It is entirely possible that by accepting the money from the IMF the Latvian govenment is breaking its own laws on money laundering. As we all know, the IMF is bankrolled by the USA. The rumour has it that the USA sees the loans to the Eastern European countries as a clever way of handing over paper money produced for the magic "quantitive easing" and totally unsupported by any collateral, and later getting back good money (plus interest) in return. Now if this is true then the Latvian govenment is supporting a highly questionable and probably illegal act. If this "clear money" came from Russan business serious questions would be asked!
The really bad news though is that the crisis has officially worsened - the Hammock shop on Brivibas is going to close. As regular readers will remember, I mentioned the shop on April 12th and questioned how it survived. Well it hasnt. I saw the Prime Minister on television this morning. He looked more smug than usual as he commented that the government recovery plans were working. Not from where I look they are not. I predict that a lot more shops and companies will follow Hammocks into oblivion this winter.
And judging by the growing queue of beggars outside the free food places, a few souls will disappear in the cold as well. I see and hear of no plan how to deal with the homeless. Perhaps there is one, but it is being kept as secret as all the other government plans. Democracy currently has no home here in Latvia.
Thursday, August 27, 2009
Friday, August 14, 2009
PRICES - DOWN DOWN DOWN!
I hope that my mum doesn't read my blogs or she will be wanting to visit Riga again to spend my money shopping.
There is no doubt now that major change is taking place. Some of the main streets are now full of empty shops (and it is creeping into the Old Town too) and in the main shopping centres prices have nosedived. I have even seen 90% reductions in one place. But still there is no understanding either of customer thinking or what a "sale" is for. All to often there are signs saying "up to 80% reductions" and then you have to search hard to find anything with a cut like that. It becomes annoying when shoes or clothes are still being sold at less than 50% off from what was a totally stupid and unreal price in the first place. Still, one shoe shop in Alfa Centre had a real sale with shoes at 7Ls and the place was full. The next door shop was empty. I bet they did not draw any conclusions from that!! But for any followers with cash, Riga is now well worth a shopping visit. Pass it on.
It is difficult now to see where Latvia goes next. We are still on the downward path with the next round of school and hospital closures to come. There is still no developed logic behind the cuts and personal interests are driving things in the regions. Unfortunately corruption still abounds, it just appears in new, nasty and more insidious forms. Perhaps the worst was hearing that the National bank staff, including the boss Rimcevics were still taking home obscene salaries. He had no remorse and showed a level of lack of understanding of what he had done equal only to a US banker. It was embarrassingly reinforced by the PM who said that salaries were the bank's business. Again we have weakness from a national leader. It seems to be a trait. The whole of the bank staff should be cleared out and new people hired from abroad.
But on the surface in Riga there is far less to see. Shoppers are still out and cafes are being used, just a bit less than before. The fact is that 20% may be unemployed but 80% are still in work, even if they are getting 25% less money than this time last year. The real crunch will come when the unaffordable heating bills arrive in the autumn. Many pensioners get less money each month than their utility bills. But the general atmosphere is a stoic determination that all will come well in the end. That is a Soviet legacy. There has been worse here before. At least no-one is being carted off to Siberia - they have all gone already to UK and Ireland.
What is obvious now are the numbers of heavy drinkers on the public transport. More and more you can smell alcohol addiction. It permeates everything. There are also more people with unwashed clothes and bodies. It is the unpleasant aroma of poverty!
There is no doubt now that major change is taking place. Some of the main streets are now full of empty shops (and it is creeping into the Old Town too) and in the main shopping centres prices have nosedived. I have even seen 90% reductions in one place. But still there is no understanding either of customer thinking or what a "sale" is for. All to often there are signs saying "up to 80% reductions" and then you have to search hard to find anything with a cut like that. It becomes annoying when shoes or clothes are still being sold at less than 50% off from what was a totally stupid and unreal price in the first place. Still, one shoe shop in Alfa Centre had a real sale with shoes at 7Ls and the place was full. The next door shop was empty. I bet they did not draw any conclusions from that!! But for any followers with cash, Riga is now well worth a shopping visit. Pass it on.
It is difficult now to see where Latvia goes next. We are still on the downward path with the next round of school and hospital closures to come. There is still no developed logic behind the cuts and personal interests are driving things in the regions. Unfortunately corruption still abounds, it just appears in new, nasty and more insidious forms. Perhaps the worst was hearing that the National bank staff, including the boss Rimcevics were still taking home obscene salaries. He had no remorse and showed a level of lack of understanding of what he had done equal only to a US banker. It was embarrassingly reinforced by the PM who said that salaries were the bank's business. Again we have weakness from a national leader. It seems to be a trait. The whole of the bank staff should be cleared out and new people hired from abroad.
But on the surface in Riga there is far less to see. Shoppers are still out and cafes are being used, just a bit less than before. The fact is that 20% may be unemployed but 80% are still in work, even if they are getting 25% less money than this time last year. The real crunch will come when the unaffordable heating bills arrive in the autumn. Many pensioners get less money each month than their utility bills. But the general atmosphere is a stoic determination that all will come well in the end. That is a Soviet legacy. There has been worse here before. At least no-one is being carted off to Siberia - they have all gone already to UK and Ireland.
What is obvious now are the numbers of heavy drinkers on the public transport. More and more you can smell alcohol addiction. It permeates everything. There are also more people with unwashed clothes and bodies. It is the unpleasant aroma of poverty!
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