Tuesday, November 19th 2013 - 07:22 UTC

Cristina Fernandez reshuffles cabinet and names new economic team

The administration of Argentine President Cristina Fernández announced on Monday a major cabinet reshuffle naming Chaco governor Jorge Capitanich as new cabinet chief and Axel Kicillof Economy minister while the Central bank will have a new president, Carlos Fabrega.

Capitanich, cabinet chief and Kicillof, Economy minister

 The evening announcement by presidential spokesperson Alfredo Scoccimarro from Government House, Casa Rosada took place two hours after President Cristina Fernandez reassumed executive powers following 45 days absence on medical leave.

New cabinet chief Chaco governor Capitanich is rewarded for a strong poll performance at the 27 October mid-term elections and Axel Kicillof is promoted from Deputy to Economy Minister, while the current incumbent Hernán Lorenzino will head a task-force charged with restructuring Argentina's foreign debt and will also be proposed as ambassador to the European Union.

The other changes include the naming of Carlos Fabrega, the chief of Banco Nación, (a national development bank) as the new head of the Central Bank in replacement of Mercedes Marcó del Pont, while INTA (Agriculture Technology Institute) president Carlos Casamiquela will take over as Minister of Agriculture. Outgoing minister Norberto Yahuar was defeated on 27 October in his Chubut province and had advanced his resignation 8 November.

Together with the naming of Capitanich who has presidential ambitions and is considered as one of Cristina Fernandez possible candidates to succeed her in 2015, the other big announcement is Kicillof, the unorthodox economist (described as a blend of Keynes with Marx), supporter of strong government intervention in the economy and who has been the brains behind some of the latest measures. He has for months insistently proposed a more flexible money exchange market including the establishment of several exchange rates for different activities. Basically a dearer dollar for tourism and imports of luxury goods.

The rapid erosion of Central bank international reserves because of the energy bill and massive tourism by Argentines travelling abroad added to reluctance from exporters to sell their dollars given the 70% gap between the official and parallel markets, has become the main challenge for the dollar-scarce Cristina Fernandez administration.

Marcó del Pont at the central bank in recent months was losing influence to Kicillof, and was contrary to monetary policy changes. Likewise she admitted publicly that persistent inflation in Argentina (below two digits official and over 25% according to the Congress index) was too high and had “to converge to a lower index”.

Besides the central bank reserves are below 33bn dollars and so far this year the hemorrhage is equivalent to 11bn dollars.

The new cabinet inauguration is scheduled for next Wednesday.

33 comments Feed

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1 Welsh Wizard (#) Nov 19th, 2013 - 09:22 am Report abuse
So, with the new head of the central bank and Axel promoted, I would expect to see a rise in inflation, split currencies and a whole raft of other bat-shit crazy policies
2 British_Kirchnerist (#) Nov 19th, 2013 - 09:26 am Report abuse
Good to see the promotion of Kiccilof, surely another Presidential possibility, and bodes well for more struggle against the banksters =) Don't know about this Chaco governor, is he a consistent leftist like Cristinita or an opportunist supporter like Scioli? Sorry to see Mercedes depart though, if I remember right Think liked her in kinda the way I liked Cristinita =) Anyone know what she'll be doing next?
3 Welsh Wizard (#) Nov 19th, 2013 - 10:10 am Report abuse
Out of interest BK, why such a big fan of Axel? Even Ks can see that he is doing more harm than good...
4 British_Kirchnerist (#) Nov 19th, 2013 - 11:58 am Report abuse
#3 Well obviously not all of them think that =)

On Mercedes, the implication here seems to be that she was removed for being more economically “orthodox”, however I've now seen online a news story from just yesterday where she criticises other industrialised countries for austerity at a G20 meeting, so I'd welcome further and better pariculars from comrades on here like Think, (our) Axel etc. Pity the Bank of England isn't looking for a foreign governor any more now she's available; she'd have been much better than that Steven Harper appointee we've got here now!
5 Welsh Wizard (#) Nov 19th, 2013 - 12:21 pm Report abuse
@3 quite a lot do. As for Mercedes, she didn't want to carry on printing money exponentially as she had a nagging feeling that it might be leading to inflation. So, she had to go and has been replaced with someone who will print as much money as Axel wants them to
6 Orbit (#) Nov 19th, 2013 - 12:31 pm Report abuse
This deckchair would look nice over there, in that space where a lifeboat would should be.
7 Optimus_Princeps (#) Nov 19th, 2013 - 12:46 pm Report abuse
@6 Damn, you took my deckchair reference.
8 yankeeboy (#) Nov 19th, 2013 - 12:52 pm Report abuse
At this point they are about 2 yrs behind Venezuela. Axel is an avowed Marxist, let me repeat that, AN AVOWED MARXIST! How is it possible in this day and age?
Do these people not know any history?
None at all?
I think it is hilarious.
I am glad she's back
Let the games begin
9 CabezaDura (#) Nov 19th, 2013 - 12:56 pm Report abuse
As for Capitanich, he is there to fit in the role of competing with Scioli for the succession line within Kirchnerism. It seems to be they have changed their mind about Entre Rios governor Uribarri for whose presidential aspiration was worth starting the commercial and political war against poor little Uruguay.
10 redp0ll (#) Nov 19th, 2013 - 02:25 pm Report abuse
Special dollar exchange coming up for all past and present Camporista who own houses in Colonia, Uruguay
It's unofficial name? Axle grease
11 ChrisR (#) Nov 19th, 2013 - 03:25 pm Report abuse
Well guys, are we all of the opinion that the scene is set and the final curtain is hanging by a thread?

I never thought it possible, even in The Dark Country, for a true blooded Marxist commie to take over the place, but there he is: the refugee from the ferry – Kickitoff himself!

Now they are well and truly fucked.
12 Troy Tempest (#) Nov 19th, 2013 - 03:51 pm Report abuse
4 BK
”On Mercedes, the implication here seems to be that she was removed for being more economically “orthodox”, however I've now seen online a news story from just yesterday where she criticises other industrialised countries for austerity at a G20 meeting, so I'd welcome further and better pariculars from comrades on here like Think, (our) Axel etc. Pity the Bank of England isn't looking for a foreign governor any more now she's available; she'd have been much better than that Steven Harper appointee we've got here now!”

Odd, posting, even from you, BK.
You have admitted you like to post your cooing a about CFK just to try our patience, but Carney????

How could Carney be an appointee to the Bank of England by the PM of Canada??
BTW Carney has an excelent record for responsible governance and successful policies.

Mercedes is probably glad she won't be governing a Central Bank that is part of a failing economy. Who wants that as a legacy?
13 Conqueror (#) Nov 19th, 2013 - 04:23 pm Report abuse
@3 The bit you're missing is how “he” spells Alex's name. And don't forget that BK is a commie. Commies “lurv” commies.
@11 They have a thread? Surely what is needed is a fire curtain? Can you get a disaster curtain? Over in en.mercopress.com/2013/11/19/falklands-established-national-minimum-wage-and-legislation-5.05-per-hour I was astounded to learn how little argies get “paid”. Doesn't the argie constitution say there is no slavery in argieland? What do we call £0.87 per hour?
14 BOTINHO (#) Nov 19th, 2013 - 06:32 pm Report abuse
This latest news signifies that the recent cranium surgery was not successful.

Sr. Axel Kicillof has had far too much influence in the past on CFK, and his policies have led to the ever spiraling disastrous state of economy in Argentina today. He is now promoted to fulfill his dubious “I was not there - new-wave Marxist program ” as Minister of the Economy.

One could say that Sr. Kicillof is now “ killing off ” what remains of the Argentine economy. Right before your eyes.
15 Think (#) Nov 19th, 2013 - 06:57 pm Report abuse
In exclusive for Mercopress’es Turnips…. [and Mr. redpoll at (10)]

1) “”“Korrupt”“” Kommunist K-Minister Kicillof’s luxury mansion in Uruguay….
(Please notice the 1,000 liters water tank in genuine plastic!)

2) “”“Korrupt”“” Kommunist K-Minister Kicillof’s mansion’s garage were he and his wife park their…............. bicycles.
(Please notice the heavy lock)

Dear comrade British Kirchnerist...
Don’t worry about Mercedes….. She will make it…. She’s an asset anywhere…
(Besides, her family is loaded........ since some 150 years ago ;-)
16 Usurping Pirate (#) Nov 19th, 2013 - 07:06 pm Report abuse
10 clues you are living in a communist dictatorship :
1 ) Kiciloff , an avowed marxist is in charge of the economy .
2 ) The ownership of property articles of the Bill of Rights ( Codigo Civil ) is being re written and rights eroded .
3 ) Emasculation of the armed forces in favour of the increasing power of the militant youth factions sponsored by the government .
4 ) Brainwashing in schools and almost constant state propaganda in the media , including attacks on the “ Oligarchy ”
5 ) 80% of the media in state hands , or controlled by friends of the government .
6 ) Inflation , shortages of basic foodstuffs , collapsing public transport and public services .
7 ) Restrictions on foreign travel and foreign currency .
8 ) No united official opposition .
9 ) A surveillance state led by SIDE ( intelligence service ) and AFIP ( federal tax inspectors )
10 ) A president , and her supporters growing richer by the minute .

I would remind the more left wing inclined posters living in Argentina to remember that what goes round , comes around , and this government is sowing the wind , you will a reap a whirlwind not seen since the 70's .
17 yankeeboy (#) Nov 19th, 2013 - 07:14 pm Report abuse
Seems like the Rgs are trying to get out of the Peso as fast as they can.
No surprise there
Think have you stocked up on fresh chicken? Pretty soon it will be well out of your reach.
I look for a link to Barley Soup for you...
18 CabezaDura (#) Nov 19th, 2013 - 07:14 pm Report abuse
Well said. Sad and so true
19 Think (#) Nov 19th, 2013 - 07:27 pm Report abuse
(17) yankeeboy...., AKA Fred Bates, ex shoe-salesman in Casa Lopez, Buenos Aires and cokehead extraordinaire......

My dear baldie.....
What do I need fresh chicken for..... when I got some wild geese grassing just in front of my window?
20 yankeeboy (#) Nov 19th, 2013 - 07:40 pm Report abuse
Can you shoot toilet paper too?
21 Think (#) Nov 19th, 2013 - 07:54 pm
Comment removed by the editor.
22 Briton (#) Nov 19th, 2013 - 07:57 pm Report abuse
is this her way of rowing out the young guns,

perhaps they may do better ..
23 yankeeboy (#) Nov 19th, 2013 - 08:01 pm Report abuse
And if you are in a restaurant? Left hand to wipe Right hand to eat? Or is it the other way around?
I guess you'll figure it out after a couple days
or maybe not
Run Peso Run
24 A_Voice (#) Nov 19th, 2013 - 08:54 pm Report abuse
25 redp0ll (#) Nov 19th, 2013 - 10:45 pm Report abuse
Very nice little ran ho Sr Killusoff has built for his casero @15
@19 wild geese grassing outside my window. Ever manage to catch any of the little bastards or is it all. A provocative wild goose chase like many of your posts?
Bidets. You need one for a daily enema?
Seriously though,your Minister of Ag from Chubut has resigned. Was he any good and will the guy from INTA be any better?
26 MagnusMaster (#) Nov 20th, 2013 - 12:13 am Report abuse
@14 Kicillof isn't the main responsable for our current economic situation, it's the Kirchner who are responsible. Kicillof is just finishing their job.

Moreno resigned! That was surprising, I thought he'd stay until the very end. Now that Kicillof is running the economy, Massa is voting for the K Codigo Civil reform and Sabatella will go after Clarin as soon as he gets the order, this definitely doesn't look good...
27 Ayayay (#) Nov 20th, 2013 - 01:34 am Report abuse
I give up. He's only 42? Ow, he's hot.

Spokesmodels are a great idea for the strongman, El Chino? who's running things
28 The Truth PaTroll (#) Nov 20th, 2013 - 03:36 am Report abuse

And the alternative is what? Broken, surveillance state Britain where the rich cook the interest rates for the rich and the politicians lead the nation to wars when (supposedly) the entire citizenry is against it?

Or is it Decline America 17 trillion in debt, with bankrupt states and cities all over the place, mass shootings on an hourly basis now even the news can't bother reporting on them anylonger, and a completely stultified political,criminal, and medical system?

Thank you, I will pass on the failed Anglo model.
29 Usurping Pirate (#) Nov 20th, 2013 - 08:53 am Report abuse
@28 : The alternative is a mature responsible administration that governs for everyone , not just the people that voted for it and invests the country's wealth in health , education and its future instead of squandering it on buying votes .
Politicians in the UK steal , but on a miniscule scale compared to Argentine ones .
At least everything in the UK is functioning and clean , I can get across London knowing I won't find major roads cut daily by piqueteros or that a 13 yr old on drugs isn't going to rob and shoot me , nor will I see people forced to sort through street garbage looking for cardboard to sell .
As for wars , we fight to prevent terrorism .
In Argentina former terrorists run the country .
Massera's biggest mistake was thinking he could tame the Montoneros .
Instead he killed the innocent and let the guilty go .
30 Think (#) Nov 20th, 2013 - 06:19 pm Report abuse
(25) redp0ll

Very nice little ran ho Sr. Kiciloff has built for his family@15, indeed.
But he has a long way to go before he reaches Pepe's level....

But he is only 42 years old........... Same amount of years el Pepe y la Tronca spent in prision, fighting for Uruguay.....

31 redp0ll (#) Nov 20th, 2013 - 09:41 pm Report abuse
Think I have no problem with Pepes lifestyle. Thank you for the video but Mandarin Chinese isnt one of my accomplishments
You say Pepe and Lucia spent 42 years in prison. Where did you get that fact from?
I asked you some serious questions for your opinion, politics apart, which you have not diegned to reply to
32 Think (#) Nov 20th, 2013 - 11:51 pm Report abuse
(31) redp0ll

1) It's Korean...

2) You are the Yorugua, you do the maths...
Years she spent in cana + years he spent in cana = _ _

3) You can't ask me serious questions in the same paragraph you ask about my enemas...
Well........ You can, but the response is according...
33 ChrisR (#) Nov 21st, 2013 - 11:23 am Report abuse
@ 30 Lunatic

Yes, this pair fought and fought for Uruguay and ended up giving the country to the military.

Stupid is as stupid cannot think one step ahead: that's the “Tupameros” for you.

3,000 (eventually) idiots led by a “lawyer” without a certificate (he had not taken the exams) and no brains. Doesn't this sound familiar with a certain person in The Dark Country?

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