Thursday, July 7, 2016
As usual Parliament is debating a report they don’t understand! Why?
There is NO parliamentarian who really understands what the Auditor General’s voluminous 1200 page report of figures, none of which has been properly understood by those who compiled it, and none of those compilers know how bond trading actually works in practice.
It is due to this very reason, that it is open to misinterpretation, due to ignorance of the true facts. Put simply, it is a report of 20/20 hindsight. With such hindsight, everyone can make money. No one looks at the time the Bond was bid for and purchased at the price and volume the CB has accepted.
24 hours later when the Bond is sold in the secondary market to the EPF or any other party, the purchaser, the Primary Dealer, can make or lose money. Of course the astute one makes money because he guessed the interest rate movement correctly, but to his dismay, the Auditor General, who is a fool, to actually quantify, something which cannot be quantified on the day, IS ASSUMING that the difference is a loss to the STATE!
Hell AG if it is a loss to the state then that is NOT the fault of the Primary dealer it is the fault of the Central Bank for selling those bonds! They could have chosen NOT to offer the bonds in the first place.
This simple fact is NOT explained in the AGs report, as he wished to come out of it looking like he understands bond trading which he does not!
So the 8th graders who make up Parliament are reading this report that is now available in the library and coming to their conclusions! What a joke?
Reading the article in the link above, it is so amusing, as it is a case of blind leading the blind, and in this case, which blind man is leading which one is also up in the air.
So all I wish to state is that in this whole CHARADE, the incompetence of the whole ESTABLISHMENT is open for all to see. If I were a foreigner wishing to invest in this Country, I would NOT set foot here, as I know the ignorance of the people at the top, is so much, that I will not be able to close a fair deal, because it will be assumed automatically that I have come to screw these lunatics! Not make a reasonable profit