[clipsy]

> I dont know why “bail out” is the headline term, it’s closer to a “currency backstop” AFAIK. The us is effectively extending hard dollars in exchange for pesos, allowing the argentine govt to not be destroyed in the open currency markets. If this works the peso would retain (or gain) value as the country recovers (economically, due to the ongoing reforms) and the us could feasibly even profit.

If.

[nocoiner]

No no no, you don’t get it, it’s not a “bailout,” it’s simply a “magic bean repurchase facility” whereby dollars are made available to holders of magic beans. When the magic beans sprout and reach the sky, the profit could be considerable.

[donavanm]

FX is magic beans? I guess if youre of the mind that “fiat is theft”. But in that case Im not sure why youd care if you can always go back to farming (digital) gold.

Although, to be fair, I can see the perspective that argentine _debt_ is magic beans funded by hopes, wishes, and the IMFs argentine refinancing.

[sofixa]

> FX is magic beans?

> Although, to be fair, I can see the perspective that argentine _debt_ is magic beans funded by hopes, wishes, and the IMFs argentine refinancing.

Exactly. FX isn't magic beans. The currency of a country that has defaulted more time than anyone cares to remember is magic beans though.

There is a reason for the old saying "There are 4 types of economies - developed, developing, Argentina and Japan".

[8note]

couldn't the US do better by buying the pesos after the crash, and then when the argentine peso regains its value as part of recovery, the US gets a bigger profit?