The Governor of the Central Bank stated that with the VAT increase of 2.5%, receipts fell by 2% for the first half of the year. You don’t need an Einstein to realise that if less money is circulating in the economy, Government will collect less money.

Your submission fail to answer the disparity of an increase of 2.5%, yet we came up with a 2% decline. I am not interested i Owen, Marshall or the BLP in general. I am interested in what’s happening economically in Bim. By the way the Central Bank head made the statement.

Central Bank Governor Proves Moody’s Downgrade Justified

The Central Bank Governor of Barbados has given his Review of the Barbados Economy for the six-month period: January to June 2011 and Barbadians are now in a much better position to judge for themselves whether the Internationally respected – Moody’s Rating Agency – was on a witch-hunt or whether it was justified in its downgrade of Barbados’ Credit Rating, and the forecast it gave on Barbados prospects for the next 18 months.

The other two issues that should be on the minds of ordinary Barbadians are, the Government’s Medium Term Fiscal Strategy (MTFS) and the Budget or the economic policies the DLP Government has so far outlined. Even at this stage, it is crystal clear that the DLP is even failing to meet the targets outlined in that MTFS, while it is also painful that its economic policies are not working and will not work. In short, Barbados is in peril and on a fast free fall from prosperity to crisis and at a time when the DLP does not know what to do.

When you compare what Moody’s said with what the Central Bank Governor has said and would not say (in the context of what future DLP Budgets and that MTFS was expected to have done but have not and will not achieve) you begin to realise that the crisis in Barbados is far worst that this global financial crisis and the one in the 1920’s combined. What is happening in Barbados was foreseeable and preventable and it was manufactured, in large part as a result of entitlements without the match creation of enterprises!

A competent Government, with a Team who has well-honed skill, would have steered Barbados away from this – as has the Government of Guyana and that of Indonesia, which – despite that country having had several earthquakes, tsunamis’, floods and mudslides – still records some 5.5% growth.

We now know that despite a 2.5% increase in VAT, receipts are down by 2%. Could it be that the base of the economy is shrinking (some 10,300 unemployed since January 2008) and that Barbadians are taxed to the max? Whatever the real reason, the Barbados economy is in crisis and Barbadians must be worried, especially since it is now known that neither the DLP’s best plan (it’s MTFS) nor its economic policies, are working. Barbados is adrift!

Increase taxation was intended to close the gap between revenue and expenditure but that gap has widened. The deficit was supposed to come down but it has grown much bigger. This tells you that in circumstances where revenue is not coming in, the economy could not be growing and that in-fact, the base is shrinking. So what exactly would have spurred that alleged growth? All the Central Banks Governor has done is confirmed that the Moody’s downgrade and the Standard & Poor’s caution – are justified.

The up-coming Budget is therefore a non-event because the economic policies introduced by the DLP did not work. The economy is not growing and the country is incapable of any further taxation. What we also know is that as was stated by Moody’s and now confirmed by the Central Bank Governor’s Report, not even the next 18 months but the next six month in Barbados, will be dread. So that, when the DLP tells you that it will now seek to do through the Budget – what the MTFS failed to accomplish, you know that it does not know what it is doing and that it (the DLP) is engaging in a mere time-wasting exercise.

This brings me to the story of Greece and why it was finally allowed to join the EU. A few weeks ago, concern was raise that the view of the Barbados Statistical Services Department and that of the Central Bank – differed significantly, as regards true state of the Barbados economy. Whether Barbados has a Government it can trust, is one thing but a Government it can no longer afford, is an entirely different ball-game.

This link should therefore make interesting reading:

http://www.telegraph.co.uk/news/worldnews/europe/greece/7646320/Greece-why-did-its-economy-fall-so-hard.html

Bovine Bovell if you had a second BRAIN you would still be a crooked thiefing half twit,, you seem to have more time now you don’t have access to stealing from the hampers of the old and under privileged.

The reports says nothing more than all Barbadians already know that we are still in a very deep worldwide recession and that we have to continue on the careful path, nothing less nothing more.

By the way I noticed that your partner in theft and corruption not Arthur and Mottley but Slyvan Greenidge gone to pay his debts to the credit union, you went for your daily fix of food in parliament today ?

@Pooposition Is At Sea

You need to back off.

This story out of the great nation the United Kingdom and they are struggling with job losses, high food prices and phone tapping all the same things that we are struggling with,but in the eyes of that Bovine idiot we are unique, the DLP created the World recession.

Families face £260-a-year surge in food bills as prices jump by 6.5%By Becky Barrow

Last updated at 2:13 AM on 13th July 2011

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The average family has to spend an extra £260 a year on the weekly food shop, official figures showed yesterday.

Although the overall cost of living is falling, few families will have noticed because food prices are continuing to rise at an alarming rate.

The Office for National Statistics said the annual inflation rate dropped from 4.5 per cent in May to 4.2 per cent in June.

Straitened times: Many of us are finding that we get less for our money at supermarket check-outs
But over the last 12 months, food prices have jumped by 6.5 per cent, the biggest rise for more than two years.

The ONS said meat is 7.2 per cent more expensive than last year, bread and cereals are up 8.5 per cent and soft drinks and mineral water are up 10.6 per cent.

A typical family with two children spends £76.50 a week on food and soft drinks, according to the ONS.

More…Inflation falls back as the struggling High Street slashes prices in early summer sales
Millions give up on sunshine holidays as hard times and exchange rate make Europe too expensive

But the recent rise in food prices means the same basket of goods is now costing an extra £5 a week, or £260 a year.

To add to the pressure on cash-strapped families, the rate at which food prices are rising is far higher than the rate at which their pay is going up.

The average private sector worker has received a pay rise of only 1.8 per cent, but this is being wiped out by the jump in their food bills. All public sector workers earning £21,000 or more are being hit by a two-year pay freeze.

Hard choices: Some of the stuff we used to like is going to have to stay on the supermarket shelf
Many families are being forced to make cutbacks, by buying cheaper food or simply buying less.

And economists predict food prices may continue to rise over the next few months.

It comes at a crippling time for families whose income is being eaten away by tax rises, such as VAT, record petrol prices and rising energy bills.

Last week British Gas came under fire for adding almost £200 a year to the cost of heating and lighting from next month.

Gas is going up 18 per cent and electricity by 16 per cent, taking the average annual dual-fuel bill to a record £1,288.

Inflationary British Gas is raising its prices for home energy customers from next month
Brendan Barber, general secretary of the Trades Union Congress, said Britons are facing ‘a toxic mix’ of attacks on their living standards.

‘The cost of living is still rising twice as fast as wages, so our income squeeze is getting tighter every month – and will continue for some time,’ he said.

James Foord, from the price comparison website mySupermarket, said: ‘Although we have seen a drop in inflation, this drop has not benefited shoppers.

‘They will not notice inflation coming down as food prices are still on the up. Shoppers need to be as clever as possible and look for the best deals around when doing the supermarket run in order to save their wallets.’

A report from another comparison website, MoneySupermarket, showed the extent to which people are being forced into using their credit cards to survive until pay day.

One in four are running out of cash around a week before their next pay day.

Kevin Mountford, the website’s head of banking, said ‘most of the population’ are ‘feeling the pinch’.

For savers, although inflation may be falling, it is still far too high for them to have much chance of keeping up with the cost of living.

Inflation has been above the Government’s 2 per cent target for 19 consecutive months.

It is estimated savers have lost £72billion of interest since the Bank of England base rate was cut to 0.5 per cent in March 2009. Some banks have cut their interest rates as low as 0.01 per cent.

Simon Rose, from the campaign group Save our Savers, said: ‘Savers are getting burned.’

The Institute of Directors said falling inflation ‘kills any chance of a rate rise this year’, adding: ‘There may not be any rate rise next year either.’

Read more: http://www.dailymail.co.uk/news/article-2014145/Families-face-260-year-surge-food-bills-prices-jump-6-5.html#ixzz1Rwij4snL

Barbadians don’t seem to be in the mood to absorb any more taxes, a consideration which a government with a general election looming will be cognizant.

The government is on record as stating that its strategy to reduce the deficit will be a gradual one to avoid a draconian affect on Barbadians.

Minister Sinckler has promised middleclass that the removal of the travel support would be for 18 months, many are looking forward to its reinstatement.

It seems as Hants suggested Bajans should draw their belts tighter.

The reality is that tourism is slacking and this is the problem.

The question BLPites will argue is that they are better equipped to manage the economy with better result.

The next few months leading to an election may provide a good opportunity to sell their case.

@ david… belt tightening should be an automatic reaction to less money flowing but it alone will get us out of this mess. The time wasted on this blog, in particular, in name calling , nation bashing, flag raising and a host of other dead brain activity, is getting everyone no where.. we are all in the same boat and our reality has not changed one bit. The government is responsible for chartering the course of the nation.. period.. buck stops there.Forget the label of B or D or what ever We need to hold those in positions to be accountable.. ie if there is drop in visitors from Canada,”why ” in an analytical(not political) manner and attempt a solution. Step by step, sector by sector . Our economy is not truly a multi dimensional one, so this should not be a difficult task for a large (overly) civil service .
The devil is in the details and we are not detailed oriented. We are too grand in our general overview. Too much attention is focused on the larger projects… the more money, the better it looks to us and how the outside world would perceive us .. every time and everywhere in this world when there is a recession, it has been the small business, with innovation that has powered economies and created employment.

While waiting for Government to solve the economic problems and for North America and Europe to recover,

Bajans need to ignore the political propagandists like Bovell and work on your personal economic crisis.

Elections will come and you can vote how you choose but remember every healthy adult is responsible for him/her self and their children.

Tighten wunna belts and pelt some pumpkin seeds in de yard and water them.
If GP and Hants can shop in Walmart wunna can shop in swan street.

the arrival figures computation has never changed from the method that was used when your beloved MM Blarney B Lyncy was the Minister of tourism.
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Pooposition Is At Sea: you made the above submission.

If you thing these figures are flawed, why not separate Cruise tourism figures where we see bus loads of passengers traversing the harbourairport route on one hand and visitors spending from two days and up on the other hand. This will give us a true figure of arrivals and the Central Bank Governor will not have to make continuous excuses of visitors arriving, yet not spending any money. The only business that benefit from this transaction is Foster & Ince who have the contract and a slight pittance will go to Government for air/seaport taxes. Broad Street or any other businesses will not benefit from in-transit passengers.

@ Pooposition Is At Sea

The Coalition government like the DLP suffering with the same problem–incoherent policy and plenty u-turns.

Sinckler is galloping to the cliff’s edge and does not even know it. If he does know it, then he’s too foolish to know the peril Barbados faces and is proceeding anyway.

Debt reduction and expenditure reduction never created a job yet. All that these policies and measures of the DLP are doing is depressing, still further, the economic activity of Barbados with the consequent fall in yields of taxes collected.

My prediction is that the poll would result in findings that Barbadians, by a margin of two to one would say that the DLP administration is not doing a good job managing the economy.

The next week do another poll, here is the question:-

Is the the DLP administration doing a good job managing the country?

Your poll would be very insightful into how Barbadians feel and how there are likely to vote if things remain the same.

The Viper;

Suggest that the idea of a BU poll is a good one but the results might be far from what you seem to imagine will be the case. BU’s contributor population is heavily skewed towards vocal DLP supporters who, imho, outnumber BLP supporters and middle of the road thinking persons by at least 2 to 1. If this is true the results may be diametrically opposite to what you expect.

Also the present administration considers that Barbados is not just an economy but it is moreso a society. Hence, it is possible that the economic aspects might have been downplayed somewhat. In such a case it might well be best to ask 1) is the current administration doing a good job in managing the Barbadian society? and 2) Is the current administration doing a good job in managing the Barbadian Economy?

To even out the poll, if David could do it, all posters who have evinced a consistent bias towards either the BLP or DLP in the past should have their contributions to the poll set aside. It might give david a lot of extra work to remove the whet from the chaff but it could probably be done. Alternatively poll answers by known BLP or DLP sympathizers could be weighted at say 10 percent of a full vote either way.

I don’t understand all of the noise about debt reduction, that just the IMF looking for someone to make money off of.

The IMF tells Barbados it’s debt is too high, it needs to reduce is debt and all this at a time when Barbados and the world is in recession. The IMF says, don’t worry though, today is your lucky day, we have money to lend you so as to reduce (refinance) you debt, the only problem is our money is going to be at a higher interest rate but don’t worry when you cut spending (reduce benefits and entitlements and fire some civil servants) which is alot needed, then you will have money to pay our increase interest rate.

What the hell was the point and more importantly the need to reduce debt?

@The Viper

You need to complete your argument i.e the fact 70 cents of consumption expenditure leaves the country in forex. Isn’t one of the challenges in a recession managing an open economy which is externally driven protecting the foreign reserves? This is very important given our peg to the USD.

@checkit-out

Why would BU tamper with an unscientific poll? You should not make conclusion based on those who are most vocal.

David;

The poll would be unscientific if there is no “tampering”. It would still be unscientific if there is “tampering”. What I’m suggesting is a way to perhaps get some unscientific conclusions that might be a bit sounder than letting the partisan denizens of BU vote on the partisan questions posed by the Viper. In the end it would still be unscientific. In other words, I’m agreeing with you that one should not draw conclusions based on those who are most vocal.

The conservative approach of this government is to manage spend which heavily correlates with forex outflow.
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Which sector is responsible for the most outflows?
What percentage of that outflow is for productive purposes?
Remind again, what exactly has this administration done so far to manage this non-productive outflow?

Just so you know.

http://www.cbc.ca/news/canada/toronto/story/2011/07/12/toronto-buyout-package.html

We have too many employees down at city hall,

Toronto faces a looming $774-million budget shortfall for the next fiscal year.

Union, non-union and management employees are all being offered buyouts of up to six months salary.

The point is the real recession has not ended. The world is in economic turmoil.

I don’t study economics but I live in the Country with the best performing economy among the G8 countries and we are dealing with ever increasing food,gas and electricity prices.

Barbados is in for a rougher ride so brace wunna self. Instead of blogging wunna should be outside planting in de kitchen garden.

@Raw Bake

It is truly a bad time to be in government and especially to be Chancellor of the Exchequer.

You eva see macaroni and cheese, cream potatoes or chicken and chips growing in a kitchen garden?

You really expect people to eat sweet potato, pumpkin, yam, eddoes and breadfruit. Even if duh had somewhere to plant dum, duh still can’t keep nuh stocks to get lil manure which mean duh gots to buy fertilizer whichin gine cost money duh ain’t got. Next yuh got to look fuh pesticides to keep way de lotta pests duh got nowadays. More money again. Don’t talk bout if de rain doan fall, you think people cud pay BWA fuh wata to wet a kichen garden during the dry season, if some malicious body doh report duh for wasting wata. Then if you get pass dem hurdles, you think people able to break up the night rest peeping to see who trying to cah wey duh things. It ain’t worth de lotta trouble.

When de supermarkets and de cook shops run out of food or we run out of money, which eva one come fuss, we gine deal with it or reconsider the kitchen garden thing.

Easy wid de gloom and doom predictions nuh man. You like you forget that God is a Bajan.

@Raw Bake wrote, “we run out of money, which eva one come fuss, we gine deal with it or reconsider the kitchen garden thing.”

You know Bajans real good.lol

I am not preaching doom and gloom. Just personal survival methodologies.

Many utilities will be cut-off next month, school clothes can’t buy,sardines on the table instead of chicken, pork or fish. Rihanna $500 tickets sold out. And Bajans wanted to kill the government for an additional 50c in busfare…smh. Priorities!!!

Not sure if this is a joke or not but Moody has placed the US government on notice by threatening to review its credit rating.

http://money.cnn.com/2011/07/13/news/economy/debt_ceiling_moodys/index.htm?hpt=hp_t1