Argentine Senator Anibal Fernandez's Hypocrisy

[Estebanh]

This article look pretty interesting. With the demand for dollars, might it not make sense for the enterprising gringo to bring a large amount of dollars with him (say below 10, 000) and make some money with his greenbacks. It could be a way to defray the cost of a vacation.

Argentina loses a third of its dollar deposits.

Fri Jun 8, 2012 4:46pm EDT.

* Argentines reacting to foreign exchange restrictions.

* About $100 mln in dollars withdrawn every day.

* Rush toward greenback started in November.

By Jorge Otaola.

BUENOS AIRES, June 8 (Reuters). Argentine banks have seen a third of their USA dollar deposits withdrawn since November as savers chase greenbacks in response to stiffening foreign exchange restrictions, local banking sources said on Friday.

Depositors withdrew a total of about $100 million per day over the last month in a safe-haven bid fueled by uncertainty over policies that might be adopted as pressure grows to keep USA currency in the country.

The chase for dollars is motivated by fear that the government may further toughen its clamp down on access to the USA currency as high inflation and lack of faith in government policy erode the local peso.

"Deposits keep going down," said one foreign exchange broker who asked not to be named."There is a disparity among banks, but in total it's about $80 million to $120 million per day."

USA dollar deposits of Argentine banks fell 11. 2 percent in the preceding three weeks to $11. 5 billion, according to central bank data released on Friday. The run on the greenback has waxed and waned since November, after President Cristina Fernandez won a second term on promises of deepening the state's role in the economy.

From May 11 until Friday, data compiled by Reuters from private banks showed $1. 9 billion in USA currency had been withdrawn, or about 15 percent of all greenbacks deposited in the country.

Feisty populist leader Fernandez was re-elected in October vowing to "deepen the model" of the interventionist policies associated with her predecessor, Nestor Kirchner, who is also her late husband.

Since then she has limited imports, imposed capital controls and seized a majority stake in top energy company YPF.

A spokesman for the central bank said on Friday that the rate of dollar withdrawal from Argentina's financial system shows signs of slowing.

"We have seen a tendency toward fewer withdrawals, to about $90 million (per day) over the last week from $120 million the week before," the spokesman said a day after the bank lifted daily reserve requirements on dollar deposits to help banks respond to steady drum beat of withdrawals.

DITCHING HER DOLLARS.

The near-impossibility of buying dollars at the official rate is driving some savers and investors to pay a hefty premium in the black market.

Many are taking what dollars they can get their hands on and stashing them under the mattress or in safety deposit boxes, fearing moves by the government to forcibly "de-dollarize" the economy. Officials have strongly denied any such plan.

The president's battle to slow capital flight and fatten the central bank reserves needed to pay the public debt has prompted even tighter controls in recent weeks, making it almost impossible to buy dollars at the official rate. The effects have been felt throughout the South American country's economy.

For example. Argentines, who normally pay for new homes with stacks of dollar bills, have been struggling to get their hands on USA currency since Fernandez started imposing stringent controls on dollar buying late last year. [ I'd :nL1E8H6EZ8]

She wants Argentines to end their love affair with the greenback and start saving in pesos despite inflation clocked by private economists at about 25 percent per year.

Fernandez set an example on Wednesday by vowing to swap her only dollar-denominated savings account for a fixed-term deposit in pesos.

But savers in crisis-prone Argentina are notoriously jittery. Memories of tight limits on bank withdrawals and a sharp currency devaluation remain fresh a decade after the country's massive sovereign debt default.

"There is a lot of fear, considering everything that has happened before," another foreign exchange broker said."Confronted by risk, whatever kind of doubt, depositors pull their dollars out of the bank and wait to see what happens. (Writing by Hugh Bronstein; Editing by Leslie Adler)

[El Queso]

Only 3 million dollars?...Friends of mine who work in the stock market here expect the dollar go to 7 to 1 or more on the peso.

Yeah, the $3M was just what she had declared in white here in an account in Argentina, in dollars. Of course she has at least tens of millions (if not ten times that amount) in hidden offshore accounts.

Considering the blue value is over 6 to 1 now, soon we'll be seeing 7 on that market, I'm sure, or 6 - 6.50 on the black market. I just found a place to change at 5.70 (sorry guys, can't share it, it's a place that I've been referred to by a customer of theirs who is an aquaintance of mine and they don't take walk-ins) and for those of us who live here, that's like magic.

My effective exchange rate pulling money from the ATMs here is on the order of 4.35 - 4.40 after fees and it is sure helping tremendously with the inflation to change dollars at something that approaches the real value of things a year ago or so.

I feel for the Argentinos (even though they as a people brought this on themselves) but I await the day when the official rate catches up with the blue rate, which will probably only happen when things crash here. It's still a pain in the ass to get dollars here to make the exchanges at good rates and profit from it.

[Gandolf50]

I think this is a perfect example of the idiots that run this country."Do as I say, not as I do, even when what I say makes no sense and what I do is not for you!"

http://buenosairesherald.com/article...ll-be-pesified

Cristina announces that she will "pessify" her bank account denoted in dollars. Of course, this is her official account here, some 3 million dollars, in which she is receiving some sort of deal from the bank to get an exhorbitant interest rate around 20% to allow her to be bribed "legally" in exchange for favors elsewhere. I've seen people talking that the bank is going to continue giving her even better interest rates on her new pesos to help keep up with inflation.

Roberto Lavagna (who was Minister of Economy under Nestor Kirchner) writes a pretty condemning article in the Clarin about the current government and it's problems. Unfortunately it's in Spanish so you may need to use Google to translate it:

http://www.clarin.com/opinion/frente...713928683.html

He ran for President in 2007 and got 17% of the vote. He left Nestor's staff supposedly for fighting with other cabinet officials and accusing them of corruption. He's reported to be honest, sincere, and serious. He's the guy probably in a large part responsible for Nestor's relatively successful economic policies, as far as they went. I don't agree with his politics, but he'd be a great choice to replace Cristina. At least Argentina might make its way back to conditions similar to Nestor's period in office.

But Cristina surrounds herself with idiots as assinine as herself and keeps digging herself into a deeper hole. To me the question is. Does she really think Argentina can turn itself around with the stupidity she's been instituting, or is she doing a lot of this stuff on purpose to destabilize things and make it easier to come in and say "we need to change the constitution to allow me to continue to fight the economic conditions that the rest of the world has put us in, in which my isolationism is the first step to fixing the problem and can only be continued with my policies, with me behind them. I AM EVA REBORN (well, kind of like her soul twin, and a bit of my hero Juan Peron thrown in in some kind of mystical twist of reincarnation)!"

Only 3 million dollars? When she ran for president last year she reported (after changing everything to pesos) OVER 70 MILLION PESOS! That was with out her late husbands estate thrown in (because they were still trying to figure out everything he had!) and god knows how much he had! More then her for sure. So 3 million is a smoke screen! Plus I am sure that most of Her Royal Highness's money is already "off shore". Who knows better then her how bad things really are! My self like most people that live here are waiting for the crash. I am surprised it has not happened yet. Friends of mine who work in the stock market here expect the dollar go to 7 to 1 or more on the peso.

[El Queso]

I think this is a perfect example of the idiots that run this country."Do as I say, not as I do, even when what I say makes no sense and what I do is not for you!"

http://buenosairesherald.com/article...ll-be-pesified

Cristina announces that she will "pessify" her bank account denoted in dollars. Of course, this is her official account here, some 3 million dollars, in which she is receiving some sort of deal from the bank to get an exhorbitant interest rate around 20% to allow her to be bribed "legally" in exchange for favors elsewhere. I've seen people talking that the bank is going to continue giving her even better interest rates on her new pesos to help keep up with inflation.

Roberto Lavagna (who was Minister of Economy under Nestor Kirchner) writes a pretty condemning article in the Clarin about the current government and it's problems. Unfortunately it's in Spanish so you may need to use Google to translate it:

http://www.clarin.com/opinion/frente...713928683.html

He ran for President in 2007 and got 17% of the vote. He left Nestor's staff supposedly for fighting with other cabinet officials and accusing them of corruption. He's reported to be honest, sincere, and serious. He's the guy probably in a large part responsible for Nestor's relatively successful economic policies, as far as they went. I don't agree with his politics, but he'd be a great choice to replace Cristina. At least Argentina might make its way back to conditions similar to Nestor's period in office.

But Cristina surrounds herself with idiots as assinine as herself and keeps digging herself into a deeper hole. To me the question is. Does she really think Argentina can turn itself around with the stupidity she's been instituting, or is she doing a lot of this stuff on purpose to destabilize things and make it easier to come in and say "we need to change the constitution to allow me to continue to fight the economic conditions that the rest of the world has put us in, in which my isolationism is the first step to fixing the problem and can only be continued with my policies, with me behind them. I AM EVA REBORN (well, kind of like her soul twin, and a bit of my hero Juan Peron thrown in in some kind of mystical twist of reincarnation)!"

[Wild Walleye]

'And second of all, please do not ask me to do things that only a stupid person would do. '

So, only a stupid person would keep his wealth denominated in pesos. You (senator) keep your wealth in dollars and claim that you are not stupid. However, you and your ilk are perfectly happy in forcing the rest of the country to do something that you call stupid, by forcing them to keep their wealth in pesos. That may not be stupid but it does seem hypocritical. What is stupid is not throwing people like that out of office (I know, I know.).

[Tres3]

Like most politicians, the good Senator does not want to be confused by the facts.

Tres3

[Jackson]

These comments made by Argentine Senator Anibal Fernandez in an interview on 02 Jun 2012:

Argentine top lawmaker admits having his savings in dollars 'and I won't sell them'

'I save in dollars because I feel like it', said Fat Hypercrite Senator Anibal Fernandez

A top Argentine lawmaker came on stage (and lost his temper) when he had to explain why his savings are in dollars after the government of President Cristina Fernandez, including him personally, launched not only strong restriction policies on dollar purchases, but told the population to forget about dollars and start thinking in pesos.

'I save in dollars because I feel like it', said Argentine Senator, former Cabinet chief and the most vocal supporter of the current government restriction to purchase US dollars.

Hypocrisy has turned once again into the trending topic of the Argentine political agenda after Senator Fernández contradictory comments came along in a moment in which many high-ranked officials including Cabinet Chief Juan Manuel Abal Medina emphasized their support to the government's latest measures to avoid the access to dollars, and blasted the 'Argentine obsessive-compulsive mania of thinking in dollars'.

During early Thursday radio interviews Senator Fernández responded categorically to the journalists who asked him why he had chosen to save in dollars as it is stated in his last affidavit issued to the AFIP tax revenue agency.

'Why do you care? That's none of your business. Back then dollars purchases were open and I bought them legally. '

Asked once again why he did pick dollars over Pesos, and if he would sell his dollars to collect Pesos as he's been recommending, the Senator exploded:

'First of all, I bought dollars because I felt like it. Didn't you listen what I just said? It's my money and my right to do whatever I want with my money'.

'And second of all, please do not ask me to do things that only a stupid person would do. I'm not stupid. I'm just a regular guy who made some money.

I will neither sell my dollars at the official exchange rate nor at the black market price. Leave them [dollars] where they are as they are well kept. '

The very same Senator, warned two days ago that Argentina 'should forget about the dollar and better start thinking in Pesos', after explaining that 'only 11% of the population have their savings in dollars. Plus, the dollar is only printed in the US: we don't have the green-maker. '

Likewise, Senator Fernández had warned that dollars 'should be preserved for things that really matter in times in which the country is growing, like imports of key products needed for the manufacturing of some other locally manufactured products. '

To conclude the contradictory and incoherent speech, the former Cabinet Chief bashed those 'who are constantly promoting to save in dollars', and concluded, 'Saving in dollars is not a good way to keep personal savings.'

According to Senator Fernandez affidavit to AFIP, he holds 31.4% of his financial assets in US dollars (96.000).

Likewise Interior minister Florencio Randazzo, has 22.20% in dollars, (8.000) ; Vice president Amado Boudou declared 582.400 dollars which represents 93% of assets; Alicia Kirchner, sister in law of President Cristina Fernandez. 64.000 dollars, or 65.98% of assets; Foreign minister Hector Timerman declared holdings of 1.28 million dollars equivalent to 89. 34% and Julio De Vido, the Federal Planning minister. 220.240 dollars which represent 63.70% of his financial assets.

Http://www.meattradenewsdaily.co.uk/..._sacked__.aspx

Here's another link to the same story:

http://en.mercopress.com/2012/06/01/...on-t-sell-them

http://en.mercopress.com/2012/05/29/...entine-senator

http://en.mercopress.com/2012/06/02/...rs-i-regret-it