U.S. Treasury Secretary Bernanke said today (September 24): "Yesterday, I met with U.S. President Trump in New York with Argentine President Milei and his senior team for an in-depth discussion. As President Trump stated, we are ready to take necessary measures to support Argentina and the Argentine people."

Under President Milei's leadership, Argentina has made significant progress in stabilizing the situation. He has achieved remarkable fiscal consolidation, promoted widespread price liberalization and the relaxation of restrictive regulations, laying the foundation for Argentina's historic return to prosperity.

The U.S. Treasury is prepared to purchase Argentine dollar bonds and will take action when conditions are appropriate. We are also prepared to provide large-scale standby credit through the foreign exchange stabilization fund, and we have already engaged in active discussions with President Milei's team on this matter.

The Treasury is currently negotiating with Argentine officials to establish a $20 billion currency swap facility for its central bank. We are closely collaborating with the Argentine government to prevent excessive fluctuations in exchange rates and other areas.

In addition, the United States is prepared to purchase secondary or primary government bonds from Argentina, while working with the Argentine government to terminate tax exemption policies related to foreign exchange conversion for commodity producers.

Argentina has the means to combat speculators, including those who attempt to destabilize the Argentine market for political purposes. I have also contacted several American companies, which have indicated that if the election results are favorable, they plan to make large-scale foreign direct investments in multiple sectors in Argentina.

The Trump administration firmly supports its allies, and President Trump has given rare public support to President Milei, a foreign leader, reflecting his confidence in Milei's economic plan and his recognition of the geostrategic importance of U.S.-Argentina relations. After the election, we will immediately begin working with the Argentine government to address its principal repayment issues.

I will closely monitor developments, and the Treasury will be ready to take necessary actions at any time."

Comments: U.S. Treasury Secretary Bernanke stated that the U.S. would take 'massive and strong' actions to support Argentina, a statement closely related to the upcoming parliamentary mid-term elections in Argentina on October 26.

From the perspective of the Milei government, the U.S. support aims to boost Milei's campaign. Currently, Milei is a minority in Congress, and his economic reforms face many obstacles. U.S. support, such as purchasing Argentine dollar bonds and providing foreign exchange stabilization funds, may stabilize Argentina's financial markets to some extent, reduce market volatility, and thereby increase Milei's support before the election. Additionally, American companies have expressed their intention to make large-scale foreign direct investments if the election results are positive, which could add to Milei's campaign efforts.

However, it remains uncertain whether the U.S. support can truly translate into an advantage for Milei in the election. On one hand, some of Milei's previous reform measures, such as cutting social welfare and promoting price liberalization, have caused dissatisfaction among some citizens. On the other hand, the political situation in Argentina is complex, with powerful opposition parties like Peronism. This election will update 127 House seats and 24 Senate seats, and the new power structure will have a major impact on the future governance of the Milei government. If the opposition performs strongly in the election, even with U.S. support, the difficulty of implementing reforms by the Milei government will increase.

From the U.S. perspective, its support for the Milei government before the election is based on its own interests. The U.S. hopes to consolidate its influence in Latin America by supporting Milei and counter the rise of leftist forces in the region in recent years. At the same time, the U.S. also hopes to create more opportunities for American companies to enter the Argentine market through supporting Milei's economic reforms. However, U.S. support also faces some risks, such as the overvaluation of the Argentine peso potentially leading to inflation, which could further complicate the challenges Milei faces before the election. In addition, whether the U.S. support comes with additional conditions has drawn attention from the international community.

Original: www.toutiao.com/article/1844151694620739/

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