Kirchner Foams Over Pension Fund Investment
“They really looted and used the savings of retirees to invest it abroad…. I ask myself, ‘How can that kind of money management be defended?’ … But today, in an act of dignity and responsibility, thank God, we’re returning to a state-run social security system of solidarity. We’re returning to the state-administration of retirement funds. No longer will those funds be invested abroad.” — former President Nestor Kirchner, November 17, 2008
On the same day that Argentine newspapers confirmed the first case of rabies in Buenos Aires since 1981, Nestor Kirchner said – in a speech in which he was literally foaming at the mouth – that private pension funds will no longer be invested overseas.
Kirchner, who as governor of Santa Cruz Province famously took around $500 million in taxpayer money and invested it overseas, indicated that investing peoples’ retirement funds abroad is a bad thing, a practice that must end. Since he took power in 2003, Kirchner, as well as his wife and successor, Cristina Fernández, have repeatedly told Argentines “to have a memory” and to remember what politicians have done in the past. The former president, evidently, failed to appreciate the irony of his own comments Monday.
Fernández announced last month that her government would nationalize Argentina’s 14-year-old private pension fund system. The Lower House of Congress recently approved the plan and the Senate is expected to pass it this Thursday or Friday.
Kirchner Audio:
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Great blog about Argentina’s every day news. Love the balance between bad news and the good ones, the latter being quite hard to find!
Excellent job!
As you can see, this country always goes backward! Retirement funds back to the govmn’t, rabies and tuberculosis cases and Maradona in the national team!
If we are lucky enough we can go back to the 1500 and start all over again…!
Great blog!
Hey AD and Guillermo,
Thank you both so much for your generous comments. I appreciate them very much.
Take care and best wishes,
Taos
The private pension funds were good business for the banks and Clarin (because they were partners in one of the funds) but bad business for the pensioners. The private pension funds bought stock at inflated prices (they bought Clarin stock for $36 to see soon after it drop to $6) and paid huge commissions to the AFJPs (private pension funds). The AFJP’s funds were dwindling and they couldn’t pay the pensioners so the Argentine gov’t had to bail them out continuously. Watch out from where you get your news and information (ie Clarin media group, which includes a monoply on most television, cable and radio stations, newspapers, magazines and they even own the the only newsprint industry here in Argentina). Clarin hates this government and resorts to lies and rumours to discredit them. Read their headlines for the past year!
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