The United States Treasury Secretary Scott Bessent discussed the $200 billion currency swap agreement with Argentina on Thursday, emphasizing that the United States will assist Argentina in stabilizing its economy. President Milei of Argentina is actively working to expel the influence of the Chinese Communist Party from the country.
In an interview on Fox News, Bessent stated, “Argentina is a beacon in Latin America, and the decisions made by the country’s president are correct. He is trying to break the cycle of 100 years in Argentina while also being a staunch ally of the United States.” Bessent mentioned that President Milei will meet at the White House next Tuesday, pledging to drive out Chinese influence from Argentina, which is currently pervasive throughout Latin America.
According to Bessent, the currency swap assistance provided by the United States is not bail-out money. The funds are not being transferred to the Exchange Stabilization Fund (ESF) nor directly given to Argentina. Instead, it is a form of supportive, investment-based financial operation aimed at preventing Argentina from becoming a failed state and supporting allies while stabilizing the economy.
“As someone with 40 years of experience in the investment industry, primarily in the field of foreign exchange, the fundamental principle of investment is buying low and selling high. Currently, the Argentine peso is undervalued. Argentina will hold elections on the 26th of this month, and we believe President Milei’s performance will be quite good. He is leading Argentina to bid farewell to the old path of Peronism,” said Bessent.
Bessent criticized the left-wing in the United States, including Senator Warren, for previously attempting to block the assistance of the Exchange Stabilization Fund to Argentina. He found this behavior ironic and pointed out that the focus of the Biden administration’s foreign aid has been misguided, missing the opportunity to support right-leaning governments in Latin America in the past eight years.
He noted, “We now see that Argentina, Paraguay, and Ecuador are moving towards this (center-right) path, and in the upcoming elections, Colombia might follow suit. The United States will support allies using Argentina as an example.”
President Trump threatened on Friday, starting from November 1st, to impose an additional 100% tariff on China and to implement an export control policy on “all key software.” He stated that if China withdraws export restrictions on rare earths, he might reconsider his stance.
Bessent observed that China is attempting to enforce more export controls on minerals, rare earths, and related technologies as a bargaining chip before major trade negotiations. “We saw China (CCP) implement rare earth export controls last night, while Argentina possesses abundant rare earth and uranium resources. I believe they (Argentina) will commit to welcoming American private enterprises and becoming a reliable partner,” he added.
He also mentioned that China regards American soybean farmers as bargaining chips and has politicized soybean purchases, diverting most orders to Brazil. “We will not allow this situation to continue. He believes that China (CCP) will eventually return to purchase American soybeans once the harvest season ends.”
Jamie Dimon, CEO of JPMorgan Chase, recently commented that the U.S. stock market may face a risk of decline but did not specify the timing.
Dimon stated, “What I am talking about now is probability. I believe the actual probability is higher than what the market is pricing. If the market thinks it’s 10%, I would say it’s around 30%. I’m not saying it will happen next year or a specific time because the timing of these things is almost unpredictable.”
Responding on the show, Bessent acknowledged the difficulty of accurately predicting market trends but assured that the current government is establishing a solid economic foundation. Under President Trump’s leadership, both Wall Street and Main Street are expected to benefit.
Bessent said, “The two things Jamie Dimon learned on Wall Street are: never predict price and timing simultaneously. In other words, he only said the market will fall but did not specify when, which could be in 2028 or next month. We cannot be certain. However, this administration is laying a solid economic foundation, and under President Trump’s leadership, both Wall Street and Main Street can perform well.”
He emphasized, “If you are the CEO of the world’s largest or the United States’ largest bank, you would care about Wall Street, but what we care about is the well-being of both.”