Inflation, repression and heavy state control of the economy.
Argentine President Christina Kirchner has not disclosed yet if she will run again in the October election. So far, she has followed the socialist model of “inflation, repression and heavy state control of the economy” for this once prosperous republic.
In an aggressive step, she is trying to force publicly listed companies to grant the government seats on their boards. The press continues to be pressured from the government and censored. In 2008, Kirchner confiscated and nationalized private pension accounts and the government now is a shareholder in 42% of all publicly held companies. If she is elected, by 2015 Argentina will be totally locked down.
Since last year the central bank has transferred more than $16 billion to her treasury in exchange for government bonds, yet the government still generated a deficit of $1.3 billion in March. No matter how much money goes through Ms. Kirchner’s hands, it is never enough.
If you get a creepy feeling reading Kirchner’s story and feel there are parallels to the U.S., it is not your imagination. The socialist model is alive and well in the Democratic party and working against your best interest.