The announced Argentine peso swap and other giveaways by the US Treasury constitute a brazen act of election meddling to prop up a regime whose popular support is collapsing ahead of October’s legislative elections.

US Treasury Secretary Scott Bessent announced Wednesday a potential $20 billion currency swap arrangement with the government of fascist President Javier Milei in Argentina in a brazen act of election meddling.

Using the funds of the US state to prop up a regime whose support is collapsing ahead of the October 2025 legislative elections and already casting a shadow over the 2027 presidential contest, Bessent was unambiguous in framing the intervention as a direct “endorsement” of Milei.

The Argentine president’s approval rating fell below 40 percent for the first time this month amid an unraveling corruption scandal involving paybacks to his sister through the National Agency for the Disabled.

For Argentina, the swap means the US Treasury would transfer US dollars to Argentina’s central bank, with Argentina supplying pesos in return. This acts as a line of credit or liquidity support—Argentina gets access to the dollars it desperately needs to pay debts and import, and prevent a currency run.

Bessent confirmed that the Trump administration is also preparing to buy up Argentine sovereign bonds and provide massive emergency financing through the US Exchange Stabilization Fund (ESF).

  • DominusOfMegadeus@sh.itjust.worksEnglish
    22·
    22 hours ago

    Bessent’s glowing reviews of Milei’s record—insisting that Argentina is “doing a fantastic job” and that his “broad liberalization of prices” and “deregulation” constitute “important strides toward stabilization”—are patently absurd when confronted with the reality of Argentina’s deepening financial disaster.

    Far from stabilizing anything, Milei’s “shock therapy” has hit the working class with unprecedented austerity: collapsing wages, a steep recession, mass layoffs, social spending cuts, and a spike in poverty,

    This sounds vaguely familiar somehow