Copyright Benzinga
Treasury Secretary Scott Bessent on Tuesday defended the government's $20 billion emergency support for Argentina as a bid to "pursue peace through economic strength," insisting it was a profitable swap line, not a bailout. Bessent Calls Argentina Aid A Profitable Swap "Economic security is national security. And this administration successfully pursued peace through economic strength to stabilize an ally in Latin America. Our intervention in Argentina was never a ‘bailout.' It was a swap line that made money for the American people," he wrote on X. Bessent also told MSNBC that the United States "made money" by backing Argentina's central bank ahead of last month's midterm elections, framing the move as stabilization for a regional ally rather than a taxpayer-funded rescue. He said the Treasury "used our financial balance sheet to stabilize the government … during an election" and asserted that "the government is going to make money," adding, "In most bailouts you don't make money… the U.S. government made money." See Also: Gavin Newsom Won’t ‘Punch’ Anyone In The Face, But Says He’s ‘Stunned’ By Democrats Who Sided With GOP On Deal To Reopen Government Treasury Frames Strategy Around Upcoming Regional Elections Bessent’s comments came in response to questions about the $20 billion swap line the Trump administration arranged in support of Argentine President Javier Milei. Treasury officials and Argentine authorities signed the "economic stabilization" agreement in October, with the U.S. also purchasing pesos to shore up markets before the vote. As per a Reuters report, Bessent also said to MSNBC that the upcoming elections in Chile and Colombia offer a "generational opportunity" to cultivate pro-U.S. partners, part of a broader strategy he's cast as strengthening allies through finance rather than deploying troops. Critics Decry Package As Political Interference That said, criticism has mounted on the Trump administration for the $20 billion aid package for Argentina. Nobel laureate Paul Krugman blasted the package as a lifeline for Bessent's "hedge fund buddies," while Sen. Elizabeth Warren (D-Mass.) accused President Donald Trump and Bessent of "buying" Argentina's midterms for a political ally. U.S. farm groups also fumed amid fresh Argentine soybean sales to China. Read Next: Anthony Scaramucci Reveals Power Of Positivity In Life And Business: ‘Pessimists Sometimes Sound Smarter Than Optimists — But Optimists Live Longer’ Photo Courtesy: Maxim Elramsisy On Shutterstock.com
