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12/27/16

Argentina: Fallout from Macri's sacking of the FinMin

As reported here yesterday, President Mauricio Macri has decided to lay blame for the underperformance of Argentina's economic recovery at the door of his now-ex FinMin, Alfonso Prat-Gay. The country's chattersphere has been in overdrive about the decision and commentary, as you'd imagine, has been split down party lines (haters gotta hate, bootlickers gotta lick boots) but out of all the noise, this humble corner of cyberspace picks the comments made by Guillermo Nielsen as some of the most insightful and balanced. For a bit of background and in as few words as possible Nielsen was Finance Secretary (i.e. number two to the FinMin) in the first Nestor Kirchner government, then fell out with the Kirchnerists (and Cristina in particular). These days he's aligned with Sergio Massa, the right-ish wing Peronist. Here's what Nielsen said about the departure of Prat-Gay:

"...it's showing that the sectors of the international community who were prudent about Argentina ('s economic recovey potential) are right. The fact there has been no large influx of dollars as the (Macri) government expected indicates there was a certain amount of mistrust. The sacking (of Prat-Gay) ratifies this lack of confidence. We're going to see an Argentina that will probably be more volatile than it was this year. The challenges are going to be greater."

This humble corner of cyberspace, one that has been a lone voice of warning against the crazy bullish screaming about Argentina in the mining sector throughout 2016, fully agrees. Your humble scribe also wonders how the "Argentina Mining Get On Now" rah-rah boys are feeling this morning. At what point is Fortuna Silver a short?