Bi-Weekly Geopolitical Report – Why the US Is Offering to Bail Out Argentina (October 13, 2025)
by Patrick Fearon-Hernandez, CFA | PDF
Argentina currently finds itself at a critical juncture. After a multi-decade period marked by economic instability, hyperinflation, and political dysfunction, the country is undergoing a radical transformation under President Javier Milei. His libertarian administration has implemented sweeping reforms aimed at stabilizing the economy, slashing government spending, and embracing cryptocurrency and dollarization. Yet, the path has been anything but smooth. Amid rising poverty, political backlash, and a collapsing Argentine peso, the United States under President Donald Trump has stepped in to offer a $20 billion bailout. The proposed bailout has sparked intense debate over its motivations, implications, and effectiveness. In this report, we review the current situation in Argentina and show that the US bailout of the country likely reflects a new prioritization of regional relations and political affinity. As always, we will also discuss the investment implications.