Thursday, 08 December 2011 13:33
The prime minister, if only by his office, is a wise man. One must rely on his words. What he predicts will become reality straight away. Recently he said that Hungary would be attacked again by speculators within weeks. Well, he himself will make sure that this will happen.The most likely weekend reading of the hawk looking speculators is the Hungarian Growth Plan, a 177 page long essay, which was shared with the public on Friday by the nation’s right hand (man). It isn’t easy reading although there are colourful pictures in it. When it comes to numbers and facts, well, there aren’t any in it, unless we consider the „Győr vision”, the „Rombauer plan”, the „Kecskemét project”, the „Wekerle plan”, the „Makó Imre plan” and the Ózd based „Cultural Galaxy” as one. It is the work of a serious person, György Matolcsy’s serious plan creates serious thoughts – and while doing so he cannot attend the meetings with the IMF – such as: that economic and space structure turning board is being formulated in Hungary which will be capable of forming and conveying the future European regeneration zones. We don’t detail the part about the formation of the „Eastern-European banana” based on the „blue banana” because we simply don’t understand it. It is true, we don’t understand the turning board concept either, but at least we have already seen something similar in the train history park. Certainly all this is our fault and it is not because the text would be totally meaningless.From this entire grand imagination one thing – a basic principle – emerges: the government (state) wants to manage the economy in such a way that it will provide money (support) only to the chosen ones. The same way as it did with the proudly referenced Széchényi Plan. According to them this will bring growth, prosperity and a successful country. On the contrary in my opinion it only actually brings a hot water tub to every second village in the country and as to success, well the testaments to that are all the pompously decorated but empty hotels, hostels and the failed wellness resorts. The Hungarian entrepreneurs need a sound market instead of state favour – i.e.: domestic consumption and export – and of course they need financing (loans), certainly not from taxpayers but from banks, from those banks, which just suffered heavy losses as a result of the government’s economic freedom fight and hence recently they just stopped their financing activities. But none of this was mentioned by nation’s right hand (man).Have no doubt, here will come the umpteenth version of the Széchenyi Terv. But from what source? The state currently cuts, tightens, contracts and fires; hardly any funding is available for anything apart from stadium construction and communication tenders so from where will it have all the money to spend on the new plan? Of course the prime minister has an idea for this as well. Another point of his speech visioning the attack of speculators was the idea of introducing the cash, just „laying around” in the Hungarian National Bank, to generate growth. The same thing now again a bit more clearly: the Orbán government wants to confiscate the Hungarian National Bank managed foreign currency reserves. This is a lot of money, roughly ten thousand billion forints (HUF) and the government is eager to get it. They want us to prosper so they will take it for sure.If the private pension fund was the family’s silverware then the central bank’s foreign currency reserves are the family’s golden ware. It is designed to support the exchange rate of the Hungarian Forint. The size and liquidity of a country’s reserves is an important aspect of a country’s market appreciation. It is put aside for times of trouble, to be used to defend our position. Also to scare off the above mentioned speculators. If there are a lot of reserves then the speculators won’t attack but if there few reserves then they will pounce on the easy prey. So if the government is rooting this reserve then it makes the forint (HUF) defenceless and makes the central bank unable to defend our currency. Is there a better chance for those buggers, who try to make a profit – what a scandal – on the foreign currency markets? An economic policy, led by a politician who lost his face, word and credibility, full of incoherent and muddy visions, one which consumes all the reserves of the country without any sense. All the while the government communication is talking about the attack of speculators gathering for the smell of blood and yet the country’s own prime minister cuts Hungary’s main artery with his own hand.This country had three important reserves. The private pensions were already confiscated in the name of reducing public debt. Yet public debt did not decrease. The foreign currency reserves are wanted (by the government) in the name of growth. Well, one may be actually worried that there will be recession. The third pillar of reserves are actually in bank deposits. I thought I would mention it...Zoltán Gál J.; Vasárnapi Hírek;December 4. 2011.