By Matt Stoller, Director of Research at the American Economic Liberties Project and the author of the BIG newsletter
As a former writer for Naked Capitalism and a steadfast reader, I’ve observed the impact of various regulatory measures during the Biden era from my vantage point in D.C. Some might label me a complacent insider contributing to the world’s ongoing issues. Nonetheless, I believe in the significance of supporting Naked Capitalism. If you’re already on board, feel free to jump straight to the Tip Jar and then return for more insights.
Currently, a scandal involving Argentina is unfolding, particularly connected to a bailout led by President Javier Milei. Since taking office in 2023, Milei has positioned himself as the solution to Latin American turmoil, advocating for deregulation and severe cuts to the social safety net. For over eighteen months, media commentary has fixated on his unconventional image, the supposed strength of Argentina’s economy, and how his leadership would finally instill fiscal discipline and restore investor faith.
However, this narrative has recently crumbled. An election revealed that Milei’s austerity measures were failing to meet the public’s needs and that the country’s financial health was overstated.
Had you been following Naked Capitalism, you would have recognized these flaws from the beginning—the narrative was misleading at best, with Milei benefiting from politically-driven American financial aid. Nick Corbishley noted in January:
Not long ago, the Milei administration in Argentina secured a $20 billion loan agreement with the IMF to defend against a peso collapse and continue servicing an existing $41 billion debt to the Fund. This deal included a significant $12 billion upfront payment. Furthermore, the World Bank and Inter-American Development Bank contributed additional emergency loans of $12 billion and $10 billion, respectively.
As we reported previously, this IMF loan faced substantial opposition from senior staff at the organization. Without the new loan, Argentina, accounting for only 0.6% of global GDP, remained the largest debtor to the Fund, owning over one-third of its total global loans.
Recently, Treasury Secretary Scott Bessent has made clear commitments, allocating U.S. exchange stabilization funds to Argentina. This situation is intriguing, primarily due to Trump’s commitment to hedge funds that invested in Argentine dollar-denominated bonds, which complicates matters for farmers who feel disadvantaged by the assistance given to their Argentine competitors who export soybeans to China.
This highlights the importance of Naked Capitalism. To effect meaningful change, one must genuinely understand the situation. One major reason Team Democrat has struggled to make an impact is their lack of awareness, a direct result of not engaging with resources like Naked Capitalism. If they did, perhaps we wouldn’t be facing so many pressing issues today. However, I recognize I may also be part of the problem, having strayed too far from the critical environment that Naked Capitalism fosters into the broader political sphere.
This site offers vital, no-nonsense analysis of U.S. politics, focusing on the actions of billionaires and the shortcomings of Team Dem; it tackles international conflict areas, especially in the Middle East and Latin America; scrutinizes the military-industrial complex; and evaluates healthcare—from scientific advances to economic implications.
One of the unaddressed dynamics is the precarious state of the U.S. automobile industry, which faces stiff competition from cheaper Chinese electric vehicles in a poorly managed U.S. market for internal combustion vehicles. While I’m uncertain about the solutions to this dire situation, it reinforces the necessity of staying informed. Unfortunately, many policymakers are unaware of these developments, while readers of Naked Capitalism are not.
From Coffee Breaks to Saturday morning movies, and daily links to comprehensive coverage of the Fed, crypto scams, and private equity, this is where you find the truth.
We are in challenging times, echoing a quote I appreciate from Louis Brandeis: “Despotism, be it financial or political, is vulnerable unless believed to rest on a moral sanction. The yearning for freedom is deep-rooted and will manifest itself in protest against servitude unless the quest for freedom appears immoral.”
As the illusion of freedom dissipates and the reality of oligarchy becomes apparent, we need every tool at our disposal to fight back, including the truth. And that’s what Naked Capitalism provides—unvarnished and straightforward. There are times I may disagree, yet I value the critical insights Yves demands I engage with.
If you’re in a position to do so, please consider supporting this effort. Visit the donation page and contribute generously. If you’re unable to donate, that’s perfectly fine; just read and learn to ensure we keep the light of knowledge burning brightly for ourselves.
I began reading this site in 2006, as the financial crisis loomed, seeking to uncover what lay ahead. Conditions have worsened significantly since then. While we have strayed from the right path, should we find a way to recover, it will be due to individuals who bravely share the truth and those eager to accept it, regardless of how uncomfortable it may be.
Such a mission is worth preserving, so please give what you can. Head to the Tip Jar.
Each year, I reaffirm this message. If you share my belief in the importance of a community devoted to the truth, please contribute whatever you can. If you have more to offer, give generously; if you have little, then words of encouragement are valuable too. Every contribution counts.
If you’re looking for an optimistic note, consider this: most Presidents experience significant setbacks during their first year in office. Bill Clinton faced backlash over his healthcare bill, Obama’s stimulus efforts fell short, Biden’s withdrawal from Afghanistan sparked discontent, and Reagan’s administration encountered recession. Trump will likely face similar challenges, creating another chance to advocate for meaningful change. However, to seize that opportunity, genuine awareness is essential. Keep reading Naked Capitalism, share it with friends, and post its articles on the social media platforms we typically criticize.
Or don’t. At this point, I may not be the most reliable source; it’s been too long since Yves has given me the reset I need. I might have blended into the political landscape.
