Pricing it to the cost of production and decoupling it from the international market reduced the farmers to funders of the PPP enrichment scheme. I hope this is corrected soon.

So what markets did the PPP/C secure for the rice before they were kicked to the curb by the majority of the populace?

Take the wool of your eyes and you you will see, I often wonder how you sleep in the night. Mithwa, I understand you have your own opinion but when someone like who who goes around playing at people's home for religious gain - you should be honest to your self. This world is getting sinful cause of people like you - Damm it,,,,,,

The PPP is not the government of the day and the PNC wouldn't risk taking their recommendation to avoid embarrassment. Mitwah, behavior yourself, Bhai and don't let Grainger look worse.

hahahah! You are funny! who pissed in your cup?

Make sure you light one diya on the 10th and another on the 11th. Happy Diwali.

I am celebrating like my ancestors for one week to avoid conflicts with date. We have big Diwali mela in Richmen Curry Hill. You are invited. Nehru is one of the biggest doner. He still carry the PPP credit card. LOL

Prem se bolo Latchmi Maata ji ki jai!

Yamraj will not spare him.

Mitwah is the demoniac who Krsna mentions in the Bhagavad Gita. 

So how come a rice and sugar debate reached to a debate on YAMRAJ.  Eh YUJI.

 

Like you smoking some HOT POT tonight.

Impediments to the growth in the productive sectors are likely to hamper growth by limiting the amount of foreign exchange earned and added to the foreign reserves.  Thus there will be some level of depletion in the foreign reserves in 2015 because of the contribution from the six sisters (rice and sugar and bauxite and gold and seafoods and timber).

 

Gail however is being dishonest.  This meltdown did not happen after May 2015, but started over 12 months before that under President Rumtar.

 

Guyana also does not have enough savings that could be mobilized for investment purposes.

 

The Granger government got a bad hand from Danald, but to compound the mess, the APNUAFC continue to play a bad game. The handling of the economy since May 2015 was mediocre.

 

Things rough.

 

yes, the slowdown in the economy started during the last term if the previous regime. This was because of the massive cuts in public expenditure that resulted from cuts in the national budget instituted by APNU and AFC. Yes, sugar was in trouble and commodity prices had dropped. Taking so many billions of expenditure from the economy, plus the multiplier effect, plus the election of the APNU/AFC coalition who seemed not to know how to manage an economy, plus the late passing of the national budget, plus not increasing consumer demand through a good pay raise for public sector employees and a large increase to pensioners, no reduction in tax rates for the poor,  plus the loss in confidence by the local business sector, the uncertainty regarding rice and rice markets,  all led to the melt down we are now experiencing in Guyana. in fact. Put us over the edge, the tipping point.  All the talk they are talking will not put money in people pocket , restore confidence in the economy. It is only now they are doing the tendering for the projects approved  the budget. Not enough and a little too late. Now, it is going to cost much more to revive the economy, to stop the slide. 

 

Many of the PPP projects were wasteful, poorly managed and rife with corruption.  Given that most are financed with debt they made no sense.

 

Why did Guyana need a white elephant terminal building with 8 jetways.  Guyana will NEVER be a major hub.  Sao Paulo is already a huge hub with many daily flights to the Middle East, with ongoing connections to Asia. Northern Brazil has a light population, so of what use is a Guyana hub?

In the first instance the PPP spent every cent that was cut. Ramotar bragged about it. It is also an matter that was being adjudicated in the courts...,their circumventing of parliament.

 

The reason the economy is in decline is simple...it was propped up by the illusion of growth given the drug culture, the parallel underground economy and massive useless spending by borrowing. No industry was functioning and even gold which was being pillaged left and right also lost its value.  We are in decline from plainly terrible administration. A nation can live by the credit card only so long.

 

You guys from Freedom House are throwing around the multiplier principle too loosely and flippantly. The multiplier (depending on its size) only drives the CYCLE, NEVER the TREND. As CaribJ wrote above and I wrote extensively during 2011 election many of those "projects" were bad ideas and mal-investments that would adversely disrupt the trend. A few guys from PPP once told me Y = C + I + G + (X - M), so just crank up G and BINGO!!! Paradise!!! I laugh till meh belly buss. They never understood why I was cracking up. As Baseman, Yuji, Druggie and those PPP guys (some former Ministers with fake profiles) on Facebook would imply all you need for running a country is a curbside hustler. So, I always crack up when I read people trying to throw around "book" concepts like multiplier. The PPP (INCLUDING JAGDEO) never did anything to change the trend. They always operated on the cycle thinking they are changing the trend. In addition, I see NOTHING fundamental coming out from this new govt that tells me they can engender a structural break for the better. There is really no hope. I am sorry for the ignorant masses who vote for these people. I can only hope their ignorance will stupefy their sufferings.

Nice! Then there is the seasonal pattern which has a shorter or fixed duration than cyclical.   

professah, fuh abie "nah no so much peeple" about farmula, you cyan tell abie wah each lettah stan fuh? Y = C + I + G + (X - M).

 

Tanks proff.

That's true Mits...very true.

Mit is rum-drinking bhajan singing clown.

Thanks for clarifying that from him.

Since TK is a professor, I often would defer to him and not post on some of the stuff that he writes. However, I take issue with some of what he posted here. First, your first level,of criticism is about people from Freedom House. I am certain that you have never seen me at freedom house or with those who frequent there. Second, I am glad that you have finally recognized that these people currently in government have very little idea or no idea of what they are doing regarding the economy. The other guys might have been just as bad. They know nothing about first order and second order change so are resigned to tinkering with the economy without understanding the structural changes that need to be made to move Guyana away from the "donkey cart" economy.

Third, from  my GCE, I was led to believe that any spending by the government or by businesses has a multiplier effect. I did pass economics at GCE so maybe they gave me  a pass. I thought the former minister of finance has a PhD. I guess he is not PPP guy from Freedom House or is he one too. Fourth, your reference to the "stupid masses" is most unbecoming of you. I guess it explains why you are in academia rather than here trying to help them so that they will not "stupidly their suffering" If I remember correctly, you were one of the supporters of the coalition during the last election campaign. What does that say about you, and you have a PhD, while we are just "stupid masses." Fifth, I think that one does not need a PhD to understand some of these conceptS like trends and cycles and multipliers and aggregate demand and money supply and monetary policies, and fiscal policies, etc. Look at how many PhDs advised the British, European and American governments as they slid into a major recession a few years ago. Maybe, all we need is common sense that tell us that you put 100 economists in a room, give them one problem to solve and you get 100 different solutions. Go Figure! 

Zed, try reading the hindu parable of the elephant and the blind men.. TK wrote "ignorant masses" not " stupid masses".

Can you imagine if the British, European and American Govts did not have the professionals and intellectuals to advise them, how worse the recession could have been?

Economics is not an exact science. There are always moving components. Can you imagine if you had skills other than bhajan singing what you would have been trying to do with yourself???

Thanks for pointing out my mistake. I am not certain about the recession being worse if they were not there to advise them. It was those people who got us in the mess in the first place by articulating the arguments which led to reduction in regulatory controls.There were other reasons for the recession. But, this is a debatable opinion and open to disagreement. Additionally, there was greed.  

 

First, this multiplier thing has been knocked around on many occasions by very senior people from PPP, some writing so under real names and under pseudonyms. So, your argument is most PPPesque. Second, you've got to be kidding. A-Level econ? The subject is so vast that I make a living with it and can only follow about 5% of the literature. Third, you need to sit back and contemplate what a trend is and what a fluctuation around that trend implies. Think about it: the math is not that complex actually. Fifth, no A-Level book can say multiplier influences trend. That is wrong! It may help economy to move above trend in short-term, but that will peter out. We have a name for it. You can have a fluctuating economy around a comatose slope of the trend. Even a dankey cart economy moves over time in cycles around a virtually flat long-term trend. Read Dr Gampat's letter on the trend growth since 1965. Sixth, your last point is classic PPP. Anyhow, you need to read up on the causes of the financial crisis. It has nothing to do with economists. And yes...several economists like Dean Baker, Raguram Rajan, Tom Palley, Jane Da'Arista and many others were clear on their warning. I was in Jane's class in 2005 when she outlined with uncanny prescience how things will unravel. The crisis was caused by politicians like you who were captured by special interests that wanted deregulation. Deregulation of finance is the recipe for financial collapse. You have a PhD in accounting, right? You know about leverage and the balance sheet, no? What does that have to do with economists?

Yeah...doh is wuh Baseman, Yuji and dem bais would say.

Druggie said so too .

If it's not a multiplier effect could it be an additive effect?  I think the things that Zed pointed out that is driving non-confidence in the economy cannot be simply argued away on technicalities. 

I guess me too and I do have an MPA with economics and public finance as my concentration   Isn't economics the only field where two people could win Nobel Prizes arguing the exact opposite thing?  

Hey, TK thanks for the lesson in  Economics. Still issue with some things. First, I write under one name and it is close to my real name. No multiple personality, etc.  Second, oops, did I say that GCE was the only training or education in economics I have. Sorry if I mislead you. Third, where did I indicate that multiplier influence trend in the long term? Fourth, many economists, on the other hand, argued the opposite regarding the recession and how to get out of it. Proves my point. Fifth, I am not a politician, I do not have close associations with any political party, unlike you. I thought you would have been phoning Moses to help him manage the economy. Oh yes, he is just the PM in name. Maybe Harmon or President Granger will do. Sixth, I did read Dr Gampat's letter regarding the growth trend. There were some points I might have wanted to argue about, I thought that it was a useful and insightful analysis.If ever I have an opportunity to meet him and discuss it, I will take it up with him then. Yes, I do read some of your writings too. Seventh, I do have some training and education in Accounting and business but I am not an accountant or businessman, actually left because it was too boring and stifling. Eight, who mentioned anything about leverage and balance sheet.  

 

Have a good evening. Other things to do now. 

Too bad that the PNC government is not taking economic advise from TK. They would rather take it from Dr. Jagdeo.

So now you are having a vagina monologue eh! How's your master bateing skills?