>>519098568 (OP)
It’s all about the U.S. dollar and trying to prop it up as the world reserve currency. Argentina’s broke on U.S. dollars, which it needs to pay debt, import goods, and keep its peso from collapsing. The U.S. Treasury (and some big banks) are setting up new dollar credit lines and swap deals to stop Argentina’s currency from totally imploding.
It’s not just economics, it’s politics and geopolitics too. Trump and Argentina’s President Javier Milei are ideologically aligned, both pushing market-friendly, anti-“socialist” policies. The bailout helps Milei stabilize things before Argentina’s elections, while keeping him close to Washington instead of turning to China for help.
From the U.S. side, it’s about:
• Preventing chaos that could spread to global markets.
• Keeping Latin America in the U.S. sphere of influence.
• Propping up an ally who supports Trump’s worldview.
But it’s controversial, critics say it’s “America Last,” sending billions abroad while U.S. needs pile up. Farmers and unions hate it because a stronger Argentina means more export competition. And if Argentina can’t fix its inflation and debt problems, this $40 billion could vanish fast.
The U.S is trying to buy leverage, time, and influence. But like most bailouts, it’s a gamble that could age badly. In fact, most do. The U.S. might be counting on the fact that these expenses (of $40 billion) can just be inflated away from their own debts, but it's a dangerous game. I'm sure most are aware of the predicament the U.S. is in, if they let the currency inflate it makes the debt easier to pay but it runs the risk of hyperinflation. They raise the interest rates to slow the inflation but it increases the amount of interest on the massive debt. There will be more Jewish tricks like "quantitive easing" (counterfeiting new money to go buy various financial products like stocks). But how many times can they do this before it eventually collapses and the US defaults?