Belt Tightening
Since 2004, belt tightening has been craftily imposed on every one other than the state sector through 20-percent-plus inflation and high interest rates, while the state sector got fat salary hikes, dirt cheap housing loans and tax free cars as well as subsidies to prop-up red bottom lines of state enterprises.
But now history is repeating itself. A severe balance of payments crisis is underway, the central bank is intervening and injecting liquidity in a self-destructing sterilized intervention cycle and the country is hemorrhaging reserves.
"At this stage I would say be proactive and take the necessary measures that we all know we don’t need anyone to be telling us what needs to be done," says Ernesto May, a World Bank official.
"I think the policy mak