Trump's Argentina Bailout Enriches One Well-Connected US Billionaire
A $20 billion taxpayer-financed deal to rescue the Argentine economy has raised eyebrows in Washington, with critics arguing that it benefits one American billionaire more than ordinary citizens. The package, announced by Treasury Secretary Scott Bessent last week, involves trading US dollars for Argentine pesos and has been touted as a lifeline for Argentina's struggling economy.
According to sources, billionaire hedge fund manager Rob Citrone stands to gain significantly from the deal, having placed large bets on the future of the Argentine economy. Citrone, co-founder of Discovery Capital Management, is also a friend and former colleague of Bessent, a fact that has not been previously reported in US media outlets.
"Citrone helped make me very wealthy," Bessent said at a charity dinner in New York City in November 2022, according to a recording obtained by Popular Information. "I'm grateful for his friendship and advice."
The deal's benefits for Citrone are not surprising given the close ties between him and Bessent. As a hedge fund manager, Citrone has a vested interest in the Argentine economy's performance, and his firm has invested heavily in the country's bonds.
Argentina is not a significant US trading partner, and its economy has little impact on the United States. However, the bailout package has been criticized for being overly generous, with some arguing that it sets a bad precedent for future economic interventions.
"This deal is a classic example of crony capitalism," said economist Mark Weisbrot, director of the Center for Economic and Policy Research. "It's a giveaway to wealthy investors like Citrone at the expense of ordinary Americans."
The Treasury Department has defended the deal, arguing that it will help stabilize Argentina's economy and prevent a broader financial crisis.
"The package is designed to provide stability and support to the Argentine people," said a Treasury spokesperson. "We are confident that it will have a positive impact on the country's economic prospects."
As the deal's implementation continues, questions remain about its long-term effects on both the US and Argentine economies. With Citrone's interests at stake, critics will be watching closely to see how the bailout unfolds.
Background:
The $20 billion package is part of a broader effort by the Trump administration to stabilize Argentina's economy, which has been plagued by high inflation and debt. The deal involves trading US dollars for Argentine pesos, with the aim of stabilizing the country's currency and preventing a financial crisis.
Additional Perspectives:
Economist Mark Weisbrot argues that the deal is a giveaway to wealthy investors like Citrone at the expense of ordinary Americans. "This deal is a classic example of crony capitalism," he said. "It's a bad precedent for future economic interventions."
Treasury Secretary Scott Bessent has defended the deal, arguing that it will help stabilize Argentina's economy and prevent a broader financial crisis.
Current Status:
The $20 billion package is currently being implemented, with the Treasury Department working closely with Argentine officials to implement the deal. As the implementation continues, questions remain about its long-term effects on both the US and Argentine economies.
Next Developments:
As the deal's implementation unfolds, critics will be watching closely to see how the bailout affects ordinary Americans and the broader economy. With Citrone's interests at stake, it remains to be seen whether the deal will live up to its promise or become a costly mistake for taxpayers.
*Reporting by Motherjones.*
