Treasury Secretary Bessent torches MSNBC over Argentina ‘bailout’ claims



Treasury Secretary Scott Bessent set the record straight when MSNBC claimed that the Trump administration is providing a "bailout" to Argentina.

'In most bailouts, you don’t make money. The US government made money.'

News broke in October that the Trump administration would implement a $20 billion currency swap with Argentina, which legacy media outlets have repeatedly described as a “bailout” for the Latin American country. Democrats criticized the plan, arguing that the administration had strayed from its America First agenda and failed to prioritize American farmers, citing trade negotiations with China that led to China temporarily suspending purchases of U.S. soybeans.

During a Friday morning interview on MSNBC’s “Morning Joe,” correspondent Jonathan Lemire asked Bessent, “How does a $20 billion bailout of Argentina help Americans?”

“Do you know what a swap line is?” Bessent replied to Lemire.

“It’s a currency swap, yes,” Lemire responded.

“Yes, but what is that?” Bessent asked.

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Treasury Secretary Scott Bessent. Photo by Andrew Harnik/Getty Images

“You’re the treasury secretary,” Lemire stated.

“Yes, but why would you call it a bailout?” Bessent questioned. “In most bailouts, you don’t make money. The U.S. government made money. We used our financial balance sheet to stabilize the government, one of our great allies in Latin America, during an election.”

He reiterated that the U.S. would make money from the arrangement, adding that he “would rather use peace through economic strength than have to be shooting at narco boats coming offshore if the [Argentinian] government collapsed.” Bessent called the situation a “generational opportunity in Latin America to create allies.”

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Photo by Chip Somodevilla/Getty Images

“By stabilizing the economy there and making a profit, then that’s a very good deal for the American people,” Bessent continued. “There’s a lot we could have been doing for the American farmers, but Democrats closed the government.”

He clarified that the arrangement with Argentina was a $20 billion credit line and that the U.S. has already made a profit on the swap line, which involved exchanging U.S. dollars for pesos.

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Jamie Dimon’s ‘cockroach’ economy is eating Main Street alive



Jamie Dimon has been running JPMorgan Chase for nearly two decades. The business press still hails him as the man who steered the bank through the 2008 financial crisis.

I’m less impressed. It’s easy to look steady at the helm when you’re floating on a $29 trillion sea of taxpayer bailouts.

This is what half a century of bipartisan corruption produces: a crony capitalist system that privatizes profit, socializes loss, and lets the rest of us drown.

Yes, Dimon saw the 2008 crash coming and made some smart adjustments ahead of the collapse. Credit where it’s due — barely. But once the dust settled, JPMorgan rewarded itself handsomely for surviving the storm.

JP Morgan said yesterday that its earnings "fell short" of their potential last year — but it still felt able to hand its investment bankers a 22 per cent increase in their bonuses.

Kicking off what could be a stormy reporting season, America's second-largest bank paid them $9.3bn, compared with $7.7bn in 2008. Total pay for its 222,315 employees came in at $26.9bn — 18 per cent from $22.7bn the year before — largely because of a sharp increase in bonuses paid throughout the bank. The announced sparked outrage among critics who described the figures as "obscene."

"Obscene" doesn’t begin to cover it.

So when Dimon made headlines a couple of weeks ago with his “cockroaches” comment, I didn’t rush to celebrate another round of supposed insight.

“When you see one cockroach, there are probably more, and so everyone should be forewarned of this one,” Dimon told analysts, referring to the bankruptcies of subprime auto lender Tricolor and auto-parts maker First Brands.

Dimon’s metaphor was awkward enough — he mentioned two cockroaches while warning about seeing just one. But worse, he got caught by the same kind of subprime rot that tanked the global economy in 2008.

“Dimon said that JPMorgan is reviewing its controls after the Tricolor bankruptcy and said the $170 million loss is ‘not our finest moment.’”

No kidding. His “cockroach detector” still doesn’t work.

Now Dimon is back in the headlines again for another round of supposed “foresight.”

“JPMorgan Chase CEO Jamie Dimon warned in an interview that the stock market could be in line for a significant correction within the next few years amid heightened uncertainty. Dimon told the BBC that there is an elevated risk of a stock market correction in the next six months to two years, saying, ‘I am far more worried about that than others.’”

Glad to meet you, Mr. Dimon. Some of us have been worried for decades.

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Photo by Jemal Countess/Getty Images

Back in 1989, when my high-school history teacher asked the class to name America’s biggest problem, I said “the federal debt.” Not just because debt is bad, but because Washington was pretending deficits didn’t matter — and voters let them.

Nearly 40 years later, nothing has changed. The numbers are bigger. The lies are the same. Ignore a problem long enough, and it grows until it devours you.

Our economy isn’t a Mr. Potato Head toy, where government spending sits neatly apart from everything else. It’s one big pile of money — and the federal government keeps shoveling from the productive side to the wasteful side.

Every dollar borrowed for political vanity projects is a dollar you can’t use to start a business or buy a home. As the federal machine consumes more and more of the pool, it’s not the elites who get crowded out. It’s everyone else.

Poor people’s home mortgages are down 46%. Rich people’s art-collection loans are up 30%.

This is what half a century of bipartisan corruption produces: a crony capitalist system that privatizes profit, socializes loss, and lets the rest of us drown.

Look at Walmart. The company pulls tens of billions of taxpayer dollars a year through the SNAP program — the same program many of its employees rely on to eat because Walmart won’t pay them enough to live.

Independent research confirms it: Thousands of Walmart workers depend on Medicaid and food stamps.

Big government lets big business pocket our tax money on both ends — profits in private, losses in public. Even their labor costs get offloaded to us.

So when politicians wail about a “government shutdown” disrupting SNAP payments, remember who they’re really worried about. It’s not the families at the grocery store. It’s the corporations cashing in.

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Photo by Mel Musto/Bloomberg via Getty Images

A system this warped can’t last. You can call America the greatest nation in history if you like, but greatness doesn’t square with more than $38 trillion in government debt and record levels of personal debt.

Household debt, credit-card debt, mortgage debt — all at historic highs. Nearly a quarter of Americans are buying food on layaway. And 42% have zero emergency savings.

Meanwhile, Washington keeps inflating Wall Street’s floaties.

Main Street drowns while Big Government keeps Big Business comfortably above the surface.

Jamie Dimon thinks he’s just spotted the first cockroach. But the infestation started long ago — right inside the marble halls of Washington, D.C.

And if no one finally fumigates the place, the rot will force-condemn the entire country.

Trump’s downsizing isn’t cruelty — it’s the last hope for solvency



For more than a century, one trend has defined American politics: the relentless expansion of federal power. The Founders built a limited framework of law and order to protect liberty and promote a flourishing society. That framework has morphed into a sprawling leviathan that reaches into nearly every aspect of American life. Each crisis, often of the government’s own making, brings the same answer: more bureaucracy, more spending, more control.

Generations of Americans have paid the price to support a self-described “problem-solving” class that fails to solve anything — and demands even more to fix the failures it created. Under President Trump, however, the country finally has a leader who sees bureaucracy not as the solution but as the root of the problem.

The choice is clear: a government that serves the people — or an unaccountable leviathan that consumes them.

In the 1930s, Franklin D. Roosevelt’s New Deal exploited economic collapse to justify a sweeping expansion of federal agencies. Lawmakers used the crisis to transform the relationship between government and the free market.

By the 1960s, Lyndon B. Johnson’s Great Society pushed federal overreach farther, binding millions of Americans to Washington through government handouts. Decades later, after 9/11, George W. Bush signed the Patriot Act, giving federal agencies unprecedented access to Americans’ private lives — all in the name of national security.

Today, the federal government reaches into your doctor’s office, your child’s classroom, and even your kitchen appliances — often without a single vote in Congress.

This unchecked sprawl, always justified by its own failures, has saddled taxpayers with $37 trillion in debt, a crushing weight that future generations must carry.

Enter Donald Trump.

In fewer than 100 days, Trump removed 126,000 federal workers and targeted another 100,000 positions for elimination. He gutted USAID — a bloated redistribution agency infamous for funding “Sesame Street” in Iraq — cutting more than 99% of its workforce. The IRS shed 3,600 auditors, directly rejecting President Biden’s plan to hire 87,000 new agents through the Inflation Reduction Act.

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Sarah Rice/Bloomberg via Getty Images

For the first time in years, an American president has moved decisively to dismantle the administrative state — rejecting Washington’s bipartisan instinct to grow government and funnel more power to unelected bureaucrats.

No one should be surprised that Trump’s efforts to downsize the federal government have sparked outrage from Democrats, who now portray federal workers as the new victim class. Their narrative paints Trump and Republicans as “cruel” and “heartless.”

But here’s the truth.

While more than 60% of Americans live paycheck to paycheck, Washington’s bureaucratic elite dominate six of the 10 richest counties in the country — all clustered around the nation’s capital.

During the 2008 financial crisis, 8.6 million Americans lost their jobs — 5.5% of the national workforce. Yet Washington barely flinched, shedding just 1.1% of its taxpayer-funded positions. While global economies collapsed, the D.C. bureaucracy grew, kept afloat by billion-dollar federal contracts. Politicians demanded more money for “problem solvers” to solve the problems they created. After all the “assistance” and bailouts, average Americans were left with just one thing: nearly $1 trillion in new debt.

Trump’s war on the administrative state doesn’t stem from cruelty — it reflects a long-overdue reckoning with bloated federal power. His success represents a win for working Americans. While Trump has made historic gains against the bureaucracy, many of his reforms remain tied up in court, blocked by forces determined to preserve the status quo.

If real change is the goal, Congress must do more than applaud. Lawmakers must codify Trump’s actions and pass his proposed spending cuts. The choice is clear: a government that serves the people — or an unaccountable leviathan that consumes them.

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The Silicon Valley Bank Bailout Is The Latest Reason The Uniparty Needs To Go

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'De facto bailout of the banking system': Yellen says no bank bailouts, but Big Four reportedly set to grab $210 billion as tech elites get propped up



A California bank that long served tech elites and affluent venture investors collapsed on Friday, amounting to the greatest financial institutional failure since Washington Mutual went bankrupt in 2008.

While Biden officials have suggested that there will not be bailouts comparable to those enjoyed in the late 2000s, the Big Four banks will reportedly see a bailout by another name of roughly $210 billion, while the U.S. government makes wealthy tech workers whole again.

What is the background?

The New York Post reported that Silicon Valley Bank had $209 billion in assets as of Dec. 31, 2022, and was the 16th-biggest bank in the United States. Silicon Valley tech start-ups, venture capital firms, and corporate behemoths deposited at the bank and used its services.

The bank was adversely impacted by the downturn in technology stocks over the past year as well as by the Federal Reserve's endeavor to hike interest rates.

USA Today noted that in recent years, SVB bought billions of dollars' worth of purportedly "risk-free" bonds using depositors' cash. However, the value of these investments has significantly dropped because they now pay lower interest rates as compared to bonds issued today.

Since coastal tech elites and other California customers were hit hard by the downturn, they needed cash. Many began trying to withdraw all at once, prompting SVB to sell off its assets at a loss.

The bank was unable to raise additional capital through outside investors.

Amid liquidity concerns and share losses around $52 billion, regulators shut down the bank Friday, thereby protecting insured deposits and those remaining assets at the bank.

Centralists intervene

Treasury Secretary Janet Yellen claimed Sunday that unlike the big bank bailouts in 2008, Silicon Valley Bank and Signature Bank — a New York financial institution similarly brought to the brink of collapse last week — will not receive similar treatment in the aftermath of their breakdowns. The U.S. government will, however, reportedly be helping their affluent depositors.

Citing "systemic risk" as justification for extraordinary actions, the Treasury Department, Federal Deposit Insurance Corp., and the Federal Reserve have indicated that they will use the FDIC's insurance funds to prevent tech elites and other depositors in the failed banks from losing money, reported Axios.

"Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth," wrote Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin Gruenberg in a joint statement.

According to the trio, depositors will have access to all of their money as of March 13. The trio noted that no losses associated with the "resolution of Silicon Valley Bank will be borne by the taxpayer," but rather will be funded by fees on the banks.

Similar action will be used to bolster Signature Bank.

Whereas depositors, characterized in this case by USA Today as businesses and wealthy tech workers, will be protected up to $250,000 each, shareholders and certain unsecured debt holders are on their own.

Extra to these actions, the Federal Reserve indicated Sunday that it will "make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors."

Accordingly, the Fed has introduced a new lending program called the Bank Term Funding Program, enabling banks to take out advances from the Fed for up to a year.
Ben Eisen, writing the Wall Street Journal, noted that in exchange for these advances, banks must pledge "Treasurys, mortgage-backed bonds and other debt as collateral. By allowing banks to pledge their bonds, they can meet customer withdrawals without having to sell their bonds at a loss, which is what Silicon Valley Bank did last week, sparking a run on the bank."

"The biggest draw of this facility is that banks can borrow funds equal to the par value of the collateral they pledge," wrote Eisen. "This means that the Fed won't look to the market value of the collateral, which in many cases reflect big unrealized losses due to the jump in interest rates."

"That is a boon for banks, who were sitting on some $620 billion in unrealized losses on securities at the end of last year," added Eisen.

Should the banks fail to repay their advances, the Treasury Department, with President Joe Biden's blessing, is promising $25 billion in credit protection to the Fed just in case.

'De facto bailout'

ZeroHedge reported that contrary to Yellen's suggestion, the Big Four banks are effectively getting a $210 billion bailout.

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The editorial board at the Wall Street Journal concurred, writing that the guarantees for wealthy California tech magnates' uninsured deposits and the Fed's loans to big banks are together "a de facto bailout of the banking system, even as regulators and Biden officials have been telling us that the economy is great and there was nothing to worry about."

The board noted that the legality of the depositor end of the alleged bailout is unclear, since "Congress set the $250,000 insured limit to protect average Americans, not venture investors in Silicon Valley."

As for the one-year advances, the "Fed is essentially guaranteeing bank assets that are taking losses because banks took duration risk that Fed policies encouraged. This too is a bailout."

"Democrats and the press corps may try to pin the problem on bankers or the Trump Administration, but these are political diversions. You can’t run the most reckless monetary and fiscal experiment in history without the bill eventually coming due," added the board.

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