13.07.2012 Belgrade

Dacic’s storm on the banks

Dacic’s storm on the banks
Although he has not yet got hold of Prime Minister’s seat, Ivica Dacic has alreadystarted scaring off the investors.His statement that "financial sector is the biggest enemy of our nation because its only aim is to rip people off and that it will not happen..." can today be heardonly in North Korea, Cuba, Venezuela and similar countries - if there are still any left.

Even though he has not even startedthemandate, he could hardly have said anything else so harmful, wrong and not only contrary to economic logic, but, above all, common sense.

What is worse, not even the true meaning of that statement can be established?What does it mean? Will Dacic now, ie.not right now, but on his second day in the government, start storming the banks with a briefcase and a Kalashnikov and empty all their accounts.It is all just a small change, as banks have no other money as it is all in placement, unless Dacic still has a mental picture ofDafina standing in front of the counter full of banknotes, convincing people that their savings are safe?No, Dacic is not so naive.

Or perhaps he is planning to regulate the banks how to approve loans and set interest rates or to forbid them to take their profit out of the country?He would certainly like to do that to some banks, but there are also those he would not dare to impose such a thing, so this "measure" is also highly unlikely.

Therefore, he is only left with state banks so he can destroy Komercijalna banka, just as the previous government ruined Agrobanka.And he can also go after the National Bank, as it even has foreign currency - although it is more or lesskeptin foreign banks – but, what is most important, there is always the state printing institute so the money for "development" can be issued abundantly.

We already saw how the situation developed in such a case, however, if anyone forgot, after the beginning of the nineties this plan ended with a 500 billion dinars banknote.This time it would not last even for six months.In fact, that is the only good news in this tragic comedy.Dacic’s plan cannot survive for longer than six months.Hyperinflation would soon follow and the economic system would collapse.It is not any consolation, but, honestly, no matter how true is the saying "Whoevera snake has bitten, fears even a lizard" it does not seem so much likely at this point.  

Still, no matter how uncertain this all is - one thing is sure.The damage has already been made and Serbian financial sector, which Dacic has already struck, feels threatened and insecure.Even though it has been estimated as the best and most stable part of the economic system by all relevant international institutions. And anyone who had thought of bringing some money to Serbia has now stopped and will wait to be sure of the real content of Daicic’s prime minister briefcase.

author: Mijat Lakicevic source: Novi magazin
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  • 2.11.2015, 13:11h Mike Francis (2)

    Except that Iceland have proved that it can be done VERY successfully !!

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