Martin Lousteau Resigns.

The Argentine Economy Minister Martin Lousteau has resigned after just four months of President Cristina Fernandez de Kirchner’s administration as the Argentine bonds slipped 1.7 percent today.

In South America’s second-largest economy Lousteau has failed to gain effective control of the economy which was highlighted by his failure to control a farmers strike which resulted in food shortages and huge anti-government rallies and demonstrations across the country.

The three week strike began last month led and lead to road blockades which caused shortages of beef and dairy products.

The farmers opposed a new variable export tax on both grains and oilseeds are trying to control prices in the Argentina’s economy.

The farmers want to sell wholly abroad, and do not necessarily care about the domestic market as the 21 day strike ensues.

In the last five years the economic growth has grown faster than 8.5 percent ever since the country’s infamous default on $95 billion of bonds in 2001.

Amidst high international prices and inflation the farmers crisis is also a lost opportunity for the country to strengthen its exports and take advantage of the hike in global food prices.

Carlos Fernandez, who was head of the Tax agency will replace Lousteau.

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