Thursday, April 17, 2008

Serj's resources.

Keeping the country clamped down requires resources.

When you see the policemen blocking the Liberty Square, preventing the citizens from practicing their rights for free speech or freedom of movement, what you don't see is the moneys leaving the Armenian treasury without generating any return. When you hear of all the political prisoners and trials, what you don't see the resources required to keep this up.

Armenia is a poorly developed economy. There is virtually no industry and no serious exports. Whatever exports there are, are threatened to wither and slowly disappear because of the strong currency, rising cost of revenues and shrinking global economy. The only export is the labor force, i.e. the remittances sent home by the Armenian citizens who work abroad. As such, the economy is a duct taped bubble.

At some point the regime is going to run out of resources. Within a week of the chief avazakapet's swearing in, they cut the natural gas subsidies which means a 70% increase in the price.

Is this an indication that the banditocracy is running out of money. We'll see soon.

5 comments:

Anonymous said...

I am sure the Russians will provide the necessary resources. Unless of course they are growing tired of their bandit clients in the Caucasus.

parisan said...

//When you see the policemen blocking the Liberty Square, [...] what you don't see is the moneys leaving the Armenian treasury...//

That's exactly what I was thinking about yesterday. Ordinary Armenians will pay the bill by working harder and harder, here and abroad.

parisan said...

“The illusion of freedom will continue as long as it's profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way, and you will see the brick wall at the back of the theatre”. -- Frank Zappa

parisan said...

You wrote, //Is this an indication that the banditocracy is running out of money. We'll see soon.//

Very soon indeed! See: // Тradespeople [...] gathered in front of the RA Government today to complain of the increased customs duty. They blame the newly-appointed Prime Minister of the increased dues.//

Forward Hayastan!

//The import duty has marked up. As a result, people cannot afford goods. The tax on knitted garments has become $8-10 from $3,” //

The illusion of freedom has become very expensive to maintain...

pa said...

I forgot the link:
http://www.a1plus.am/en/
?page=issue&id=59767