Argentina Seizes the Central Bank

From WSJ:

After a month of wrangling, Argentine President Cristina Kirchner succeeded in sacking central bank President Martin Redrado last week. In his place she named Mercedes Marcó del Pont, a Yale-trained economist who has expressed the view that central bank autonomy ought to be limited.

The opposition howled at the news. Felipe Sola, former governor of Provincia de Buenos Aires, warned that the new bank president “is going to do what the executive decides and they are going to modify the bank charter to justify her doing what the executive tells her.”

Of course that would seem to be the point. Mr. Redrado was fired because he refused to turn over $6.6 billion in bank reserves to Mrs. Kirchner, who wants to pay foreign creditors but doesn’t want to use treasury revenues. Ms. Marcó del Pont, if she wants to keep her job, will follow the orders of the president.

Mrs. Kirchner is not the first politician to covet the wealth available from the monetary authority. Closer to home, there is Barack Obama, who didn’t back Ben Bernanke’s controversial second term as head of the Federal Reserve out of magnanimity. Mr. Bernanke kept his job because he has shown a willingness to finance Mr. Obama’s big-government agenda.

[Read more at WSJ]

2 Comments on "Argentina Seizes the Central Bank"

  1. Good for her. Bold.

    Anyone with an understanding of how the international bankers, privatizers, and their accomplices in the corporatist gov’t raped that country in the middle of the last decade (literally trucking money out of the country in the middle of the night, while barring regular people access to their own accounts), will know that this was a move LONG overdue, and well-deserved.

    To better understand this, I HIGHLY recommend watching Naomi Klein’s documentary, “The Take”:

    http://www.youtube.com/watch?v=LEzXln5kbuw
    http://www.youtube.com/watch?v=GsacA7Jasaw
    http://www.youtube.com/watch?v=rfbztoTXlXk
    http://www.youtube.com/watch?v=toFqvh2Ktoc
    http://www.youtube.com/watch?v=F5eRo7TPSms
    http://www.youtube.com/watch?v=19j_T1WeGlo
    http://www.youtube.com/watch?v=eyMQ1hfyOAA
    http://www.youtube.com/watch?v=HelwFDhZoMs
    http://www.youtube.com/watch?v=tr8ZyoxdnYM

  2. Good for her. Bold.

    Anyone with an understanding of how the international bankers, privatizers, and their accomplices in the corporatist gov't raped that country in the middle of the last decade (literally trucking money out of the country in the middle of the night, while barring regular people access to their own accounts), will know that this was a move LONG overdue, and well-deserved.

    To better understand this, I HIGHLY recommend watching Naomi Klein's documentary, “The Take”:

    http://www.youtube.com/watch?v=LEzXln5kbuw
    http://www.youtube.com/watch?v=GsacA7Jasaw
    http://www.youtube.com/watch?v=rfbztoTXlXk
    http://www.youtube.com/watch?v=toFqvh2Ktoc
    http://www.youtube.com/watch?v=F5eRo7TPSms
    http://www.youtube.com/watch?v=19j_T1WeGlo
    http://www.youtube.com/watch?v=eyMQ1hfyOAA
    http://www.youtube.com/watch?v=HelwFDhZoMs
    http://www.youtube.com/watch?v=tr8ZyoxdnYM

Comments are closed.