Two crazy people: Argentina bonds pop as investors cheer Milei-Trump prospect

[MilHojas]

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www.reuters.com

Argentina's dollar bonds jumped in early trade on Wednesday and the country's risk index dropped sharply, with investors cheering the prospect of closer ties between libertarian President Javier Milei and newly-elected U.S. ally Donald Trump.

 

[sergio]

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www.reuters.com

I fail to see that they have much in common other than their showmanship. Trump is a protectionist, totally opposed to unrestricted international trade. He wants industry to return and stay in the US. He's a non interventionist who wants an end to US involvement in Ukraine and a lesser role in NATO. During his first term he did not impose austerity; he increased the deficit. He has promised not to cut entitlements like Social Security and Medicare, the exact opposite of what Argentina's leader has been doing. I can't see Trump eager to finance Argentina.

 

[Ries]

I fail to see that they have much in common other than their showmanship. Trump is a protectionist, totally opposed to unrestricted international trade. He wants industry to return and stay in the US. He's a non interventionist who wants an end to US involvement in Ukraine and a lesser role in NATO. During his first term he did not impose austerity; he increased the deficit. He has promised not to cut entitlements like Social Security and Medicare, the exact opposite of what Argentina's leader has been doing. I can't see Trump eager to finance Argentina.

So true. Milei claims to want free trade, although he hasnt managed to change anything due to his ineptitude with retail politics, beyond announcing a cut in the import tax sometime in the future. Trump, on the other hand, is promising 30% to 200% tariffs. Ideologically all they seem to share is a love of grand promises of pie in the sky by and by, and ridiculously fake hairdos.