3 ms·

I'm not convinced this bailout is good policy but you could maybe make a case that it's the least bad option. If the USA doesn't help Argentina then the lender

• estearum 1y ago
  The US is not the global or continental lender of last resort. The IMF traditionally holds that role and it appears to be at its limit with regard to Argentina due to serial defaulting, political instability, corruption, and overall lack of credibility. Not compelling at all to say the US just generally has an imperative to buy debt or lend to countries whenever they're least creditable just because China might do it anyway.
  • nradov 1y ago
    Well that was my point. Argentina probably can't borrow any more from the IMF so that leaves the USA or China. China might do it for political reasons even if they lose money so we need to consider whether we're willing to accept the negative geopolitical consequences of that.
    • estearum 1y ago
      If the US had any desire to maintain influence in the Americas (or anywhere else), it wouldn't be calling their leaders drug lords, cutting off foreign aid, engaging in extrajudicial killings off their shores, threatening them with carrier groups, violating previously agreed-upon trade deals, etc. Argentina also would not be getting some special treatment. There are far more strategically important and similarly struggling economies in the Americas and elsewhere that the US could choose to assist and is not. There's just no coherence to this theory. This is rich guys helping out their rich guy buddies using taxpayer dollars.
      • deleted 1y ago
        [deleted]
      • zmgsabst 1y ago
        The US is playing nice with Argentina and El Salvador while harsh with Colombia and Venezuela due to the perceived difference in their politics. Carrot, stick. > This is rich guys helping out their rich guy buddies using taxpayer dollars. Almost all foreign aid is this, complete with kickbacks such as donations to the Clinton Foundation, etc. Even domestically, eg, the high percentage of homeless and poverty support disappearing into NGO pockets.
        • igor47 1y ago
          What does "the high percentage" mean? I donate plenty of money to both foreign and domestic non-profits and a pretty bad overhead is 20% in my experience. I generally aim for overhead ratios of 10% or so and have no problems finding lots of quality orgs in that range.
          • zmgsabst 1y ago
            That far more than 20% disappears into petite bourgeoisie pockets in government programs — what we were talking about in this thread. Eg, of the budget in Seattle.
            • estearum 1y ago
              It's crazy how you can't just like give specific information about what exactly you're talking about. Is it just vague gesticulation all the way down?
              • zmgsabst 1y ago
                It’s an intentionally difficult to parse network of public and private groups. I did say specifically what I was talking about — public funds like Seattle, where $18000/homeless per year disappears through the network into employee pockets while delivering substantially less to those it’s nominally for. https://www.pacificresearch.org/despite-big-budgets-homeless-agency-is-clueless-in-seattle/#:~:text=Divide%20the%20amount%20spent%20on,just%20over%20%2417%2C900%20a%20head. https://www.pacificresearch.org/despite-big-budgets-homeless... I think you’re being intentionally dense.
  • mrcwinn 1y ago
    I don't know, it sounds pretty compelling to me.
  • hulitu 1y ago
    IMF is an US intrument.
    • estearum 1y ago
      Up to you if you want to describe holding a 16% controlling stake as "its instrument," but I don't think many would. In practice, your point is demonstrably false by the fact that IMF is likely backing away from further financing to Argentina while the US is stepping in.
• thrance 1y ago
  If your goal is to help the Argentinian people, you would let Milei's extremely destructive and incompetent government fail and fall. This bailout only gives "General AnCap" more time to sell the country's future.
  • dzhiurgis 1y ago
    Making people pay for public transport and power isn’t exactly destruction.
  • nradov 1y ago
    And then what? Even if Milei fails and leaves office, the Argentinian people will need a balanced budget. They have run out of other peoples' money.