Dollars Sans Modern Production is another Fraud
‘Before you study the economics, study the economists!’
e-Con e-News 11-17 December 2022
The bloody garrotting of the head of one of the ‘leading’ companies (financial, insurance, real-estate) on Thursday, found amidst the gothic crypts of Borella’s Kanatte – the country’s most expensive real-estate – will be just as quickly entombed and diverted by our mafia media.
No questions are being asked yet as to why ‘a member of one of the leading business families in the country’ would lend Rs1.4 billion to a ‘cricket commentator’ & ‘former sports presenter’, to ‘invest in a well-known company’ in Sri Lanka. Is cricket the real English laundry? The story also reveals that the municipal cemetery’s security has been outsourced to a private company. It’s left to the rumor mills to wonder about corporate investment in money laundering and drug dealing. Such are not the preserve of those given rustic nicknames like Makandure Madush, etc, who regularly mete out and meet bloodier ends, and sprawling repeated headlines. Could we now know who they really work for? Not everyone can afford life insurance or assurance. Nor will Kolomba Hatha, Flower Road, or Palmyrah Mawatha, modify otherwise distinguished Trinitian or Thomian Christian names. However, fertilizer-importer Maharaja’s NewsFirst, a vehement critic of the present President, suggests Dinesh Schaffter was a powerful witness to the Presidential Commission of Inquiry investigating the infamous ‘Treasury Bond Scam’. Wheels within wheels. Footnotes within footnotes.
• Some of the country’s biggest thieves, their fathers, mothers, siblings & faithful servants, 57 of them, calling themselves ‘concerned citizens’, wrote a very interesting letter on (remember this date) 7 March 2022, to Sri Lanka’s Monetary Board, which governs the Central Bank.
These letter-writers lamented the ‘severe’ shortage of foreign exchange and consequent fuel, food & pharmaceutical shortages. Their sorrow was on behalf of ‘small & medium-sized businesses who are fighting existential challenges’. They demanded the government submit to the US-controlled IMF and its bitter medicines of devaluation, and hike fuel & electricity prices (which would surely sink their beloved cutlis-making SMEs!).
These ‘concerned citizens’ included present CB governor Nandalal Weerasinghe & former CB governor Indrajit Coomaraswamy, both whom worked under and with disgraced CB governor & bond-scammer Arjuna Mahendran. Both Weerasinghe & Coomaraswamy were involved in passing the Foreign Exchange Act No 12 in 2017. This FE Act moved banker Rajendra Theagarajah, Ceylon Chamber of Commerce chair, to thrill: ‘The concept of foreign-exchange control has now disappeared from our dialogue.’
So, why then lament the ‘severe shortage’ of Dollars 5 years later? Yet Theagarajah is also a signatory of the March 7 letter. The other signatories include the regularly celebrated economic experts in the daily (should we say, unrelenting) media. They include the economists Nimal & Amal Sanderatne (Father & Sons Ltd), WAW Wijewardena, Srimal Abeyratne, Shantha Devarajan, etc. They include bankers, fake industrialists (Thulhiriya-thief MAS’ Sharad Amalean, Ceylon Tobacco’s Suresh Shah, later appointed chair of the SoEs Restructuring Agency in Sept 2022), supposed scholars (we won’t bother naming these imposters), NGO royalty (Sarvodaya’s nepotist Ariyaratne Jr), BASL’s Geoff Alagaratnam & PC Kanag Isvaran, US-funded Verite’s de Mels, US-funded Advocata chair Murtaza Jafferjee (in May appointed by then-PM & Minister of Finance Ranil Wickremasinghe to form an ‘Economic Stabilisation Dialogue’ between the Ministry of Finance & ‘independent’ economists) and his Koralawella frontman Dhana Fernando. Murtaza’s fellow Borah merchants, Abbas & Hussein Esufally, Advertisers (Neela Marrikar, chair of Japan’s Dentsu Grant, daughter of Reggie Candappa) etc. It truly is an assemblage of the media-loved economic lightweights. Yet the Assembly of God’s twins, aka Footnote Cliquer Harsha & Eran & 3rd-ball Kabir, always so horrified and always headlined by the media, did not sign the letter.
• On March 31, 3 weeks after these eminents wrote the Monetary Board, ‘demonstrators’ attacked the residence of then President Gotabaya Rajapakse, sparking the so-called Aragalaya. On that very day, US Envoy Julie Chung visited the President’s Mirihana residence, got down on her knees, and raised her hands. She said she was a Roman Catholic and prayed to her god, via Rome and Washington, to invoke relief for the President. She ‘apologized’ for what had happened that day. When the President decided to remove the protestors, envoy Chung prevented it, claiming it would stall the IMF loan. The President was visibly moved (we’re told) by her devotion. Chung then delivered the US ultimatums for the President to implement (see ee Sovereignty, US envoy controlled both Aragalaya, GR)
Meanwhile, as Wikipedia’s doctored Aragalaya (2022 Sri Lanka Protests) article records: ‘Twitter hashtags including #GoHomeGota and #GoGotaGo’ were soon force-multiplied into ‘trending’ by such imperialist redoubts as the ‘USA, Singapore, and Germany’.’
On April 3, the cabinet resigned. Letter-writer Weerasinghe replaced CB Governor Ajith N Cabraal on April 7. On May 9, ruling party MPs offices & residences were attacked & burned, across the country. On May 18, the new CB Governor announced independent Sri Lanka’s first financial default. On July 9, the President’s palace was allowed to be attacked & ransacked…
• The recent US-funded coup in Peru bares startling similarities to Sri Lanka. The coup also involves German-state NGO Friedrich Naumann Foundation (FNF). A key actor in Peru’s present destabilization is the de-facto US Defence Attaché in Lima, Mariano Alvarado. Alvarado is operations officer of the US Military Assistance & Advisory Group (MAAG). MAAG provides US military advisors, dollars & training to foreign militias. Alvarado gave the greenlight to Peru’s military generals, to arrest President Pedro Castillo in early December.
The last phone call Castillo took before he left the presidential palace came from the US Embassy. He was warned he was about to be arrested or killed, and told to flee to a ‘friendly’ embassy. His attempt to do so, then made him appear weak. Sound familiar? Castillo however was arrested by the military the moment he left the palace (see ee Focus). In Sri Lanka’s instance, it’s still not clear why a supposedly ‘despotic’ President was unable to protect himself. Nor protect the people who overwhelmingly supported him. A court case has been filed to find out. The people, however – not the Twitterers & Intstagrammed – are yet to speak, and when they do…
• Not just Peru, Argentina’s recent kalabala also echoes Sri Lanka. Argentina was left with $45billion in debt due to the International Monetary Fund (IMF)’s panaceas:
A campaign of judicial warfare instrumentalized the judicial system to criminalize nationalist President Cristina Fernández de Kirchner. 654 legal complaints were filed against her. 6 people alone charged her between 20 & 74 times. Judges worked together with the powerful media & economic monopoly Grupo Clarín, her prominent Buenos Aires political opponents, and ex-members of the intelligence services. Leaked messages, photos & videos now show that Argentine prosecutors involved in the case conspired with US-allied opposition politicians, media corporations and former intelligence officers to wage lawfare (judicial warfare) against Kirchner and her progressive movement.
On 6 December 2022, Kirchner was sentenced to 6 years in prison and a lifetime ban from holding public office for corruption. After being sentenced, Kirchner said the scandal proves there is a ‘parallel mafia state’ and ‘mafia judiciary’ in Argentina ‘that is outside of the electoral results’.
• ee 2 issues ago (3 Dec, IMF Bribes Central Bank & Media) noted the IMF’s bribing of the media editors through the Central Bank. But forgot to note this meeting was indeed reported in the media itself. Overlooked, cos it was hidden under the rubric of weighty headline IMF to engage with CB on macroeconomic modelling: ‘A special meeting was convened at the Central Bank by the IMF Country Representative with a group of journalists to seek their inputs on the most effective way to communicate complex economic policy-making issues. However no specific policies were discussed at this meeting.’ Macroeconomic Indeed! (ee Economists)
• ee has noted before how former Supreme Court Chief Justice Kanagasabapathy Sripavan was found on the board of a leading Commercial Bank (he recently resigned). Perhaps the mythical separation of powers does not involve capital and justice. As for the unholy alliance between capitalists (well, fake capitalists) & the state, this week former IMF Official Sharmini Coorey was appointed to John Keels Holdings board. More interestingly, she’s also ‘currently a member of the Presidential Advisory Group on Multilateral Engagement a& Debt Sustainability advising the Government of Sri Lanka during the economic crisis’. As they say, ‘Kandy is Dandy cos Incest is Best’! Our inbred oligarchs would surely agree. (ee Business)
• Colombo’s Dollar-fattened thinktanks & NGOs have been silent about the parking of billions of Dollars outside the country, and so has the Central Bank’s regulatory bodies. In this ee Focus, Neville Ladduwahetty asks, why the Central Bank has not been open about their failure to regulate and signal this haemorrhage a long time ago? Why does a supposedly literate country has to depend on such shady US NGOs as Global Financial Integrity (Random Notes) to tell us the obvious (tho supposedly unknown to our righteous media).
• Meanwhile acting blasé and unperturbed about their magical role in such kuchi-kuchi-hota-hey, the Institute of Chartered Accountants of Sri Lanka (CASL)’s Annual Research Symposium on 14 December featured CB Governor N Weerasinghe speaking on ‘Deep Roots of Sri Lanka’s Current Economic Condition & the Short-Term Recovery Strategy.’ (continued in Random Notes)
• However, Indika Hettiarachchi this week points to more deadly structural causes which the media ignores:
Usually, FDI ventures also repatriate money
through many other channels other than profits –
these channels include management fees, royalties & licence fees, etc,
thus exacerbating negative pressure on the country’s external balances
Hettiarachchi concludes: ‘Sri Lanka’s core economic problem centres on its inability to generate sufficient foreign income to sustain itself. In such scenario, selling profitable state assets to remedy short-term liquidity issues may lead to large BOP deficits in the future unless major interventions are done to remedy the core foreign exchange problem’. Though he does not mention the prevention of industrial production (ee Focus)
The main culprits are also more silent than the Kanatte dead. Unilever, Ceylon Tobacco, CIC-ICI – the infamous League of Multinational Corporations (LMNC) – utter not a word. Instead, they are giving themselves awards galore & gala (ee Business).
Yet it is these conglomerates, long linked to the colonial import-export plantation system, always lauded in hallowed ‘fair and lovely’ paeans, who are the biggest importers of machines & chemicals. It is they who prevents their R&D and modern capital-intensive production right here.
More ‘independent’ observers note:
‘The serious problem of non-repatriation of export proceeds was discussed in Parliament. It was revealed that only 17% of export proceeds of garment exporters (highest export earner) has been brought back to the country. There was only a minor reference to the wider issue of trade misinvoicing. The Minister of Justice said, a new Exchange Control Act will be presented. This should have been done very much earlier.’ (Sugath Kulatunga).
However, the Central Bank (its governor) and the poodle-media economists are in no hurry to elucidate how this Dollar meltdown has long been in the works. Instead, we’re told in rather selectively twisted response, via the ‘garment’ lobby group JAAF, that ‘the Central Bank last week said the data for September & October had shown that the exporters had repatriated all their proceeds and had converted 25% of such proceeds into rupees, in line with the minimum conversion requirement’, headlined as ‘Joint Apparel Association Forum (JAAF) exporters up in arms wants CB to show receipts’, adding ‘Angry apparel exporters point out, the authorities are not dealing with payment hawker-type customers, but top customers. They also say, the offshore companies they own, which the naysayers say are used to divert part of the export proceeds, are registered under the Board of Investment (BOI)’ (ee Economy, Apparel Sector).
Another headline exposes, ‘Only $20bn FDI raised by BOI in 40 years’ (ee Economists)
• Sri Lanka is suffering from the hijacking of artisans into effete artists rather than modern industrialists. This explains why the Europeans and their settler satellites love to glorify, fund and reward so-called ‘Artists’ through their fake ‘Modern Art’ galleries and museums. Check the very fake and blah Colombo Academy of Design which is promoting Mercedes Benz Fashions (tho not the design of machines! etc. Maybe it’s just seat covers) (Random Notes)
So while Europe (Brutish Council, Goethe Institute, Alliance Francaise) and the media mafia promote such ‘celebrity’ and ‘superstar’ nonsense, more perceptive observers recall DJ Wimalasurendra of (soon-to-be-sold) Laxapana fame and the Navandanna. That Sri Lankan artisanal families are very much like the German family SMEs. All they need is for the state banks to help upgrade their technology. But wait – it’s no wonder then that the US-led IMF wishes to privatize the state banks as well, and make the Central Bank ‘independent’ of such accountability to our real artists:
The famed Guinean leader Amilcar Cabral in his Brief Analysis of the Social Structure in Guinea (1964) had this to say: ‘The artisans, whether blacksmiths (the lowest occupation) or leather-workers or whatever, play an extremely important role in the socio-economic life of the Fulas and represent what you might call the embryo of industry. The Dyulas, whom some people consider should be placed above the artisans, do not really have such importance among the Fulas; they are the people who have the potential – which they sometimes realize – of accumulating money. In general, the peasants have no rights and they are the really exploited group in Fula society’. (Amílcar Cabral, Revolution in Guinea, 1974, pp46-61)
Recall it is the blacksmiths and the granaries, who and which the repeated invasions from India, West Asia and Europe, first targeted for destruction…
• Meanwhile, this week, we were told, ‘War & climate catastrophe lead Western governments to embrace industrial policies again’, adding, ‘The most notable transformation is digitalization… The other is the shift to a carbon-neutral economy.’(ee Industry)
Yet the German government’s representatives in Sri Lanka are doing their best to prevent our modern industrialization They insist we can only buy their very expensive so-called ‘Green’ & ‘Carbon-Free’ machinery & chemicals. They were busy handing out awards promoting fake industries & merchants: Meet Fraulein Marie Antonia von Schönburg, Chief Delegate, Delegation of German Industry & Commerce in Sri Lanka, AHK Sri Lanka.’ (ee Business)
Yet, former Russian president Dmitry Medvedev, points out: ‘Germany does not have full sovereignty on its own territory. Decisions on issues of German energy, industry and defence are made by the deep US state.’
Indeed Germany, with 50,000 US troops on its territory, is a colony. And we should not take any advice from them unless they tell us how they themselves became wealthy through industrialization. Instead, these poodles want us to be their poodles.
• ee again wishes to remind readers: 90% of the many English news headlines & links ee reproduces are from sources & forces deeply hostile to the people of this country. ee only does so to show how the media is still a colonial cage, with the need to free ourselves from the siege. Again, pointing out how certain sources (US & other white embassies, UN agencies, multinationals etc, are repeated over & over again through all media. This week’s ee Focus also recalls the setting up of the Sri Lanka Broadcasting Corporation, and the attempt to go beyond BBC, Reuters, AP, etc, with a New International Information Order, scuttled as usual by the you-no-hu!
We have also added a new section called ‘Building Blocks’, which emphasizes the Home Market, Machine-Making Industry & Preventing the Atomization of our Cultivators.
A1. Reader Comments –
• No Real Production to Invest Dollars in Anyway • Thulhiriya’s Destroyers Won’t Make a Thread • US wars on China, Russia borders • Island Columnists White World View
A2. Quotes of the Week
• Officials More Power Than Politicians • England to Pressure SL thru IMF • JR & the Slide to Terror • Export Dollars flow out for Imports • How England Undermined Bandung • India Slaves to US Media and Tech • IMF Deaf to Pakistan Needs • Japan let Small Businessmen Suicide to Protect Heavy Industry • Peru’s Oligarchy & Castillo • Capitalist System Working Fine • List of Countries under US Sanctions • Goering on Selling War
A3. Random Notes –
• Global Financial Integrity (GFI)’s Integrity • Chartered Accountants Hide Dollar Exports • Academy of Design Mercedes Benz Fashion Week Sri Lanka • Firsts in Our History
A4. Building Blocks
• Creation of a Home Market for our Industry • Japan Wont’ Export Real Machine Industry • Smallholding & Science
B. ee Focus
B1. Violent US & German Funded Coup in Peru
B2. Could privatising profitable businesses to foreign investors deteriorate balance of payment (BOP)? – Indika Hettiarachchi
B3. Repatriation of Export Earnings – Neville Ladduwahetty
B4. SLBC’s Continental Reach & Regional Radio Stations
C. News Index
continued on eesrilanka.wordpress.com