Donald Trump ditches America-first to help Argentina’s Javier Milei
Right economists enjoyed it in 2024 and early this year. Writing Parts Argentina President Trump-Liteer Liberter Javier Milei’nin, the anti-government program of the Radical Government with the left-wing critics by mixing the economic success, he spoke about how.
Unfortunately for Argentina, such pieces are now thin now. Another financial crisis again.
Maga and Wall Street’s poster child, Milei came to power with a classic neoliberal policy agenda in December 2023 to reduce government expenditures and deregulate the Argentine economy. It was milei Elon gave Musk a saw In February, when Tesla CEO’s influence in the first weeks of Trump’s second period, at a conservative meeting outside Washington.
But Milei’s influential sister was confused with a corruption scandal Containing the embezzlement of disability fundsand plans to attack pensions and other social welfare expenditures A strong reaction from the Catholic ChurchArgentine voters turned out to be less enthusiastic supporters than the US.
In September, Milei’s party lost an election for the state of Buenos Aires, which constitutes 40% of the country’s population and one -third of the country’s economic activity, and fell sharply against big gains for left -wing peronists. The result faces significant losses in Milei’s medium -term elections in October. This accelerated a race on the Argentine peso and increased his loss to 27%this year.
After Buenos Aires defeatMilei said that he would not buy a millimeter from his agenda, but rather “deepened and accelerate”. He saw him Then experience a series of defeats In the country’s parliament.
Peso Fixed to US dollar since 1991To forcing the currency to defend the currency by selling dollars of the country’s central bank. Argentina Central Bank Last week, estimated $ 1 billion Alone to slow the slide.
Milei returned to Washington this week Begging for help from Donald Trump. And despite all the rhetoric about other countries, despite the fact that the United States did not bleed, Treasury Secretary Scott Bessent promised support: “Argentina will be great again”.
Accordingly EconomistThe US Treasury, “Treasury’s stock market Fund of the US Dollar Unprovered State debt, direct money purchases and purchases of the debt… Mr. Bessent hopes that the signal will be so strong.
However, the real scope of Argentina support for Milei will soon be tested.
