Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (206139)	11/28/2025 12:33:19 PM
From: Elroy Jetson	1 Recommendation Recommended By stsimon Read Replies (1) \| Respond to of 206192

Donald Trump's $40 billion gift of US taxpayer funds to Make Argentina Great Again is enough to make current loan repayments, but US banks have canceled their $20 billion private portion of the bailout for Argentina which will leave Argentina scrambling for high-cost financing to stay afloat temporarily. It's hoped that the low-cost oil production in Vaca Muerte of Argentina will help drive down global oil prices, providing stiff competition for independent American frackers who have continued to disappoint Trump as they reduce fracking in America due to low oil prices, which continue to head lower, completely ignoring Trump's 'drill baby drill agenda'. Likewise Argentine soybean sales to China have completely displaced the sale of the American soybean harvest to China with American farmers facing bankruptcy, with many taking their lives unable to face the loss of their multi-generational family farms to foreclosure. Trump's potential military invasion of Venezuela could see in phenomenally lower oil prices and eventually provide all of the heavy crude used by American refineries at rock-bottom prices, completely eliminating the need for any oil imports from Canada. But costs to the US taxpayer will initially be heavy as the Venezuelan economy is on the brink of collapse and a large US military presence will be required to maintain order in a country where the current Venezuelan government has widely distributed large quantities of assault rifles and years worth of ammunition to their supporters. Chevron stands ready to drill baby drill Venezuela greatly expanding low-cost Venezuela heavy oil production once civil order is re-established. U.S. Banks Shelve Private $20 Billion Bailout Plan for Argentina wsj.com -- wsj.com Bankers are instead discussing a smaller, short-term facility to help Argentina make a roughly $4 billion debt payment in January Treasury Secretary Scott Bessent and the Trump administration had been seeking to bolster Argentine President Javier Milei’s pro-reform party when they announced a pair of financial lifelines this fall. The package included a $20 billion currency swap with the U.S. Treasury Department and plans for a separate $20 billion bank-led debt facility. The bailouts were announced when Milei’s government seemed under pressure, but congressional elections in October were seen as a resounding victory for his party. But the private-sector loan didn’t get off the ground as banks awaited guidance from the Treasury Department on what collateral and guarantees they could use to shield them from losses, The Wall Street Journal previously reported. Bankers are now saying it is no longer under serious consideration, according to people familiar with the conversations. Instead, banks are focused on plans to lend Argentina around $5 billion through a short-term repurchase, or “repo” facility, where Argentina would exchange a portfolio of investments for dollars from the banks, the people said. Argentina would be expected to use the dollars to make a coming debt payment of around $4 billion in January, the people said. Milei’s government would then later work with the banks to borrow billions of dollars from the bond markets and use the proceeds to pay back the repo facility, likely within months, the people said. Banks could be caught on the other foot if market conditions change and Argentina can’t sell new bonds or find other funds to repay them. Talks are still in early stages and could change or fall apart, the people added. Argentina’s Finance Minister Luis Caputo has pledged to update investors on plans to build foreign exchange reserves by early December, they said. Bloomberg Linea previously reported some details of the discussions. Outside of the banks’ planned support for Argentina, the Treasury Department has already gone to great lengths to support Milei’s administration. It isn’t clear how much of the Treasury’s $20 billion swap has been used by Buenos Aires, but data from Argentina’s central bank showed a $2.5 billion increase in short-term foreign currency swaps between the end of September and the end of October. Argentina’s central bank declined to comment. The U.S. also sent approximately $900 million to Argentina through a transfer of “special drawing rights,” a type of reserve asset held by world governments at the International Monetary Fund, according to people familiar with the matter and IMF data. “The United States remains confident in President Milei and Minister Caputo’s commitment to core principles as they work to Make Argentina Great Again,” a Treasury spokesman said. He declined to provide more specific details about U.S. financial support for Argentina. Former Treasury officials have publicly criticized the lack of transparency around the U.S. financial support for Argentina, saying it is a break from past practice when it supported countries like Mexico in the 1990s. “There is essentially no information on how that money is being used,” said Brad Setser, a senior fellow at the Council on Foreign Relations and an assistant Treasury secretary during the Obama administration. “I think that is unusual given that this is a use of taxpayer money.”