Argentina’s finances just got even more surreal

Scott Bessent says Uncle Sam is underwriting Mr Milei’s laboratory  

“Argentina is a systemically important U.S. ally,” Scott Bessent, America’s treasury secretary, wrote on X, a social network. He added that the United States “stands ready to do what is needed” and that “all options for stabilization are on the table.” “Argentina will be Great Again.”

It is highly unusual for America to stand behind another country’s currency in this way.

Mr Milei’s problems are not due solely to political misfortune, though. His reform programme has relied heavily on a strong peso to contain inflation. 

The Economist 22 September 2025

https://www.economist.com/the-americas/2025/09/22/argentinas-finances-just-got-even-more-surreal


The classic example is sterling’s Black Wednesday exit from the European exchange rate mechanism in 1992.

One of those traders was Scott Bessent, then employed by the hedge fund manager George Soros and now the US Treasury secretary.

Som bekant fortsatte Sverige med sin fastkurspolitik även efter det att England och Finland hade givit upp. 

A Young Scott Bessent did the U.K. a favor in 1992 by forcing a change in monetary policy. 

https://englundmacro.blogspot.com/2025/04/treasury-secretary-scott-bessent-den.html


Argentina gör som Carl Bildt; försvarar växekursen - det är väl inte liberalt

https://englundmacro.blogspot.com/2025/09/artentinas-gor-som-carl-bildt-forsvarar.html






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