The Communists Are Fixing The Books in Seychelles

A common thread with communist regimes is that they have to fake success all the time, everyday, 365 days a year, year after year, to stay in power. To fake success, they have to fix the books.

This idea, of book fixing has stuck with communists from the early days of Karl Marx.

 In Seychelles, the communists in paradise are not an exception they are experts in implementing the rule. Never under estimate a thug that lives under a coconut tree.

IMF Pops in Unannounced 

Last week, the IMF popped into Victoria unannounced, and called for an extra ordinary meeting with the Ministry of Finance and the Central Bank of Seychelles. The staffers all lined up, and made their way to the leather seats of the Ministry of Finance conference table to face the IMF Chief of Division African Department and lead for Seychelles program, Mr. Jean Le Dem . Mr. Le Dem is neither a politician nor a business man. Accompanying Mr. Le Dem was Mr. Nikoloz Gigineishvili, an economist who regularly has been visiting Seychelles.  Miss Nkunde Mwase, economist from the Review Department of the IMF was not present.

Mr. Le Dem is tasked with seeing through the communist government of Seychelles second generation reforms in taxes, and streamlining and cutting government largess and abuse of government funds, when mis- appropriated. It is no surprise he turned up after: 1. an election, 2. the approval of a supplementary budget approaching Sr. 300 Million for 2011, part of which bails out Air Seychelles again…..for now.

Where Did PL Get The Money

The big question of course, that no one asked is where did PL get the money for the Supplementary Budget to spend nearly Sr. 300 Million beyond a budget which was already high because it was an election budget. They did not earn it, since Fishing is down, and Tourism, though numbers are up according to STB and Alain St. Ange, the bottom line is severely down, Two (2) years in a row. It seems St. Ange, is recruiting any street walker, from any city, to be a Tourist in Seychelles, based on the receivables. But unfortunately, the situation is more complicated then that, I will address it in future article, after the World Bank visits Seychelles in the first week of July 2011 in cooperation with the IMF and the International Finance Corporation (IFC) which was here last year when Aida Der Hovanessian, country manager for Seychelles and the region paid us a short visit.

FDI Plummets

Foreign Direct Investment (FDI ) in Seychelles these days has plummeted. After PL chased everyone away by seizing a number of bank accounts and transfers, and the water crisis has surfaced, and it is obvious that we do not have capacity for future growth and investment, FDI went from $2 Billion under James Michel, to now likely under $90 Million, this year. Only  Sheikh Khalifa  of UAE is still putting money in Seychelles, and the PL are handing the ribbon cutting to the UAE in Seychelles, an unprecedented overt action that demonstrates the progressive and systematic selling of our patrimony.

James Michel formula for economic growth is very dangerous and likely very lethal to the overall health of the Seychelles economy. His policy of “Sesel Pou Arab” will have a negative impact on the economy unless it is a total sell out. At which point, Seychellois will be regulated to 3rd class citizens in their own country. We are well on our way.

Why Print Money Now After Elections

When communists regimes cannot make business work on a national level, and money is short to get through the humps of fiscal shortfalls, they print money. To do so, they will tell you every reason why the old bills of  are suddenly no longer good and a need for new bills is necessary, even if they just printed a new batch the previous year .

Here it appears, they have done this to take the old illegal print bills (undeclared print) out of circulation before the IMF shows up in August. Unfortunately for Pierre Laporte and the PL, the IMF showed up last week.

Suddenly all the advertisement of printing new bills, to replace the old ones printed last year, not Ten (10) years ago, stopped on SBC. I wonder why?

If this is so, it is the equivalent of a Central Banker being caught running in town naked for the IMF.  Mr. Laporte will have to explain himself, failing a reasonable explanation, he should be called upon by the free journalists in Seychelles to resign unconditionally, for venturing into political servitude as a central banker, which is illegal in Seychelles under the Central Bank Act.

Did someone say this guy came from the IMF or a polka music band?

Direct Impact  on Every Seychellois Even The Communists

The direct impact of printing more money is “Inflation” , which IMF has adjusted to nearly 6% now, perhaps higher by years end. This means cost of living will go up in Seychelles fast, faster, perhaps fastest.

Too much Rupees in circulation will mean devaluation gradually of the Seychelles Rupee to hard currencies like the US Dollar and Euro.  This will compound Inflation and Cost of Living.

Steady taxes on fuel of over 450% will keep the Seychelles economy crawling for years as the overall cost of living remains high, and the destination remains costly and not affordable  under JJ Spirit, sham President- elect Michel.

Uncertainty in external factors, which I shall treat in future articles, will reveal that I was wrong about a Ten (10) year downturn for Seychelles which I proclaimed in 2007. I will adjust my sails now to assert a Fifteen (15) year downturn for us under the current communist regime, if there is no change, because with communists, you can always be sure of one thing: they will always make the wrong move when it comes to the economy.

Communists know how to spend money, and beg for money well, but they do not know how to earn money and instill the will to earn money and excel in their people. They are great at regulating people to welfare wards, then attack them for being on welfare in the same breath. They are famous for giving holidays for a political event, and ignore the economic realities of the cost of such fanfare. Even when they are bankrupt, they will give a holiday for going bankrupt. In line with this logic I expect, October 31^st, will be set aside as National Bankruptcy Day for Seychelles, since this is the day in 2008 that James Michel declared we were BANKRUPT after he told us the previous year, we had cleared all our debts and we were debt free.

With this in mind, we must be prepared for the second phase of the paradise financial collapse post Lehman Brothers Bond default, the next round of downturns for us will be long, deep and drawn out for many years.

I wish I was wrong.

Fixing Numbers Does Not Fix Reality PL

After the PL is finished with this little charade yet to be exposed, we will be back to the same mess were in before the PL rigged the presidential elections and handed Michel a faux mandate.

Fixing numbers, does not fix our reality…..we are still digging for water, and the amount of cancer cases is surging at our hospitals today. Why do they hide those numbers?

Seselwa Unite!

Sesel Pou Seselwa!

May God Bless All Freedom Loving Seychellois!

Christopher Gill