Organized Money The Very Weird Farmer Revolt Against Trump…Over a Bailout of Argentina
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Oct 2, 2025 
Matías Vernengo, an economics professor and director at the Bucknell Institute, joins Rohit Chopra, former head of the Consumer Financial Protection Bureau, to delve into the unusual bailout of Argentine farmers amidst U.S. farmers' turmoil. They explore the far-reaching impacts of Milei's radical economic policies, the role of the IMF, and how U.S. agricultural interests are caught in the crossfire. With themes of market shocks and international finance, they shed light on a bizarre nexus between U.S. politics and Argentina's crisis, even mentioning Milei's quirky persona!
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Soybean Competition Fuels Political Backlash
- U.S. farmers and Argentine farmers both export soybeans to China, and Trump's tariffs pushed China to buy more from Argentina.
- That shift makes a U.S. bailout of Argentina politically combustible because it props up a competitor to American farmers.
Argentina's Crisis Is A Repeating Cycle
- Argentina's recurring crises trace through multiple neoliberal experiments and IMF interventions since the 1970s.
- Debt restructurings repeatedly return Argentina to markets but leave the economy vulnerable to external shocks and new bailouts.
The Real Problem Is Dollar Shortages
- Argentina's main problem is external: it needs dollars to service dollar-denominated debt and import inputs.
- Fiscal cuts alone won't fix the shortage of dollars; exports and reserves determine solvency.