CNBC reports conservative President Macri of Argentina did much more poorly than the opposition Peronist Party of Fernandez in that country’s primary election just concluded. This is very bad economic news for that troubled nation. Macri is now expected to lose the final election held later this year.
The Argentine peso took a hit, as did government bonds, as markets reacted to the news that foreshadows a return to free-spending Peronism. No question Argentinians seem to be addicted to government handouts.
Macri’s austerity measures were and are unpopular. Peronism appears to be a “drug” from whose clutches there is no recovery, no “getting clean.”
Sadly, the people of that beleaguered nation deserve the misery for which they are almost certainly in store. However unwittingly, they are choosing that fate at the ballot box.
