On substance, Javier Milei’s economic program is about as anti-populist as it could be, which sets him apart from Trump. On style, however, the two are very similar. As a result, Trump is using American money to prop up the peso and offering to buy more Argentinian beef, thereby offending American agricultural interests. This level of support, however, is contingent on a victory for Milei’s allies in the upcoming election. Is that likely to work?
The Argentinians have a terrible record of paying back the IMF, and more recent history indicates that voters in other liberal democratic countries hate being bullied by Trump. You can, therefore, expect the Milei program to take an electoral battering, the peso to fall, and the failed bailout to cost us money.
If I’m right, the “America First” crowd will not be thrilled.