Submitted by People’s Democratic Congress (PDC)

In the last PDC article on BU, we looked at, et al, the real actual cost of use of the Barbadian people’s money vis-à-vis the supposed total value of the monetary base of the people of this country.

Too, we concluded in that article that, at this present time, the real actual cost of use of money is 83% – which means that out of every Barbados dollar that is used in the political economy and services industry sectors of the country, a staggeringly pernicious 83 cents out of every Barbados dollar represents the amount that is now being paid for from out of the nominal incomes, payments and transfers of the relevant people and other entities in Barbados, in order for the latter to use this dollar on a daily basis.

Now, what we did not query in the previous two PDC articles on BU, on this very cost of use of money theory, but what we are going to ask of BU readers right now, is: that given the cost of use of money is estimated to be 83% (71% of it is used primarily for unproductive, under-used, abhorrent money merchant   tourism peddling purposes), then what becomes of the remaining 17%? Where does it go? What does it represent?

Well, firstly, it is not used for only a little time. Second, this amount of value that is therefore not being used temporarily productively at this time largely goes into financial institutions in the country and is largely made up of demand deposit savings of the relevant people, businesses and other entities. And, third, it is an unvarnished political economy fact that nominal incomes, payments and transfers that are not spent are saved, or remain unused (Note however the fundamental difference between money, and income, payments and transfers).

These portions of incomes, payments and transfers can be said to be represented by what is the alternative to this cost of use of money theory – the COST OF SAVING OF MONEY (INCOME, PAYMENTS, TRANSFERS) THEORY – which simply seeks to describe and explain, et al, the amount that it takes, in nominal costs to the incomes, payments, transfers of the relevant people, businesses and others, to save portions of those said remunerations at specified points (financial institutions) at the same time – as a percentage of the Barbados Dollar –  and as a function of the reported total amount of the value of the monetary base in Barbados dollars.

Hence, at this stage in Barbados, it costs 17% of those remunerations at the same time as each portion of those remunerations is itself being lightly saved in every financial institution in the country, and very crucially only after those said incomes, payments, and transfers would have had to be received by or sent to whomsoever, before any money saving from out of those remunerations could have taken place.

Hence, these otherwise savings (values) of the portions of the total values of incomes, payments and transfers of the relevant peoples, businesses or other entities – whether received locally or from overseas – are the products of those same remunerations.

Also, there is the theoretic cost of saving of the Barbados people’s money; the real cost of saving this money and the real actual cost of saving this money, as these really relate too to the COST OF SAVING OF MONEY (INCOME, PAYMENTS, TRANSFERS) THEORY.

For the PDC, any savings are only deposits if they can be redeemed by real money being provided at any whiff  of an opportunity the customers of financial institutions so desire it, and do quickly happen to successfully get it and not when these institutions say when they should get it way beyond their desires (the customers’) and therefore do not give it to those customers when they want it. As for the other kinds of deposits – loan deposits – these too are only loan deposits when they are in fact certifying reductions in loans down to the amounts equivalent to every succeeding loan deposit made – without still these loans ever again increasing to whatever levels without any extensions, or further extensions, being made to the existing loans.

Hence, any other referred to deposit value store arrangements and especially any of those that purport to be accumulating, must be are and will be considered by us to be right away  pure fictitious paper money value representations – which in order to be activated beyond their fictitious paper money value status, then have to be redeemed by the financial institutions’ fetching of real money from some parts  of the monetary base to apply to some other parts to the pleasure of the particular customers or the latter’s customers.

But, what this cost of saving of money theory clearly suggests is that there is an inverse relationship between the cost of use of money and the cost of saving of money in Barbados.

Well, two things to say about this cost of saving of money theory before proceeding any further:

1) That this 17% – which is the current cost of saving money in Barbados in financial institutions or the current cost of saving it through meeting turns, etc. – works out to be BDS $ 203 million of the reported total value ( in Barbados Dollars) of the monetary base of the people of Barbados. It is this relatively small amount of money (relative to what the others are in many other financial systems of this world) that will point to the intense competition between financial institutions for it. This money however, though, points to financial institutions extracting obscenely large  sums of income/value from out of the pockets of people, businesses and other entities that are working or doing business here in Barbados, and points, too, to much of it being exported in foreign exchange out of Barbados. This relatively small amount of money also illustrates why within recent years in Barbados there has been a reduction of the number of esp. commercial banks operating in Barbados.

2) Also, this partial amount of the total value of money circulating in Barbados disgustingly exposes the following false, fictitious, counterfeit lies: that over the years there has been over BDS $ 13 billion dollars in assets/liabilities accumulated in the core financial system of Barbados, and that the financial system in Barbados is strong. Well, these deposit taking institutions have been DOUBLE/MULTIPLE COUNTING SOME OF THE SAME COINS AND NOTES THAT HAVE BEEN ENTERING AND EXITING THESE FINANCIAL INSTITUTIONS OVER AND OVER AGAIN, AND AS PART OF THE RECORDED VALUE OF THESE OUTRAGEOUS ASSET/LIABILITY BDS $ 13 BILLION CLAIMS. And because the only real political legal backing for money is the production and use of marketable goods and services in the country, and, too, are those which have been traded between Barbados and other countries, and because of the current estimated value of the output of the political economy and services industry sectors in 2011 having been  BDS $ 5.7 billion, it means that the closer the latter BDS $ 5.7 billion value gets to the reported total value of the monetary base of the people of Barbados, the greater the FINANCIAL losses that will be incurred  in the financial systems and non-financial systems of Barbados. So, with the narrowing of such in Barbados, look how CLICO Holdings, Almond Beach Village and some others have come tumbling down the hill in Barbados, and there are other major local corporate slides to come if and whenever the political economy services industry sector output value further shrinks.

Another set of things that are needed to be said in this present PDC article, this time about the cost of use of money theory, is that, like other serious scientific, social, political and other theories, it not only just describes and explains certain political material financial trends and events that are happening in this Barbados system of production and exchange that is in severe decay and decline, but it also predicts what is going to happen politically materially, financially,  esp. when certain circumstances and conditions prevail.

What we have deduced so far from the intense study of studies and activities of business and commercial relationships in Barbados is that the total amount of value of the monetary base of Barbados as well as the real actual cost of use of money/of saving money and their environments, principally determine (abstractionally speaking) the average total number and total spread of business and commercial transactions taking place in each year in this island.

But, again before we proceed any further the PDC must state that the only fundamental difference that exist between the cost of use of money (in all its forms), and the cost to the incomes, payments and transfers of the relevant people, businesses and entities, is TAXATION.

The basis of this axiomatic truth lies in the fact that when government uses money there is no cost to income/payments of government (other than there are costs to the incomes of commercial enterprises of government), as that the government does not earn or have its own income and/or payments (which itself is a most reprehensible state of affairs, with so many marketable talents, skills, and services that are found within the governmental apparatus itself). Hence, a very significant part of the cost of use of money to the government equates with the total amount that the government imposes as evil, wicked anti-developmental TAXATION onto the incomes, payments and transfers of the said relevant people, businesses and others.

So, the levels of TAXATION do not add to or subtract from what extant levels the cost of use of money/the cost of saving of monies were, are or will be in the country at a given time; nor do the sequential nominal incomes, transfers and payments have any role in determining the cost of use of money/ the cost of saving money in financial institutions or not using money generally at any given time.

Anyhow, let the PDC get back to where we left off a little above and move to the conclusion of this article. Let us deal with the predictive aspects of the cost of use of money theory now. Let us posit that if the real actual cost of use of money were to increase to 88% within the next two years in Barbados, without a concomitant increase or decrease in the monetary base of the country, that the output value of the political economy and service industry sectors of the country will be estimated to fall to BDS $ 5.5 billion dollars. If such were to really happen now it would obviously spell greater material and financial disaster for Barbados at this juncture in its history.

Now, if the real actual cost of use of money were to actually decrease to 50% within one to two years of the present time  – through the removal of interest rates, reductions in insurance costs, debt relief, etc. and that up to that point of the decrease to 50% and  a little beyond, there were such improvements in the various skills applications in the country, such proper developments of the resources capacities in the country, such necessary strengthening of critical institutions and processes in this place, and an increase in the  participation of many thousands of locals and immigrants in the productive and distributive aspects of the island, altogether enough to absorb the effects related to the reduction in the cost of use of money – with there still being no increase or decrease in the monetary base – we will predict within three to four years time from now – holding certain other social, political, material and financial variables steady – that the value of the political economy and service industry sector output will increase to about a very significant BDS $ 8 billion. Indeed, such would set Barbados on a path to greater growth and development in the country in the near future.

Also, if the monetary base were to increase by  BDS $ 300 million to BDS $1.5 billion within one to two years, and with all of the above described and many more conditions  positively present within a three to four year period   – including a reduction to 50% of the cost of use of money, and along with that an increase in the real actual cost of saving money leading to greater investment/investment possibilities in the country use, we predict that were such to begin happening at this moment, that  in the medium term there will start to be seen the value of the political economy and service industry sectors eventually reaching up to BDS $ 12.5 billion.  Surely such would help to lay the basis for putting Barbados onto a path of becoming a world class society in the foreseeable future.

So, DAMN BOYCOTT ALL Elections in Barbados until these types of far-reaching people-centered national development policies are sure to be implemented by any parties other than the DLP or BLP.