Why is it so sick?
06 March, 2015
Why is it so sick?
GEL, also known as Lari, has recently gone into a vertiginous free fall. Oh, excuse me! You do not know what Lari is, do you? It is certainly not a male first name. Nor it is the Atlantic yellow-legged gull, also called Lari. It is Georgia’s national currency which has been in circulation since the soviet demise. It has done its good fiscal job – and is still doing – except that it has recently gone a little awry, and it
needs an undelayed doctoring in the ways, called pecuniary. The GEL’s power has always been doubtful in the hands and eyes of its users because the currency of a country -- frail and shaky as GEL -- cannot physically have a strong and stable operative showground in the commercial world. As I have heard and learned, only a strong economy can have a currency which has a genuine operative muscle. How come that Georgia produces so little to sell and earn, and the national currency pretends to be as strong as Lari has been in years? This looks like some kind of financial trickery. So what has been doing the magic? Is it the borrowed money to cushion the Lari? Could it be the granted funds? Would that be the money orders sent from abroad? Or the capital made out of selling Georgia’s national property? It could very well be the four of them taken together. All these financial sources are operative in hard currency of course, not otherwise, which, as a wholesome contributory system, is building the GEL’s potential, propping up Lari as much and for as long as it is possible. But understandably, this could not have lasted forever. The doom’s day was expected at any point in time, and it has arrived. Sooner or later, the GEL shrinkage should have taken place. And it could have happened in the hands of any government. The governments can intervene and regulate the currency strength only mechanically and only temporarily. The long-run guarantee of national currency stability could only be expected from stable and productive economy, which is made possible only by scientifically correct economic policy. As a matter of fact, today’s mankind has enough theoretical knowledge and practical experience for instructing the world where to go and how to do well economically. And the information is available worldwide. Georgia must also have access to that information. Why can’t we recognize that any currency is equal to nothing if it is not buttressed by valuable and marketable product, created by the nation who owns that currency? It is so unbelievably ludicrous that we are all astounded that GEL has felt nauseous all of a sudden, then lost some weight and eventually thinned even worse. Who says that the plunge has come from out of the blue? Why are we trying so hard to look for the rationale of GEL’s plummeting so badly? We will never find the rationale which we are so desperately looking for unless we identify and accept the real reason for this monetary drawback. We don’t need to be on a witch-hunt to somehow find a couple of heads to screw off to feel happy. The mechanical prerequisites of the Lari devaluation are always present on a permanent basis, and the Lari ups and downs are expected at any time in the future too. The natural fundamentals of the Lari depreciation are absent in our discussions as a rule. Let us not be afraid to state out loud that the only cure for national currency is the readiness of this nation to start working for real. When I say ‘working’ I mean that unless the entire nation starts working to produce something that can sell, GEL will forever be a currency that always fluctuates at scary amplitudes. No financial geniuses, no banks and no ministries will ever be able to save the day for the sick Lari. Let us be sincere with ourselves! If we are not working and producing a sellable product, if our relatives and neighbors are not working and selling the result, if our kids are not oriented on the production of saleable goods, if we all continue only dancing and singing and watching the stupid TV shows, which makes no product -- hence no money -- GEL will continue falling like crazy, and finally it will turn into a paper which is not worth even for writing on it. This nation has to stop being so irrational. Nobody is going to write any recipes for Lari to get it back on its feet. And there is no placebo to fetch it quickly and feed it to GEL for us to see the poor guy alive and kicking again. There is only one way to save our stray national currency: work, produce, sell, make profit and pay the dues. And most importantly – learn quickly how to do all that in tandem and nonstop. È finita la commedia! If my jovial tone confuses you somehow, please think twice of what I am saying. And I am saying very serious things in a moderately funny way because I am not a scaremonger. I am a rationalist who thinks that no survival is possible in the idle situation like we have in Georgia. We are idle everywhere and in everything except when it comes to arts, which we cannot sell.
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PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
16.11.2018
17.11.2018
USD
1
USD
2.6818
2.6727
EUR
1
EUR
3.0299
3.0268
GBP
1
GBP
3.4332
3.4240
RUB
100
RUB
4.0185
4.0447
Other Stories
GEL Exchange
USD
1
USD
2.6727
EUR
1
EUR
3.0268
GBP
1
GBP
3.4240
RUB
100
RUB
4.0447
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