Bull was always worshiped and respected in Georgia. It was considered as helper of Georgian people.
My book – Political Economic Satire-2 saw the light this month. On the cover of the book I placed caricature known for every economist – picture of brotherhood of bull and bear! And it started… Everybody was asking what is the sense, where do animals or bear come in here? Some even started discussing the role of a bull in Georgian mythology. I was surprised by such estrangement, but then I understood everything! I realized that Georgian economy is not acquainted with bear trend, especially now when there is constant bull trend in pricing policy! One idea came to my mind – to analyze bull trend and inflation issues with the example of pricing policy. How? For instance: Together with changes in global climate, in the times when earth’s temperature is falling catastrophically, prices at world market are falling also and deflation endangers whole world. Inflation dragon is strolling in Georgia. Everything is getting cheaper and cheaper everywhere, even money is for free. However, only in Georgia everything becomes more expensive and inflation is enjoying itself. Bank service rate increased in 2009, just like interest rate. Moreover, Bank Republic increased monthly fee for safe deposit boxes from GEL 25 to GEL 30 or by 20%. The same increase is observed in the fees of other bank products and quite often this increase is concealed. You might wonder how is this possible and in vain. Every bank has its own insurance company. Despite the fact that many imperfections of risk management have been improved this one remains the same. Why? – Because, while restructing bad loans in own companies everything is reinsured and thus incomes from insurance areincreased. The number of blacklisted payers increases in the same way and it already exceeded quarter of a million. Executive business is the toughest and most terrible at the same time. Ongoing things there remind Massacre of St. Bartholomew! There is no salvation. Prices in the restaurants are increasing; price of Georgian pig shish kebab is 14-15 Laris, while the price of turkey remains the same. The volume of shish kebab is reduced either – from 400 grams to 250 grams in best case. One friend of mine told me not long ago – I’ve been always eating one skewer of shish kebab and I was sated, now everything changed and thus I am ordering two skewers of shish kebab.
Consumption level of Indian meat has increased and it drew away Georgian national products. Most of Sulguni is made of powder and that’s why they are seemingly milky, but in reality they are watery. The prices of Sulguni are increased either, nothing to say about gasoline and construction materials. Gas, electricity and water prices are holding steady positions. Despite price reduction of the mentioned products at the world markets, gas price in Georgia is not lowering and it maintains 80-Tetri pedestal. I guess it likes being there. Somehow, there are talks that this pity Kaztrans… and some else gas is not beneficial!!! One might go crazy, where this super profit goes away?
The same might be said about electricity, mobile service rate and medicines. Rates of city phones are breaking records; they might even exceed mobile phones service rates. Situation is the same for university and school fees. Nothing to say about fruit prices in supermarkets. Celebrated and familiar unemployment is increasing either. To cut a long story short, current world processes are developing in Georgia in the opposite direction. This is the peculiarity of Georgians. Therefore, many scientists and experts are proving that Georgian economy doesn’t obey world economic rules. It did not believe in Smith, Marx and Keynes. It’s natural that monetarists suffered a wreck. There is unique pricing policy in Georgia and it is called – local rule. They are not interested in demand-supply or elasticity. Whole society is wondering and searching for a cat in a dark room or on the contrary looking for a panther in lightened room. And they are asking: Is there a monopolist at Georgian market? All of them are monopolists, aren’t they? Ask anyone, who owns sugar, gasoline business or first top twenty of consumption basket. To write down the names of those who are operating in this business means to make a long list of super-monopolists. So what? Nothing. Simply, ratings and lists are making us happier. Time for economic law to start operating has not come yet in Georgia. Very well, they are not even necessary! Free market is guilty in all the miseries of the west; it drove the world crazy, brought Bird Flu, freedom of abortion and crisis. We have determined prices on electricity, communications services and fuel once and they are stable over the years. Is it better to watch Bloomberg and Reuters monitors whole day and night and wait for rate changes with trembling heart? They remember nothing about feeding or debts. Those were the reasons of world crisis and thus consumption decreased. Everything needs simplicity and steadiness. There is no need in economic rules and theories; we are fed up with other rules already. Therefore, we are the firsts who set high prices under the conditions ofraging crisis and deflation.
Then they start: bull trend, bear trend… We are not interested!!! We have constant bull trend, if not at exchange then in prices anyway. We worship bulls and just … this is a local tradition! We will have the prices that are necessary for business and politics. How such economy might be called? – Local!