Sri Lankan opposition clearly warns of the convenient effect on the controlled economy

ECONOMYNEXT – Outspoken Sri Lankan opposition lawmaker warned of the inevitable results of protectionist oppression of helpless consumers trapped by import taxes and excessive profits from penny annuity seekers – import stations.

Following the worst import controls since the 1970s in 2021, Sri Lanka became self-sufficient in turmeric, a traditional South Asian spice used in cooking, where competition from imports from India previously had kept prices at affordable levels.

Autarky or self-sufficiency is a European nationalist strategy widely defended by Nazi Germany before and during World War II, which was in part brought about by the Allied blockade of the central powers during World War I in addition to money printing, which created shortages of food and raw materials.

In Sri Lanka, sanitary facilities, long subjected to high tariffs by rent-seeking lobbyists, were banned altogether for a time in 2020 in a sudden descent into a managed economy and money printing.

Money printing had created currency shortages and price controls further created black markets until they were lifted. Price controls have since been lifted, improving supplies, subject to the availability of foreign exchange.

An opposition lawmaker said self-sufficiency in turmeric was nothing to worry about.

Economy chest of drawers

“People have no food,” opposition logger lawmaker Harin Fernando told reporters in November as shortages of many commodities were caused by money printing and price controls.

“There are no dressers to go to the toilet (Lat ekerter yun-ner lat porch-chiya nae). There is no place to send what you have eaten. (Karpu dhey arin-ner tha-nuck nae).

“There is no cement. Some drugs are not there.

Prices for toiletries have reached record highs and domestic import substitutes have reaped record profits at the expense of helpless homebuilders trapped by protectionist taxes.

The farmers who used to feed the population are now reaping record profits from turmeric.

The prices of many foods in Sri Lanka have skyrocketed as the stock market amid low interest rates and relentless money printing since February 2020 in pursuit of what economic advisers have called the economy of ” production”.

Sri Lanka has generally followed import substitution strategies, as a Latin American style central bank set up by an American money specialist created currency shortages.

The central bank was designed on the one created by Raul Prebisch in Argentina and replicated by the head of the Federal Reserve unit in Latin America, Robert Triffin, through multiple missions in the eponymous region and later by others. money doctors in Asia, including Korea.

In Korea, printing money forced people to eat military camp stew (Budae Jjigae) made from the scraps discarded from U.S. military kitchens and messes and contraband spam, among other ingredients, as currency collapsed and there were severe currency shortages long after the war was over.

Sri Lanka has also controlled imports of chemical fertilizers as part of the descent into a managed economy leading to protests by farmers.

Ironically, the process of mass production of chemical nitrogenous fertilizers (ammonia) was implemented by the German chemical company BASF when the Allied naval blockade blocked the supply of nitrate to Chile.

The process was designed by Fritz Haber and developed by Carl Bosch of BASF.

The Harber-Bosch process was also used to produce chemical weapons during World War I, and Zyklon-B, the insecticide that German nationalists under Hitler used in the gas chambers to exterminate Jews in World War II. global. (Colombo / November 21/2021)


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