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  • Has Argentina’s President Maxed Out Her Credit Cards?

    Christina Fernandez de Kirchner

    Looks like Argentina’s President Cristina Fernández de Kirchner has to pull her jet up to the “cash only” pump!

    Yesterday, Argentine thieves riding motorcycles stole $91,000 in dollars and euros that President Kirchner planned to take with her on a trip to the Middle East. Aides say the money was for presidential plane expenses for this week’s visit to Kuwait, Qatar, and Turkey.

    One would think that Cristina’s friends who sit atop so much jet fuel in the Middle East, of all places, would let her run a tab. Especially since Argentina, under her leadership, has decided to recognize Palestine as a free and independent state and has become Iran’s second largest trade partner in Latin America.

    This is all the more ironic considering how President Kirchner’s government expropriated nearly $30 billion in private pension savings and owes more than $16 billion in debt worldwide notwithstanding her central bank’s ample reserves. But international creditors are right to be wary. Argentina’s 2001 default—the largest in history—has yet to be fully settled with its private foreign lenders due to the Kirchners’ hardball tactics. This has prevented further sovereign borrowing.

    Recently Argentina has been hinting again that it may restructure its bilateral debts with the Paris Club group of creditors, an oft-repeated promise that has yet to be fulfilled in recent years. Argentina is ultimately the only G-20 country that remains cut off from international capital markets on account of such anti-market practices.

    Argentina’s ranking on The Wall Street Journal/Heritage Foundation’s 2011 Index of Economic Freedom—now 138th out of the 179 countries scored—has declined steadily in the nearly eight years since President Kirchner and her late husband, former President Nestor Kirchner, took power. It is by far the lowest ranked of any G-20 nation.

    Posted in International [slideshow_deploy]

    5 Responses to Has Argentina’s President Maxed Out Her Credit Cards?

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    3. John, New York says:

      Obviously that money wasn't for jet fuel et al. expenses. Come on, are you guys that thick skulled?

    4. Alex von Budberg, Sa says:

      Our country is not a full Democracy, in spite of the fact that the opposition won the midterm elections in 2009, the Government is illegally and unconstitutional using the so-called “Executive decrees of necessity and urgency”, which should be approved by the Congress immediately after they are published in the Official Gazette. As an example de National Budget Law, wasn’t approved by the Congress, due to the lack of transparency and the discretional use of funds by the Executive Power. What happens is that Mrs. Cristina Kirchner, misusing and article of the Federal Constitution decided that the previous budget for 2009 and 2010, will continue ruling the budgetary necessities of the country. This decision, is utterly illegal and a misinterpretation of our Constitution, and worst maybe the cause for her impeachment. She is using “exceptional powers” forbidden by the Constitution’s Art. 29, to utilize in completely discretionary way billions of US Dollars, without asking permission to the Federal Congress. Most of those funds will be used for political purposes, handing over monies to those federal provinces which are allies from her administration and denying funds to the ones which are ruled by the opposition. At the same time, her administration will apply funds for political propaganda and to reinforce their policies of “buying votes and wills”. We didn’t reach what Venezuela is doing, just because we still have a large middle class which is block profoundly against her regime. The opposition parties are just fighting between each other, this panorama is helping the wishes of Mrs. Kirchner and her allies. The Judiciary is trying to investigate lots of scandals of corruption, which include many entrepreneurs who are close related to the Government. The last scandal had to do with drug dealing, an executive jet landed in Barcelona, with one tonne of cocaine. The two pilots are sons of a former Commander of the Air Force and are well connected to some people with lots of influence within the administration. What is a real scandal, the plane left Buenos Aires from Moron, a small airport which belonged to the Air Force and in recent years, nobody had controlled the departures of planes. Many newspapers published that this airport is like a liberated zone, where anyone can do what they want, including smuggling drugs to Europe. Never before in our history, we had such wide corruption and what is worst, a government who doesn’t respect the checks and balances of our Constitution, ruling the country in a very authoritarian way. Even the freedom of press is at risk, they want to close two of the largest newspapers from Argentina, Clarin and La Nacion (the later has 144 years of history). Our freedoms are at stake now.

    5. Steve Mawson, Argent says:

      In this so called age of taxpayer responsibility, when the Argentina gov't is calling for Argentines to use bank transfers for payments, to stop the use of "efectivo en negro" (black money in cash), to pay taxes and declare income, it's more than ironic, it's down right hypocritical that the President should get caught evidently flaunting the system she and her cronies have been designing in order to catch the rest. There are so many questions that arise: why an employee would go to the Treasury to receive cash, why carry it in a backpack, why go to his home and not to the Casa de Gobierno, why the need for cash anyway, was this money declared, etc et al ? NO wonder the rest of the world doubts Argentina and it's policies. IT IS A HUGE JOKE the way this countries executive and legal leaders flaunt openly systems that are corrupt, broken and unjust. Argentina will never have a future whilst 90% of the Argentine population just shrugs their shoulders and ignore the reality instead of trying to change it.

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