US ready to help with Argentina's fiscal turmoil

[LuckyLuke]

Please correct me if my conclusion that your MAGA crown adorns white supremacists and misogynists is incorrect. Ironically, they're the ones who might have s stronger reasons to despise Trump as President, even more than they (presumably) despised Obama.

You are correct, my statement is not that they are trying to bring back segregation as in white supremacy. They are trying to bring back the post WWII America....which was "Great" didn't you know? Because by sheer geographic luck it wasn't bombed out of existence like London and was left with an intact manufacturing base while Europe was left in shambles. Casually forgetting that post WWII America's well paying jobs had a dark underbelly of racial segregation, gender discrimination and required the huge Government spending deficits of a world war to pull it out of a Great Depression exacerbated by guess what...tarriffs.

 

[sergio]

Interesting article here, claims the peso should be between 1500 and 1700. I agree

Milei’s Peso Is 20% Overvalued and Fragile, Analysts Say

One of the biggest problems Argentine President Javier Milei has as he tries to stem a currency crisis is that the peso, by nearly all accounts, is overvalued.

www.bloomberg.com

Only 20%?

 

[FrankPintor]

Interesting article here, claims the peso should be between 1500 and 1700. I agree

Milei’s Peso Is 20% Overvalued and Fragile, Analysts Say

One of the biggest problems Argentine President Javier Milei has as he tries to stem a currency crisis is that the peso, by nearly all accounts, is overvalued.

www.bloomberg.com

And yet, The Economist reports that in July already the Peso was 14.6% undervalued, having fallen from 20% overvalued in January:

Indice Big Mac: el peso argentino dejó de ser una de las monedas más apreciadas del mundo y pasó a estar 14,6% subvaluada

La medición que elabora The Economist mostró en julio un cambio sustancial respecto de enero, cuando la medición arrojaba una sobrevaloración del 20,1 por ciento. La devaluación y la baja del precio de la hamburguesa más famosa jugaron un papel fundamental

www.infobae.com

 

[bigbadwolf]

The tarriffs will be canceled, the Paris Accord will be rejoined, and the USA will bow to the WHO (just to name a few things that will happen after Trump's term is over), but only if a Democrat becomes President

The resulta of the midterms will reveal.a lot. If the Repúblicans retain control of Congreso next year, the next President will most likely be a Repúblican. The odds of both happening may have greatly increased on September 10th.



Please correct me if my conclusion that your MAGA crown adorns white supremacists and misogynists is incorrect. Ironically, they're the ones who might have s stronger reasons to despise Trump as President, even more than they (presumably) despised Obama.

Until three months ago there used to be a blog -- the "Z Blog" -- where "white supremacists" used to comment on the Z man's daily posts. The Z man dropped dead of a heart attack in June, RIP. But one thing he said more than once was that Trump is an amalgam of Gorbachev and Yeltsin, a catalytic figure who is accelerating the decline of the US empire. The more general point is decline will continue regardless of who is at the helm -- Republican or Democrat. The current tariffs are a fake solution to a real problem: the imbalance between imports and exports. A glance at the USA's devastated post-industrial heartlands reveals the reason for this. But that industry is not coming back and the tariffs are the wrong way of trying to lure them back. The USA is going the same way Argentina did a century back and its future -- if indeed you can call it one -- will be the same as that of today's Argentina: a commodity exporter and maybe some light assembly work.

As for the MAGA crowd, there are some bonehead diehards. But many of them can sense something is not quite right. The jobs are not there. Inflation continues at a canter, if not quite yet at a gallop. Things are not improving. And Trump seems to be clueless.

 

[Che1990]

And yet, The Economist reports that in July already the Peso was 14.6% undervalued, having fallen from 20% overvalued in January:

Indice Big Mac: el peso argentino dejó de ser una de las monedas más apreciadas del mundo y pasó a estar 14,6% subvaluada

La medición que elabora The Economist mostró en julio un cambio sustancial respecto de enero, cuando la medición arrojaba una sobrevaloración del 20,1 por ciento. La devaluación y la baja del precio de la hamburguesa más famosa jugaron un papel fundamental

www.infobae.com

The Economist makes no sense if the peso was about the same in July as it was in January. I notice Infobae is pro-Milei, so I suspect they took a bias angle with their report.

I guess no one really actually knows what the peso is worth.

 

[steveinbsas]

The Economist makes no sense if the peso was about the same in July as it was in January. I notice Infobae is pro-Milei, so I suspect they took a bias angle with their report.

I guess no one really actually knows what the peso is worth.

Like everything else that's for sale, it's worth what anyone is willing to pay to someone who will accept what they offer, even if the price is influenced by government actions, including price controls on goods and services or the kind of monetary manipulation currently being used by the Argentine government.

Last Wednesday, the peso was priced by Western Union at $1.271 to one US dollar. That's what the peso was worth to me on that day as evidenced by the facr that's when I spent $500 USD to buy 738.000 pesos. It was also "worth it" to me to pay the Western Union fee that was charged to make the transfers from my US bank account to my Argentine bank account.

 

[carride]

More announcements from U.S. Treasury today. Reiterating what has been said already this week. Including a soft commitment to buy argentina USD priced bonds at times when it is needed. I think that is the type of thing that would be an effort to stop the currency rate from crossing the upper band like what happened last week. Right?

US Treasury announces full-scale bailout for Argentina: bond purchase, swap, and credit line - Buenos Aires Herald

Secretary Bessent stated the US is ‘ready to do what is needed to support Argentina and the Argentine people’

buenosairesherald.com

 

[steveinbsas]

Last Wednesday, the peso was priced by Western Union at $1.271 to one US dollar.

Should have been $1.471.

 

[Che1990]

All this euphoria means nothing though if it doesn’t approve the day-to-day of the average Argentina.

If the election were this Sunday, maybe. But in 4 weeks it’ll all be forgotten about.

 

[carride]

Lots of international commentary this week
FT: US support is only a temporary fix for Argentina
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