On September 24, Treasury Secretary Scott Bessent announced a $20 billion package to rescue the Argentinian economy. It was a dramatic move to bail out a country that has little economic impact on the United States. Argentine President Javier Milei is scheduled to meet President Trump at the White House later this month.
On Monday, Popular Information revealed that the taxpayer-funded bailout had massive economic benefits for hedge fund billionaire Rob Citrone, a personal friend and former colleague of Bessent. Citrone’s fund, Discovery Capital, had bet heavily on Argentina, purchasing Argentine debt and equity in numerous companies closely tied to the country’s overall economy.
Citrone’s investments reflected his belief that Milei’s right-wing economic program, which emphasizes deregulation and sharply reduced government spending, would revitalize the Argentine economy.
That theory began to unravel as growth slowed, unemployment spiked, and Milei’s popularity tanked. This spring, Citrone reportedly urged Bessent to help Milei secure a separate $20 billion package from the International Monetary Fund (IMF). The IMF funds began to arrive in April, but proved insufficient to turn the Argentine economy around.
Concerns turned into panic after Milei’s party was routed in the Buenos Aires provincial election in early September, fueling fears that Milei would soon lose control of the economic agenda. Investors began dumping the peso and liquidating other Argentine assets, which spelled major trouble for Citrone’s hedge fund.
Major Argentine media outlets are now reporting that Citrone asked Bessent for a United States rescue package. Ariel Maciel, Political Economy Editor at Perfil, a large Argentine media outlet, wrote that after the Buenos Aires elections, Citrone “returned to his friend and former colleague… to request a second bailout, this time from the very coffers Bessent manages: the US Treasury.”
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I wonder how much Trump Crypto Citrone is buying.