Thursday, January 7, 2010

Central Banker Who Refused to Inflate Money Supply Is Removed and Charged as a Criminal

Argentina's president, Cristina Fernandez de Kirchner, summoned all ministers in the Government House to sign a decree of necessity and emergency in order to dismiss the president of the Central Bank, Martin Redrado.

The decision was taken through a decree that stated in Article 1:

Be the president of the Central Bank of Argentina, D. Hernan Martin Perez Redrado, removed from his position for engaging in misconduct in breach of the duties of work
Fernandez had asked Redrado to resign on Wednesday but he refused.

The decree issued on Thursday said Redrado had "failed to fulfill the duties of a public servant."

La Nacion daily reported that the president also ordered Attorney General Esteban Righi to file criminal charges against the Harvard-educated economist.

Redrado angered Fernandez by refusing to comply with a presidential decree to use about $US6.6 billion ($A7.18 billion) in reserves to help cover $US13 billion ($A14.13 billion) in international debt falling due this year.

Most likley Fernandez is now looking for someone like Bernanke as a replacement. Bernanke has never been known to say "no" to a little "emergency" money printing.

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