"Whoever coined the phrase “money isn’t everything” was either broke or a millionaire.For most of us, including your humble correspondent, money may not be everything, but it still matters. It matters a damn lot. Especially if your life savings are in Fiji dollars.
I mention this because the Interim Government is continuing to mislead people in Fiji about the state of the economy. Mahendra Chaudhry keeps telling us everything is rosy but Professor Satish Chand, an independent analyst, has some bad news for people with Fijian dollars.
The good professor thinks Fiji’s dollar is over-valued by 12 percent. It’s just a matter of time before we face devaluation. As Chand points out, reserves are down and capital flow is not filling the gap between export receipts and import bills. Now I am sure Professor Chand has a technical term for that situation, but your humble correspondent prefers to call it the Law of Economic Gravity.
OK, we already have restrictions on overseas transfer of capital but, as Professor Chand notes, that only works in the short term. It’s like water rationing in dry times - it delays the emptying of the reservoir but it’s no substitute for rain. And in any event, capital controls only discourage investors. I mean, who would want to turn their hard-earned US, NZ, Canadian or Australian dollars into Fiji dollars?
Dictators like Frank can use their green goon squads to intimidate people, they can put stooges like Full Chow in charge of the police and they can growl inanely as much as they like at their neighbors, but the one thing they can not so - ever - is to force investors to send more dollars. Mahendra Chaudhry, please note!
Yes, Chaudhry, you really do try to attract investment capital. But no one believes your spin. Unfortunately, when you attempt to woo investors as the “lifeblood of the economy”, you forget that they remember - only too well - that not long ago you saw them as “bloodsuckers”. Silly, silly boy! Go stand in the corner!
No, in light of Professor Chand’s dire predictions, and the IG’s ineptitude, your humble correspondent can see one way to protect your money and rebuild investor confidence: it’s called a stable, elected government under the rule of law.
As you might recall, our then government was not doing a bad job of generating Fiji’s much-needed money and investment - right up until the thuggish oaf, Bainimarama, decided to pull his coup on 5th December last."
A blogger called CASSANDRA posts on Hearts & Minds
I mention this because the Interim Government is continuing to mislead people in Fiji about the state of the economy. Mahendra Chaudhry keeps telling us everything is rosy but Professor Satish Chand, an independent analyst, has some bad news for people with Fijian dollars.
The good professor thinks Fiji’s dollar is over-valued by 12 percent. It’s just a matter of time before we face devaluation. As Chand points out, reserves are down and capital flow is not filling the gap between export receipts and import bills. Now I am sure Professor Chand has a technical term for that situation, but your humble correspondent prefers to call it the Law of Economic Gravity.
OK, we already have restrictions on overseas transfer of capital but, as Professor Chand notes, that only works in the short term. It’s like water rationing in dry times - it delays the emptying of the reservoir but it’s no substitute for rain. And in any event, capital controls only discourage investors. I mean, who would want to turn their hard-earned US, NZ, Canadian or Australian dollars into Fiji dollars?
Dictators like Frank can use their green goon squads to intimidate people, they can put stooges like Full Chow in charge of the police and they can growl inanely as much as they like at their neighbors, but the one thing they can not so - ever - is to force investors to send more dollars. Mahendra Chaudhry, please note!
Yes, Chaudhry, you really do try to attract investment capital. But no one believes your spin. Unfortunately, when you attempt to woo investors as the “lifeblood of the economy”, you forget that they remember - only too well - that not long ago you saw them as “bloodsuckers”. Silly, silly boy! Go stand in the corner!
No, in light of Professor Chand’s dire predictions, and the IG’s ineptitude, your humble correspondent can see one way to protect your money and rebuild investor confidence: it’s called a stable, elected government under the rule of law.
As you might recall, our then government was not doing a bad job of generating Fiji’s much-needed money and investment - right up until the thuggish oaf, Bainimarama, decided to pull his coup on 5th December last."
A blogger called CASSANDRA posts on Hearts & Minds
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