He became president of Argentina and achieved what economists said was impossible.

[ducks]

He became president of Argentina and achieved what economists said was impossible.

In a 2-hour interview with
@lexfridman
, he explains how he slashed 3,000+ regulations in 6 months.
https://x.com/benaverbook/status/1859055924268188096

[Winehole23]

how's the inflation?

GDP?

[Winehole23]

The current inflation rate in Argentina is 192.99%, which is calculated based on CPI (Consumer Price Index) values for the last 12 months ending in October 2024.

[Winehole23]

Argentina began a process of stabilizing its macroeconomy in 2024. Real GDP is estimated to contract by 3.5 percent in 2024, due to the stabilization plan that includes the realignment of relative prices and the elimination of fiscal and external imbalances.

[Winehole23]

but, same source (World Bank), looking to the future with rose colored glasses


economy is expected to grow by 5 percent in 2025, driven by improved weather conditions, investments in the energy sector, and normalization of agricultural production.Argentina Overview: Development news, research, data | World Bank (https://www.worldbank.org/en/country/argentina/overview)

[Winehole23]

good weather is coming!

[Allan Rowe vs Wade]

Argentina was so incredibly fucked due to structural corruption half of the US can only imagine in their wettest dreams. At that point might as well elect anyone and try anything. Hope it works out tbh bc luv Manu

[hater]

He became president of Argentina and achieved what economists said was impossible.

In a 2-hour interview with
@lexfridman
, he explains how he slashed 3,000+ regulations in 6 months.
https://x.com/benaverbook/status/1859055924268188096

Um argentines are still eating out of trashcans :lmao

That clown didnt do shit

[hater]

Argentina was so incredibly fucked due to structural corruption half of the US can only imagine in their wettest dreams. At that point might as well elect anyone and try anything. Hope it works out tbh bc luv Manu

Snake oil salesmen speak spanish too


Sadly

[Leetonidas]

Inflation good now

[hater]

Inflation good now

Extreme inflation and radical poverty are great as long as the rightwing memes are going hard on the interwebspheres :lol

[ElNono]

Poverty there is like 53% of the total population and actually increased with this guy...

https://www.reuters.com/world/americas/argentinas-poverty-hit-barrios-food-emergency-takes-hold-2024-10-01/

[Winehole23]

Poverty there is like 53% of the total population and actually increased with this guy...

https://www.reuters.com/world/americas/argentinas-poverty-hit-barrios-food-emergency-takes-hold-2024-10-01/"he acheived what economists said was impossible"

[Winehole23]

https://pbs.twimg.com/media/Gdg8QS2W0AE-IOj?format=png&name=medium

[DMX7]

The current inflation rate in Argentina is 192.99%, which is calculated based on CPI (Consumer Price Index) values for the last 12 months ending in October 2024.

But the latest monthly inflation is a 3 year low.

[Winehole23]

But the latest monthly inflation is a 3 year low.so?

consumers still have to pay the accumulated inflation == the shelf price

[Winehole23]

also, it's normal for deflation to happen during recessions -- is it good that Millei's policies have caused one?

[Winehole23]

(not rhetorical, the notion of price discovery depends on economic pain)

[ElNono]

They deserve credit for having an executing an economic plan, especially without riding some fluke international grain prices, etc. But above all, they deserve credit for not outright stealing and just not being corrupt, which is a breath of fresh air in those latitudes.

That said, they still have tight currency controls, poverty is off the charts and still have negative dollar reserves. They're desperate to get another unpayable loan from the IMF, because nobody in their right mind will invest long term there.

[DMX7]

so?

consumers still have to pay the accumulated inflation == the shelf price

So the trajectory matters... It's not like anyone can flip a switch and fix everything that came before.

[DMX7]

also, it's normal for deflation to happen during recessions -- is it good that Millei's policies have caused one?

When America's budget deficits, which are much larger that Argentina's, catchup to it then there will likely be a spectacularly bad recession here. Maybe even a depression because we usually fix problems here by throwing as much money as possible at the problem. That playbook doesn't work when the problem is that we can't do that anymore.

[ElNono]

When America's budget deficits, which are much larger that Argentina's, catchup to it then there will likely be a spectacularly bad recession here. Maybe even a depression because we usually fix problems here by throwing as much money as possible at the problem. That playbook doesn't work when the problem is that we can't do that anymore.

But it doesn't work like that, this is what most Americans get wrong. Argentina biggest problem is that it doesn't have enough US dollars, because that's what they need to pay their external debt, imports, and backstop their currency. People there save in US dollars and some parts of the market are entirely dollarized (ie: real estate). The trust in the local currency has been lost for a long, long time.

The US is in a completely different place. We have had sustained growth for years on end now (the pandemic was one year exception), and US Treasuries are bought up as soon as they're put on offer. The US doesn't have any obligations that are not in US dollars.

But they key point is trust in the currency. The US just had a bout with inflation, which is what you see when your deficits catchup to you, and was able to orderly address it via small modifications to the interest rates. That works because people trust the currency.

Look for countries with 20+% interest rates, and you'll quickly spot the countries where trust in their currency has been lost.

[DMX7]

That works because people trust the currency.

Right. If we get fiscal discipline in the future then trust will probably be warranted. If we don't then that trust will be lost and you will see a disaster with no obvious fix that isn't excruciatingly painful. Right now, I see little reason to trust our currently political system over the long-term that has driven our interest payments to become the single largest expense we have. But my lack of faith in the system is apparently still a contrarian view, which is good for our country until the problem simply becomes undeniable... or something actually changes for the better.

[ElNono]

Right. If we get fiscal discipline in the future then trust will probably be warranted. If we don't then that trust will be lost and you will see a disaster with no obvious fix that isn't excruciatingly painful. Right now, I see little reason to trust our currently political system over the long-term that has driven our interest payments to become the single largest expense we have. But my lack of faith in the system is apparently still a contrarian view, which is good for our country until the problem simply becomes undeniable... or something actually changes for the better.

This isn't about being contrarian. Investors just aren't stupid. The credibility of the US dollar is directly related to the credibility of other currencies.

The only other relatively serious currencies are the Euro, the British pound and the Yen. None of which have anywhere near the economy size of the US.

[DMX7]

This isn't about being contrarian. Investors just aren't stupid. The credibility of the US dollar is directly related to the credibility of other currencies.

It's not ONLY about relative strength to other national currencies. There's a reason why gold prices have run up, and arguably bitcoin is also running up, at least in some part, due to lack of faith in traditional fiat currencies.

[ElNono]

It's not ONLY about relative strength to other national currencies. There's a reason why gold prices have run up, and arguably bitcoin is also running up, at least in some part, due to lack of faith in traditional fiat currencies.

Of course it is. Gold and bitcoin are investment opportunities at best, financial bubbles at worst. People are free to gamble their money any way they want.

At the end of the day, global trade isn't done in either. You need legal tender to pay for your obligations.

[SnakeBoy]

1866761662218506692

[ElNono]

Over 50% in poverty and 166% anual inflation, but we got a surplus!!1!

[Chucho]

Over 50% in poverty and 166% anual inflation, but we got a surplus!!1!

Obligatory, "Hell, that sounds like California" post/gripe/whine.

[Winehole23]

Obligatory, "Hell, that sounds like California" post/gripe/whine.the difference in quantity is a difference in quality

"the caste" won't be paying for it, th middle class, small businesses and poor people will.


No V-Shaped Recovery. In their first months in office, Milei and his Economy Minister Luis Caputo insisted that the economic pain would be short-lived and that the economy would begin recovering by late spring/early summer. That hasn’t happened. According to (https://forbes.com.mx/ocde-ve-signos-de-recuperacion-en-argentina-pero-espera-caida-de-3-8-del-pib-este-ano/) the OECD’s latest forecast, the economy will end up contracting by 3.8% this year — 0.5 percentage points more than it had predicted in May. If so, Argentina is on track to suffering the sharpest contraction of any economy in Latin America, including war-torn Haiti.

Slumping Industry. In theory, economic shock treatment is supposed to work in the private sector’s favour. The question is: whose private sector? And which part of the private sector? As the Argentine economist Guido Agostinelli recently told (https://www.youtube.com/watch?v=r-n8p8iUnEY) the Brazilian-Mexican podcaster Diego Ruzzarin, the three industrial sectors that have grown the most over the past year — agriculture, mining and oil and gas drilling — are all generally extractive in nature:


“They introduced big incentives for foreign companies to come, invest and extract… By contrast, industrial manufacturing is slumping.


The Utilisation of Installed Capacity index perfectly illustrates the state of Argentina’s manufacturing industry, says Agostinelli. The current reading is 55%. To put that in context, it is roughly the same as the average level recorded during 2020, the year of COVID-19 lockdowns when economic activity worldwide fell off a cliff. Many companies have already fallen by the wayside. As of mid-November, 16,500 small and medium-sized enterprises had closed, according to the National Productive Front. From Ambito (https://www.ambito.com/economia/alerta-la-industria-2024-cerraron-16500-pymes-n6080488) (machine translated):


The collapse in domestic consumption (NC: estimated at around 20%), the increase in service costs and the difficulty in exporting (https://www.ambito.com/economia/las-pymes-ya-representan-el-12-las-exportaciones-argentinas-n6077673) due to an uncompetitive dollar are three of the main factors behind this worrying trend. The CAME estimates a 13.2% drop in sales of SME businesses (https://www.ambito.com/economia/juan-pasos-confirmo-que-lanzaran-un-rigi-pymes-y-anticipo-quienes-estara-dirigido-n6076440), an alarming figure that reflects the impact of the recession on consumption.

This figure is supplemented by the closure of 10,000 kiosks and warehouses and the loss of 160,000 jobs in the sector. The crisis deepened in the second half of the year, according to the Association of National Businessmen and Women for Argentine Development (ENAC). Between July and October, another 6,500 companies stopped operating, adding to the 10,000 that had already closed in the first half of the year.

First Year of Javier Milei's Economic "Miracle": Plunging Inflation, Surging Poverty, Rising Inequality and Slumping Industry | naked capitalism (https://www.nakedcapitalism.com/2024/12/the-first-year-of-javier-mileis-economic-miracle-plunging-inflation-surging-poverty-slumping-industry.html)

[Winehole23]

https://m.media-amazon.com/images/M/MV5BYWQ0NjhlMDMtMWJiMi00M2QwLWEzMWMtZGQzZWU3MmVmNz Q1XkEyXkFqcGdeQXVyNTM0NTU5Mg@@._V1_.jpg



The Milei government’s austerity program is not being applied across the board. Readers will no doubt be surprised to learn that one of the few areas where spending is rising sharply is defence and security (https://cnnespanol.cnn.com/2024/09/16/argentina-gasto-defensa-milei-orix). According to the draft General Budget Law of the National Administration for Fiscal Year 2025, some US$ 6.2 billion (6 trillion pesos, at the official exchange rate) will be allocated to Defence and Security Services, representing 5.1% of the total budget.


This trend is likely to continue for as long as Milei is in power. If the 2025 budget is approved and the projections are fulfilled, spending on Defence and Security in Argentina is forecast to climb to between 0.8 and 1% of GDP. But that is still well short of the 2% threshold recommended by the North Atlantic Treaty Organization, NATO, of which Milei is determined to secure membership for Argentina as a global partner.


So, while many Argentine retirees have to choose between food or medicine, the amount of public funds earmarked for US and European-made weaponry is almost certain to grow. The government has also proposed creating a security agency to implement AI-driven “pre-crime”, which is about as far removed as government policy can possibly get from the basic principles of liberalism or libertarianism. From the government’s official bulletin (https://www.boletinoficial.gob.ar/detalleAviso/primera/311381/20240729) (26/11/24):


That the advancement of technology, in particular Artificial Intelligence, represents one of the most relevant socio-technological changes for the general population.


That countries such as the United States of America, China, the United Kingdom, Israel, France, Singapore, India, among others, are pioneers in the use of Artificial Intelligence in their areas of government and Security Forces.


That the aforementioned countries use Artificial Intelligence in Video Analysis and Facial Recognition, Crime Prediction, Cybersecurity, Data Analysis, Drones and Robotics, Communication and Coordination, Virtual Assistants and Automation, Social Network Analysis and Fraud and Anomaly Detection.

[Winehole23]

same old story?



[Argentina] still owes $31 billion to the IMF — equivalent to 5% of GDP. In the next year alone, Argentina’s treasury must make $11.29 billion of debt payments, and to do that it must accumulate enough US dollars. In November, Caputo and the IMF announced (https://buenosairesherald.com/economics/caputo-confirms-argentina-is-negotiating-new-deal-with-the-imf) that they were in early talks about a potential new debt agreement.


Meanwhile, there’s still no word of when Argentina’s all-important cepo currency controls will be lifted. While lifting those controls could lead to a run on the peso, failure to lift them will make it harder to attract new foreign investment. Given how much US-denominated debt Argentina must repay next year, foreign investment is desperately needed.


The government and central bank were able to get enough dollars to keep themselves going this year through three main measures: a one-off ‘blanqueo de capitales’ (assets amnesty for capital repatriation), which brought in a reported $23 billion; the pawning (https://www.nakedcapitalism.com/2024/08/what-is-javier-milei-doing-with-argentinas-gold.html) of a large chunk of Argentina’s gold reserves, which has been conveniently forgotten in recent months; and a high-risk financial manoeuvre called the “financial bicycle,” which essentially encourages traders to engage in high-risk carry trades and is costing the government a fortune.


From El País (https://archive.ph/eObu9#selection-453.0-457.557):



If you are Argentine and can save, you will almost certainly do so in dollars. But imagine the government tells you that it will depreciate the peso (https://archive.ph/o/eObu9/https://english.elpais.com/international/2023-12-13/argentinas-milei-announces-50-currency-devaluation-and-large-cuts-to-public-spending.html) at a rate of 2% per month. But if you buy pesos, it will pay you between 4% and 5% interest on them monthly. Your financial advisor will then recommend a very simple operation: exchange your dollars for pesos, buy bonds with those pesos or put them in a fixed term interest account, and buy dollars again once the difference has been harvested at the end of the month.


The difference between the peso depreciation promised by the government and the interest rate you will have received will determine your profit margin. It sounds like a tongue twister, but it is an operation with a name and a surname: In Argentina, it is known as the “financial bicycle”; traders prefer to call it carry trade. It involves investors buying riskier currencies in the hope of pocketing enough interest to more than cover exchange rate losses.

The carry trade was a classic investment model during the Argentine dictatorship of the 1970s, revived in 2016 with Mauricio Macri, and now back again with the far-right leader Javier Milei. Argentines who have “ridden” the bicycle have gained up to 50% profit in dollars over the space of 10 months, another miracle to emerge from the Argentine macroeconomic meltdown.


The financial bicycle has not only brought in a substantial haul of dollars for Argentina’s central bank, it has also helped to “flatten” the dollar, which in turn has helped to bring inflation (in pesos) down. But it cannot go on indefinitely. For a start, it’s hugely expensive, having so far set the government back an estimated $100 billion. It is also riddled with risks:



The government and its supporters maintain that the dollar fell because there was fiscal adjustment, there is no more issuance, and therefore there are no pesos left over to put pressure on the demand for foreign currency. However, this coexists with another phenomenon. The same government offered exorbitant rates – 45 percent per year in dollars – for investors to sell dollars in exchange for buying government bonds that would pay for that fortune. That happened. And so the dollar collapsed. It’s called a carry trade and it has always ended badly.


In addition, the cheap dollar is beginning to generate classic and rapid effects on the deterioration of the external accounts, which will deepen as time progresses. Thus, while some hope that a new cycle has just begun in Argentina, others believe that what has happened so many times before will once again be repeated: inflation is controlled thanks to the cheap dollar, which is financed unsustainably with debt or scarce resources, and which is crippling the country’s productive structure.


At the end of the road, for some, there is prosperity.

[Chucho]

the difference in quantity is a difference in quality

"the caste" won't be paying for it, th middle class, small businesses and poor people will.

First Year of Javier Milei's Economic "Miracle": Plunging Inflation, Surging Poverty, Rising Inequality and Slumping Industry | naked capitalism (https://www.nakedcapitalism.com/2024/12/the-first-year-of-javier-mileis-economic-miracle-plunging-inflation-surging-poverty-slumping-industry.html)


That's how it is in California. All us schmucks are footing the bill, getting less and less in return.

[Winehole23]

That's how it is in California. All us schmucks are footing the bill, getting less and less in return.that's not peculiar to California, the whole system works that way

[DMX7]

https://m.media-amazon.com/images/M/MV5BYWQ0NjhlMDMtMWJiMi00M2QwLWEzMWMtZGQzZWU3MmVmNz Q1XkEyXkFqcGdeQXVyNTM0NTU5Mg@@._V1_.jpg

Huge difference between NATO membership and NATO partnership. Ukraine knows this. Argentina should be spending at least 1% of GDP on defense for its own good.

[ElNono]

Huge difference between NATO membership and NATO partnership. Ukraine knows this. Argentina should be spending at least 1% of GDP on defense for its own good.

Half the country is under the line of poverty. Priorities, I suppose

[DMX7]

Half the country is under the line of poverty. Priorities, I suppose

Well he's getting inflation under control and the budget looking good which is more than past governments did, so he's got the country on a better path.

[hater]

Huge difference between NATO membership and NATO partnership. Ukraine knows this. Argentina should be spending at least 1% of GDP on defense for its own good.

Argentina got ass raped by a shitbag England in the Falklands.

I can only imagine the floppers in a real battle :lmao

There is no ref to call a fake penalty in war :lol

[ElNono]

Well he's getting inflation under control and the budget looking good which is more than past governments did, so he's got the country on a better path.

Getting inflation and the budget under control isn’t putting food on the table. The economy shrank this year.
There are still tight currency controls and the central bank reserves are still negative.

I mean, I wish him well, but you gotta get your priorities in order. Argentina isn’t in a position to start a war with anybody right now. Last I heard they’re buying F16s from the US, a monumental waste of money while you have people literally starving.

[DMX7]

Getting inflation and the budget under control isn’t putting food on the table. The economy shrank this year.
There are still tight currency controls and the central bank reserves are still negative.

I mean, I wish him well, but you gotta get your priorities in order. Argentina isn’t in a position to start a war with anybody right now. Last I heard they’re buying F16s from the US, a monumental waste of money while you have people literally starving.

There are people literally starving in America but we spend $1 Trillion on defense annually now. And some people want to send even more to Ukraine.

[ElNono]

There are people literally starving in America but we spend $1 Trillion on defense annually now. And some people want to send even more to Ukraine.

I’m all for a more solid safety net in the US, even though you’re comparing apples and oranges.

As far as military spending, review and cut MIC contractors. That’s where the money is going. Ukraine is cheap and money well spent.

[DMX7]

I’m all for a more solid safety net in the US, even though you’re comparing apples and oranges.

As far as military spending, review and cut MIC contractors. That’s where the money is going. Ukraine is cheap and money well spent.

It's terribly spent and who knows how much is lost to corruption. And Ukraine is just another excuse to spend endlessly on the MIC contractors.

[Thread]

It's terribly spent and who knows how much is lost to corruption. And Ukraine is just another excuse to spend endlessly on the MIC contractors.

Yep.

[ElNono]

It's terribly spent and who knows how much is lost to corruption. And Ukraine is just another excuse to spend endlessly on the MIC contractors.

I’m not going to defend the MIC, but still substantially cheaper than being directly engaged in an armed conflict. If I had to guess, much more is lost to corruption in military contracts. How much are we spending in boats our generals said they don’t need or the F-35s that were supposed to be operational a decade ago?

Plus, again, comparing apples and oranges. We don’t have debt in a foreign currency, currency controls, 100+ annual inflation, or anywhere near 50% below the line of poverty.

[DMX7]

I’m not going to defend the MIC, but still substantially cheaper than being directly engaged in an armed conflict.

Who said we were going to be directly engaged in an armed conflict? You really think Putin is going to go on a suicide mission and pick a direct fight with NATO?



Plus, again, comparing apples and oranges. We don’t have debt in a foreign currency, currency controls, 100+ annual inflation, or anywhere near 50% below the line of poverty.

If we don't get our own budget under control, then anything is possible. We spend money like it's Monopoly money and that game can't last forever.

[SnakeBoy]

I’m not going to defend the MIC, but still substantially cheaper than being directly engaged in an armed conflict.

Even cheaper to not fund the Ukraine war and not be directly engaged in an armed conflict

[SnakeBoy]

Who said we were going to be directly engaged in an armed conflict? You really think Putin is going to go on a suicide mission and pick a direct fight with NATO?


The argument is that Russia is so weak we can bring them down cheaply by funding the Ukraine war. The reason we need to do that is that Russia is so powerful they pose a huge threat to us.

[DMX7]

The argument is that Russia is so weak we can bring them down cheaply by funding the Ukraine war. The reason we need to do that is that Russia is so powerful they pose a huge threat to us.

We're also told that if Ukraine gives up any territory in a negotiated end to the war then Russia will rearm and attack again.

Of course, even if Ukraine kicks Russia out of Ukraine entirely then Russia could still rearm and attack again.

[ChumpDumper]

The argument is that Russia is so weak we can bring them down cheaply by funding the Ukraine war. The reason we need to do that is that Russia is so powerful they pose a huge threat to us.It's a huge threat to Europe.

Protecting Europe is in our interest.

No one should expect you to understand.

[HemisfairArena]

It's a huge threat to Europe.

Protecting Europe is in our interest.

No one should expect you to understand.


typical democrat warmongers,,,,nothing new,,,,war good now,,,,,:lmao

[ElNono]

Who said we were going to be directly engaged in an armed conflict? You really think Putin is going to go on a suicide mission and pick a direct fight with NATO?

You’re looking for rational thinking from irrational people. I’m sure he’ll be at least testing alliances. All it takes is for one side to bend the knee.


If we don't get our own budget under control, then anything is possible. We spend money like it's Monopoly money and that game can't last forever.

Not ‘anything’, no. We’ll see inflation spike up, and a weakening of the US dollar. But, again, ‘weakening’ is a relative term to other currencies.

[ElNono]

Even cheaper to not fund the Ukraine war and not be directly engaged in an armed conflict

Directly engaged means having to mobilize our troops, ie: NATO article IV. Then things get really expensive. This, comparatively speaking, is cheap.


The argument is that Russia is so weak we can bring them down cheaply by funding the Ukraine war. The reason we need to do that is that Russia is so powerful they pose a huge threat to us.

Russia is weak and needs continuous bleeding, both economic and military to collapse, as seen in the 90’s. It’s a proven strategy. The recent Syrian collapse is further proof that Russia is indeed weak.

[ElNono]

I mean, we already made this mistake before. We let nazis and their allies fester, and played the ‘neutral’ card thinking it’s ‘their problem’, until Pearl Harbor happened. One would think we’ve learned our lesson. Heck, NATO existence is a direct result of that.

[DMX7]

You’re looking for rational thinking from irrational people. I’m sure he’ll be at least testing alliances. All it takes is for one side to bend the knee.

"Testing" is one thing. A major World War style conflict is something totally different.


Not ‘anything’, no. We’ll see inflation spike up, and a weakening of the US dollar. But, again, ‘weakening’ is a relative term to other currencies.

If the US government has a major debt crisis of a scope and scale like we've never seen before, then anything is possible. You could rock global markets in a way that sets off a Great Depression.

[DMX7]

I mean, we already made this mistake before. We let nazis and their allies fester, and played the ‘neutral’ card thinking it’s ‘their problem’, until Pearl Harbor happened. One would think we’ve learned our lesson. Heck, NATO existence is a direct result of that.

It's a myth that the US was really neutral until Pearl Harbor. Regardless, the circumstances are not the same as in the lead up to WW2. For example, we actually have a credible NATO operating now.

[ElNono]

"Testing" is one thing. A major World War style conflict is something totally different.

Destabilizing Europe is the name of the game. Even you know that and you also know Russia has been active with hybrid warfare for a while now. NATO is effectively Europe and the US. Destabilizing Europe is synonymous of destabilizing NATO.


If the US government has a major debt crisis of a scope and scale like we've never seen before, then anything is possible. You could rock global markets in a way that sets off a Great Depression.

We’re $36 trillion in debt. This is scale and scope like we’ve never seen before. But, our sustained GDP growth is also in scale and scope something we’ve never seen before either.

[ElNono]

It's a myth that the US was really neutral until Pearl Harbor. Regardless, the circumstances are not the same as in the lead up to WW2. For example, we actually have a credible NATO operating now.

We do not if we’re not going to stand by our allies. That was called into question in the previous administration, which happens to be also the upcoming one.

[DMX7]

We do not if we’re not going to stand by our allies. That was called into question in the previous administration, which happens to be also the upcoming one.

It was called into question because they weren't spending 2%. If they spend it, then we won't have a problem. Most countries got the message already and others are in the process of getting it.

[ElNono]

It was called into question because they weren't spending 2%. If they spend it, then we won't have a problem. Most countries got the message already and others are in the process of getting it.

I think what most Euro countries figured out is that the US is not going to fulfill its part of the NATO accord. Today is the 2% spending, tomorrow it’s going to be another excuse (ie: you’re not buying American weapons). This is the problem when a partner becomes unreliable.

NATO just isn’t an economic accord, period. If the US doesn’t understand the geopolitical value of NATO, then we’re indeed repeating the same mistake as WWII.

[DMX7]

I think what most Euro countries figured out is that the US is not going to fulfill its part of the NATO accord. Today is the 2% spending, tomorrow it’s going to be another excuse (ie: you’re not buying American weapons). This is the problem when a partner becomes unreliable.

NATO just isn’t an economic accord, period. If the US doesn’t understand the geopolitical value of NATO, then we’re indeed repeating the same mistake as WWII.

Somehow the country that spends close to 4% of GDP on defense and spends billions of American tax payer dollars on military bases, exercises and deployments in Europe is unreliable... while the countries actually in Europe that don't spend shit on defense are somehow reliable?

You've just got it ass backwards. It's frustrating to read, actually.

[ChumpDumper]

Somehow the country that spends close to 4% of GDP on defense and spends billions of American tax payer dollars on military bases, exercises and deployments in Europe is unreliable... while the countries actually in Europe that don't spend shit on defense are somehow reliable?

You've just got it ass backwards. It's frustrating to read, actually.Nope, you're the one wanting to get out of NATO and other agreements.

You're unreliable. No one can count on you.

[Winehole23]

Nope, you're the one wanting to get out of NATO and other agreements.

You're unreliable. No one can count on you.the US not being agreement capable in a multipolar world could have downsides

[ElNono]

Somehow the country that spends close to 4% of GDP on defense and spends billions of American tax payer dollars on military bases, exercises and deployments in Europe is unreliable... while the countries actually in Europe that don't spend shit on defense are somehow reliable?

You've just got it ass backwards. It's frustrating to read, actually.

What the US chooses to spend its up to the US, always has been. The notion that the US is in Europe only to protect them is ridiculous as well, and overlooks that the US prefers to fight wars as far away from the homeland as possible.

Again, NATO isn’t an economic accord, and post WWII geopolitics play a big part.

[DMX7]

Nope, you're the one wanting to get out of NATO and other agreements.

You're unreliable. No one can count on you.

You got it ass backwards as usual.

[SnakeBoy]

What the US chooses to spend its up to the US, always has been. The notion that the US is in Europe only to protect them is ridiculous as well, and overlooks that the US prefers to fight wars as far away from the homeland as possible.

Again, NATO isn’t an economic accord, and post WWII geopolitics play a big part.

lol prefers to fight far away from the homeland

Nobody on the planet has the ability to fight on our homeland

[ElNono]

lol prefers to fight far away from the homeland

Nobody on the planet has the ability to fight on our homeland

^^^ case in point. That’s what we said before Pearl Harbor, when we were also saying “America First” and let shit fester in the rest of the world. Difference is that the nukes aren’t exclusive to us anymore.

[HemisfairArena]

lol prefers to fight far away from the homeland

Nobody on the planet has the ability to fight on our homeland


Exactly right,,,100%. NoNo is pointing out certain incidents like Pearl Harbor,,,,even 9/11,,,,,but the only major war this country has had on its own soil is the Civil War. There has,,,nor ever will be in our lifetime at least,,,,a World War on our land,,,,wont happen. To much power in weaponry to allow another country to invade us,,,,,other countries have had nukes for decades now and still not one iota of a foreign power has even tried to breach a coastline of ours militarily,,,,,wont happen.

[ElNono]

Exactly right,,,100%. NoNo is pointing out certain incidents like Pearl Harbor,,,,even 9/11,,,,,but the only major war this country has had on its own soil is the Civil War. There has,,,nor ever will be in our lifetime at least,,,,a World War on our land,,,,wont happen. To much power in weaponry to allow another country to invade us,,,,,other countries have had nukes for decades now and still not one iota of a foreign power has even tried to breach a coastline of ours militarily,,,,,wont happen.

Who’s talking invasion? What you have now are bit countries like North Korea with ICBMs and nukes, now in partnership with Russia and China, with newer tech like supersonics and drones. Doesn’t even have to be nukes to cause major damage.

Russia just walked away from the denuclearization of North Korea. The point being that when you let those fucks fester unchecked, the world turns into a much more dangerous place. We also thought WWII wasn’t our problem and we were far away, until it was our problem. This is exactly what I mean when I talk about learning our lessons.

[HemisfairArena]

Who’s talking invasion? What you have now are bit countries like North Korea with ICBMs and nukes, now in partnership with Russia and China, with newer tech like supersonics and drones. Doesn’t even have to nukes.

Russia just walked away from the denuclearization of North Korea. The point being that when you let those fucks fester unchecked, the world turns into a much more dangerous place. We also thought WWII wasn’t our problem and we were far away, until it was our problem. This is exactly what I mean when I talk about learning our lessons.

What lessons, NoNo?,,,,we set the bar,,,,we have never been invaded,,,,,we stay ahead of the curve,,,,,,what fuckin' lessons? Incidents ike Pearl Harbor and 9/11 will happen anywhere at anytime but a full blown military invasion will never happen on our soil,,,,,so again what lessons have we learned that some other nation taught us?,,,,of course the world turns more dangerous by the minute,,,,,we cant do shit about that,,,,but we can do shit about that coming across our shorelines and we have,,,and thats all we can do,,,

[ElNono]

What lessons, NoNo?,,,,we set the bar,,,,we have never been invaded,,,,,we stay ahead of the curve,,,,,,what fuckin' lessons? Incidents ike Pearl Harbor and 9/11 will happen anywhere at anytime but a full blown military invasion will never happen on our soil,,,,,so again what lessons have we learned that some other nation taught us?,,,,of course the world turns more dangerous by the minute,,,,,we cant do shit about that,,,,but we can do shit about that coming across our shorelines and we have,,,and thats all we can do,,,

Really? How many Americans died in WWII? If not for the fact that we had nukes (no longer an advantage), and Russia owning the Nazis, America and the world would look a lot different right now. You can’t just say “well, except Pearl Harbor”. Pearl Harbor was the wake-up call that we were next.

Why do you think NATO exists at all? We let half of Europe get razed while looking the other way. That’s the lesson we learned back then. Hard to believe this needs to be said, this is history 101.

[HemisfairArena]

Really? How many Americans died in WWII? If not for the fact that we had nukes (no longer an advantage), and Russia owning the Nazis, America and the world would look a lot different right now. You can’t just say “well, except Pearl Harbor”. Pearl Harbor was the wake-up call that we were next.

Why do you think NATO exists at all? We let half of Europe get razed while looking the other way. That’s the lesson we learned back then. Hard to believe this needs to be said, this is history 101.


lol,,,,hold on a sec here, NoNo,,,,youre going off base here,,,,and let me just say this,,,,I like having this debate with ya,,,,non agressive,,,no name calling,,,,1st point you made is hypothetical,,,,,it doesnt matter what would have happened if X turned out to be Y,,,,it didnt. As far as Pearl Harbor as a wake up call,,,,agree just like 9'11 was a wake up call,,,,but those countries still didnt have the power to breach our shorelines and invade us,,,,,that is fact. As far as Nato goes,,,,history 101?,,,,lmao,,,,,let me ask you this NoNo,,,,how did we get roped into Nato and pay the bulk of it when the countries getting invaded dont pay shit and we always foot the bill and we never get invaded?,,,,,

[ChumpDumper]

lol,,,,hold on a sec here, NoNo,,,,youre going off base here,,,,and let me just say this,,,,I like having this debate with ya,,,,non agressive,,,no name calling,,,,1st point you made is hypothetical,,,,,it doesnt matter what would have happened if X turned out to be Y,,,,it didnt. As far as Pearl Harbor as a wake up call,,,,agree just like 9'11 was a wake up call,,,,but those countries still didnt have the power to breach our shorelines and invade us,,,,,that is fact. As far as Nato goes,,,,history 101?,,,,lmao,,,,,let me ask you this NoNo,,,,how did we get roped into Nato and pay the bulk of it when the countries getting invaded dont pay shit and we always foot the bill and we never get invaded?,,,,,We were and are the most powerful and richest nation in the world after WWII BECAUSE the fight wasn't on our territory and decided forming NATO was in OUR interest.

This is history 101.

[Thread]

[QUOTE=ChumpDumper;11167419]We were and are the most powerful and richest nation in the world after WWII BECAUSE the fight wasn't on our territory and decided forming NATO was in OUR interest.]]]


...it was a close decision though Dumper. Do to Russia what we'd just done to Japan, OR, make Russia our bogeyman ever more, and build an MIC.

We chose...wisely?

tee, hee.

[ElNono]

We were and are the most powerful and richest nation in the world after WWII BECAUSE the fight wasn't on our territory and decided forming NATO was in OUR interest.

This is history 101.

Exactly. And the US having the nuke advantage at that time was huge. It really did reshape how geopolitics developed in the immediate aftermath. Russia had to back down until it stole the tech.

Things are very different now. China moves into Taiwan and 80% of the advanced chip supply in the world (including that we use for our military) disappears. It’ll set us back at least a couple of years.

[Winehole23]

weird investor dispute puts Argentine gold at risk



For its part, the YPF case is considered one of the most significant disputes in recent history between a sovereign state and international creditors*. This week, Preska ordered the Argentine Republic to disclose the whereabouts of its state-owned assets abroad, including the central bank’s roughly $4.5 billion of gold reserves as well as, allegedly (https://www.ambito.com/economia/la-justicia-eeuu-ordeno-al-gobierno-que-informe-donde-esta-el-oro-del-banco-central-el-marco-del-juicio-ypf-n6102714), the nation’s sovereign accounts in the US, including those belonging to diplomats, embassies and consulates, as well as the bank accounts of companies with which it has engaged in commerce.
Judge Preska also said that regardless of whether the gold reserves are in the custody of the Central Bank of the Argentine Republic (BCRA) or in some other jurisdiction, Argentina is obliged to provide documentation showing that these assets are, or are not, in its possession. According to (https://www.infobae.com/economia/2025/01/14/juicio-por-ypf-la-jueza-preska-ordeno-a-la-argentina-dar-informacion-sobre-el-oro-del-banco-central-y-otros-activos/) Infobae, one of Latin America’s largest online news portals, this latest injunction underscores the Argentine State’s obligation to comply with the US court’s orders.[2]

“What the judge did was issue an order that obliges Argentina to report where the country’s gold is located and how much came out of the BCRA’s reserves,” Sebastián Marill, CEO of Latam Advisors and an expert in the case, told (https://www.ambito.com/economia/la-justicia-eeuu-ordeno-al-gobierno-que-informe-donde-esta-el-oro-del-banco-central-el-marco-del-juicio-ypf-n6102714) Ambito. It is estimated that at least 60% of Argentina’s gold reserves were sent to London (https://www.ambito.com/economia/partio-londres-un-nuevo-envio-lingotes-oro-del-bcra-us250-millones-n6050207) in recent years. This includes, of course, all the gold bars that the Minister of Economy (and former JP Morgan exec), Luis Caputo, covertly dispatched (https://www.nakedcapitalism.com/2024/08/what-is-javier-milei-doing-with-argentinas-gold.html) last year (for further background, click here (https://www.nakedcapitalism.com/2024/08/what-is-javier-milei-doing-with-argentinas-gold.html)).

Michael Hudson suggested in response to a previous post (https://www.nakedcapitalism.com/wp-admin/post.php?post=285580&action=edit) that Milei may have sent the gold to the UK precisely so that it could be seized. Given Milei’s near-total devotion to the Anglo sphere, Economy Minister Luis Caputo’s loyalties to Wall Street as well as the UK’s seizure of Venezuela’s gold, this is is a very real possibility.

In our post, “What Is the Milei Government Doing With Argentina’s Gold? (https://www.nakedcapitalism.com/2024/08/what-is-javier-milei-doing-with-argentinas-gold.html)“, we noted that the decision to send much of the country’s gold across the Atlantic, either to London or the Bank of International Settlements in Switzerland, under the cover of darkness, puts it at high risk of seizure by unpaid creditors, of which Argentina has its fair share:



As readers may recall, London — and more broadly, Europe — are hardly the safest places to store gold reserves and other sovereign assets these days. In 2019, the UK government impounded Venezuela’s roughly $2 billion of gold deposits stored at the Bank of England after “derecognising” the Venezuelan President Nicolas Maduro in favour of the self-appointed Juan Guaidó. Even after Venezuela’s leading opposition parties voted to oust Guaidó in 2023, the UK continues to hold on to (https://www.nakedcapitalism.com/2023/04/after-four-years-of-hugely-lucrative-tragicomic-farce-juan-guaido-still-refuses-to-accept-that-the-jig-is-up.html) Venezuela’s gold deposits.

With Argentina facing numerous lawsuits over unpaid bills and debts, including one concerning the former Cristina Fernández de Kirchner government’s expropriation of roughly half of national energy company YPF, the risk of part or all of Argentina’s gold being seized is not negligible, as the Secretary General of the Banking Association and deputy, Sergio Palazzo, himself warns (https://www.batimes.com.ar/news/argentina/argentina-fights-on-two-fronts-to-defend-peso-draining-reserves.phtml):

“The gold in transit may be seized by any judge who eventually orders a seizure for any of the cases Argentina has pending abroad. It’s an unnecessary risk being run, and [the central bank] should clarify to us Argentines the reason for this transaction, whether it is to exchange the gold for foreign currency in another country, or whether it is a credit operation, or whether it is a purchase and repurchase operation with the International Payment Bank.”


When questioned on the matter in July last year, Argentina’s Economy Minister (and former banking exec at JP Morgan Chase and Deutsche Bank) Luis Caputo argued that leaving the gold sitting in a vault at the Central Bank of the Republic of Argentina was a pointless exercise:



“It is a very positive move, because today you have gold in the BCRA that is like a piece of property that cannot be used for anything. If you have it abroad, you can generate returns. It is much better to have it stored outside, where they pay you something for it.”


It is not entirely clear why the Milei government sent so much gold overseas, precisely at a time when the general trend is for countries to try to repatriate their gold, but the most likely explanation is that it is being used as collateral on a bridge loan so that Argentina can continue serving its debt, including, of course, to the IMF. The government is desperate for fresh money from the Fund while struggling to service the near-$40 billion debt it still owes. According to an article (https://www.clarin.com/economia/reservas-rojo-nuevo-acuerdo-demorado-argentina-paga-us-840-millones-fmi_0_Qf7Jmtgeza.html) in Argentina’s largest newspaper Clarín, Milei is hoping that a Donald Trump victory in the US elections will allow him to expand Argentina’s debt with the IMF.

Nor it it clear how much of Argentina’s 62 tonnes of gold (current market value: $5.4 billion) is now stashed abroad, or indeed where it now resides. Some estimates (https://www.moneymetals.com/news/2024/09/17/bucking-gold-repatriation-trend-argentina-sends-more-gold-to-london-003469) put the figure at around 37 tonnes, which include the 11 tonnes transferred to London by the Macri administration in 2017. Thanks to the Milei government’s recent actions, even more of Argentina’s gold is now vulnerable to seizure by the country’s creditors. As the libertarian economist Saifedean Ammous writes in a twitter thread, “pawning off a politically neutral monetary asset free of counterparty risk in search of a few quick bucks does not inspire confidence”.
https://www.nakedcapitalism.com/2025/01/new-york-judge-loretta-preska-just-declared-open-season-on-argentinas-gold-reserves.html

[Winehole23]

Now, Preska is back in the news (albeit mainly in Latin America), and once again for all the wrong reasons. The New York district judge is presiding over a case concerning the Argentine government’s 2012 expropriation of the 51% stake in YPF, Argentina’s national oil and gas company, held by the Spanish oil major Repsol. In September 2023, Preska ruled in favour of the plaintiff, Burford Capital, a Guernsey-based litigation funder/vulture fund representing two minority shareholders of YPF, Petersen Energía and Petersen Inversora, on the grounds that the expropriation violated YPF’s corporate bylaws.

This ruling was hardly a surprise, particularly given Preska’s pro-business reputation. What was a surprise was the size of the pay out: $16.1 billion. According to (https://archive.ph/KIxIW#selection-2227.128-2227.167) Bloomberg Linea, Burford Capital acquired the rights to the lawsuit in 2015 for $16.6 million from former YPF shareholders and could earn at least $6.2 billion if the full judgment is paid — a whopping 373-fold return!

Sixteen billion dollars is a sizable sum for any country to pay, let alone one that owes the IMF close to $40 billion, is in deep recession and constantly on the verge of default. What’s more, that sum is growing by an additional $1 billion per year due to unpaid interest and legal fees. As one Argentine news site put it (https://chequeado.com/el-explicador/claves-para-entender-el-fallo-contra-la-argentina-por-la-expropiacion-de-ypf/), it was the “harshest possible ruling imaginable.” The magistrate also freed YPF from any responsibility, meaning it will be the country, and not the company (which has 49% of the shares in private hands), that will have to settle up.

[Winehole23]

why are Argentina's sovereign disputes ending up in a NY courtroom?

goes back to the days of El Proceso


[I]f you go back to the sordid history of the Argentine debt, that’s the other thing that’s really quite disturbing here. As of 1976, Argentina had a total foreign debt of $18 million, 17 percent of GDP. The military came in in ’76 with U.S. government support, established a junta. By 1983, the debt had soared to $48 billion… And no one has ever audited that debt. There’s a U.S. legal doctrine called odious debt which says that if you have a debt that’s contracted by a military dictatorship, it doesn’t necessarily have to be honoured. We invoked it with respect to Cuba in 1898. It had acquired a lot of loans from Spain, and nobody could account for where they were. But this odious debt doctrine had never been applied to Argentina.


Interestingly, the other thing is that this choice of jurisdiction was originally chosen by this military junta back in 1976. Martínez de Hoz, the finance minister at that point in time, a very conservative guy, decided that Argentina would waive its sovereign immunity for purposes of all this debt that it was beginning to accumulate and allow the United States and the Southern District of New York to be the [centre] for all of these cases. So those two very fundamental changes made by, essentially, a military government, first of all blowing up the debt out of proportion, and then relocating the judiciary outside of Argentina, is very important for what we’re seeing.

[SnakeBoy]

1882599896181821724

[Winehole23]

https://cdn.bsky.app/img/feed_fullsize/plain/did:plc:ur77nun2q74loi34r2e6r43u/bafkreicopyfhcnnzeidu5ewyxar476rjc4el2v6od5ibnb4oq 37khv6z64@jpeg

[Winehole23]

crypto pump and dump, as one does

[DMX7]

Are all these "meme coins" or "shit coins" or whatever eventually going to shake confidence in Bitcoin? Frankly, I think they should.

[SnakeBoy]

Are all these "meme coins" or "shit coins" or whatever eventually going to shake confidence in Bitcoin? Frankly, I think they should.

I don't see why they would. Everybody knows the difference.

[ElNono]

crypto pump and dump, as one does

I think he got conned to promote that shit. What really hurts him is that he recently called other economists "econofrauds". That's a line he won't be using anytime soon again.

[DMX7]

I don't see why they would. Everybody knows the difference.

What's the difference? :lol

That people are just pumping this one much bigger before dumping?

[hater]

Are all these "meme coins" or "shit coins" or whatever eventually going to shake confidence in Bitcoin? Frankly, I think they should.

No

Well only to idiots whi dont understand bitcoin

Bitcoin is too big to rig

Rug pull happens when a small group of individuals own most of the coin nd cash out

[hater]

I think he got conned to promote that shit. What really hurts him is that he recently called other economists "econofrauds". That's a line he won't be using anytime soon again.

He deleted his tweet. Instead he shud have come out clean and open an investigation into his friends

Hes a con man and hopefully goes down :tu

[velik_m]

https://www.youtube.com/watch?v=EqizJTbxAEM

[hater]

So Milei was fully involved in this and he actually wanted to use this as experiment for something similar in Argentine government :lmao :lmao

According to the coin creator in the vid above

:lmao dont cry for me argentin:lol

[hater]

Mileis 2 buddies escaped to Miami and are making vids driving ferraris and sporting rolexes :lmao :lmao :lmao

Shithole country :lmao

[hater]

:lmao

They uploaded a cut segment of his interview to youtube

Where Milei is implicating himself and his handlers had to halt it and ask the segment to be cut

:lmao :lmao :lmao :lmao

https://x.com/Mihai11ovich/status/1891668594909462833

[hater]

:lmao

https://x.com/manesconfantino/status/1891532064140263512

[hater]

Holeee sheeet

At the end of the interview the reporter laughs and goes "son of a bitch .."

https://x.com/marianherrrera/status/1891678389972480494


This goes as the most humiliating and embarrassing moment in Argentine history :lol

And there are a lot of those :lol

[ElNono]

You want embarrassing? This leaked tonight, apparently from that scammer Hayden Davis... :lmao

https://www.lapoliticaonline.com/files/image/247/247699/67b4f99a5b76b.jpg

[hater]

You want embarrassing? This leaked tonight, apparently from that scammer Hayden Davis... :lmao

https://www.lapoliticaonline.com/files/image/247/247699/67b4f99a5b76b.jpg

Yeah thats old.

Apparently now its revealed Mileis sister was charging cash for tweets from her bro and dinners w him :lmao

Everyday shit gets worse for those niggas :lmao

[velik_m]

https://www.youtube.com/watch?v=Ud6GuH7gSDw

[hater]

Jesus

A president of a country of what? 50 million people

Degrading himself like this?????

Jesus Christ


Talk about a shithole country.

Smh

https://x.com/catrina_nortena/status/1892740478459683080

[hater]

:lmao fuck

[hater]

:lmao

This stupid motherfucker needs his own reality show :lol

https://x.com/diagonalesweb/status/1892984634444484835

[velik_m]

https://www.youtube.com/watch?v=2RQJdx2I4y4

[velik_m]

https://www.youtube.com/watch?v=E7MzfNTSk4A

[hater]

I still talk to people that support this worm.

Their story is that all this social security program was a scam and everyone was getting free money.

Not sure what to believe tbqh. Im sure the truth is somewhere in the Middle

[hater]

:lmao :lmao

This is Mileis aide talking to a bunch of foreign investors :lol

https://x.com/ArrepentidosLLA/status/1903492021395800413

[SnakeBoy]

The right way to do declassification

1906694847135654150

[Winehole23]

*dangles shiny object*

[ChumpDumper]

The right way to do declassification

1906694847135654150

Why is your Trump so bad at it then?

[velik_m]

Argentina seals $20 billion IMF deal, tears down currency controls

BUENOS AIRES, April 11 (Reuters) - Argentina sealed a $20 billion, 48-month Extended Fund Facility deal with the International Monetary Fund on Friday and, in a major policy move ahead of the deal, dismantled key parts of its years-long currency controls and loosened its grip on the peso.

The IMF will disburse $12 billion by next Tuesday, while another $2 billion will become available by June.

The deal is expected to help Argentina "catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets," the IMF said.

"Key pillars of the program include maintaining a strong fiscal anchor, transitioning towards a more robust monetary and FX regime, with greater exchange rate flexibility," it added in a statement.

Earlier, the South American nation's central bank announced it would undo a fixed currency peg from Monday, letting the peso freely fluctuate within a moving band between 1,000 and 1,400 pesos per dollar, versus 1,074 at the close on Friday.

Argentina will eliminate major parts of the so-called "cepo" capital controls that have restricted access to foreign currency, the central bank said in a statement.

Companies, from this year, will also be able to repatriate profits out of the country, a key demand from businesses that could unlock more investment.



https://www.reuters.com/world/americas/argentina-eases-fx-controls-major-policy-shift-ahead-imf-deal-2025-04-11/

[Winehole23]

making Argentina much friendlier to money laundering would be quite the inducement if people trusted Argentinian banks


The government calls the initiative the “Plan for the Historic Reparations of the Savings of Argentines”, and says it will take place in two stages.

“The first involves everything that the national executive branch can do and is within its reach. It will be applied by decree, which the President will sign in the next few hours, and the UIF will adapt its regulations to the new scheme,”said (https://www.lanacion.com.ar/economia/el-gobierno-anuncia-el-plan-para-usar-los-dolares-que-estan-bajo-el-colchon-nid22052025/) Milei’s spokesperson, Manuel Adorni. One of the decrees signed by Milei stipulates that there will be no fiscal control over cash operations involving sums lower than just under $50,000.

The second stage, said Adorni, “will consist of a bill [sent to Congress] to shield Argentine savers from here to the future, against the next administrations.”

Ask No Questions, Get No Answers

“I do not care in the slightest” how Argentines got their dollars, Milei said during a television interview on Monday, during which he appeared to encourage tax evasion and play down the risk of courting organised crime. From the Buenos Aires Herald (https://buenosairesherald.com/economics/cash-savings-tax-evasion-bank-robbery-milei-confirms-no-questions-asked-dollar-plan):


Asked about dollars stemming from tax evasion, the president said that “taxes are robbery,” later adding: “people who tried to protect themselves from thieving politicians are heroes, not criminals.”

He went on to argue that organized crime such as drug trafficking should be combated by the Security Ministry and the Defence Ministry, without involving the economy. “You do not use the economy to fight crime,” he said.


Nick here. Even for someone who admits to having regular conversations (https://www.lavanguardia.com/mascotas/perros/20231020/9314645/candidato-presidente-argentina-clono-perro-mastin-habla-mas-pmv.html) with his dead dog through a medium, this is an absurd thing to say.

After all, it is through the economy that criminal organisations are able to transform the proceeds of their activities into untraceable money that can easily be spent, or into assets that can be held or sold. What the Milei government is essentially proposing is to escalate its all-out war (https://www.batimes.com.ar/news/argentina/argentina-applies-new-anti-mafia-law-in-troubled-rosario.phtml) on the drug trade — which, let’s face it, is not very libertarian-minded — while essentially giving drug traffickers free reign to launder their money into the official economy.

Drug money is a huge source of liquidity for the global banking system — so much so that Antonio Maria Costa, head of the UN Office on Drugs and Crime, claimed (https://www.theguardian.com/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims) in 2009 that drugs money essentially saved some banks in the US and Europe from collapse during the 2008-09 Global Financial Crisis, becoming “the only liquid capital investment available.”

Perhaps that is what this is ultimately about: remonetising Argentina’s financial system (and central bank) using the proceeds of crime and tax evasion, because something tells me it will be mainly criminals, both of the blue- and white-collar variety, (and not everyday Argentines) who will be taking advantage of the new rules. And even they may blanch at the idea of putting their money in Argentina’s banking system.

Now, back to the Buenos Aires Herald piece:


For the measure to work, he said, “the key is that nobody asks where you got your dollars. What’s more, I don’t care where you got your dollars. I don’t care in the slightest. That’s to say, economic issues are fixed in the economy. Issues of other kinds are fixed in the legal and judicial sphere. You have to understand that: they shouldn’t be mixed.”

After the plans were announced, María Eugenia Marano, a lawyer focusing on economic crimes, told the Herald that allowing the population to use dollars with no questions asked facilitated bringing laundered money back into the financial system.


Here’s what Milei has to say about the suckers who have actually been complying with the law and paying their taxes over recent decades:


“Maybe [that person] didn’t have the talent, the guts or whatever it was to get out of the system. If everyone had managed to do the same, perhaps the politicians would have stopped stealing from us.”



All of which is darkly ironic given the Milei government ramped up taxes on just about everyone, particularly the lower middle classes, as part of the economic shock program it began administering in December 2023.
https://www.nakedcapitalism.com/2025/05/mileis-plan-to-turn-argentina-into-a-narco-paradise.html

[Winehole23]

liberating mattress money


Consumption, particularly among lower income groups, is also showing no sign of recovery (https://www.infobae.com/economia/2025/05/19/los-salarios-frenan-su-recuperacion-y-golpea-al-consumo-que-esperan-los-analistas-para-lo-que-queda-del-ano/) as annual inflation remains at a still-high 47% while wages in the private sector continue to stagnate. In March consumption levels fell 5.4% year over year. It was the 16th consecutive month of decline. It is against this backdrop that the Milei government is seeking to lure billions of “mattress dollars” back into the official economy.


“It is not money laundering,” Caputo said, “it is the beginning of a new regime”:



“What we’re going to do is much deeper. It is the beginning of a new regime. In Argentina, the level of informality is so high as a result of two reasons: taxes and excessive regulations. Argentina assumes that 99.99% are criminals and this is not the case. We take this to a level of madness that leads people to escape formality.”

[Winehole23]

Two groups of people that will probably take advantage of the opportunity to recycle their undeclared dollars into the financial system are the members of Milei’s own team who have money abroad, including Caputo himself, the central bank governor, Santiago Bausili, the Minister of Justice, Mariano Cúneo Libaron, and Milei’s chief of staff, Guillermo Francos.

Caputo was implicated in the Paradise Papers scandal, which revealed that the then-minister of finance (and now-economy minister) had failed to disclose on taking office that he was a shareholder of offshore companies created to manage hundreds of millions of dollars in tax havens. Caputo could now potentially benefit from his own department’s proposed relaxation of Argentina’s tax evasion and money laundering rules.

So, too, could Latin America’s drug traffickers and other criminal groups as well as members of Milei’s government with ties (https://www.lanacion.com.ar/politica/el-vinculo-de-jose-luis-espert-con-un-presunto-narco-frena-el-armado-electoral-de-los-liberales-nid27042021/) to drug traffickers, including José Luis Espert, the founder and leader of the Avanza Libertad (https://en.wikipedia.org/wiki/Avanza_Libertad) coalition.

[Winehole23]

US court orders Argentina to sign over 51% of its state-owned oil company



The fate of Argentina’s state-run oil company was thrown into doubt Monday as a U.S. judge ordered the cash-strapped country to give up its 51% controlling stake in YPF in partial compensation for seizing the shares of former investors during its 2012 nationalization of the energy group.

The ruling — a dramatic effort to enforce a $16 billion U.S. court judgement against Argentina (https://apnews.com/article/argentina-ypf-preska-burford-petersen-eton-18d2dc00f0a1f9fa0233292edd1e57cb) — presents a new headache for libertarian President Javier Milei, the ideological foil for left-wing former President Cristina Fernández de Kirchner (https://apnews.com/hub/cristina-fernandez-de-kirchner) who oversaw Argentina's contentious takeover of YPF and ensuing legal battles during her tenure (2007-2015). Milei vowed to appeal the ruling.

Fernández's abrupt move to seize control of YPF at the time helped bring serial defaulter Argentina further infamy for abandoning its global financial obligations. Milei inherited an economy in shambles after decades of reckless state spending (https://apnews.com/article/argentina-inflation-milei-currency-cuts-peso-devaluation-beddb4f7fd0021463653af37908bcb78) and campaigned on pledges to privatize state companies (https://apnews.com/article/milei-argentina-president-privatization-1a87d02035511982ab620104b9feb255).

In granting the request of former shareholders largely represented by Burford Capital, which finances litigation in return for a share of the winnings, Judge Loretta Preska of the Southern District of New York gave Argentina two weeks to transfer its shares in YPF to Bank of New York Mellon Corp, the major U.S. custody bank, according to the ruling seen by The Associated Press.

Because YPF is listed on the New York Stock Exchange, the plaintiffs could file the lawsuit in a U.S. district court. Shares of YPF closed down 5.6%.
The judgement stems from a long-running legal case that in 2023 saw Judge Preska find Argentina liable for $16.1 billion in damages and interest. The plaintiffs argue that the government should have launched a tender offer for stakes held by minority shareholders.

Milei, whose government has struggled to build up depleted foreign reserves, has vowed to appeal the ruling “to defend national interests" and blamed the problem on his political rivals.
https://www.msn.com/en-us/money/news/in-a-blow-to-milei-a-us-judge-orders-argentina-to-turn-over-its-majority-stake-in-state-oil-company/ar-AA1HINDa

[Winehole23]

US to the rescue, stabilizing Argentina's Peso



https://cdn.bsky.app/img/feed_thumbnail/plain/did:plc:kuxirecnmdthgiuaypnpixmf/bafkreier33mwfbnt234m6kvjek4x6lekvthqxrx2ln3nrpnm3 f46xwhjum@jpeg

[velik_m]

US is also helping Argentinian farm sector:


Exclusive: China buys Argentine soybeans after tax drop, leaving US farmers sidelined

...
One of the traders said Chinese buyers had booked 15 cargoes.

The deals are a fresh blow for U.S. farmers, who are missing out on billions of dollars of soybean sales to China halfway through their prime marketing season as unresolved trade talks freeze exports and rival South

American suppliers led by Brazil step in to fill the gap, traders and analysts have said.

China has been gobbling up Argentina's raw soy amid the trade war, with Argentine exports hitting a six-year high in the 2024/25 season. Local processors, however, are feeling the pinch.

"It's clearly a concern," said Gustavo Idigoras, head of Argentina's soybean crushing chamber. "The temporary tax cut encourages China to take Argentina's soy."

China, the world's biggest buyer of soybeans, has yet to purchase any U.S. soybean cargoes from its autumn harvest, traders have said.

"These deals were done last night after Argentina's decision on export tax," said one of the traders, declining to be identified as they were not authorised to speak with media. "It clearly means that China doesn't need U.S. beans."

On Friday, Chinese President Xi Jinping and U.S. President Donald Trump held a phone call but neither side reported any update on agriculture, further squeezing Chicago soybean futures already near five-year lows.
...



https://www.reuters.com/world/china/chinese-buyers-book-least-10-argentine-soybean-cargoes-sources-say-2025-09-23/

[velik_m]

Panic in Argentina as economy on brink of collapse - £742m meltdown

...
His economic reforms thrilled international investors but also depressed economic activity.

On top of his current economic woes, Mr Milei is also mired in a corruption scandal involving his sister and chief of staff. His approval ratings have tumbled as a result.

Karina Milei is accused of profiting from a bribery scheme in Argentina's disability agency. The scandal threatens to sully the government's reputation ahead of national mid-term elections at the end of October. Ms Milei denies the claims.

A former Instagram cake-baker and tarot card reader, Ms Milei managed her brother's presidential campaign before becoming general secretary.

The Buenos Aires local election was widely viewed as a political test for Mr Milei's party and a barometer as to how it will perform in the mid-terms.

Mr Milei's party secured 34% of the vote in Argentina's biggest province, losing by a landslide to the left-leaning Peronist opposition, which gained 47% of the vote.


https://www.msn.com/en-gb/news/world/panic-in-argentina-as-economy-on-brink-of-collapse-742m-meltdown/ar-AA1MZM44

[ChumpDumper]

Economists said it was impossible, eh?

[Winehole23]

Economists said it was impossible, eh?


The trouble with Austrian Economics is that eventually you run out of other people's money

[Winehole23]

backing up a foreign currency is a bigger emergency for Trumplandia than US farmers losing their shirts because of Trump's tariffs


Washington and Buenos Aires are negotiating a potential $20bn currency swap arrangement as the United States prepares to deploy an array of financial instruments to support Argentina's beleaguered economy, Treasury Secretary Scott Bessent announced on September 24 following high-stakes talks between Presidents Donald Trump and Javier Milei a day prior.
https://www.intellinews.com/us-in-talks-for-20bn-argentina-swap-line-as-trump-gives-milei-full-backing-402975/

[ChumpDumper]

Argentina is technically in an America so it's still America First!

[Winehole23]

still amazed that there's no verbal opposition to my position

philosophical cowards

[Winehole23]

the spiritual concordance is downplayed, despite of its RACIST appeal

[Winehole23]

Bessent is also saving a personal benefactor


Last week, Treasury Secretary Scott Bessent announced (https://x.com/SecScottBessent/status/1970821535507026177) a $20 billion package to rescue the Argentinian economy. The risky taxpayer-financed deal, which involves trading U.S. dollars for Argentine pesos, has little upside for ordinary Americans. Argentina is not a significant U.S. trading partner, and its economy, long in turmoil, has little impact on the United States.

However, Bessent’s announcement had massive economic benefits for one American: billionaire hedge fund manager Rob Citrone, who has placed large bets on the future of the Argentine economy. Citrone, the co-founder of Discovery Capital Management, is also a friend and former colleague of Bessent—a fact that has not been previously reported in American media outlets. Citrone, by his own account, helped make Bessent very wealthy.

Since Javier Milei, a right-wing populist, became president of Argentina in December 2023, Citrone has invested heavily in Argentina (https://www.bloomberglinea.com/2024/10/18/exclusive-rob-citrone-says-argentina-will-lead-golden-decade-for-latin-america/). Citrone has bought Argentine debt and purchased equity in numerous Argentine companies that are closely tied to the performance of the overall economy. Due to Argentina’s massive debt load and chaotic economic history — in 2023, Argentina’s inflation rate was over 200% — Citrone purchased Argentine bonds with an interest rate of nearly 20%. (Citrone has declined to detail exactly “how much of the $2.8 billion he manages is invested (https://www.bloomberg.com/news/articles/2025-09-25/citrone-s-hedge-fund-gains-over-20-this-year-on-argentine-bets)“ in Argentina.)


https://substackcdn.com/image/fetch/$s_!cL2u!,w_1456,c_limit,f_auto,q_auto:good,fl_pro gressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb0282e7 a-e66a-4d24-809e-7f1b4e51e70f_954x690.png





(https://substackcdn.com/image/fetch/$s_!cL2u!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb0282e7 a-e66a-4d24-809e-7f1b4e51e70f_954x690.png)
Citrone, who is also a minority owner of the Pittsburgh Steelers, is effectively betting on Milei’s right-wing economic program, which emphasizes deregulation and sharply reduced government spending. Citrone viewed “the probability of default as minuscule (https://www.bloomberglinea.com/2024/10/18/exclusive-rob-citrone-says-argentina-will-lead-golden-decade-for-latin-america/),” even though Argentina has defaulted on its debts many times in the past.

In the short term, this appeared to be a savvy investment. After taking office, Milei fired tens of thousands of government workers, cut spending on welfare and research, and achieved fiscal balance. Inflation was reduced to around 40%, which spurred economic growth and foreign investment. Argentina’s economic rebound contributed to Discovery Capital’s 52% return in 2024 (https://www.bloomberg.com/news/articles/2025-09-25/citrone-s-hedge-fund-gains-over-20-this-year-on-argentine-bets).

Then it all came crashing down.

The austerity measures slowed economic growth (https://english.elpais.com/economy-and-business/2025-09-27/mileis-chainsaw-stalls-will-argentinas-economic-miracle-turn-into-a-nightmare.html?outputType=amp), and unemployment spiked to nearly 8% (https://buenosairesherald.com/economics/unemployment-in-argentina-rises-to-7-9-the-highest-in-four-years). Millions had a harder time making ends meet after Milei reduced or eliminated subsidies for transportation, medicine, and other necessities. Milei’s popularity slumped, leading to speculation that his party could be routed in the 2025 midterm elections, which would hamstring Milei’s ability to implement his agenda. This created an economic panic (https://www.nytimes.com/2025/09/26/world/americas/milei-argentina-economy.html), with investors dumping the peso and liquidating other Argentine assets.

Milei has desperately attempted to keep inflation in check. Last week Argentina’s “central bank spent more than $1 billion to shore up the peso (https://www.nytimes.com/2025/09/25/us/politics/trump-argentina-milei-bailout.html).” But Argentina was running out of foreign currency.

That spelled trouble for Citrone.

Then Bessent and the Trump administration came to the rescue, floating a $20 billion economic package that helped stabilize the Argentine peso and functioned as a political lifeline for Milei.

In early September, days before Bessent’s announcement, Citrone purchased more Argentine bonds (https://www.bloomberg.com/news/articles/2025-09-25/citrone-s-hedge-fund-gains-over-20-this-year-on-argentine-bets).
https://popular.info/p/trumps-argentina-bailout-enriches

[ChumpDumper]

Argentina First!

[Winehole23]

We must pay billions to farmers

Because we cut off their customers with tariffs

And pay billions to Argentina

Whose farmers are selling to the customers we forfeited

Because that is America First

[velik_m]

https://www.youtube.com/watch?v=zqbHq7leeo0

[Winehole23]

*ARGENTINE PESO DROPS AS MUCH AS 2.1%, HITS RECORD INTRADAY LOW

[Winehole23]

US shoveling money at the Peso sellers, tbh

[ChumpDumper]

OP was right -- this did seem impossible.

1980487880968675640

https://x.com/Megatron_ron/status/1980487880968675640

[Winehole23]

https://cdn.bsky.app/img/feed_thumbnail/plain/did:plc:rdrteeamdh4ogtgcmcbt5s5i/bafkreihxv3umn7utrb6jllwjs7f4bxh7ond5qdwxc7dua77hr rcj22soqi@jpeg

https://cdn.bsky.app/img/feed_thumbnail/plain/did:plc:p7px4fl52ovw6xvd7s4lm4mw/bafkreiecmo4u62e5epxymi4zjkxoazdtdo3je33ah4pkgpfzg j63gpgk5q@jpeg

[GAustex]

Argentina rejects socialism

[ChumpDumper]

Argentina rejects socialism
You're giving them $40 billion to reward their failure.

[koriwhat]

Argentina rejects socialism

Everyone should. :tu

[SnakeBoy]

Huge win for freedom and sanity in Argentina and Trump's Monroe Doctrine 2.0

[ChumpDumper]

Huge win for freedom and sanity in Argentina and Trump's Monroe Doctrine 2.0

Why?

What is the doctrine?

Is it written down?

Link?

[Winehole23]

Domination fetish

South America gets a say