November 21, 2008

Argentina Confiscates Private Pensions

(Buenos Aires, Argentina) The government of Argentina, led by President Cristina Fernandez, has nationalized the country's private pension plans, known as AFJPs. Despite assertions otherwise, the move is no more than an asset grab to give the government funds to pay the bills of wild-spending politicians.

The Senate approved the bill by 46 votes to 18 with one abstention. Under the new regime, the AFJPs’ $26bn in assets and annual contributions of up to $5bn will pass to the state social security administrator, Anses, which will be responsible for all retirees under the state’s pay-as-yo-go system (sic).

Miguel Pichetto, government whip in the Senate, called it “a change of historic importance”. But the opposition Radical Party’s Ernesto Sanz said: “We have no doubt that here the right to private property is being violated. Not just for us but for society and the world, this is a clear confiscation.”

If the Democrats follow through on their announced intentions, expect the same type of confiscation to occur in the U.S. Remember, a milestone on the road to serfdom is the eradication of private property.

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