U.S. launches financial rescue of Argentina, Treasury buys pesos

Sounds like things were about to crash, I wish I could link to the Bloomberg article but it's behind a paywall now. It had a nice graph of how the dollars in the Argentine treasury were just flying out... This will have to do.

The deal came in a nick of time:

"According to a report from Portfolio Personal Inversiones, dollar deposits held at the central bank plunged from $1.44 billion last Friday to just $680 million, leaving only "a few more days" of intervention capacity at the current pace."

So it sounds like less of a 'swap' and more of a 'buy'? What exactly IS this deal? Do they have to pay interest? Will they restructure it to repay in dollars at a future date? Or have we just purchased 28 trillion Argentine Pesos?

That's a lot of choripans! No wait, if the pesos were divided among the 342 million USA citizens, we'd each get 81871 pesos if I did the math right (I have been wrong before).

So, one nice steak at Don Julio for each of us. Can I just go get mine this weekend?
 
When Trump's cronies do stupid things I usually sit back and cheer them on hoping that this will be the thing that finally disillusions his voter base. Unfortunately by the time it fails and Americans learn they've been scammed, there will be a new crisis dominating the headlines.

I hope there's at least a red carpet to mining/drilling sites after this.
 
I guess Argentina will become the 51st state ... and I thought that my healthcare premiums were getting too high before.
 
Money pissed down a rathole. At the end of the day, US taxpayers will be screwed again; which they are accustomed to and which they deserve via those whom they elect.


While the official gross USA national debt is in the range of $37-$38 trillion, the total USA liabilities, including the present value of unfunded social insurance obligations, is estimated to be around $123.8 trillion. So, in that context, $20 billion more to help out the Argies stave off their larcenous incompetence is chump change. All the while as the fiat dollar depreciates and precious metals soar.
 
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