Final Word from Wednesday, August 15, 2012

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It's scary when the Communists start making more sense than the other main parties. According to Parlamentní listy, Communist Chair Vojtěch Filip said that ODS and TOP 09 are following a secret plan to pay back their foreign and domestic sponsors by quickly handing out assets and getting the country deeper into debt. This is of course partly left-wing hyperbole, but there's little doubt that one of the unstated objectives of the Nečas cabinet is to drive up the national debt. This is in the interest of foreign bankers, central bankers and speculators, whose leverage on the country increases. A period of low interest rates is especially propitious for doing this, because the debt payments are less visible in the budget. Under Miroslav Kalousek, the national debt has risen from 27.9% of GDP to 43.9%. Only Kalousek's early retirement could prevent this from rising to 50% by the time Petr Nečas's term as PM is up.[Czech Republic servicing]