US Launches $20 Billion Financial Rescue of Argentina

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00:00Breaking news here, the U.S. agreeing on an Argentina $20 billion swap line where it would

00:05help buy pesos. You know, this framework basically allows for that and help support that country's

00:11currency because this has kind of been an ongoing story that has been very disruptive.

00:15Absolutely. Certainly in the financial markets, we're hearing from Treasury Secretary Scott

00:20Besson saying that the U.S. Treasury is prepared immediately to take whatever exceptional measures

00:25are warranted to provide stability to markets. So the U.S. stepping in in a big way here.

00:31Yeah. The U.S. Treasury directly purchasing Argentinian pesos as part of its support for

00:36the country. This is a step that U.S. authorities really had rarely taken in recent decades. So

00:41with this U.S. intervention, let's bring in now the former U.S. comptroller of the currency.

00:46Joining us now to discuss is Gene Ludwig. Gene is also the author of the newly released

00:50the mismeasurement of America, how outdated government statistics mask the economic struggle

00:55of everyday Americans. Gene, it's good to get you here with us and how fortuitous that we have you

01:01here on the day that this swap line is announced. Can you give us your instant analysis on why this

01:06is significant for the U.S. and how this helps kind of restore financial stability across North

01:12America? This is one of the toughest calls that a Treasury has to make, which is currency support.

01:19And happily, the United States is blessed with a very fine Treasury Department with a lot of

01:25experts. Keeping international stability in these currencies is important. They don't take these

01:32things lightly. I'm sure they've thought about this way, this from every conceivable angle. And net net,

01:38I think it's a good thing to do, but it's a very tricky thing to get right. And they're,

01:43they're smart to try to get ahead of it. Let me ask a dumb question because you have Scott Best and

01:48the Treasury secretary saying that the U.S. Treasury is prepared immediately to take whatever

01:52exceptional measures are warranted to provide stability to markets. Some people might wonder,

01:57what is it about Argentina that the U.S. has such an investment invested stake in? Why is the U.S. so

02:04particularly focused on this country when it doesn't seem to have much impact on people's day to day

02:11lives or the U.S. economy on a day to day basis? Well, you know, it's an important country. It's,

02:17it's much larger and richer than most people understand. So making sure that this stays stable,

02:25as well as a currency market generally is a, is a sensible move. But as I say, this is a very hard

02:31area. In my day and age, we were worried about Mexico. And we took some extraordinary measures

02:37at that time that worked out. But we've got competent people doing this and getting ahead

02:43of it and showing strength is a good thing.