Zincwarrior
Diamond Member
Trump Admin setting up $20Bn lifeline to failed Argentina state. Er...why?
Trump set to bail out Argentina, irking some in ‘America First’ camp
The Trump administration is set to provide a $20 billion financial lifeline to Argentina, a move that has sparked controversy among some of his supporters.By David J. Lynch
President Donald Trump’s decision to give Argentina a $20 billion financial lifeline has stirred anger among some of his most loyal supporters and raised questions about the limits of his “America First” approach to the global economy.
The president’s customary allergy to using taxpayer money to help other nations makes the Argentine rescue especially noteworthy. Since taking office in January, Trump has slashed U.S. foreign aid programs, slow-walked military assistance for Ukraine and demanded that close allies like South Korea and Japan pay for a greater share of their defense.
But the administration last week showed no hesitation about saving Argentina from its latest economic misfortune. It’s not that the Latin American nation is vital to the global economy. Though it was among the world’s richest countries in the early 20th century, today its annual output is roughly equal to Michigan’s.
The U.S. intervention stems from a blend of political and economic considerations. Trump is a fan of Argentine President Javier Milei, a libertarian whose attacks on government spending and red tape have made him a folk hero to the American right. This month, however, Milei’s party was trounced in provincial elections in Buenos Aires, raising doubts about his ability to retain a legislative majority in Oct. 26 midterm elections. Treasury Secretary Scott Bessent says Milei needs “a bridge to the election” so that he can win a renewed mandate for reform.
“I don’t think there’s too much doubt that President Trump himself personally has instructed Secretary Bessent and the Treasury Department to come to Argentina’s aid and support President Milei because President Trump wants to support President Milei,” said Douglas Rediker, chairman of International Capital Strategies, which advises institutional investors.
By trying to solve his ally’s problem, Trump is creating fresh headaches for himself. American farmers, among the president’s most loyal supporters, were outraged this past week when Argentina suspended its 26 percent export tax to encourage China to place a massive order for soybeans even as Washington was preparing to help Milei.
