By Francisco Dominguez, Roger D. Harris and John Perry
Oct 15, 2025
Venezuela’s Bolivarian Revolution has been in the vanguard of the Global South. In contrast, President Javiar Milei’s government in Argentina represents the logical, though absurd, consequence of extreme neoliberalism, which he calls “anarcho-capitalism.”
Western Hemispheric geopolitics reflect the weakening of US hegemony and an emerging multipolarity, especially with China’s entry as a major regional trading partner. US imperialism’s response, started well before Trump, has been to weaponize the dollar, impose illegal and crippling economic sanctions, and levy arbitrary tariffs. When these fail, the recourse is to military aggression.
US War Secretary Pete Hegseth announced preparations for war with China. Washington has concluded that it must put a halt to multipolarity to maintain its global supremacy. Thus, the Trump administration is simultaneously rushing to the rescue Milei’s government while hurrying to overturn Venezuela’s under their President Nicolás Maduro.
Role of Venezuela under Chavismo
Venezuela is a beacon of national sovereignty and social progress. It has consistently opposed imperialist aggression, not just in Latin America, but globally. Under the movement known as “Chavismo” it aimed for Latin American integration and the pooling of its huge natural resources, offering an independent pathway to development to withstand US imperialism.
Consequently, it has been under attack, enduring US-financed far-right violence, destabilization, a US-led asphyxiating economic blockade, assassination attempts on the president and leading Bolivarian officials, mercenary attacks, coups and terrorism – the full arsenal of Washington’s aggressive toolkit.
Role of Argentina under Milei
In 2023, anti-establishment anger propelled libertarian populist Javier Milei to the Argentine presidency. His Trump-like “chainsaw plan” – radical spending cuts and a war on government institutions and services – fitted with the orthodoxy dictated by the International Monetary Fund (IMF). Milei closed 13 government ministries, including those for education, labour and social security. Foreign lenders welcomed Milei’s elevation of austerity to a moral imperative.
Milei is still favoured by the IMF. But while his unwillingness to devalue the peso helped cut inflation, it slowed economic growth and reduced the country’s capacity to sustain its huge debt. Argentina is now over $450 bn in the red. Employment fell steeply, while poverty soared to affect 53% of the population in 2024 (allegedly reducing since then). Budget cuts raised the cost of basic needs.
Corruption scandals emerged. A close political associate of Milei admitted receiving “donations” from a narco-entrepreneur. A US$4.6 bn crypto scandal followed; the largest ever crypto-theft. Milei’s left opposition demanded his impeachment, and a judge launched a fraud probe. Later, Milei’s sister was accused of receiving hefty bribes. On top of this came the crushing defeat for Milei’s libertarian party in the Buenos Aires provincial elections in September.
All that has triggered a run on the peso and a new economic crisis.
Trump’s recent decision to bail out Milei’s predictably disastrous economic performance is consistent with the profligacy of IMF-US lending to right-wing Argentine governments. In April 2025, the Buenos Aires Times reported that the IMF praised Milei’s efforts and projected that the Argentine economy would grow faster than the global average. In fact, Milei tipped the country into recession and sent millions of people into poverty in the first months of his government.
In short, Milei’s “narco-capitalist” government is not only corrupt but has savaged Argentina’s economy. Milei represents the logical culmination Argentina’s ruling class servitude to US geopolitical objectives, even extending to his enthusiastic support for genocide in Gaza. Slavishly supporting anything Trump does or says, Argentina was one of only ten countries to vote with the US and against the UN’s two-state solution for Israel-Palestine.
IMF wages financial war against Venezuela
The IMF is a key institution through which the US enforces its imperial dominance, part of an architecture shaped largely by Washington. Often functioning as a financial arm of US foreign policy, it rewards compliant right-wing regimes such as those of Argentine presidents Macri and Milei, while punishing independent governments like Venezuela’s that are striving for socialism.
An example is the IMF response to the 2002 coup against Venezuela’s democratically elected President Hugo Chávez. The IMF publicly stated its readiness to collaborate with coup-monger Pedro Carmona, whose “government” abolished the constitution and key democratic institutions. Within hours after Chávez was kidnapped, the IMF’s Michale Dawson said: “we stand ready to assist the new administration in whatever manner they find suitable.” Fortunately for democracy, the coup lasted only 47 hours. The people spontaneously rose up and returned their rightful president to his office.
More recently, during the Covid-19 crisis, IMF chief Kristalina Georgieva announced an emergency response which could disburse US$50 bn to developing countries and US$10 bn to low-income countries at a zero-interest rate. Venezuela had tried to exercise its “special drawing rights” for US$5 bn to combat the pandemic. This required IMF officials to engage in acrobatics to justify rejecting Venezuela’s request. The real reason was the US government’s farcical recognition of Juan Guaidó as “interim president.”
US-IMF props up rightist Argentina
In 1999-2002, when Argentina had a right-wing government, the IMF overestimated GDP growth. Then, conversely, in 2003-2015 when Argentina had left-wing governments under the Kirchners, the IMF underestimated the strength of the country’s economic recovery. IMF debt was paid off, Argentina’s notorious external debt fell sharply, no new IMF loans were granted.
But for the past decade, its politics have revolved around chronic economic crises and persistent IMF influence. Across three presidencies, Argentina swung from market liberalization (Macri, who succeeded the Kirchners), to state intervention (Fernández), to radical austerity (Milei). Right-wing Mauricio Macri acquired a US$57 bn loan, the largest in the fund’s history. The IMF itself admitted the bailout “was not fit for purpose.” The country is now on its twenty-third IMF bailout, a global record. It is the fund’s biggest debtor, owing a “staggering” $41.8 bn.
US aggression against Venezuela
The US finds it intolerable that Venezuela – a “threat” of a good example – has successfully resisted US policy of “maximum pressure.” Its military build-up against Venezuela is an escalation from hybrid to open warfare aimed at suppressing an alternative model of sovereignty and social justice, with the possible bonus of reclaiming control over the country’s oil resources.
Trump has deployed a fleet of warships, F-35 stealth fighter jets, and several thousand marines. Washington is positioning military forces in Puerto Rico, has a substantial military presence in Guyana, and asked Grenada to deploy US military forces in its territory. Trump has declared the US to be at war with drug cartels, potentially extending to those supposedly inside Venezuela itself. Commentators, including officials of the Bolivarian government, conclude that a US military strike seems imminent.
Washington’s justification is a monumental lie: Venezuela is alleged to be a narco state, led by the non-existent Cartel de los Soles. Rubio and Trump falsely accuse the Bolivarian government of shipping hundreds of tons of drugs into the US. The United Nations Office on Drugs and Crime has consistently reported that up to 92 percent of the cocaine produced in Colombia and Ecuador reaches the US through the Pacific (Venezuela’s entire coastline lies in the Caribbean Sea).
Trump and Milei
In sharp contrast to the economic punishment being meted out to Venezuela, Trump’s “favourite president” is getting a bailout for the economy he that has destroyed. Milei is promised a direct purchase of pesos with dollars, together with a $20 bn central bank “swap line.” Milei swiftly thanked Trump for his “vision and powerful leadership.”
Washington openly admits its ideological motives. Treasury Secretary Scott Bessent said the US should help conservatives win elections in Latin America. He tweeted: “The success of Argentina’s reform agenda is…in the strategic interest of the United States.” Praising Argentina’s “strong and stable” economy, he failed to address why it would collapse without US support.
The bailout appears to have several undeclared aims. One, according to the New York Times, is to help rich investors whose bets could falter if Argentina’s economy sinks,. The same source claims that US officials are also pushing Argentina to scale back its ties with China and want access to its uranium and lithium supplies. The rescue plan may even involve dollarizing Argentina’s economy.
Nearly half of Argentinians (44%) see the deal as more likely to benefit the US than their own nation, while 36% have a negative view of Milei’s relationship with Washington. The irony of Trump’s economic lifeline for Milei is that it may kill off his chances of political survival.
Neoliberal misery vs multipolar-oriented sovereign development
Bolivarian Venezuela and Milei’s Argentina present two starkly different paths for Latin America—Venezuela’s sovereign defiance of US imperialism and Argentina’s deepening subservience and dependency. One suffers imperial “hybrid warfare” while the other gains imperial “welfare.”
Washington uses coercive tools—sanctions, economic warfare, and military threats—to preserve hemispheric dominance. Venezuela embodies resistance and regional integration. Argentina, under Milei, epitomizes the collapse into “narco-capitalism,” social devastation, and foreign dependency.
Ultimately, neoliberal austerity brings only poverty and dependency, while multipolar cooperation among Global South nations offers a viable path toward genuine independence, equitable development and resistance to imperial domination.
UK-based Francisco Dominguez is with the Venezuela Solidarity Campaign. Nicaragua-based John Perry is with the Nicaragua Solidarity Coalition. US-based Roger D. Harris is with the Venezuela Solidarity Network.
Read also: defenddemocracy.press/trumps-military-escalation-against-venezuela-repeats-the-iraq-war-blueprint/
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