Argentina: Let’s plunder the pensions!
Argentina’s President Proposes Nationalization of Pension Fund
Argentina’s leftist President Cristina Kirchner signed a proposal nationalizing the country’s private pension funds in what could be seen as a grab for cash and power amid the global economic crisis.
As usual with dubious proposals,
Details of the proposal — which must be approved by the country’s legislature — were not immediately available.
However, it’s all done to “rescue Argentine retirees from uncertainty.” Sound familiar?
Of course, it had the predictable effect:
The proposal, which triggered a steep drop on Argentina’s stock market after it was disclosed by union officials and reported in the Argentine press, reinforces Argentina’s image as a pariah in financial circles and represents a repudiation of a system of private pensions that had been in vogue in developing countries. In 2001, Argentina announced the largest sovereign debt default in history.
And they need more funds right now.
The government said the takeover of the private system, created as an option to state pension funds in 1994, aimed to protect investors from losses due to the global market turmoil. But economists said the underlying motive would be to provide the government with about $5 billon in annual pension contributions that it needs to plug a gap in financing next year and avert a second debt default.
Think it can’t happen here?
Do you think the politicians here won’t lie trying to get their hands in your retirement money?
Think again.
UPDATE: Wednesday, 22 October
Argentine Bonds, Stocks Sink as Takeover Fuels Default Concerns
UPDATE, Thursday 23 October
Welcome, Capital Commerce readers! Please read this follow-up post, and visit the Carnival of Latin America and the Caribbean here every Monday.
Kirchner’s Move on Pensions Hits Argentine Markets
Argentina’s Property Grab
A cautionary tale for anyone who owns a retirement account.
Tags: Fausta's blog
October 21st, 2008 at 9:46 pm
Same old, same old. Vivos rule! Menem refused to cut jobs for the boys ( see his home province), so the Arg. government kept borrowing abroad. Result: walking away from foreign debt. Scammed the Gringos ( foreigners, not just US in Argentine slang) again.
Evita III continues the same flim-flammery.
Evita III, why don’t you try cutting spending? Recall that Menem initiated an economic boom by unloading the government-owned companies, which stopped the need to print money to balance their losses. Cut the fool energy subsidies!
I will neither cry for Evita I,nor for Argentina nor for Evita III. You boludos elected her.
October 22nd, 2008 at 11:58 am
The Morning Scramble (Part 2) – 10/22/2008…
I’ll try to limit the Obamination in Part 2. Can’t say I’ll be entirely successful, so let’s have some blues as we dive in…
Before we get to the heavy stuff; a news item that is a bit personal – the gang at……
October 22nd, 2008 at 4:26 pm
It’s not plundering but merely finding alternative investment possibilities!
October 23rd, 2008 at 12:18 pm
What’s yours is negotiable…
There are several things characteristic of a free society: the rule of law; consensual, democratic government; individual liberty and the right to speak freely, even to one’s rulers; and respect for private property rights. Unless, of course, you’re …
October 23rd, 2008 at 12:22 pm
I think I smell another McCain or RNC campaign commercial.
October 23rd, 2008 at 6:21 pm
[...] that reminds many people of the games that Argentina is contemplating playing with with regard to nationalizing their private pension fund system. And, yes, the difference in what you’re being forced to invest in the government, and what [...]
October 23rd, 2008 at 7:01 pm
[...] that reminds many people of the games that Argentina is contemplating playing with with regard to nationalizing their private pension fund system. And, yes, the difference in what you’re being forced to invest in the government, and what [...]
October 27th, 2008 at 9:08 am
[...] week’s big story: As the country is about to default again on its debt, Argentina’s leftist President Cristina Kirchner signed a proposal nationalizing the country’s pr… Read more about it in the section for Argentina [...]