H@rd Truths By GHK Lall – The greater fool theory

Apr 01, 2023 Features / Columnists, News, The GHK Lall Column

Kaieteur News – The world of finance, speculation, and Wall Street has always lived with a fever that induces an irresistible madness in usually sensible human beings. It is what has flourished to unbelievable degrees in on and off seasons, and leave great wreckages in its wake. It is what is called ‘The Greater Fool Theory.’ Though this theory of fools in action is best applied to man and his money, it also has very strong application to dirty politics, and dirtier politicians. First, I look quickly at the madness of man and their money.

GHK Lall

There have been Dutch bubbles (tulips), Wall Street (American) scams with credit default swaps and housing, Ponzi schemes (postage stamps), Bernie Madoff mysteries (beating the market), Stanford Allen financial alchemies (CDs) all offering tantalizing glimpses into the carnages of the greater fool theory. The theory is of hucksters who know how to pull fast ones, targeting those who are easy marks, the schemers always on the hunt for dumb suckers; one is born every minute. Those were in America, and the more cosmopolitan sidewalks of life, and always involved making unwary people part with their money.

In Guyana, the greater fool theory is more than about money, though that is always the ultimate objective. It is built on the politics of shrewd Guyanese political operators as clever as any Madoff or Allen. They are in the PPP Government. It works like this: sell one Guyanese a lie, and he or she bites down hard, as if in a dentist’s chair. The victim-gullible, vulnerable, and manipulable -is hoping for some form of relief, and a bright new Colgate smile at life. Win the trust of one, then leverage that belief into a larger community, and a whole group of reasonable people are ready to abandon a lifetime of commonsense. They run after what something at the back of their minds rings warning bells: careful! Too good to be true. That is, don’t put full faith and trust in suspect politicians, because an antenna cautions that something about them rings hollow, doesn’t feel right. After all, it is politicians being listened to, and the higher up the food chain one’s travels, the likelier there will be disappointment and disaster. When that happens, politicians are quick to fold up their tents, and retreat temporarily, bide their time. Then, they travel to a different community in Guyana, and begin the deceptive process and their devious practices all over again. Like Wall Street in the wake of the discovery of great scams that were sold as the London Bridge (Berbice) for a song, new ideas are formulated, and new targets are identified.

Look at the PPP Government and its lights leading the way. The more people (their own electoral customers) find out their crookedness, the quicker they hasten to run to another section of their support base, and start over with more deceptions, more mischiefs. There is the guarantee that they will be received warmly, since people love to be flattered with a visit from ‘big ones’, have their hopes stirred, be taken for fools. They are still that trusting in the nature of the PPP Government.

When the PPP finds itself cornered and on the receiving end of distrust, it resorts to the time tested. Government, party, and leaders point accusing fingers at the PNC. When more is needed for a robust jumpstart, the PPP points to the war in Ukraine, people living in poverty all over, and inflation as normal as the common cold. To sum this up in finance terms, it is either the mysterious ways of the markets responsible, or the fault of some dirty speculator, for whatever is going wrong.

Is this not what the PPP has done better than anyone else, including its archenemy the PNC? Party and government know that all that they have to do is find a scapegoat, and the way is clear to continue like before. The PPP brain trust knows that coming up with a new verbal stunt, some new distraction, and the people will swoon and fall. Though Guyanese were burned before, curiosity kills more than cats; it has wiped out goodwill, more hopes, and endless trusts.

Look at what has happened on the ground. A minister rushes in some community and tries his or her hand with the same old tricks and dodges, only to find some people in some areas are having none of the nonsense. Not to bother, there will always be another village, and another group waiting to swallow whatever goodies the party has drummed up for them.

Look at how much COVID-19 money was doled out. Look at how fishermen and sugar workers got more than they could have handled. Now just wait to see what is intended with that $5B slush fund under leadership control, and watch who gets and why. There will always be those who fall for such gimmicks. The Greater Fool Theory is alive, political operators live another day, with new suckers identified. Be warned: April Fool’s Day is every day in Guyana.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions and beliefs of this newspaper and its affiliates.)