Posts Tagged ‘Cristina Fernandez de Kirchner’

Argentina: Cristina gives bondholders the raspberry

Friday, August 1st, 2014

As I predicted,
Argentine Leader Defies Wall Street for Main Street
Argentines awoke Thursday to find their country was once again a financial pariah after the populist President Cristina Kirchner stared down Wall Street hedge funds and pushed her country into its second default in 13 years.
Very little downside for her, since

Her refusal to settle with bondholders owed $1.6 billion could prove politically expedient in the short term: It distracts from Argentina’s slowly crumbling economy and shores up her support among many working-class Argentines who form the base of her Peronist movement, economists and analysts say.

Higher inflation, deeper recession?

Here in this sprawling capital, Argentines reacted with a mix of pride and disinterest. Pride because Mrs. Kirchner stood up to foreigners, mostly Americans and Wall Street, and disinterest because unlike the country’s record $100 billion default in 2001, this one doesn’t mean Argentina is suddenly broke and on the verge of financial collapse.

It’s all about power, folks.

UPDATE:
Stop spouting ‘half truths’ over default, US judge tells Argentina
South American country’s reaction to second default in 12 years does not alter the fact it has to pay what it owes, judge says


Argentina: Pay up, Cristina

Thursday, July 3rd, 2014

Argentine Consensus Emerges: Pay Off Debt
Argentines, Business Groups and Ruling-Party Lawmakers Say the Government Should Settle Its Bondholder Debt

“The solution is to reach an agreement, and an agreement obviously means paying,” Daniel Scioli, governor of Buenos Aires province and a leading figure in Mrs. Kirchner’s Peronist movement, said in a recent televised interview.

I would not be at all surprised if she decides to default.


Nestor fever #PoneleNestorATodo: Tympanoctomys Kirchnerorum UPDATED

Sunday, May 4th, 2014

SANYO DIGITAL CAMERA
“Néstor forever. Stay strong, Cristina”

Néstor Kirchner fever hits Argentina:
Leonardo Míndez is keeping track of all the monuments, streets, public buildings and locations named after Néstor. There are almost a hundred, and counting. His hashtag is #PoneleNestorATodo, or #GetNestorOnEverything

Now: we’ve got 92 Nestor Kirchner at http://ponelenestoratodo.tumblr.com/ Reaching a hundred! #PoneleNestorATodo

There’s even going to be a Néstor Kirchner nuclear power plant after they rename the Atucha II plant. Atucha I is being renamed after Juan Domingo Perón.

Makes you wonder if Atucha I gets to keep the Perón name once Cristina is no longer of this world, but I digress.

Lest you think that Nestor is the new Evita (which, by the way, the day he died graffiti sprang all over Buenos Aires saying “Evita and Nestor, together in heaven”), to the best of my knowledge Evita Perón hasn’t had a rat named after her. Behold, Tympanoctomys Kirchnerorum:

it was dubbed T. kirchnerorum as a tribute to Nestor and Cristina Kirchner for “their efforts in promoting science.”

No irony in that dedication.

UPDATE:
Hilarity ensues,

Argentina: Goodbye, Columbus

Saturday, March 8th, 2014

Cristina Fernandez, in a snit, had a statue of Christopher Columbus taken down and a room renamed in the presidential residence: Carlos Eire describes how the Argentine president lashes out against European colonialism, ignores Cuban colonialism while at the same time redecorating the joint,

In addition to trashing Columbus and demolishing his statue, Kirchner has now renamed the Columbus Room at the presidential palace. The new politically-correct name: “The Salon of Native Peoples.”

“We will henceforth highlight the history that no one would tell us about our culture, and learn about the civilization of native peoples.”

El Periodiquito (the little newspaper) Argentinian paper says she’s obsessed, while Diario Veloz (fast journal) says she doesn’t know what to do with the statue, which was taken down in pieces.

As part of Cristina’s redecoration efforts, she’s lined a hallway in mirrors, the “The Salon of Native Peoples” has a large table with touch screens, and she personally chose during her many trips abroad the textiles and objects for her hotel, Los Sauces, located near the Perito Moreno Glacier.

It’s stuff like this that keeps me blogging, folks. You just can’t make it up.

CELAC: Maduro & Cristina want Puerto Rico’s independence

Monday, January 27th, 2014


Sayonara, suckers.

Puerto Ricans’ opinions don’t matter to the tinpot Venezuelan dictator or to the Evita-wannabe, because they need a distraction from driving their own countries to ruin:
Crises Squeeze Two Latin Leaders
The leaders of Argentina and Venezuela were set to attend a conference in Cuba to debate Puerto Rican independence on Tuesday, as their countries faced their most acute economic crises in a decade.

On the streets of Argentina and Venezuela, many asked what their leaders were doing in Cuba when they were struggling with Latin America’s highest rates of inflation and the palpable fear that things could worsen when private investment is veering toward a recovering American economy.

The fact is,

independence for Puerto Rico, which was handed over by Spain after the Spanish-American war, has never gotten much traction. In a 2012 referendum, 61% voted for statehood and only 5% for independence.

Puerto Rico’s independence party has such low turnout that they needed to re-register after general elections.

Not that democracy matters to anyone at the upcoming CELAC

Apparently, the first objective of that organization, as declared, is: “To reaffirm that the preservation of democracy and democratic values, the validity of the institutions and the Rule of Law, a commitment to the respect for, and the validity of, all human rights for all, are the essential objectives of our countries.”

What do these people understand democracy to be? Cuba, like the other countries hatched by the now-extinct Soviet Union, is a one-party dictatorship older than half a century where no individual freedoms exist and no human rights are respected. While the CELAC is being held, the political police harasses and bashes the Ladies in White and the opposition democrats who dare to protest. Is anyone unaware of this?

Cuban dissidents are holding their own forum:

Cuban dissidents and activists plan to hold a forum on democracy in Havana on Jan. 28, parallel to the Summit of the Community of Latin American and Caribbean States, or CELAC, opposition sources told Efe on Saturday.

Organized by the Center for the Opening and Development of Latin America, or CADAL, and the dissident group Arco Progresista, the forum hopes to bring together members of the opposition like Guillermo Fariñas and Jose Daniel Ferrer, Ladies in White leader Berta Soler, blogger Yoani Sanchez and activist Antonio Rodiles, among other representatives of civil society on the island.

Cuban police will block the opposition’s meeting.

OAS Secretary General Jose Miguel Insulza is attending CELAC, but refused to meet with any dissidents, thereby offering further evidence of the OAS’s irrelevance.

Elsa Morejón, whose husband Dr. José Daniel Ferrer, leader of the Patriotic Union of Cuba (UNPACU) was arrested after meeting with the ambassadors of Spain and the Netherlands this week and transported away from Havana for the duration of the summit, tweeted,

The only country in the Americas without free elections or multi-party [system] in 56 years, will host the #CELACSummit. Unbelievable.

But look at the bright side: The more Maduro, Cristina, and their ilk cackle about Puerto Rico, the fewer the Puerto Ricans who’ll side with them.

Post re-edited to add links.

UPDATE:
My tweet,
#CELACSummit As if there isn’t enough poop in #PuertoRico, @NicolasMaduro & @CFKArgentina want to bring theirs.

RELATED:
Puerto Rico: La crisis final del “ELA”

Argentina: Chronicle of a default foretold

Friday, January 24th, 2014

Subroto Roy sent this article, Argentine Default Chaos Relived as Blackouts Follow Looting, which describes the deja-vu conditions as the country is about to default, again, this time on its $50 billion foreign currency obligations,

Investors are bracing for the possibility of another default. The country’s average dollar bond yield of 12.4 percent is the highest among major developing nations after Venezuela. Trading in swap contracts that insure bonds shows investors see a 79 percent probability of a halt in payments over the next five years, a reflection in part of concern that Singer’s demand of full repayment on the securities he kept from the 2001 default will disrupt debt servicing.

“Over the next five years”, maybe, maybe earlier, as the Specter of Default Stalks Argentina. Argentina’s dollar reserves have now slipped below $30 billion.

Yesterday’s 8% devaluation (the largest one-day decline since the 2002 country’s default on its debt)

and falling reserves raise the specter of a deep economic crisis with inflation already believed to be running above 25% before the devaluation, the product of years of rapid increases in government spending financed in part by money printing. A weaker currency can aggravate inflation by reducing consumers’ purchasing power and pushing up the cost of imported goods.

The devaluation is also a major political blow to Mrs. Kirchner and her new economic team led by Mr. Kicillof. Shortly after her ruling coalition suffered a steep drop in support in October’s midterm congressional elections, Mrs. Kirchner replaced her finance minister, central bank chief, price control enforcer and economy minister. Less than a year ago, the president told the public it shouldn’t expect a devaluation under her watch.

Cristina Fernandez’s chief of cabinet Jorge Capitanich rushed to put lipstick on a pig, easing restrictions on the purchase of U.S. dollars Friday, by saying “The government considers that the price of the dollar has reached a level of convergence that is acceptable with the objectives of our economic policies.”

And the economy is pining for the fjords,

UPDATE:
As a result of government price-fixing, Argentinians bought less bread and more cookies in 2013. The price of flour went up by 65%.

A parting question: Where’s Cristina?

Argentina: Where’s Cristina?

Friday, January 17th, 2014

Remember when Hugo used to absent himself?

Concern after Argentina’s president long silence

As of Thursday, it had been 37 days since she last spoke in public. And she hadn’t posted any messages to Twitter since Dec. 13, when she fired off a typical volley of 20 tweets.

That has been feeding speculation in Argentina about her health in the wake of surgery on her head in October, and questions about who is running the country.

Fernandez made her last public appearance on Dec. 10. Three days later, she made her last comments on Twitter criticizing a protest by police.

Her last official photograph was taken on Dec. 19 at a meeting held at an Islamic center.

Cristina’s scheduled to attend the Community of Latin American and Caribbean States on Jan. 28 in Cuba, and the Mercosur meeting on Jan. 31 in Venezuela.

If she doesn’t make it, Uruguayan president José “Pepe” Mujica won’t be able to hitch a plane ride to those events.


Argentina: More price controls

Sunday, January 5th, 2014

Expect more shortages, black markets and inflation:
Argentina Launches New Price-Control Accord
New Program Sets Stage For Annual Wage Talks

The one-year program sets prices on 194 supermarket items including staples like milk, meat and pasta as well as discretionary items such as beer and ice cream.

I wonder if dulce de leche, coffee and mate are included.

The goverment doesn’t think of it as imposing uncompetitive prices; instead they call it “reversing unjustified prices.”

Yeah.

No matter what you call it, bad economic policy has consequences:

President Cristina Kirchner faces the same economic problems in the New Year as she did in 2013: low growth, rising inflation and foreign currency shortages.

The second highest rate of inflation in the Americas has also forced the Kirchner administration to ration the hard currency people and businesses can legally buy to prevent a run on the central bank’s foreign currency by inflation weary residents.

Even so, debt payments, fuel imports and capital flight gobbled up $12.7 billion in hard currency last year. Reserves have stabilized in recent weeks at a seven-year low of about $30.6 billion.

It’ll continue and worsen, for as long as the high government spending financed in part by money printing continues. Argentina will remain in the Troubled Currencies list for the foreseeable future.

Argentina: Same old, same old

Friday, November 29th, 2013

Cristina’s hitting the same old,

Argentina issue threats over Falkland oil
Argentina threatens fines and imprisonment for oil companies and their executives for any “illegal exploration” of hydrocarbons off the Falkland Islands

The Foreign Office added that hydrocarbons activities by companies operating on the continental shelf of the Falkland Islands are regulated by legislation of the Falkland Islands government, and in accordance with the United Nations Convention of the Law of the Sea.

Cristina will resort to any distraction from her chaotic fiscal problems and deals with Iran.

I suggest she focus on this bit of old news instead, World’s oldest prehistoric toilet unearthed in Argentina.


Argentina: Cristina gives US bondholders a raspberry

Tuesday, August 27th, 2013

Argentina announces a new debt swap outside US law

Rather than comply with Friday’s unanimous ruling ordering her government to pay $1.4 billion in cash to a group of plaintiffs she calls “vulture funds,” President Cristina Fernandez is proposing another debt swap: offering new bonds to be paid in dollars in Buenos Aires to anyone still holding defaulted debt.

Where I come from, we might call that “throwing good money after bad”, but it’s more a case of stiffing the creditors.

The way the bonds in question were written, holders must be paid 100% of the nearly $1.33 billion they are owed in principal and accrued interest.

Indeed,

Though 93% of bondholders eventually accepted Argentina’s terms, others, such as the group of holdouts who were favored in last week’s decision, held out hope for a better offer.

The offer never came, and Mrs. Kirchner indicated Monday that her government wouldn’t comply with the court order, even if it is upheld by the U.S. Supreme Court.

The move to reopen the debt-restructuring process for a second time appears aimed at ensuring that Argentine payments to overseas bondholders don’t get embargoed by the U.S. court.

Argentina will invite investors holding foreign-law bonds to swap them for new debt that would be paid under local legislation in Argentina.

And that will get your debt paid with more debt.