Geopolitical Compass #41

Will the situation in Argentina become as rosy as everyone thinks?

This Week:

• Argentina: more of the same?

• Draghi on the EUSSR.

• Hungary bribed with it’s own money.

Argentina

Those with desire for power will always say what people want to hear. It was hoped Millei will be different, but worrying signs are starting to appear that he’ll be like all other politicians - big promises, and the pivot once power is secured:

After declaring he’ll shut down the Central Bank:

His choice for head of the economy, the Economic Minister, is Luis ‘Toto’ Caputo, who previously was Chief of Trading for Latin America with JP Morgan, as well as holding the same position for Deutsche Bank, all from 1994 to 2003. He was past head of Argentina’s Central Bank, (BCRA) where he increased the interest rate dramatically, causing the Argentinian Peso to devalue 40% in just three months.

Milei also chose Santiago Bausili as the new central bank head. (I thought there was to be no central bank?) Bausili also worked for JP Morgan and Deutsche Bank in debt, capital markets, and of course, derivatives, in markets covering Argentina, Chile, and Peru. This looks like old home week for Argentina, as the same guys responsible for the past destruction of the economy will be back in the saddle along with Milei, who has already, it seems, backed away from any immediate closure (blowing up) of the central bank.

These appointments fit my thinking from weeks back that Argentina will reinforce itself as a loyal serf of the United States, not an El Salvador 2.0.

Bitcoiners need to take a breath. From my reading of Milei’s responses when asked about Bitcoin, he shows a rudimentary knowledge, then with any answer pivots straight into his usual talking points - there is no indication he’ll adopt Bitcoin.

Even if he wanted to, let’s face it - Argentina is beholden to the IMF. The first trip Milei made since being elected is to Washington DC, home of the IMF, the US Treasury and whichever other US body you’d care to think of. The IMF is rabidly anti-Bitcoin as it rightly understands it as the tool that will remove its power.

Milei is also staying in line with the globalist climate agenda, even as other nations in Asia and the Middle East start to push back which should have presented the perfect opportunity for Argentina to dial back the climate crazy.

EUSSR

Draghi saying the quiet part out loud:

Hungary

The EUSSR has successfully bribed Hungary… with Hungary’s own money - funds that were due to it by the union but held back as blackmail:

Orban then allowed the EUSSR’s ascension talks with Ukraine to continue by leaving the room, allowing for a ‘unanimous’ vote. But merely one day later, Orban blocks further funding for Ukraine:

Why the increasing urgency to back Ukraine into the union now? It may be because Hungary accedes to the EUSSR presidency in July 2024, at which point they know they’ll have zero chance of getting Ukraine in, and by the end of 2024 they know Ukraine will likely no longer exist as it currently stands as it’s military collapses more by the day.

It’s ironic that Hungary is actually saving Europe from itself in all this, yet is maligned as the boogey man.

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