this post was submitted on 16 Oct 2025
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What is this money going to be spent on?
Literally just US dollars. They’re not “buying” anything with it. It’s not being used to plug a budgetary deficit (not needed for that anyway). It’s just a load of USD to be used to prop up the exchange rate, which would otherwise have the peso depreciate against the USD so prices for Argentinians on imported goods would rise significantly (i.e. more inflation). So this is just a $20B “gift” so inflation in Argentina doesn’t spike up before the election and Milei doesn’t lose more than he already will. Russia spends $200 million on “election interference” in 2016 through Facebook posts. The US spends $20B to actually interfere in Argentina’s election.
It’s the same way IMF loans work, only those have to be paid back. Poor country gets a loan from the IMF to prop up their FX rate. The rate eventually collapses anyway. Now the poor country has to pay back the loan but doesn’t have any increased means to pay it.
The IMF has been the main tool in US imperialism (arguably even more than the military) for decades now.
bailing out the rich of course