Submitted by People’s Democratic Congress (PDC)

Both DLP and BLP Governments have over the years  been pursuing and implementing some very backward and inept fiscal and monetary policies in Barbados. Such policies include but are not limited to evil TAXATION, INTEREST RATES, INSTITUTIONAL REPAYABLE LOANS POLICIES, etc.

And when they have not been doing so, they have been allowing financial institutions operating in Barbados to almost do as they please in regard  of the setting implementing of many disagreeable harmful  financial and fee-setting policies.  Check for supporting evidence of this political indifference, the preposterously absurd, reported utterances by Minister of Finance Chris Sinckler in the Sunday Sun, of February 6, 2011 – “Personally, I think bank fees are too high and I think they can modulate them a bit more,” and the following non sequiter : “that government was not in a position to TELL BANKS WHAT TO DO AND COULD ONLY USE MORAL SUASION” – What an outright political joker for a Minister of Finance of Barbados,  and for  a Legislator representing many poor people in the St. Michael North West Constituency who have themselves been suffering from the onerously diabolical  effects of such financial policies.

However, the sum total of such immoral and vile fiscal monetary policies is that both the government and financial sectors in Barbados have been  the ones primarily putting the country into the goring dilemmical horns  of a most horrendous development crisis from which the country may never ever recover fully, and have been the ones who have been mostly involved in putting Barbados deeper and deeper into  this present political economic depression – which itself has been realizing thousands upon thousands of  people being laid off; hundreds of esp. small businesses being closed down or downsized; many Barbadian souls being forced to drastically lower their standards of living; many ordinary Barbadians losing hope for a brighter better Barbados in the long run; and increasing levels of criminal violence being meted out by fellow human beings towards one another.

The facts of the matter is that this developmental crisis and this depression would have been avoided if the government and financial sectors of this country had long been demonstrating sound and decisive intellectual and political leadership, and had in turn been making sure that this type of  leadership was objectively seen by the average citizen as a point of departure away from the gross and reckless governmental mismanagement of the recent past, towards efforts at realizing the overall greater  long term  functioning and development of these sectors and the wider country.

Here are five philosophic reasons – out of many more – why these sectors have failed to stop, and, as a matter of factly, why they have hastened such developmental and financial crises through such backward and destructive fiscal financial and monetary philosophies/policies:

1. They have failed to realize that ACTUAL MONEY is NOT INCOME – Government must realize that the BDS $ 850 – $ 950 million dollars that passes through its hands yearly is totally undermined by the fact that it hardly ever EARNS INCOME, when clearly it ought to have been doing so  – earning its own income substantially; and when at the same time it ought by now to have been allowing the personal household and private sectors, as the domestic sectors that naturally make far greater productive use of actual money, the opportunities to make greater productive commercial uses of money in the interest of the further material development of the country;
2. That INCOME EARNED ALREADY does NOT INCUR CREDIT/DEBT ( so-called interest rate debt, institutional productive money owed ), or vice-a-versa – although the income generating processes can lead to debt –  the debt generating processes CANNOT lead to such income. Financial institutions in Barbados have been engaging in a most dangerous wretched illusory practice of making many unsuspecting uncritical people falsely believe that these institutions have so many big mounds of actual money/value in these said institutions, and that, yes, on the basis of what actual amounts of money are deposited by depositors in them, that even though they are taking the majority of money brought in and lending it out over time, they would still have enough money all the time –  primarily because of what actual monies that would be being carried forward by depositors and recycled through them, to give expression to the total value of the income (SAVINGS) contained therein in the long run. The fact is that – even though money, borrowed or not, is so-called invested or used in the production/distribution  processes, income is only generated after factors of production are engaged. So, in truth and in fact productive income earned outside the bank/credit union/finance houses system, and converted to money ( not money itself), ultimately solves credit and debt, and only after such relevant factors are engaged. So, that, so-called  credit and debt issued by financial institutions are really NOT credit and debt AT ALL, ONCE coming through the provision and use of public money ( a medium of exchange). Thus, the  fact that CLICO Barbados has been spectacularly unable to repay all of its policyholders/investors so far, and has had therefore to go into receivership, is clear evidence that it was not able to generate enough income to solve its debts. And, so, if many financial institutions in Barbados do not do the same they will become in big trouble in the long run especially in times of depression. Financial Institutions must become a productive sector in Barbados, and must create their own substantial value added without continuing to exploit the hordes of depositors who use their hard earned incomes of depositors to so-called pay for really NON-EXISTENT FICTITIOUS FRAUDULENT debts and credits of themselves and others – WHICH HAVE  – THROUGH FINANCIAL INSTITUTIONAL DECEPTION AND SKULLDUGGERY – EMERGED AS A  RESULT OF THE MERE USE OF OUR OWN MONEY.
3. That MONEY CANNOT make or cost MONEY (so-called interest income or interest expense – government has to foolishly look for over BDS $ 300 million dollars in total interest expenses every year, and the non-financial personal private sectors at about a gigantic 7 – 9 per cent of all those loans transacted last year);
4. That the USE OF MONEY must NOT represent money for money DEBT/INCOME, or vice-a-versa – as it stupidly stands now government is faced with over 1 billion dollar in debt for this financial year alone for the mere use of our money/value – while the gross government debt stands at around 90% of GDP, and the total debt of personal and private sector borrowers of our own money/value stands at this stage at over  a staggering BDS $ 11 Billion ;
5. And that the USE OF ANOTHER’S INCOME (so institutionally deposited ) to engage in any form of commercial,  productive or non-productive activity  must incur income for services DEBT – NOT money for money debt – only earned productive income can provide for the payment of such -not money – thus government borrowing about BDS $ 1 billion dollars of the incomes of many others  so far, whilst producing little earned productive income itself to even pay back such is partly why the government is entering a serious financial black hole, and the country is in a very severe developmental crisis. The government stealing the productive incomes of many others will not suffice, since there will
   still be a massive deficit between the total amount of money that has actually passed through the government hands so far for the financial year,  and the incomes borrowed locally.

It is with such principles in mind that a future PDC Government shall seek to ground and put in place a National Institutional Non-Repayable Productive Loans Scheme for this country, and which itself will be based on a system of REWARDING deservingly qualified local persons, businesses and others for their contributions to the national income of this country.

Such a reward system shall come into existence primarily because there is no such system in place yet  to reward individuals, businesses and other entities  for their income contributions to national income. Moreover, these rewards shall be limited to what ever  the total amount in gross income would be that an individual person would have made in a previous year, or in previous years, to national income, or whatever the total amount in net income ( profit) that a business or any other entity would have made in a previous year, or in previous years, to national income. As opposed to the DLP and BLP, the monetary authorities, and the financial private sector, the PDC shall treat domestic money ( Barbados money ) as primarily a medium of exchange under this Scheme.

Too, ALL locally based  financial and quasi-financial institutions that would be in existence at the time of the coming about of this system shall be made to be a part of this Scheme, which shall itself be a significant part of the wider People’s Money Value System of Barbados.

The following 6 features – plus more – shall happen under this National Institutional Non-Repayable Productive Loans Scheme:

1. As a substantial replacement for the system of LOCAL TAXATION,  the government shall have the constitutional legal right to access and obtain actual money out of this Scheme ( the core financial system) during the course of every year based on actual expenditures done already, to be used for productive, administrative and public purposes, and it shall NOT have to repay ( as if one would be still thinking that such a scheme would still be operating off this present, old bankrupt financial system) any portion of this actual money (here, such would-be activity will be an example of money being used as a medium of exchange). Also, this type of activity shall be entirely different from what obtains now, wherefore in respect of TAXATION, government disgustingly wickedly steals countless portions of the INCOMES of persons, businesses and other entities in so-called avowed legal breach of the constitutional right to the protection of one’s income. The government shall become a productive sector.
2. The government shall in turn compensate individuals, businesses, and others with any amounts of this money/value for productive or public business previously done for or with  it during the financial year. The following financial year the government shall apply to the Scheme for another set of money to repeat the cycle.
3. Individuals, Businesses and other productive entities shall have the constitutional legal right to access and obtain  money/value out of this  National Institutional Non-Repayable Productive Loans Scheme, during the course of every year based on actual expenditures done already, to be used for SOLELY productive purposes.
4. They shall in turn use any amounts of this money/value given to compensate other individuals, businesses, government and any others, for any income expenditure incurred by them as a result of productive business done already for them. The following financial year these individuals, businesses and others shall apply to the Scheme for another  set of funds to repeat the cycle.
5. A system of nominal finance cheques/certificates shall be used by Government, individuals, businesses and any others as an expression of the sending income to one another, for NON-PRODUCTIVE BUSINESS done previously, in the case of businesses, individuals, etc. and in the case of partners, for production and services done previously internally – as an expression of the sending of any part of income – in the case of all of the above, to be saved by or in any financial institution – or as an expression of the sending of any part of income to be used as part of any insurance or share investing or any other scheme locally.
6. Under this scheme, Government, individuals, businesses and any others, will SEND ACTUAL AMOUNTS OF MONEY to be received by their customers/clients, to the National Institutional Non-Repayable Productive Loans Scheme, before or  around the time when these finance cheques/deposit certificates are to be cashed or deposited by the holders of these cheques/certificates – for them to receive or withdraw any or all of the amounts tendered.
7. This National Institutional Non-Repayable Productive Loans Scheme shall have at least three MAJOR NATIONAL functions – a money recycle function, a net saving ( minus the cost of securing the income) function, and an investment function.

So, there you have it, it is clear from what we have been articulating here and elsewhere that these philosophies and ideologies are the right ones for this country, and for helping to make the country become as prosperous and egalitarian more than ever before.