Argentina's Milei picks Luis Caputo - author of 2018 Macrisis - to lead key Economy Ministry

[peppertree]

Argentine President-elect Javier Milei announced that offshore banker Luis Caputo would lead the nation's Economy Ministry upon Milei's inaugural on December 10th.

Caputo, 58, had earlier served in the same post in 2017-18 under right-wing former President Mauricio Macri - presiding over a disastrous "financial bicycle" carry-trade bubble, whose collapse in April 2018 led to a foreign debt crisis requiring a record, $45 billion IMF bailout that saddles the country to this day.

He is also a cousin of local industrialist Nicolás Caputo, 65 - Macri's best friend.

Luis' sister Rossana, 67, was revealed to have transferred 7 million pesos in 2022 (around $50,000 at the time) to far-right extremist Jonathan Morel - two of whose fellow "Federal Revolution" acolytes carried out an assassination attempt against Vice President Cristina Kirchner that September.

Rossana Caputo was never called to testify in what Kirchner's attorneys point to as one of many examples of how Judge María Eugenia Capuchetti - a Macri appointee - has "sat" on the case.

Messy finances

Touted as the "Messi of finances" by Argentine right-wing media, Caputo has likewise enjoyed a long record of impunity from Argentina's largely discredited judiciary.

Appointed Finance Secretary when Macri took office in late 2015 and later Finance Minister, Caputo was among numerous Macri officials and relatives found to have purchased millions in dollar futures contracts ahead of Macri's 40% devaluation that December.

While the devaluation led to 45% inflation by mid-2016 and a severe recession, Caputo's Axis fund made $50 million from betting on the move - a devaluation he himself arranged - plus at least $700,000 at the expense of the nation's social security agency, ANSES.

Caputo, like Macri, was later listed in the 2017 Paradise Papers scandal - and was found to have managed a Miami-based offshore wealth fund, Noctua Partners, and three Caribbean affiliates with a combined portfolio of over $100 million.

Their existence was confirmed in March 2018 by the U.S. SEC - but had not been declared in his financial disclosure, as mandated by Argentine law.

Noctua Partners was found to have offices just two stories above those of JPMorgan - whose timely sale of its Argentine investments in April 2018 helped touch off the "Macrisis."

Appointed Central Bank president in June 2018, Caputo presided over the loss of the $15 billion drawn from the IMF credit line in just three months to prop up the peso - which nevertheless lost nearly half its value.

The trend largely continued after the IMF forced Macri to sack Caputo in September, with an estimated 80% of the $45 billion ultimately lent to Argentina - reportedly at then-President Donald Trump's behest - being lost to capital flight.

Each of these controversies resulted in federal fraud charges - but were all either dropped or remain stalled in court.

At: https://www-pagina12-com-ar.translate.goog/688530-la-historia-de-luis-toto-caputo-el-messi-de-tomar-deuda-a-ci?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp

Far-right Argentine President-elected Javier Milei gives a thumbs up ahead of his U.S. visit this week, with incoming Chief of Staff Nicolás Posse and Economy Minister-designate Luis Caputo in tow.

The loan-seeking mission, however, left Milei largely empty-handed.

Caputo had earlier served as Finance Minister and Central Bank President under right-wing President Mauricio Macri - during which the public foreign debt more than doubled to $197 billion.

Caputo, a longtime offshore banker, was largely responsible for the deregulation that helped lead to a massive capital flight crisis - some $86 billion of the roughly $100 billion in net added public foreign debt during Macri's 2015-19 tenure.

[progree]

1. Will Caputo make the economy go "Caput?" as in kaput?

"Touted as the 'Messi of finances'" -- as in messy finances?

[peppertree]

3. Bazinga!

And yes - sadly he probably will.

You know - this is precisely what bankrupted Argentina in the first place.

The country was permanently derailed when, in 1980-82, $30 billion in capital flight was carried out by the country's (largely pseudo-fascist) elites - and financed with foreign debt by last dictatorship.

They hot-footed the dollars out of the country, leaving everyone else with the (unpayable) bill - which has only snowballed since.

Similar cycles took place in 2001 and, most notably, under Trump's pal Macri in 2016-19.

And that greasy little money launderer Caputo largely managed that last cycle.

Qué será.

[Lovie777]

2. Are countries ready for another influx of immigrants?..........................

[peppertree]

4. That's the thing - some Republicans are looking forward to an Argentine collapse

For two reasons:

The primary one, of course, is that energy and mining interests are licking their chops at the prospect of Argentina having to privatize its state energy concerns (mainly YPF) - as well as getting preferential exports terms (a hyper-devalued currency, lack of export audits, etc).

But some are also looking forward to the same trend you saw after 1989 from Eastern Europe: the massive influx of a largely white population - which they believe can be persuaded to vote Republican later on (though around 70% of Argentine-Americans did vote for Hillary in 2016).

Now - Argentines aren't as overwhelmingly white as Eastern Europeans. But compared to most other Latin immigrants, it's usually a noticeable difference in that regard.

In any case, it would be a bad a idea for a U.S. administration of either party to be too chummy with the unbalanced Señor Milei - because when his Bush-like policies lead to a Bush-like collapse (but worse, b/c they don't have a Fed to bail them out), Milei would only undermine U.S. international standing if they were perceived to be propping him up.

[TheRealNorth]

5. Exactly

The Republican financies see that there are huge profits to be made in disasters if you are in positions of power to take advantage. Look at how the Banks that caused the great recession were able to use their bail out money to scoop up depreciated homes and homes where the owner couldn't pay the mortgages.

[peppertree]

7. Well said. The infamous 'disaster capitalism'.

Which, as you know, is more and more becoming a favorite go-to business plan for many billionaires - particularly miscreants like Paul Singer.

And not just against defenseless third-world countries: just look at what Singer did to Delphi.

Once the world's largest auto parts maker - and the go-to supplier for GM - Singer squeezed $1.5 billion from Delphi, using TARP funds to help ensure the heist worked.

He also shuttered most of it s production capacity - leaving GM dependent on Chinese parts for years.

In other words - he's a national security risk, besides being a greasy little highwayman.

But such is the world sadly.

[Bmoboy]

6. Sounds like the Mob

Like the Mafia plans to partner with Battista in Cuba.

When you are the government everything you do is OK.

Isn't that what Nixon said?

If the President does it, it's legal.

[peppertree]

8. And there's something to that. His political boss, Trump's pal Macri, is descended from mafiosi

Mafiosi from the feared N'Draghetta in southern Italy's impoverished Calabria region.

And indeed, as president, Macri was notorious for spying on everyone who was anyone in Argentina: over 1,500 people, among them executives, top journalists, judges and politicians - particularly those of his own coalition.

Dozens of Argentine intelligence agents and police were convicted - but not Macri himself, who was given a pass by a "napkin" judge on the premise that it was all "the agents' doing."

Riiight.

No wonder Trump likes him so much. I can just hear him: "Why can't I get away with shit like that!"