Just a day after Argentine President Cristina Kirchner, in a televised speech, ACCUSED CENTRAL BANK employees of helping local bankers to SPECULATE AGAINST the Argentine peso in hopes of FORCING the government to DEVALUE the currency, Juan Carlos Fabrega - the head of Argentinas Central Bank - has QUIT. As WSJ reports, unable to borrow abroad due to a legal dispute with creditors, Mrs. Kirchner has relied on money printing to cover spending deficits at the expense of inflation that is thought to be around 40%; and it appears the sanity of Mr. Fabrega was too much to bear for Kirchner (and Kiciloff - who had reportedly clashed with the Central Banker also). The reaction - not good - the stock index collapsed over 8%, bond yields spiked and the black-market peso dumped to record lows at 15.65 to the USD (drastically worse than the 8.51 official peso rate). zerohedge/news/2014-10-01/not-good-sign-argentine-stocks-bonds-crash-central-bank-chief-resigns
Posted on: Thu, 02 Oct 2014 08:01:24 +0000
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