturn in U.S. equities. The American market was already under pressure from domestic factors, and Argentina’s troubles were seen as largely contained."
So the difference was that in 2001 the USA market had already collapsed due to 9/11. However, the current market is at all time highs so the results likely would be far worse if a collapse comes.

Sorry if I bored anyone concentrating on the possibility of "contagion." The governments of the world are rarely transparent on such crises. It certainly will not affect your US bank deposits and i doubt any US investment firm or bank will need a bail out. Events like this can roil stock markets though and their could be some poor results but mostly for Argentina. The amount of money of total private external debt is 108 billion according to AI.

Bessent's efforts to turning around the Argentinian economy make sense. While an Argentinian default may not be as serious as Bear Stearns in 2008, it would still have an impact.

What I find particularly shocking is how Scott Bessent was able to persuade the Trump administration and his team to provide assistance to Argentina. Given that this administration has shown reluctance to support even Canada, I am genuinely interested in understanding what factors convinced them to extend help to Argentina.

Richard T · Friday at 8:29 AM

FAITH-IN-HIM said:
Bessent's efforts to turning around the Argentinian economy make sense. While an Argentinian default may not be as serious as Bear Stearns in 2008, it would still have an impact.

What I find particularly shocking is how Scott Bessent was able to persuade the Trump administration and his team to provide assistance to Argentina. Given that this administration has shown reluctance to support even Canada, I am genuinely interested in understanding what factors convinced them to extend help to Argentina.

Yes, that is a good question. Usually Trump wants something from a country. Argentina has little to give though. Seems like it is more personal but Milei is somewhat a practicing Jew, and they don't have too much in common. Maybe the money will help them dollarize completely which is like giving the USA a perpetual free loan? Or it is just Trump and Bessent helping their buddies that have investments there.

mark46 · Friday at 8:31 AM

I don't have any problem with Trump's actions here. Just because his name is Trump doesn't mean that he isn't making the right decision, supporting the loan through the IMF.

GoldenBoy89 · Friday at 8:34 AM

FAITH-IN-HIM said:
Bessent's efforts to turning around the Argentinian economy make sense. While an Argentinian default may not be as serious as Bear Stearns in 2008, it would still have an impact.

What I find particularly shocking is how Scott Bessent was able to persuade the Trump administration and his team to provide assistance to Argentina. Given that this administration has shown reluctance to support even Canada, I am genuinely interested in understanding what factors convinced them to extend help to Argentina.

“Our side vs their side.”

Desk trauma · Friday at 8:35 AM

High Fidelity said:
The problem isn't with the work that's been done, rather a lot of internal sabotage essentially to force him out.

Ah yes, the Libertarian version of not real communism.

essentialsaltes · Friday at 9:07 AM

mark46 said:
I don't have any problem with Trump's actions here. Just because his name is Trump doesn't mean that he isn't making the right decision, supporting the loan through the IMF.

The IMF loan was back in April. This is an additional $20 billion in the form of a credit default swap (if I'm reading it right), coming straight from the US Treasury. And Treasury is prepared to do more if necessary.

US Readies $20 Billion Rescue to Help Milei Win in Argentina

The US plans to extend a $20 billion swap line to Argentina and is ready to buy the country’s foreign bonds, providing much-needed financial support to President Javier Milei as he tries to regain investor confidence and stem a run on the peso.

Terms of the deal are still being negotiated, Treasury Secretary Scott Bessent said in a post on X early Wednesday that sparked a brief rally in Argentine assets. He made clear in an interview on Fox News that the financing was meant to help Milei ahead of a crucial midterm vote next month, aiding an ideological ally in a region where President Donald Trump has few friends in power.

In addition to the swap line, Bessent said the US is “prepared to deliver” a stand-by credit from the Treasury’s Exchange Stabilization Fund. It wasn’t immediately clear if the swap and stand-by credit would both come from the ESF.

The US support may be a moment for Milei to shift his currency policy so the central bank can rebuild its depleted foreign reserves. Monetary officials blew through more than $1 billion last week to keep the peso within a trading range established in April as part of Argentina’s latest deal with the International Monetary Fund.

Bessent’s plan would mark an extraordinary turnabout for a US president who was elected on a promise to limit American military and financial interventions overseas in favor of focusing on domestic concerns. Since taking office, Trump has slashed billions in foreign aid and cut or suspended military assistance for Ukraine in its fight against Russia. But in the case of Argentina, Trump appears to be coming to the aid of a leader whom the administration views as an ideological ally.

The American Soybean Association criticized the Trump administration for aiding a country that’s rushing shipments to China in competition with US soy farmers’ harvest, which faces retaliatory tariffs in the Asian nation.

Nithavela · Friday at 9:27 AM

essentialsaltes said:
The IMF loan was back in April. This is an additional $20 billion in the form of a credit default swap (if I'm reading it right), coming straight from the US Treasury. And Treasury is prepared to do more if necessary.

US Readies $20 Billion Rescue to Help Milei Win in Argentina
The US plans to extend a $20 billion swap line to Argentina and is ready to buy the country’s foreign bonds, providing much-needed financial support to President Javier Milei as he tries to regain investor confidence and stem a run on the peso.

Terms of the deal are still being negotiated, Treasury Secretary Scott Bessent said in a post on X early Wednesday that sparked a brief rally in Argentine assets. He made clear in an interview on Fox News that the financing was meant to help Milei ahead of a crucial midterm vote next month, aiding an ideological ally in a region where President Donald Trump has few friends in power.

In addition to the swap line, Bessent said the US is “prepared to deliver” a stand-by credit from the Treasury’s Exchange Stabilization Fund. It wasn’t immediately clear if the swap and stand-by credit would both come from the ESF.

The US support may be a moment for Milei to shift his currency policy so the central bank can rebuild its depleted foreign reserves. Monetary officials blew through more than $1 billion last week to keep the peso within a trading range established in April as part of Argentina’s latest deal with the International Monetary Fund.

Bessent’s plan would mark an extraordinary turnabout for a US president who was elected on a promise to limit American military and financial interventions overseas in favor of focusing on domestic concerns. Since taking office, Trump has slashed billions in foreign aid and cut or suspended military assistance for Ukraine in its fight against Russia. But in the case of Argentina, Trump appears to be coming to the aid of a leader whom the administration views as an ideological ally.

The American Soybean Association criticized the Trump administration for aiding a country that’s rushing shipments to China in competition with US soy farmers’ harvest, which faces retaliatory tariffs in the Asian nation.

There's the old joke that the USA is the only country where socialism is possible, since it's the only country the USA wouldn't sabotage.

Seems like this cuts both ways and there is no country where turbo-capitalistic libertarianism wouldn't work, since the USA will just buy them out of any trouble.

mark46 · Friday at 10:33 AM

FAITH-IN-HIM said:
Bessent's efforts to turning around the Argentinian economy make sense. While an Argentinian default may not be as serious as Bear Stearns in 2008, it would still have an impact.

What I find particularly shocking is how Scott Bessent was able to persuade the Trump administration and his team to provide assistance to Argentina. Given that this administration has shown reluctance to support even Canada, I am genuinely interested in understanding what factors convinced them to extend help to Argentina

FireDragon76 said:
One crook bailing out another...

https://www.cnn.com/2025/09/25/business/argentina-bailout-trump-milei

Trump has some allies. This is one.

GoldenBoy89 · Friday at 10:44 AM

“The American Soybean Association criticizedthe Trump administration for aiding a country that’s rushing shipments to China in competition with US soy farmers’ harvest, which faces retaliatory tariffs in the Asian nation.”

Lol. Have fun!

wing2000 · Friday at 11:02 AM

...and if Argentina defaults, guess who gets stuck with the bill?

".....Argentina is a high-risk borrower.
The country has repeatedly been backed to the hilt by global creditors – including the biggest loan in International Monetary Fund history, greenlit during Trump’s first term – only to relapse into financial turmoil, raising doubts about its ability to repay."

https://finance.yahoo.com/news/bessent-puts-us-money-risk-103000830.html

mark46 · Friday at 11:07 AM

wing2000 said:
...and if Argentina defaults, guess who gets stuck with the bill?

".....Argentina is a high-risk borrower.
The country has repeatedly been backed to the hilt by global creditors – including the biggest loan in International Monetary Fund history, greenlit during Trump’s first term – only to relapse into financial turmoil, raising doubts about its ability to repay."

https://finance.yahoo.com/news/bessent-puts-us-money-risk-103000830.html

So?

That's what we do for our allies.

That's what we do if we choose to prevent allowing a country to go into chaos possibly affecting the economies of other countries.

Democrats should simply consider this $20B of foreign aid.

wing2000 · Friday at 11:09 AM

mark46 said:
So?

That's what we do for our allies.

That's what we do if we choose to prevent allowing a country to go into chaos possibly affecting the economies of other countries.

Democrats should simply consider this $20B of foreign aid.

....normally, strings are attached - i.e. AR would be forced to make budgetary cuts, etc.

This isn't a done deal yet...so let's see what conditions are applied if the administration actually does the deal.

P.S. Do you make loans to high risk borrowers?

GoldenBoy89 · Friday at 11:52 AM

mark46 said:
Democrats should simply consider this $20B of foreign aid.

We do. It was the right who went on a crusade against foreign aid.

Make Argentina Great Again: US ready to support Argentina with 'large and forceful' action, Treasury chief says

Fact-Based Lifeform

US announces it will do ‘whatever is necessary to support Argentina’​

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Fact-Based Lifeform

Why Is Trump Bailing Out Argentina?​

This is about ideology and Trumpian fealty, not America’s interests​

E pluribus unum

you're in charge you can do it just get louis

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We're Still Here

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Fact-Based Lifeform

US Readies $20 Billion Rescue to Help Milei Win in Argentina​

you're in charge you can do it just get louis

US Readies $20 Billion Rescue to Help Milei Win in Argentina​

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We're Still Here

E pluribus unum

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E pluribus unum

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