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#4 | Posted by truthhurts at 2025-10-27 07:17 PM
Election interference
#3 | Posted by bat4255 at 2025-10-27 12:35 PM
I would not be surprised if the dump reneges on the deal.
Actually, the "deal" was that the $20B "currency swap" (plus potentially up to $20B of US government-backed "private financing arrangements") was contingent on electing Milei's party... so Greater Buenos Aires had higher turnout, "incentivized" not to lose the bailout.
"U.S. President Donald Trump indicated that he could rescind $20 billion in financial assistance to his close ally in cash-strapped Argentina if Milei party loses in Sunday's vote."
It really is a temporary bailout, since even after peso's official devaluation of over 50% to 801ARS per USD$1 in December 2023 it's continuing to lose value (it's now down 49% TTM at ~1475ARS to USD$1) despite cash injection from IMF and promised Trumpy "swap+" and the peso is still hugely overvalued; economic growth lagged expectations and inflation is picking up again to above 30% annualized, as Milei's initially promised "dollarization" has not happened... (yet? or because, simply, in Argentina's case it's nearly impossible and would exchange the problem of "exchange rate band" for many others they no longer would be able to control)... so they are effectively still a dual currency economy, which burned up through Argentina's USD reserves.
Ironically, Milei who promised the "end of bailouts" is being bailed out by Trump who promised to "end the bailouts" of deadbeat allies.
Also, Argentina may be getting orangepilled (crypto lingo) despite Milei family's / sister Karina Milei involvement in crypto scandal cooked up by same creators that gave you $MELANIA coin.
Of course, Peronists had candidates with same ol' baggage of Cristina Kirchner (convicted and sentenced to 6 years in prison and lifetime ban from public office for corruption) and same ol' "winning" message of "We'll spend more, you'll feel better... for a while."
anderson-review.ucla.edu - What happened when the Argentine government lied about inflation numbers? (2007 - 2015)
|------- ... Following a severe financial crisis in 2001 " 2002, when inflation reached 41 percent, the Argentine economy did recover, but, within a few years, inflation again climbed, to a rate of more than 20 percent. Government officials scrambled to enact price controls and other measures. Ultimately, though, their solution, as detailed in the paper, was to fire the statistician in charge of calculating the Consumer Price Index (CPI), and then just make things up. ...
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Many US and international libertarians are also very critical of Milei and his showboat populist "shock therapy" / "chainsaw" reforms, designed for an illusion of quick significant improvement in designated economic metrics for a short period of time, with infusions of capital just before midterm elections.
So, politically, things in Argentina are not that different from the US.
In 2024 total exports were valued at $79.7B and "trade surplus" was $18.9B (proving yet again that "trade surplus" - just as "trade deficit" - is a standalone meaningless accounting metric and doesn't deter your country from being a basket case; in fact, poorer countries usually have a "trade surplus" since they have less money to buy foreign goods and services):
Brazil ..... $13.62B
USA ........ $6.48B
Chile ...... $6.34B
China ...... $5.98B (will be much larger in 2025, since China switched soy and sorghum buys from the US to Argentina)
India ...... $3.93B
Vietnam .... $3.28B
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