Economy

For a month now, they've been investing the funds in Argentine (peso-denominated) treasuries with a secret interest rate - which, as you can imagine, has caused a scandal in Argentina itself for the clownish Milei regime.

Bessent hopes to a) continue blackmailing Argentine voters with selling said pesos in one fell swoop if they "vote the wrong way" (i.e. for a Peronist) in 2027;

and b) either way, sell those pesos at a tidy profit (given the "secret" interest rate - rumored to be over 80%).

But that plan will only work if Argentina doesn't go through a sharp devaluation first. Which, of course, means that even as Argentines are now (thanks to Milei) hostages of Trump, Trump has made the U.S. Treasury a hostage of sorts to Argentina.

Goes to show it really does take two to tango. It's a sad dance, you know.