Oct 19, 2025
3 min read
Trump makes an economic deal to get Argentina out of the hole
Javier Miilee went to Washington this week and was received in honor of the White House, Donald Trump.The visit was ordered with signs of Hamari by one of the international leaders supporting the trumpet.But, regardless of the political people, the background to the meeting was rich. As designed, the hosts prayed for a villain as one of his close friend friends and leader who says "Argentine is also present. During a private lunch they talked about important topics.The agreement of this central dollar, with the Cent problems agreeing.
La nota discordante a tanta camaradería llegó con una advertencia de Trump: "Si perdemos (se refería a las legislativas argentinas que serán el día 26), no vamos a ser tan generosos con Argentina". Esta frase, que generó mucho revuelo en Buenos Aires, condicionaba el respaldo estadounidense a la victoria del partido de Milei en las elecciones, algo que no está ni mucho menos seguro porque perdió en las que se celebraron en la provincia de Buenos Aires en septiembre. En esa ocasión la coalición peronista Fuerza Patria le sacó a La Libertad Avanza (el partido de Milei) 14 puntos de ventaja. En las encuestas para las legislativas ambas coaliciones están muy igualadas e incluso en algunos sondeos Fuerza Patria se pone por delante. Resumiendo, Trump vinculó directamente el salvavidas de 20.000 millones de dólares al éxito Javier Milei en las elecciones de dentro de una semana. Milei tiene razones de peso para estar nervioso y apretar todo lo que pueda en la recta final de la campaña. En principio estas elecciones no son más que unas legislativas de medio mandato en las que se renovarán 127 de los 257 diputados de la cámara baja y 24 de los 72 senadores. Pero en la práctica son un referéndum sobre las políticas de Milei, que en un par de meses hará dos años que llegó a la Casa Rosada
Peronusm repeats himself
Milei hopes to increase his support in Congress, where his party currently has less than 15% of the seats. Recall that in the last parliamentary elections held in 2023, in October, he was not yet president and his party had just been founded.The right appears divided into two parties: Milei and Together for Change.The latter supported him in the second round of the presidential elections.So, whatever happens, La Libertad Avanza will improve its results, because now it seems alone.We don't know what Trump considers an election victory.Will he have enough to win timidly, will he demand an absolute majority?We have no idea, the fact is that Milla needs Congress to move forward with reforms.The friction with the chambers is constant, which is not surprising.Of the 257 deputies that the Lower House has in power, there are only 89, while in the opposition 168. It will be easy to improve this relationship, it will not change that much because Peronism has reorganized itself, it has added a lot of strength to the left and its influence reaches all corners of Argentine society.
The fact that Trump gave support to the success of the elections caused Buenos Aires to drop the stock market.The Index Index (Argentine electorate) fell more than 4% this Tuesday as soon as the White House meeting ended.Washington saw it differently.They believed that this would push Argentines to vote for Milei's party, but the opposite could happen.Trump really wanted to distance himself from the moment he learned about its existence.The other day he called him "Speak to the end" and every time he could shake him.Latin America is on their side without a doubt.Argentina Argentina is Trump's best and best in the south of the continent.Along with Buckele, he is the first Hispanic president to like him.in that it is true, the influence of distance (like that of Chávez at that time) reached the future and reached the entire Spanish-speaking world.In countries like Spain, Mexico, Peru or Colombia he is the most political and most of the many local politicians are an inspiration to him.
Proceedings against Venezuela
So this offer is more than just a financial aid package.Governments have emphasized that it is more than economics and it stands to strengthen relations between governments that have a loving heart and try to put forward their ideas.Trump agreed.If they rescue Argentina, it will not make a big difference in his country, but it will make a big difference in South America, he said, meaning that if Milei does well, other countries will follow.To follow.Fendrathary Scott Scott puts his finger on the matter.He said that it is better to build an economic bridge for his office to not feed drug traffickers.To say this because of the work of the US Navy ship in the Caribbean in August to control the movements of the certing certing of Venezuela.After all, during the meeting between Trump and Miley, the government said that they attacked a ship with drugs and drug traffickers.made public.Trump wants to transfer that Latin Americame Latin must choose: whether to follow the path established by Miley or the path set by Nicolás Maduros Maduro.This does not consider the middle ground.Miley, welcome to the ocal office as a friend victory.Since he came to power, he presented himself as a standard Latin figure in Latin America.Two pillars of the Mother movement, Elon Musk or he never made any effort to reach out and build relationships with people like Steve Bannon.He gave chank a chainsaw to use firmly in the Doge, the Support Department, which no one remembers.Besides, the movement around Miley is very similar to the Trump movement.They are very good at social media and never give up.Argentina Mama goes Magi's US Maga way of doing things.they are not secret.There are great differences between the two countries, but there are similarities, such as the two Republics, which allow the President to continue to express himself and is more powerful than the President of the European Republic.Above all, Trump and Milli are two specific brands.In both foreign cases, a million people were millionaires before Trump came to power, while the mili is not a million, but it is popular, especially in participating in television programs.
Secret negotiations lasted for weeks
Before becoming a presidential candidate, Millay was a parliamentarian for several years and this is all his experience on the political stage.In a country tired of politicians like Argentina, the short stay there was a sign of quality.While running for president, he was compared to Donald Trump, in fact, he also adopted the MAGA motto.After all, Make America Great Again and Make Argentina Great Again have the same acronyms.Trump himself, who was then preparing to attack the 2024 Republican nomination, congratulated Milley on his victory and even went so far as to say that his success was due to him.Milley knew how to fight.Last year, when the results of the US presidential election were announced, he was one of the first to express his sincerest greetings to Donald Trump and celebrated loudly on social media.However, Tuesday's meeting at the White House was not so much about ideological issues as technical ones.It was the culmination of several months of negotiations conducted behind the scenes.Argentine Economy Minister Luis Caputo traveled several times between Buenos Aires and Washington to meet with the directors of the Ministry of Finance and the International Monetary Fund in preparation for the summit between the two presidents.
The deal comes at a difficult time for Milei, with intense pressure to maintain currency stability ahead of elections this month.The American bailout has so far prevented a fall in the Argentine peso that could have led to a much more serious financial crisis that would have put the Argentine Congress on a plate for the Peronists.Argentina is a fundamental ally of Donald Trump in America, it would be foolish to let it fall on something that the USA has very little money for the treasury, but which has allowed the Argentine peso not to sink. We have to see the election results of La Libertad Avanza 26. If the respirator that Trump has put on the Argentine economy helps Milea's party to stay well, it will be worth it.But it's still a patch that they've been using in Argentina forever, they put on patches that are relatively easy and very quick to remove.Using good dollars to buy bad pesos may help solve the immediate problem in time, but it will not help in the medium or long term if Argentina does not implement monetary reform.dot.The liquidity problems of the Central Bank of the Republic of Argentina are the result of distrust in the monetary management implemented in this country.Milei's reforms so far have been positive in stabilizing the federal budget, conveying the confidence of economic subjects and promoting investment.But no one knows how long this reform impulse will last.he did not even manage to push through because the Congress was directly opposed to him.
Date of assessment
And then there's the other problem, damn inflation, which, while significantly down from the peak of two years ago, is still around 30%.Investors fear that Peronism will return to power.It is true that the elections on the 26th are not presidential and that Xavier Mailli could rule until 2027, but if he comes out of these elections badly bruised, his last two years will be a test in which any reform will be neutralized as soon as it is announced.The history of Argentina's devaluation is well known to everyone, especially Argentinians, who if there's one thing they don't trust the most, it's the Argentine peso.This is why it is so common in Argentina to hoard dollars, and I am not talking about bank accounts denominated in dollars, but about dollars in cash that they have in their homes or safes.Something that makes perfect sense, no one wants to hoard pesos again that are being devalued at full speed.Some of Javier Mailao's reforms are already showing signs of success.Liberalizing the economy, opening it to the world, removing excessive regulations and allowing economic agents to create wealth is always a good thing.It is a series of measures that work anytime, anywhere.If you want to prosper, you have to let people work, save and invest.Consolidating these reforms is of strategic importance to the United States.A stable Argentina with a strong economy is in its interest, as this example will spread to other regions of Latin America.
For a strong currency
But for those reforms to achieve lasting success, every economy needs confidence in its currency.That won't happen in pesos, at least in half the system.Dollarization is again the right thing to do and is important at this moment.Other Latin American countries were dollarized in the past and do not want to go back today.For example, Ecuador successfully switched to the dollar in 2000, and some Ecuadorian regimes wanted to return to the sucre, the currency before they came to power, and were in favor of mili-dollarization and the closing of the central bank.Then he changed his mind.We know that his economy minister, Luis Capote, likes the money he gets from taking trade jobs lost to dollarization.A carrier trade is an investor's financial job of taking interest-bearing money and investing it in interest-bearing money.Benefits vary by population.The International Office, as it is known, involves an incomparable number of people in the solution.Dollarization will prevent the government that comes after MILI from incurring the costs, so they can't circulate the dollar.Perhaps before the election is not the right time to report dollars here.Then you will understand.But the peso's weakness is one reason the opposition won.After the election, Trump won't hurt Milli to take measures that will allow Argentines to enjoy hard work at the same time.
