Tit for Tat

The Bernhard Perspective.                                   

It is important to recognize that Donald  T**** is not simply. giving Argentina $20 billion. The money comes from a currency swap arrangement executed through the U.S. Treasury; it is not a simple cash transfer or loan. But in a way, it is even worse. 

The Treasury first acquired $20 billion worth of Argentine pesos, and then exchanged the pesos for U.S. dollars. The transaction is intended to provide Argentina’s chaotic economy with immediate market stability. 

This works because US dollars generally have more liquidity in Argentinian than their own currency. In fact, Argentines have long preferred to exchange their pesos for U.S. dollars as quickly as possible because dollars are much easier to use for large transactions, savings, and even everyday commerce.

So what really happened is that T**** did Argentina’s president Javier Milei, a huge favor and screwed American at the same time.  Milei got $20 billion in American dollars, the most dominant and influential currency in the world. We got  a pile of almost worthless Argentinian pesos. 

But above all else, we have to remember that Donald T**** is a con man and a grifter, and he never gives without getting first. No-one knows what part of Argentina Meili had to give up to T**** for his stack of American money.