Argentina: IMF Loans and chainsaws

We recently had a short discussion on Argentina in the Hearty Salon.   I mentioned casually that I am not sure how much of Argentina actually still belongs to Argentina, given their IMF loans.  It is generally known that Argentina has the most enormous IMF loans in the world.

Here is an update with Ben Norton doing the numbers.

Ben says:  The IMF is a corrupt tool of US interests. Trump ordered the IMF to give Argentina’s last right-wing oligarch-run regime the biggest loan in IMF history. Now it’s bailing out Javier Milei’s failing libertarian project. Argentina’s IMF debt is projected to be 1335% of its quota.

This April IMF report notes: “Peak Fund credit to Argentina” under US-backed right-wing libertarian Javier Milei “is projected to reach SDR (Special Drawing Rights) 43.1 billion in 2026 (1,352 percent of quota)”, or $58.44 billion USD. “This would be the Fund’s largest-ever exposure in absolute terms“.

They turned to China for help as this level of debt cannot be paid.  China gave them a swap line, to keep the lights on and pay the grocery bill, while Argentinians are out in the streets every week.  A swap line is simple and in its simplest form, China made some money available that Argentina can use to buy stuff from China, and pay things from China, because they have nothing in their piggy banks to purchase anything with – it’s like rolling credit.  I have no idea what Argentina put on the table to support this swap line.

Recently, one of the popular resistance bloggers and commentators (everybody is now a trade expert or an economist suddenly) presented this list on China, showing a rare level of playing beyond his skill set:

🚨🇺🇸🇨🇳Reality Check for Trump on China:

✅China can import soybeans from Brazil🇧🇷

✅China can import beef from Argentina🇦🇷

✅China can import sorghum from Australia🇦🇺

✅China can import corn from S. Africa🇿🇦

✅As for oil and gas, China can import it from its neighbor Russia🇷🇺and the US’s neighbor Canada 🇨🇦

I commented in a closed environment:

China can import soybeans from Brazil. They’re already buying every bean available. Without opening up more rainforest, there will be no more to buy.

China can import beef from Argentina—where is the port? Argentina cannot get to Chancay as it has to cross two countries. It has no friends in the region, and it does not have the infrastructure or beef to deal at this level.

China can import sorghum from Australia – How much? Sufficient for three baby breakfasts in one week?  It is but a few million.  China is both a sorghum importer and a small exporter.  Up to now, their main imports have come from:

In 2024, China imported $2.59B of Sorghum, being the 125th most imported product (out of 1,199) in China. In 2024, the main origins of China’s Sorghum imports were: United States ($1.73B), Australia ($578M), Argentina ($280M), Uruguay ($775k), and Burma ($109k).

It is the United States imports that they have to find from other countries.

China can import corn from South Africa. Sure, South Africa has become a net importer of food and agricultural products. They are importing corn themselves, and they are also making it impossible for the big farmers with years of experience to farm.

Let’s check China’s corn imports in more detail:

In 2024, China imported $3.78B of Corn, being the 89th most imported product (out of 1,199) in China. In 2024, the main origins of China’s Corn imports were: Brazil ($1.88B), Ukraine ($1.14B), United States ($560M), Burma ($54.3M), and Russia ($36.2M).

Do you see South Africa there?

As for oil and gas, China can import it from its neighbor Russia🇷🇺and the US’s neighbor Canada – OK then.  Or continue with its multiple sources of generation.

One cannot be more toast than Argentina, a beautiful country with a glorious food culture. But who owns Argentina now?  This is not a rhetorical question.

The US-controlled IMF is meddling in Argentina’s upcoming election, campaigning for right-wing libertarian Javier Milei. The IMF managing director told Argentine voters to oppose any candidates who reject Milei’s brutal neoliberal austerity measures.

A chainsaw cannot possibly be a tool of state.