Congress must investigate the $20 billion Treasury bailout of Argentina’s collapsing economy — a decision that appears to benefit hedge-fund insiders far more than American taxpayers.
Treasury Secretary Scott Bessent, a former hedge-fund manager himself, authorized the use of the Exchange Stabilization Fund to prop up Argentina’s currency just weeks before that country’s elections. The official rationale — “stabilizing the peso” — collapses under basic economic scrutiny. As former IMF chief economist Maurice Obstfeld warned, Latin America is a “museum of failed exchange-rate-based stabilizations.” These programs always end the same way: the currency falls, reserves evaporate, and foreign loans vanish into capital flight.
Experts like Matthew Klein have described this mechanism precisely — outside aid flows into Argentina, only to flow straight back out as investors and well-connected funds use the artificial peso support to sell at inflated prices and retreat to safety. Reporting from Popular Information and other outlets shows that one of Bessent’s old hedge-fund colleagues, Rob Citrone, lobbied for the bailout after making major bets on Argentine assets. If true, this amounts to a taxpayer-financed rescue for private investors.
At the same time, the Trump regime is eliminating humanitarian and development aid across Africa and Asia — aid that literally keeps millions of children alive. Congress must ask why a government unwilling to fund vaccines and food aid would send billions to underwrite a doomed financial experiment in Buenos Aires.
This “Argentina rescue” is not foreign policy; it’s cronyism. Congress should demand full disclosure of who benefits from these ESF transfers, halt further disbursements, and strengthen oversight to ensure taxpayer dollars serve America’s interests — not Wall Street’s losses.
First sent on October 11 by Coleman
