Here’s a little reminder…
That’s our president with the socialist president of Argentina, Cristina Kirchner, of whom he said this at the G20 summit last November:
Well, it is wonderful to be joined by the President of Argentina, a great friend of not only mine but the United States. We’ve spent a lot of time together at the G20, and I have very much appreciated the engagement and the passion that President Kirchner has brought to the important global issues that we’ve been discussing.
Well, Christina has had a busy week – it hasn’t been reported much in the US but has been all over the EU – but the big news is that Chrissy just nationalized the oil industry in Argentina:
President Cristina Kirchner’s government on Monday proposed effectively nationalizing Argentina’s largest oil-and-gas company, YPF SA. She proposed taking 51% of YPF from Spain’s Repsol at a price that is yet to be determined, leaving the Spanish firm with a 6% stake.
Repsol shares fell as much as 9% Tuesday amid uncertainty over the possibility of compensation. Repsol values its stake in YPF, which represents more than 50% of Repsol’s total hydrocarbon output, at $10.5 billion.
Later Tuesday, one of Mrs. Kirchner’s most influential economic advisers scoffed at Repsol’s $10 billion compensation request. “The idiots think the state must be so stupid that it will do what the company says,” Deputy Economy Minister Axel Kicillof said during a testimony to Congress about YPF’s future.
And their fellow socialist Spaniards across the pond aren’t taking this sitting down:
Madrid threatened to retaliate as soon as this week in response to Argentina’s proposed seizure of a prized unit of Spain’s flagship oil company, as Argentina’s nationalization drive drew international rebuke and threatened to drive the relationship between Spain and its former colony to its lowest level in decades.
Spain will take “clear and forceful measures,” said Spanish Foreign Minister José Manuel García-Margallo. These could affect commercial, energy and industrial relations between the two countries, senior officials said, and could be announced during Friday’s weekly cabinet meeting.
Never mess with a comrade’s bank account. Having worked in and around a number of socialist/communist states (like China), I can tell you that there is no one who understands capitalism more than a member of a ruling socialist government.
Think it couldn’t happen here?
Members of Congress have already called for it:
First, Maxine Waters:
Then Maurice Hinchey calling for the government to take over all the refineries.
Give Obama a Democratic Congress and four more years and he just might try it here…