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There are three types of cycles and the K wave represents the long business cycle referred by Dr Nicholas.
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“Most analysts think we are near the bottom and we are about to begin a new upward pace of the cycle. I tend to agree,” Nicholas said. “Some analysts say that we already passed the bottom and we are going upwards now; I disagree.
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” Nicholas whose views are widely respected among economists said one important phenomena identified with the long cycle is the dominant economic power that had to change near the bottom of the long cycle. “In 1930’s we see the emergence of the United States as the world dominant power. The question is; are we now witnessing the next dominant power in the world.” he questioned. Nicholas who denounces classical economics as being unrealistic said the global economic power has now shifted from US and Europe to East Asia. “The share of global GDP in US and Europe has shifted to East Asia.
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Companies are seeking to relocate its businesses even from China to other East Asians countries.” he said.
Sri Lankas’ problems are much more convoluted and worse than most people imagine. The problems go far beyond simply Sinhala and Tamil issues. Sir Lanka has a structural issues in social, political, and economic realms. Cataclysmic structural issues in Social realm with respective to problem/solution identification and providing remedies. Sri Lankans by nature are reactive and given a choice prefer mediocrity. Its’ deep rooted malice. Economic problems are solved by reactionary policies. Lets take the balance payment crisis presently undergoing . The LKR is collapsing 129-130 to 145-146 . One policy – cancel all the vehicle permits . Is it a bad policy decision ? I would say giving permits to begin with was a mad policy . The permits induced consumption of foreign goods by subsidizing them . In otherwards the policy precipitated the current crisis. A 40BN LKR waste , so what economic thinking was behind it to begin with ?
Sri Lanka is yet to establish a mechanism that thinks and implements sound policy . Now Sri Lanka did have a mechanism called “the Civil Service” before 1970s but it was destroyed in stages, started by Madam Bandaranayaka and then finished off completely by JRJ .
Sri Lanka , will have muddle real rate growth till 2017-19 and that’s it. All real gains will be lost because SL has no mechanism to grow sustainably nor hold what she has gained . It will be slow collapse then it will accelerate with a youth uprising in 2027-30 period.
I hope people realize that issue is not with politicians . People want quick painless solutions and they elect people who promises them . Its with the people .SL needs 5-6 years of painful economic medication which will take another 10 years to take hold. Unpleasant as it is ; it is time to raise the hand take the fall for a better future or don’t raise the hand and fall anyway into the waiting abyss.
Yew. We are now in a recession. Gvt Try to overcome it, But seems to fail as they look for remedies in seconds