Super 'expert' Val, who seems to know about everything and anything at all, in her inimitable style of doom and gloom predicts that many people will become 'government victims' since she expects that interest rates will sometime soon, be raised sky high (No smoke without fire TMID 23 July).

Yet she does not explain how and why, only she implies that it is the government's fault. Why, it is my impression that the decision to raise or lower interest is the sole discretion of the Central Bank. Can it be that Ms Borg is unaware of this fact? Is she aware that the principal reason for interest rate hikes are the results of high inflation rates? Does she not know that Malta's inflation rate in the last several months has averaged the lowest in the EU? Some have feared that if the trend continues Malta could very well be experiencing 'deflation' rather than inflation.

Shedding tears about 'the young ones' and shedding more about those who borrow to put a roof over their heads, she forgets that banks do have a screening process called "an application for credit" which qualifies or otherwise the applicants for such loans. Having spent 35 years in the banking industry myself, I know the process well and although no one can predict future employment or income, the approval system is based on certain assumptions and includes a margin for possible increase in interest rates. If an application is taken and serious doubts about repayment abilities are demonstrated, then it is rejected. With Valerie's predictions, let banks be warned that they should cease approving loans immediately since based on her opinion, their losses will be such that their shareholders will dump their shares.

In the same fashion, she also predicts that more and more couples will find themselves out of a job. Her head seems to be firmly embedded in sand, totally unaware of employment statistics, new projects coming on stream shortly and the ever increasing foreign investments which the present government by its responsible plans and actions has attracted over the last several years. Ms Borg continues to believe that government hand-outs and subsidies are the way to go. This is further proof that her and her party's "new plans” are nothing but a re-hash of 30 years ago led by a leader who has yet to get one of his own economic predictions right.

Indeed if Valerie thinks that the voters are dim-witted enough to vote out the present government, she is grossly mistaken.

Valerie should stick to her profession which some think she does quite well and leave other matters to those whose leadership has done our country well.

Joe Martinelli

London, Ontario