"The Argentine president, Javier Milei, who won a resounding midterm victory on Sunday, has received ample support from Donald Trump. Ahead of the congressional elections, Trump endorsed Milei and warned: If he loses, we are not going to be generous with Argentina. Washington extended a $20bn currency swap line to the government money aimed at stabilising financial volatility that would have undermined Milei's chances. The US treasury even intervened directly, buying more than a billion dollars of pesos to slow the currency's freefall"
"Trump's bailout of Argentina is not an act of economic prudence (economists across the spectrum say it makes no sense), but of ideological finance. The goal is to shore up an ally in the US's back yard and discredit opponents, especially the leftwing Peronist tendency in Argentinian politics that Trump equates with his own domestic opponents. Historically, Washington dressed up these types of ideological interventions as serving the greater good, defined in terms of US interests."
In 1946 Argentina emerged from military rule as an empowered labour movement reshaped politics and Juan Perón rose after introducing popular workers' decrees. US ambassador Spruille Braden openly campaigned against Perón, an early example of brazen US interference. In 2025 Javier Milei won a resounding midterm victory with strong backing from Donald Trump. Trump publicly endorsed Milei and warned of consequences if he lost. Washington extended a $20bn currency swap line and the US Treasury bought over $1bn of pesos to stabilise the currency. Economists call the financial support imprudent; the interventions aim to secure an allied government and weaken Peronist opponents.
Read at www.theguardian.com
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