US ready to support Argentina's currency with 'large and forceful' action (opens in new tab)

(reuters.com)

10 pointsjpster9mo ago5 comments

5 comments

5 comments · 3 top-level

vFunct9mo ago· 2 in thread

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?

JumpCrisscross9mo 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

[2] https://en.m.wikipedia.org/wiki/List_of_U.S._states_and_terr...

[3] https://www.reuters.com/world/americas/argentinas-central-ba...

[4] https://council.nyc.gov/budget/wp-content/uploads/sites/54/2...

gus_massa9mo 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 (press 3Y).

teaearlgraycold9mo 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.

jpsterOP9mo 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.

j / k navigate · click thread line to collapse