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SouthBayDem

(33,013 posts) Tue Oct 21, 2025, 04:46 PM Oct 21

Why Argentina Needs Bailout After Bailout After Bailout - Odd Lots

Oct 16, 2025 Odd Lots
Argentina is getting bailed out again, with $40 billion of help from the Trump administration. Of course, this is a recurring phenomenon for Argentina, and this time it's happening under the free market-oriented Javier Milei, who has slashed spending to bring down inflation. So why is it in trouble again? And why is this such a recurring feature of the Argentine economy? In this episode, we speak with Greg Makoff, the author of Default: The Landmark Court Battle over Argentina's $100 Billion Debt Restructuring. In this conversation, Greg explains the domestic political context for why Argentina hasn't been able to establish a sustainable economic footing. We discuss the legacy of Peronism, Milei's efforts to sharply change course, and the challenge of seeing any economic reform project through to completion, given the pain required get into fiscal balance.

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Why Argentina Needs Bailout After Bailout After Bailout - Odd Lots (Original Post) SouthBayDem Oct 21 OP

Left out (as usual) is the fact that MOST Argentine foreign debt has gone to finance dollarizing and offshoring peppertree Oct 22 #1

peppertree

(23,030 posts)

1. Left out (as usual) is the fact that MOST Argentine foreign debt has gone to finance dollarizing and offshoring

Reply to SouthBayDem (Original post)

Wed Oct 22, 2025, 10:40 PM

Oct 22

Mainly under right-wing regimes - which facilitate said heist with their currency deregulation moves (to the delight of Bloomberg and the rest of the business media).

Budget deficits themselves were a relatively small factor - as they're mostly financed in pesos and domestically, not foreign debt.

We've seen this movie before: Most recently in 2018, when Cheeto arm-twisted the IMF into lending his old pal Macri $45 billion (remember that one?).

Where did all that money go? Why, 80% of it went to finance dollarizing peso assets and offshoring by both local elites and foreign speculators - including JP Morgan, who employed the same Argentine character overseeing the same heist now: Luis Caputo.

But politically, it didn't save Macri's hide back then - and it's not going to work now.

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