This post was going to be about all the populist measures the Fernández administration has rolled out in the last few days, but instead it’s going to be about the circular firing squads forming up in the cabinet.
Short version: The Argentine administration is divided between moderate supporters of the President and more radical (and sometimes more corrupt) supporters of the Vice-President, Cristina Fernández de Kirchner (CFK), who also happens to be a former President.
After the election, CFK demanded that President Fernández (no relation) fire his moderate cabinet ministers — including the Economy Minister. And since everything in Argentine politics ultimately revolves around the economy, that would be a BFD.
The thinking is that the government needs to go more radical to win in November. The President said no. So CFK got her ministers to offer their resignations to the President. We’ll see if he accepts them ... but rumors are floating that the Speaker of the House, Sergio Massa, will resign if the President refuses.
The Frente can’t win without CFK’s support. But if he gives in then he will be seen as a puppet. Only if she goes to the mattresses then he loses an election … but she risks going to jail.
It’s a game of chicken.
And there’s an international component.
The new regional manager of the IMF is very orthodox. Ilan Goldfajn was the former boss of the Banco de Brasil when Brazilian inflation was running well below target. He is not going to be an easy man for a heterodox Argentine government to talk to. So even if CFK wins, the administration could be dashed on the rocks of the people at 700 Nineteenth Street Northwest.
Anyway, this ongoing. Go find your favorite source of Argentine news and follow it. I recommend here. CFK supporters are heading into the Casa Rosada right now. Watch Moyano, the union leader, says Leticia Arroyo Abad.
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