Thursday, January 18, 2018

No confidence equals a low economy

 It is well know that confidence is the real currency of any economy. Loss of confidence in any financial institution causes what is known as a run on that institution, where there is a mad rush to withdraw deposits by customers. This leads to the fast collapse of the institution which could have devastating contagious effects for the entire economy. We saw that with Bear Stearns, that collapsed spectacularly in 2008. 

Let us look at what is taking place with Trinidad and Tobago’s economy. Economic growth is predicted at 2.5 per cent for 2014, while inflation is currently at 3.3 per cent. Unemployment figures are also very low, currently running at 3.7 per cent. These are very positive statistics for our country. We also have at least one year of foreign exchange reserves to cover our imports. 

So I ask, what was the rationale behind the scare tactics of Rowley, and Imbert when they tried to panic the population into believing there is a foreign exchange shortage? To whose benefit was this charade for? Is it that the PNM would rather shake and rattle our economic foundations for their political  benefit, to suffer the entire population so that they could attain political power?

However, these tactics are not surprising. In 2010, Rowley preferred to destroy his party, clearing the way for his rise to leadership. Is this the character of the man, destroy and conquer? 

Kenneth Lee-Pow