5 ms·

US ready to support Argentina's currency with 'large and forceful' action

10 points by jpster 1y ago

jpster 1y ago
> [Treasury Secretary Scott Bessent] said the Trump administration hoped to solidify what it sees as a rightward shift in Latin American countries, including potentially Colombia.
vFunct 1y ago
This is the part where the US officially turns itself into a third-world banana republic, by actually aligning their currency to those failed states. The US dollar has already dropped by 10% since this new administration took power, so why not completely tank it?
- JumpCrisscross 1y ago
  > by actually aligning their currency to those failed states Argentina’s economy is the size of Michigan’s [1][2]. (14th.) Its entire dollar reserves are less than half of the budget of New York City [3][4]. The impact of many single tariffs vastly outstrips the maximum effects of a swap line with Argentina on the U.S. dollar. [1] https://en.m.wikipedia.org/wiki/Economy_of_Argentina https://en.m.wikipedia.org/wiki/Economy_of_Argentina [2] https://en.m.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_GDP https://en.m.wikipedia.org/wiki/List_of_U.S._states_and_terr... [3] https://www.reuters.com/world/americas/argentinas-central-bank-makes-biggest-daily-dollar-sale-six-years-curb-peso-2025-09-19/ https://www.reuters.com/world/americas/argentinas-central-ba... [4] https://council.nyc.gov/budget/wp-content/uploads/sites/54/2024/12/Fall-2024-November-Plan-Final-Merged.pdf https://council.nyc.gov/budget/wp-content/uploads/sites/54/2...
- gus_massa 1y ago
  The monthly inflation of the last precedent was 13%, now it's only like 2% or 3%. The price of the dollar goes up and down mysteriously. We had some restrictions that caused a fake official price, but this is a graph of the unofficial exchange rate https://dolarhoy.com/historico-dolar-blue https://dolarhoy.com/historico-dolar-blue (press 3Y).
teaearlgraycold 1y ago
It shouldn’t just happen when nations align with our president’s philosophy, but we should do more of this. I suppose the difficulty is in doing this in a sustainable way. I don’t want Argentina to collapse if we pull back our support. I imagine failed states around the world might have turned out much better with a little support from the US, even the socialist ones.

10 points by jpster 1y ago

> [Treasury Secretary Scott Bessent] said the Trump administration hoped to solidify what it sees as a rightward shift in Latin American countries, including potentially Colombia.

vFunct 1y ago

This is the part where the US officially turns itself into a third-world banana republic, by actually aligning their currency to those failed states. The US dollar has already dropped by 10% since this new administration took power, so why not completely tank it?

JumpCrisscross 1y ago
> by actually aligning their currency to those failed states Argentina’s economy is the size of Michigan’s [1][2]. (14th.) Its entire dollar reserves are less than half of the budget of New York City [3][4]. The impact of many single tariffs vastly outstrips the maximum effects of a swap line with Argentina on the U.S. dollar. [1] https://en.m.wikipedia.org/wiki/Economy_of_Argentina https://en.m.wikipedia.org/wiki/Economy_of_Argentina [2] https://en.m.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_GDP https://en.m.wikipedia.org/wiki/List_of_U.S._states_and_terr... [3] https://www.reuters.com/world/americas/argentinas-central-bank-makes-biggest-daily-dollar-sale-six-years-curb-peso-2025-09-19/ https://www.reuters.com/world/americas/argentinas-central-ba... [4] https://council.nyc.gov/budget/wp-content/uploads/sites/54/2024/12/Fall-2024-November-Plan-Final-Merged.pdf https://council.nyc.gov/budget/wp-content/uploads/sites/54/2...
gus_massa 1y ago
The monthly inflation of the last precedent was 13%, now it's only like 2% or 3%. The price of the dollar goes up and down mysteriously. We had some restrictions that caused a fake official price, but this is a graph of the unofficial exchange rate https://dolarhoy.com/historico-dolar-blue https://dolarhoy.com/historico-dolar-blue (press 3Y).

teaearlgraycold 1y ago

It shouldn’t just happen when nations align with our president’s philosophy, but we should do more of this. I suppose the difficulty is in doing this in a sustainable way. I don’t want Argentina to collapse if we pull back our support. I imagine failed states around the world might have turned out much better with a little support from the US, even the socialist ones.