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Strelnikov_

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4. "Bailing out Bessent's Buddies' Bets on Argentina"

Wed Oct 15, 2025, 02:08 PM

Oct 15

https://paulkrugman.substack.com/p/bailing-out-bessents-buddies-bets

Two weeks ago I wrote about Scott Bessent’s plan to aid Argentina, saying “This is about ideology and Trumpian fealty, not America’s interests.” I have since learned that what I said was true but incomplete, because I was insufficiently cynical. Mea culpa.

. . .

A new post by Matthew Klein explains the full extent of the scam: When outside players like the IMF or, now, the U.S. Treasury department lend money to the Argentine government, the money promptly flows right out again as investors — both domestic and foreign — take advantage of attempts to prop up the Argentine peso by engaging in capital flight, pulling their money out of the country. In other words, US taxpayer money is propping up the peso, allowing hedge funders to sell their Argentine assets at inflated prices, after which the peso will promptly fall again.

One of the people who urged Bessent to intervene on Milei’s behalf is Bessent’s old friend and former colleague Rob Citrone, a hedge-fund billionaire who bet big on Milei’s success and bought more Argentine assets just before Bessent’s announcement. Will Citrone take advantage of Bessent’s taxpayer-backed bridge loan of late September — because that’s all it is — to take his money and run? If he doesn’t he’s a fool, because that’s what all the smart money is doing. Argentina is currently burning through billions of dollars in reserves to defend the peso as everyone rushes for the exits.

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badgolfer rurallib nitpicked thought crime peppertree Rhiannon12866

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Highlight:

US is working on doubling aid to Argentina to $40 billion by tapping private funding sources [View all] Zorro Oct 15 OP

What a corrupt racket: high interest loans to Argentina guaranteed by the US Treasury! Prairie Gates Oct 15 #1

And here's the kicker: it's all for NOTHING! peppertree Oct 18 #15

Musk said the US is going broke and has no money for federal workers. Irish_Dem Oct 15 #2

it's the vulture capitalists - Nigrum Cattus Oct 15 #3

"Bailing out Bessent's Buddies' Bets on Argentina" Strelnikov_ Oct 15 #4

nice little money laundering gig they got going. nt Javaman Oct 15 #5

Buy peso low Strelnikov_ Oct 15 #10

As were now talking $40 billion, no_hypocrisy Oct 15 #6

Over-the-top payments to South American fascism wolfie001 Oct 15 #7

For Sale: One Used Government (slight chainsaw marks) muriel_volestrangler Oct 15 #8

Aiding old German Nazi - Argentine families? LiberalArkie Oct 15 #9

Is that his obsession with Argentina, is he doc03 Oct 15 #11

When his cartel looses the election they are going to mass escape somewhere. Maybe on the Qatar airplane LiberalArkie Oct 15 #12

Nine months ago nobody would have doc03 Oct 15 #13

The "private sector" Miguelito Loveless Oct 16 #14

I thougt Magats oppose foreign aid? BlueKota Oct 18 #16

There is something personally in it for Trump JI7 Oct 18 #17