Wednesday, December 7, 2011

Boudou bashes credit-rating agencies, 1990's liberal philosophy

Economy Minister and Vice-President-elect Amado Boudou once again charged against credit-rating agencies and accused them of being “a source and transmission of problems”, and questioned the liberal philosophy the country experienced during the decade of 1990, during a summit conference organized by the Economy Ministry and the World Bank.

"Credit-rating agencies are a source of problems, as long as they exist, resources will continue to flow from those who have less to those who have more.”

Likewise, the Minister remembered that prior to the 90s "credit-rating agencies didn’t have the kind of relevance they have today and the financial system still worked they way it should", and concluded, "Getting rid of the credit-rating agencies is imperative.”

“It seems that economics is a science that can be disregarded from social sciences, but this is not true as political philosophy is always behind every philosophy of economics, especially when it comes to the decision-making process and that is decisive when it comes to results.”

To end, the recent elect Vice President said “Isolating economics science from politics have let to bad results. A clear example of this is Europe’s current crisis.”

Boudou graduated in Economics at the National University of Mar del Plata. During those days he was an active militant of the UCeD centre-right party. Likewise, the Minister was awarded a masters degree in Economics by private institution the Argentine Macroeconomic Studies Centre (CEMA in Spanish), which is well-known locally for its support of neo-liberal and free market policies, and its links to the infamous Chicago School of Economics.