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Latvia To Pay Public Sector Workers In Vouchers

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Let them eat vouchers . . .

Interesting article from A Fistful Of Euros

The latest idea in Latvia is to issue vouchers as a substitute for the Latvian Lat - LVL (that's in case Latvia doesnt get any money from IMF). So if you work in public sector, your salary will partly be paid in vouchers which you can use to buy food.

Central Bank Governor Ilmars Rimsevics told astounded journalists that: “The level of the expenditure shock we are receiving is so high that we can not cease to maintain this quantity of expenditure."

"So there is a shortage of funds, and we’re forced to look at the different kinds of projects, which can help us provide for the foreseeable future. Taking into account that the money is not budgeted, it can be emitted in vouchers”.

Hmmm. Latvia doesn't want to reduce public spending but can't borrow any more. So vouchers it is.

Funny that the oval LV sticker on the back of Latvian cars always did remind me of the old Luncheon Vouchers logo.

Article also notes how Latvia is stuffed by pegging its currency to the Euro.

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Guest DissipatedYouthIsValuable
so who pays the shops cashing in the vouchers?

So, they can't print cash, but they can print vouchers?

How stupid.

Are we all playing economic chicken, trying to play "our currency is more valuable than yours", until some poor bastards shit themselves with a printy frenzy?

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Guest LongBlackKilt
Let them eat vouchers . . .

Interesting article from A Fistful Of Euros

Hmmm. Latvia doesn't want to reduce public spending but can't borrow any more. So vouchers it is.

Funny that the oval LV sticker on the back of Latvian cars always did remind me of the old Luncheon Vouchers logo.

Article also notes how Latvia is stuffed by pegging its currency to the Euro.

Wouldn't it make more sense to force the workers to eat in the borsch kitchen / works canteen?

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Guest DissipatedYouthIsValuable

If I start getting McDonald's vouchers instead of money, I'll be swimming the Channel with an **** full of Euros in a plastic bag.

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Guest มร หล&#3
If I start getting McDonald's vouchers instead of money, I'll be swimming the Channel with an **** full of Euros in a plastic bag.

I believe they do salads now?

Edited by มร หลบเลี่ยง

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Guest มร หล&#3
Let them eat vouchers . . .

Interesting article from A Fistful Of Euros

Hmmm. Latvia doesn't want to reduce public spending but can't borrow any more. So vouchers it is.

Funny that the oval LV sticker on the back of Latvian cars always did remind me of the old Luncheon Vouchers logo.

Article also notes how Latvia is stuffed by pegging its currency to the Euro.

Was this not already happening in California? Or was that state IOU's?

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Guest DissipatedYouthIsValuable
I believe they do salads now?

A man cannot be expected to indulge in daily hand-to-hand combat with lawless gangs of food-thieving pensioners on a diet of salads, low grade protein and artificial cheese.

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Guest มร หล&#3
A man cannot be expected to indulge in daily hand-to-hand combat with lawless gangs of food-thieving pensioners on a diet of salads, low grade protein and artificial cheese.

Your post instantly put images in my mind. Disturbing.

Did you ever try the breakfast? :lol: I did . . . once.

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Why should anyone pay them? Nobody pays Tesco for taking money from customers and money is only a form of vouchers.

try getting 3% interest on your vouchers.

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Guest sillybear2

This is already the case, the govt is borrowing upwards of £100b this year and the BoE has publicly stated they will purchase at least £75b of gilts with counterfeit money.

We don't need vouchers, we already have a universal voucher system backed by nothing, it's called Sterling.

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Presumably the shops that get paid by the punters in vouchers can actually swap those vouchers for something with someone?

Otherwise I don't see how this cunning plan would work.

(In the end though, someone's left holding the bag, surely?).

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Guest BoomBoomCrash

Gordie would love this as it would prevent all but the chosen few ever creating any real wealth for themselves.

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so who pays the shops cashing in the vouchers?

Nobody.

The retailers simply return the vouchers to the Government as payment for VAT, PAYE, etc. instead of cash.

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And it means they spend it rather than trying to save...

Well, yes. It is a bit like Ed Balls and Yvette spending their 600 squid Waitrose vouchers from the taxpayer. I mean, they couldn't save it.

If you read the rest of the article, it is reminiscent of Argentina trying to do the same thing. (Which failed.)

The big problem everywhere is Governments not wanting to reduce public spending. The IMF wants Latvia to cut by about 40%. Now. Well, politically, it isn't on.

It isn't so far removed from Gordon's problem, because borrowing simply can't continue apace with declining consumption and tax revenues.

Probably, the public sector in many countries has to take a big hit. The IMF can lean on the Eastern Europeans to do it first but I see a knock on effect.

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Latvia is such a backward nation when it comes to economics its hard to know where to start.

But I will give it a go.

Their problem stems from overspending in public services, indeed nearly 30% of the workforce is dependent on public spending either directly or indirectly.

Latvia has failed to increase its overseas investors with the prescribed house price inflation of 400% over the last decade puttin it at a distinct disadvantage to Western Economies, in addition Latvia has followed the ridiculous policy of keeping house prices low, so much so even locals can afford to buy them.

In addition to the above, Latvia has no concept of Quantative Easing, and rather than pumping billions into the economy in order to stimulate it, financed by printing more money, they have simply sat back and watched their economy fail.

In order to regain economic stability they need to find some land for a US missile base, open up their markets to corporations, and sell of anything owned by the Government to overseas investors. In addition they need to tax the few that are working, and increase the numbers of staff in Local Government. Sack all the nurses and Doctors and any other do gooder that is providing a service for the public.

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Article also notes how Latvia is stuffed by pegging its currency to the Euro.

Non, NON, NON !!!

You just don't get it, do you?

Please write on the blackboard 1,000 times:

THE EURO IS GOOD FOR THE ECONOMY. A STRONG EURO EVEN BETTER.

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