Arrest that economist!

silverharp

http://online.wsj.com/article/SB122809308553167889.html?mod=googlenews_wsj


Too funny ;-)

By ANDREW HIGGINS
RIGA, Latvia -- Hammered by economic woe, this former Soviet republic recently took a novel step to contain the crisis. Its counterespionage agency busted an economist for being too downbeat.

"All I did was say what everyone knows," says Dmitrijs Smirnovs, a 32-year-old university lecturer detained by Latvia's Security Police. The force is responsible for hunting down spies, terrorists and other threats to this Baltic nation of 2.3 million people and 26 banks.


Dmitrijs Smirnovs
Now free after two days of questioning, Mr. Smirnovs hasn't been charged. But he is still under investigation for bad-mouthing the stability of Latvia's banks and the national currency, the lat. Investigators suspect him of spreading "untruthful information." They've ordered him not to leave the country and seized his computer.

Finance is a highly touchy subject in Latvia, one that the state tries, with unusual zeal, to shield from loose tongues. It is a criminal offense here to spread "untrue data or information" about the country's financial system. Undermining it is outlawed as subversion.

So, when the global financial system began to buckle this autumn, Latvia's Security Police mobilized to combat destabilizing chatter about banks and exchange rates. Agents directed their attention to Internet chat rooms, newspaper articles, cellphone text messages and even rock concerts. A popular musician was taken in for questioning after he cracked a joke about unstable Latvian banks at a performance.

Just one problem: Much of the speculative buzz now turns out to ring true.

After insisting its banking sector was healthy, Latvia last month took over the largest locally owned bank, Parex, to save it from collapse. After denying it needed aid from the International Monetary Fund, the government is now in talks with the IMF.

Finance Ministry officials acknowledge that secret police won't save the country from economic crises. But they do believe Security Police vigilance makes the public think twice before spreading uninformed gossip about banks.

"It is a form of deterrence," says Martins Bicevskis, Finance Ministry state secretary.

Mr. Smirnovs says he will certainly be "more careful" about voicing his opinions in the future. But he scoffs at the use of security agents "as a medicine that only makes people more worried." Until his detention, his bleak view of Latvia's financial prospects was known only to his students and readers of small newspapers in his hometown of Ventspils.

"Now everybody knows who I am and what I think," he says.

Économiste Monétaire

I read something about this on Mankiw's blog a while ago. I believe Latvia is slashing expenditure and increasing taxes to avoid the IMF option. Quite an amusing story Nice to know he actually got released after reading the original story.

gurramok

Bertie tried something similar here to quieten any bleak forecasts, remember the suicide remark to 'doom and gloom' economists last year?
Thank goodness, we don't have Latvia's finance law here!

ranger4

eddi hobbs and mcwilliams had better watch out so.:D

Flamed Diving

Économiste Monétaire wrote: »

I believe Latvia is slashing expenditure and increasing taxes to avoid the IMF option.

Sure that is merely moving to phase II of a typically moronic IMF plan.

Économiste Monétaire

Flamed Diving wrote: »

Sure that is merely moving to phase II of a typically moronic IMF plan.

Nah. IMF plans are more on the lines of: stealing from babies, focusing all efforts to a positive BOP, devaluation of the exchange rate, "austerity programs,"--regardless of people starving on the street--and privatising everything including air people breath :pac: I don't think we're quite there, yet. Sure, Argentina worked out well... Wait... Oh yeah...

johnnyskeleton

Économiste Monétaire wrote: »

stealing from babies

Interesting...

daveirl

This post has been deleted.

Mikel

Économiste Monétaire wrote: »

Nah. IMF plans are more on the lines of: stealing from babies, focusing all efforts to a positive BOP, devaluation of the exchange rate, "austerity programs,"--regardless of people starving on the street--and privatising everything including air people breath :pac:

Ah Shock Therapy, you can't beat it!
What are you, some kind of Commie?:pac:

mikemac

George Lee would have been arrested years ago.

If you are in work and you see George Lee and an RTE camera crew arrive, you know your job is fecked!

Poor guy, I wish he'd cheer up

johnnyskeleton

micmclo wrote: »

George Lee would have been arrested years ago.

If you are in work and you see George Lee and an RTE camera crew arrive, you know your job is fecked!

Poor guy, I wish he'd cheer up

Would it be better if we had Gay Byrne doing his job, to soften the blow?

Économiste Monétaire

Mikel wrote: »

Ah Shock Therapy, you can't beat it!
What are you, some kind of Commie?:pac:

Just trying to beat the old stereotype of the apathetic economist

Mikel

On the subject of Shock Therapy, is this a fair representation of what happened in Russia? (About 7 mins in)

It's from The Trap by Curtis

http://www.youtube.com/watch?v=0Uexz-IzIZo&feature=related

Flamed Diving

Just read Stiglitz's treatise on the IMF's handling of Russia for a decent view.