Buenos Aires: Farewell to Amb. Lucentini and the New Office Head

The US Treasury Propped Up Argentina's Election? Color Me Shocked.

So, the US Treasury bought a bunch of pesos to keep Argentina from completely imploding before their midterm elections. Okay, fine. We're supposed to believe this was some kind of altruistic move, right? Like the US suddenly cares about the economic stability of Argentina out of the goodness of its heart? Give me a break.

Then the bombshell drops: Central Bank data suggests the Treasury already sold those pesos for a tidy profit.

Economist Christian Buteler says the U.S. Treasury is likely to have “pocketed a profit” guaranteed by Argentina’s Central Bank. Guaranteed profit? Sounds less like international aid and more like... insider trading on a global scale? Buteler also rightly criticizes the lack of transparency.

"These are all assumptions we make based on various documents presented by the Central Bank, because officially — and for me, that is perhaps the biggest mistake being made — there is no official information," he said.

Exactly! It's all smoke and mirrors. "Assumptions" based on "various documents." Where's the official word? Where's the accountability? Oh, right, this is politics.

Follow the Money (and the Lies)

Analysts are saying the U.S. sunk over $2 billion into propping up the peso. Two billion dollars. That's real money. And now it seems the U.S. walked away with even more money? It’s like watching a rigged casino game, only the house is two countries and the chips are their currencies.

And there was a US$20 billion currency swap last month. When two governments agree on a currency swap, it does not become debt until one side or the other “activates” it. Analysts have said that the U.S. appears to have either sold the pesos or converted them into part of the swap money, thereby activating it. Either option would result in a profit for the U.S..

Pablo Moldovan, director of C-P consultancy, told the Herald that the balance sheet shows “a series of movements suggesting that the [US Treasury’s] sale of dollars on the market was offset by the Central Bank taking on debt.” Argentine economists believe the US Treasury has already sold its pesos

Debt? So Argentina is basically paying the US to... what? Manipulate their currency? Make themselves look good before an election? It's like a magician pulling a rabbit out of a hat, except the rabbit is debt and the hat is full of lies.

Moldovan says this operation ahead of the elections made it possible to “conceal” a loss of net reserves and allowed Argentina to get around the guidelines of its agreement with the International Monetary Fund. So it's not just shady, it's possibly illegal?

Who Benefits? (Hint: Not You)

Look, I get it. Governments do shady stuff all the time. But this? This is next-level cynicism. We're talking about using taxpayer money to prop up a foreign currency, only to turn around and make a profit off of it. And the worst part is, nobody's being straight about it. The U.S. Treasury isn't talking, Argentina's Central Bank isn't talking... offcourse, they aren't.

And who suffers? The Argentinian people, who are now saddled with more debt. And the American taxpayers, who are footing the bill for this whole charade.

I can't even pretend to be surprised anymore. It's just the same old story: rich people getting richer, politicians playing games, and the rest of us getting screwed.

So, What's the Real Story Here?

It's not about helping Argentina. It's not about economic stability. It's about power, control, and lining pockets. And until someone is willing to actually be honest about what's going on, we're all just pawns in their game.