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Trump says Argentina assistance dependent on election results for ally Milei
I've said this before but if Milei wins, the US has a loyal ally in South America which they haven't had for a really long time. If he loses, support ends and they dump whatever pesos they own which probably isn't much. Either way it won't cost that much, and they need to find ways to neutralize China's influence in the region. It's ridiculous the US let it go on so long, given the region's strategic importance as well as it's natural resources. I know you're hyper focused on the currency Larry but that's just not the game Trump is playing.
Betsy Ross
Well-known member
Agree. But even if his party does ok in the election I don't think they will win enough to be super effective. A lot of petty arguing within his own party and people probably ready to jump ship. I haven't been too impressed with his ability to unite his own party. Bad decisions with his sister also.
Agree Trump is playing a different game with getting Argentina's loyalty but something tells me if things go well it will more than pay off for them. I am not so sure with buying pesos but desperate times call for desperate measures. A lady in my building today who is buying up as many dollars as she can asked me what I thought. I told her my savings are all already in dollars. I only buy enough pesos every 1-2 months at a time to pay expenses. That strategy has paid off since I have lived here.
Nasdaq
Well-known member
No one knows what will really happen. After all this is Argentina. But if the US stops supporting Argentina after the elections it is probably lights out on exchange rate.
Trump threatens to cut US aid to Argentina if Milei loses election
US president says ‘we will not be generous’ if leader fails to win key midterms after promising $20bn to prop up struggling economy
For the US it seems a case of right guy/right time. I've been plenty critical of Biden but to be fair he couldn't have done this with Kirchner in office. He could have taken other initiatives, but nothing so direct as this.
Nasdaq
Well-known member
I guess the right question is should the US government be doing this. Some say yes but many think no. Who is right or wrong?
I just read the same thing on BA Times.
Peso could tumble post-election, warns Morgan Stanley
US investment bank outlined three scenarios depending on the outcome of the legislative vote – and predicts where the exchange rate will go.
www.batimes.com.ar
old fart
Active member
We would probably be at 2k to $1 if the US didn't step in. Even today blue went up again. All the rates did.I just read the same thing on BA Times.
Peso could tumble post-election, warns Morgan Stanley
US investment bank outlined three scenarios depending on the outcome of the legislative vote – and predicts where the exchange rate will go.
lemonade
Well-known member
Of course that is what they are planning eventually with a military base but that isn't easy because Milei only has a few more years and if he loses during his election and socialists take over again you can nix that idea.
Not sure about Venezuela. If they wanted to realy kill Maduro he would be dead.
Face it the peso has been manipulated. First by Milei and now by Trump. Milei sure changed his tune on the peso. Forget about worrying about inflation. Now those that I know are worried about having a job. I know many that lost their jobs when their companies have gone out of business.I just read the same thing on BA Times.
Peso could tumble post-election, warns Morgan Stanley
US investment bank outlined three scenarios depending on the outcome of the legislative vote – and predicts where the exchange rate will go.
Even Wall Street journal is writing about that.
Wally
Well-known member
Agree. There might not be another chance to do this in Argentina. US has many goals but probably want to see him go further for another term. That might have been possible if he didn't keep shooting himself in the foot with corruption scandals. Still he has made a lot of progress.
Since arriving in office just 22 months ago, Milei’s administration has, among other Herculean achievements...
- Crushed demon inflation, from 25.5% to 2.0% per month, or 287% to 31.4% per annum...
- Reduced poverty by more than 40%, from 52.9% to 31.6%. (According to that bastion of “far-right” propaganda, Unicef, 2.4 million Argentine children have escaped poverty in the past 18 months)...
- Wholly eliminated the budget deficit...
- Grown real wages (measured at a free dollar exchange rate) from $300 to $1,100 monthly...
- Delivered the largest energy surplus in 35 years...
- Turned a contracting economy, with a GDP of negative -1.6%... into the fastest growing economy in the Americas, with GDP growth clocking an annualized 6.3% in Q2 of this year...
- All while decreasing public debt by US$54 billion... eliminating tens of thousands of government “gnocchi” jobs... slashing corrupt ministries... and eliminating hundreds of taxes, tariffs, duties and other bureaucratic menaces to a free society.
Betsy Ross
Well-known member
Agree with you Wally. Milei has made mistakes but I hope he learns from some of them. He has done a lot of good for the country. If they can avoid more problems with fraud he could continue on with his mission. People get fatigued if they find out you are stealing from them while they are suffering.
Many expats like seeing the misery. Not me. I would rather see the country do well even if I pay a higher price. I hope he can hang on. It is nice to see prices at the supermarket not skyrocket. Wages have gone up but then again the price of everything has also jumped up tremendously since he got elected too.
lemonade
Well-known member
No inflation? The cost of almost everything has skyrocketed since Milei came into office. Look at the price of just about everything. Monthly expenses, utility bills, insurance, medical premiums, school tuition. It is all many X what it was before. That doesn't sound like controlling inflation to me.
Cmon Betsy, don't talk about Larry like that 🙂
Betsy Ross
Well-known member
Larry is like that openly. He is always clear that cheap cost of living matters to him. At least he is open and honest about it. I know many expats like him. They only care about cheap cost of living and care very little about the country. Some do care but it is out of self interest as they are on a very limited budget living on their social security checks each month.
I just post the truth. What have I said about Milei that didn't end up being true? He was a crook just like I posted right after the elections. How many scandals will it take Craig? He and his sister are robbing Argentina blind. You all complain about Cristina but when your man does it then it is ok?
Cost of everything has skyrocketed not just for expats but for everyone.
illegal alien
Member
For many of us we are on fixed budgets. Not too much different than any local. All that I know are complaining every day about the price of things since Milei got elected. Maybe a few things like items in the supermarket aren't going up like before but everything else has skyrocketed. Look at building expenses, utility bills, transportation. Yes maybe they were too cheap but that doesn't help change the fact that prices are high now.
I don't know who to blame but it seems like Argentina will keep going through these boom and bust cycles. I hope for my sake it gets cheap again soon this year.
I don't know who to blame but it seems like Argentina will keep going through these boom and bust cycles. I hope for my sake it gets cheap again soon this year.
Vero
Well-known member
I was wondering that myself if they should or shouldn't. Maybe a once in a generation situation for someone like Milei to be running a generally socialist country. My American friend sent me this today. I am seeing the exchange rate continue to go up. I wonder why if the USA keeps coming out saying they will keep supporting Milei. Makes me wonder if people know the election results are going to be so poor on the 26th.
Argentina, the US Treasury and the $20bn ‘swap’ - OMFIF
If the administration is going to proceed, it should do so carefully
www.omfif.org
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