Economy Minister Amado Boudou.
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,” warning that “as long as they exist, resources will continue to flow from those who have less to those who have more.”
While speaking at a seminar about the current global crisis sponsored by the World Bank and the Economy Ministry, Boudou stated that “previous 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.”
“Some say the economy can be detached from the social sciences, but this is wrong,” he said, adding that “behind the economic philosophy, there’s always the political philosophy, especially when it comes to the decision-making process and that is decisive when it comes to results.”
Boudou assured that “as long as credit-rating agencies exist, resources will continue to flow from those who have less to those who have more. And this diminishes the possibility to create jobs and strengthening the domestic market.”
“When a small percentage of the population holds a large percentage of the country’s wealth, this affects their possibility to generate their own domestic markets and create aggregate demand,” he explained.
“That is one of the key reasons why Argentina overcame the crisis in eight years while Europe still can’t get out of it,” Boudou said.
He concluded by considering that “it’s clear that the markets work deficiently, but it’s a pattern that proves that the more deregulation there was, the more deficient they were.”
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