Ema
Member
Looks like Argentina’s economy is back in the headlines. Milei keeps defending a strong peso to control inflation , even if that slows down growth and drains the country’s reserves. And now, surprise: Trump’s government just stepped in to help, buying pesos and offering a $20 billion credit line to Buenos Aires.
The official reason? Because Argentina is a “key ally” (a statement that left a lot of people in the U.S. scratching their heads 😅). In reality, it’s mostly about pushing China out of Latin America.
The issue is, Argentina has already learned the hard way that keeping an overvalued currency never ends well. Milei is facing October 26 elections, corruption scandals, and a weak economy. The Financial Times says if he really wants to break the endless crisis cycle, he needs to let the peso float freely and focus on real growth, not just spending cuts.
And if the U.S. truly wants to help, it should cut tariffs and boost investment, not just hand out loans that add more debt.
The official reason? Because Argentina is a “key ally” (a statement that left a lot of people in the U.S. scratching their heads 😅). In reality, it’s mostly about pushing China out of Latin America.
The issue is, Argentina has already learned the hard way that keeping an overvalued currency never ends well. Milei is facing October 26 elections, corruption scandals, and a weak economy. The Financial Times says if he really wants to break the endless crisis cycle, he needs to let the peso float freely and focus on real growth, not just spending cuts.
And if the U.S. truly wants to help, it should cut tariffs and boost investment, not just hand out loans that add more debt.
