On Argentinians being the first ones to be ripped-off by their own government, who will be next?

Hobbes, forget the Falklands (Malvinas in Spanish), it seems that the Argentinian government has finally decided to follow the master and improve on it.

When you thought outrageous that Chancellor Gordon Brown (now British Premier) dipped into the private pension pot to cover current government expenses, last month President Cristina Fernández de Kirchner announced that she planned to nationalise the 14-year-old private pension system. Yesterday the senate passed the bill.

Is this the beginning of the end? Back in the 30s, the US government seized all gold in possession of its citizens. We moved into the big government territory that skinned us with taxes in exchange of an inefficient management of our money. Brown first dipping into his citizens future and now Argentina flouting property rights and forcing the thousands of Argentinians who have been saving through the private pension funds for the last 14 years to move to the national savings scheme… and sell their foreign participations (about 40%) at the worst time in 30, 40, or even 80 years. Smart move, isn’t it?

The Argentinian government alleged that the funds where ripping investors with massive fees and keeping them in the dark, now they pledge they can do better, starting off a fire sale. Well after all it works for Swedish and Chileans.

Sir Rees-Mogg was foreseeing like a 20th century Nostradamus in his Sovereign Individual. I am sorry for the Argentinian folks being stolen by their own government in a world where re-locating to another country (predominantly Spain and Italy for them) doesn’t solve the problem, but everyday I learn a bit more about who I can trust with my money and who I can’t . And the least keeps getting shorter and shorter, with me as the sole tenant.

If Argentina defaults again in a couple of years, private pensions will be off my investment options, as any tax advantage you can get works as a 20% off promotion on a store card, they just want you to spend more.



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