As can be seen, in the years 2008, 2009 and 2010, the change in the account’s balance was positive, implying that the government was putting in more than it was taking out from the account. However, the change in the balance turned negative since 2011 when the PPP/C was in government. This means that more money was going out than flowing into the account. The year 2011 is pivotal in the post-1992 political economy of Guyana. The PPP/C lost the majority in Parliament but kept the presidency.
The table shows that the PPP/C cranked up the fiscal deficit from G$16.4 billion 2011 to G$34.9 in 2014. How did the then government finance this? It did so by expanding money creation more than debt sales (T-bills). Money can be created out of thin air when government spends from its account at the BoG, making it the most special bank account in the land. This is what monetary sovereignty means, albeit Guyana’s sovereignty is much narrower compared with say that of Japan or the United States. More of this in my forthcoming academic paper.
Important for our purpose, however, is the sturdy desire to regain the parliamentary majority would result in a significant amount of political patronage in this period. In a future column, I will provide some data to show on what items the PPP/C spent by generating money. In the year just before the 2015 election, the G$34.9 billion fiscal deficit was financed by money creation to the level of G$30.8 billion. This means that 88.3% of the deficit was financed by creating money from thin air.
All those IDIOT PPP supporters who chant "progress, progress, progress" should read the above carefully. Labba man is on point. Note especially the bolded parts (my emphasis).
PPP sleight of hand with numbers, a grand foking optical illusion of "progress" while shithead drunks on Liberty Avenue, genetically racist base men and brahmins from Canada engage in orgasmic screams while the nation is being bankrupted.
Someone here was wondering why the Guyana dollar hasn't appreciated in spite of oil money. Your answer is in the above.