Nassim Taleb Slams Trump for Bailing Out Milei
The bailout of Javier Milei and Argentina has faced sharp criticism across the U.S., from farmers to academic circles.
Quick overview
- Nassim Taleb criticized libertarians and Donald Trump for bailing out Argentina, questioning the inconsistency in their principles.
- He highlighted the irony of using public funds to support a foreign country with a libertarian president, despite libertarian opposition to domestic bailouts.
- Taleb's remarks followed a New York Times article that criticized the Trump administration's financial support for Argentina amid concerns over its economic stability.
- The IMF also urged Argentina to implement reforms and build reserves to better manage economic shocks, reflecting ongoing uncertainties linked to elections.
Nassim Taleb, author of The Black Swan and one of today’s most influential writers, ridiculed both libertarians and Donald Trump for rescuing Argentina.
“Libertarians fundamentally oppose bailing out U.S. companies with public funds and protection mechanisms,” Taleb wrote on Twitter.
“But what if we bail out a foreign country, using public funds and safety nets, just because it has a libertarian president?” the philosopher, economist, and former financial executive mocked.
The Black Swan is widely regarded as a book that foresaw the 2008 financial crash, cementing Taleb’s reputation as a leading thinker on risk and uncertainty.
Taleb’s commentary comes in response to a New York Times article on the Trump administration’s bailout. The newspaper headlined: “U.S. Risks Taxpayer Money on a Big Argentine Bet,” highlighting widespread criticism of the plan.
The bailout of Javier Milei has faced sharp criticism across the U.S., from farmers to academic circles, who see it as a mechanism allowing funds connected to Treasury Secretary Scott Bessent to exit before the plan overseen by Toto Caputo collapses.
IMF Weighs In
The International Monetary Fund (IMF) also weighed in this Friday, urging Argentina to build up reserves to face dollar shocks—a fresh rebuke to Luis “Toto” Caputo for not meeting that part of the agreement.
IMF Managing Director Kristalina Georgieva called on Argentina to make “additional efforts” to accelerate labor and tax reforms. Presenting the report at the conclusion of the IMF-World Bank Annual Assembly in Washington, Georgieva highlighted how election-related uncertainty has affected Argentina’s economic outlook.
“Annual core inflation continues to decline gradually, while economic activity has slowed recently, reflecting shocks and uncertainties linked to the elections,” the IMF report stated.
“Sustained efforts are needed to maintain the fiscal anchor, strengthen monetary and liquidity management frameworks, and increase reserve buffers to facilitate durable access to international capital markets,” the IMF added.
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