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Discussion » Questions » Politics » What came first – the Peso or the soybean?
Nanoose

What came first – the Peso or the soybean?

In Trump’s World it is the peso. The Trump administration is bailing out Argentina with 20 billion US dollars. They are calling it a money swap - they give Argentina 20 billion US dollars and Argentina gives the US 20 billion dollars worth of Peso’s.

Meanwhile back on the ranch US soybean farmers are still waiting for bailouts. Cheers! 

https://www.msnbc.com/top-stories/latest/america-first-trump-argentina-bailout-shutdown-rcna236938

Posted - 7 hours ago
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Responses


  • 4912
    1.  How is Trump able to do this with the government shut down?

    2.  We have $20 billion to send to Argentina when government employees are not being paid.

    3.  I don't understand how this "swap" benefits the US in any way.

    EDIT:  After further reading, this is what I found:

    "Who benefits?

    Beyond Millei, China, and the Argentine treasury, critics say the bailout also stands to greatly benefit wealthy fund managers who are major holders of Argentine debts and assets.

    The bailout would deliver a major windfall to Rob Citrone, a billionaire hedge fund manager with significant investments in Argentina. “Bessent’s personal and professional relationship with Citrone has spanned decades,” according to independent journalist Judd Legum.

    “Trump promised ‘America First,’ but he’s putting himself and his billionaire buddies first and sticking Americans with the bill,” Warren said in a statement Thursday. Eight Democrats, including Warren, have introduced a bill in Congress to prevent Argentina’s bailout.

    But Bessent told CNBC recently that “this trope that we’re helping out wealthy Americans with interest down there couldn’t be more false.”

    “What we’re doing is maintaining a US strategic interest in the Western Hemisphere,” he added."

    https://news.yahoo.com/finance/news/faq-why-america-just-bailed-130052982.html

    This post was edited by Spunky at October 13, 2025 10:15 AM MDT
      October 13, 2025 9:56 AM MDT
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  • 12056

    Not sure how Trump is able to do this during the government shut down.

    But you know what people like Trump always say – were there is a scam there is a way. Cheers!

      October 13, 2025 11:05 AM MDT
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  • 4912
    I'm not sure he could do that by executive order even if the government is not shut down.  Congress controls the purse strings - at least, it's supposed to.
      October 13, 2025 11:17 AM MDT
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  • 12056

    Maybe by claiming it is a money swap instead of a bailout they can bypass congress. Either way it is a risky venture and certainty not an America first thing. Cheers!

    This post was edited by Nanoose at October 13, 2025 3:05 PM MDT
      October 13, 2025 11:58 AM MDT
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  • 4912
    "Although Bessent said that a central bank swap line is among tools that could be deployed, the Treasury does not have direct control over swap lines.
    That remains the purview of the Federal Reserve and its swap lines have been designed more to avoid global contagion and blow-back from foreign crises into the U.S. economy. Bessent on Monday said he did not expect contagion from the Argentine crisis.

    A Fed spokesperson declined to comment on the possibility of a U.S.-Argentina swap line.

    Bessent's offer of support without conditions such as fixing the problem of an over-valued peso may be "a way of just financing capital flight for little purpose," said Mark Sobel, a former U.S. Treasury and IMF official who is now U.S. chairman of the Official Monetary and Financial Institutions Forum think tank.

    Sobel added that it will be a challenge to overcome investors' long-embedded urge to flee Argentina during a crisis.

    "Markets have had over 100 years of Argentine over-borrowing, hyperinflation and serial defaults, and so when Argentina hits the skids, investors remember that," he said. "And they're not going to go, 'Milei is different.'"

    https://www.reuters.com/world/americas/us-treasurys-support-argentina-gives-peso-milei-friendly-leg-up-now-2025-09-23/
    This post was edited by Spunky at October 13, 2025 3:11 PM MDT
      October 13, 2025 3:07 PM MDT
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  • 35736
    As to how it could be done during the shutdown.  The US Exchange Stabilation Fund was used and it is not subject to Congressional oversight.

    The U.S. Exchange Stabilization Fund was established at the Treasury Department by a provision in the Gold Reserve Act of 1934.[3] It was intended as a response to Britain's Exchange Equalisation Account.[4] The fund began operations in April 1934, under director Archie Lochhead and financed by $2 billion of the $2.8 billion gold surplus the government had realized by devaluing the dollar. The act authorized the ESF to use its capital to deal in gold and foreign exchange to stabilize the exchange value of the dollar. The ESF as originally designed was part of the executive branch not subject to legislative oversight. The fund was originally authorized for two years, subject to extension by the President or Congress, and was made permanent under the Bretton Woods Agreement Act of 1945. 
      October 13, 2025 1:21 PM MDT
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