06 January 2012

ARGENTINA: 7 Jan UPDATE: Docs Disclose Cristina Had Surgery...For Benign Tumor; Beginning Of The End For Subsidies.

                                       WSJ / M.MOFFETT

     Better safe than sorry...I guess.
     Doctors disclosed than President Cristina Kirchner did NOT have cancer in her thyroid!
     The good news for Cristina means she will not have to undergo radioactive iodine therapy...and possibly lose her hair.
      It was also good new for Argentina that President Cristina survived the arduous 3 1/2 hour surgery for a benign thyroid growth.
     She left the hospital after 3 days...to recuperate in the presidential palace.
     Now...bad news as citizens will soon feel the pain of drastically reduced subsidized utilities.
    They have been paying about 1/3 what other Latin Americans pay.
     Economists estimate gas bills could shoot-up 4x...and electricity by 2x.
     Cristina's recent landslide re-election for 4 years...softens her political risks.
    With the election over...experts say she has no choice...because subsidies cost Buenos Aires 4% of GDP.
     Fernandez calls the changes...economic 'fine tuning.'
     But...the rate increase roll-out begins with B.A's richest residents...not her supporters.