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Sir Frank Alleyne
Sir Frank Alleyne

Minister of Finance Chris Sinckler persuaded parliament last week to raise government’s borrowing limit from 1.75 billion to 2.75 billion. This single act ensures that government can float Treasury Bills and other government securities as the need arises. One may reasonably assume that for the government to have expanded its borrowing capacity it raises the issue of a concern for cash flow. The Minister’s explanation that seeking approval for one billion at one sitting pre-empts the need to return to parliament is ‘interesting’. 

On the international front Barbadians ‘heard’ that Minister of Finance Sinckler and Governor of the Central Bank visited the UK recently to enter the capital market. As recent as 2011 Minister Sinckler publicly expressed a reluctance to accumulate external debt. His preference was for the government to leverage the flexibility of a highly liquid local market. Of late however we have heard that the lack of appetite for government securities has forced government to rethink this strategy.

About protecting the international reserves the government has made this a priority, relatively so. Although an adequate number of weeks imports provide Barbados safe cover, Barbadians must be concerned that shoring up the forex reserves of late required the sale of Republic Bank and Emera shares. 

One may speculate that the government has been advised by the Central Bank the need to match expected forex outflow with borrowings. Our junk status will probably add to the cost of the loan but the thought of being snared by the IMF should make the cost of the loan palatable.

Now that the political rhetoric has faded post February 21, 2013, the country yearns for serious debate about the economy. Do we need a stimulus or not? Which state assets must be privatised or divested from if some prefer the euphemistic form. How should we rethink our tourism strategy? Do we need to force the rollout of alternative energy? It seems incredible that five years after the global economic meltdown Barbados is unsure of an economic plan.

What concerns BU as well has been the muted voice of Sir Frank Alleyne from public discourse on economic matters.      


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  1. PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS Avatar
    PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS

    Minister of Finance Chris Sinckler persuaded parliament last week to raise government’s borrowing limit from 1.75 billion to 2.75 billion@
    Sincklers Suckers , so the ministers can take more funds , Need an Audit to see where the funds went first.
    People who voted for these fools and getting robbed again.
    They will seem to get what they paid for 2nd time around .Hope those who for paid and bought VOTES will see how fast that 300bds goes away in VAT.The Ministers only feel good when they come up with kick back deals ,,, Wake up people Them dogs got fleas and the cat have kittens .

  2. Caswell Franklyn Avatar
    Caswell Franklyn

    Sir Frank’s muted voice should not concern anybody: it should be appreciated. Can’t you people recognise dementia when you see it. The man is not all together there.

    If you read today’s Nation, you would see how Government is planning to unload its Treasury Bills. They are making it impossible for credit unions to invest in anything other than government paper. You should remember that the Central Bank got involved in assisting Government by lowering the savings rate. If you want to invest, government is making it difficult to invest in anything other than its paper. We now have a government of dunces being advised by Mr. Alzheimer’s.


  3. Word around town is that Chris Sinckliar came back empty handed, hence the reason he had to resort to local borrowing by floating government paper.

    What is their plan B if it so happens that the Barbadian public shows him that they are no longer suckers for lies and refuse to take up the treasury bills? Have they depleted the NIS funds and are now desperate for money?

    Things are very brown now so you will not hear from Frank Alleyne. He had a lot of mouth to condemn the BLP’s 90 million stimulus but not a word when Stinkliar went off the reservation and announced a 600 million stimulus which Sir Frank did not approve. Stinkliar is on his own!

    And not a word from the ‘DLP economic guru’……………Dr David Estwick!


  4. Is it reasonable to expect that when our ministers and important officials travel abroad that there should be some obligation to report to the nation?


  5. They should, David but they never do. A team from the Ministry of Health has gone to Geneva. Will we know why and what was achieved from any on them? A friend of mine is on the team which left on May 17 and expects to be back on May 28th. I think the minister has also gone. Just imagine the per diems……..no wonder the duke was so furious!


  6. Are the two partners who paid a big down payment on Bayview Hospital going really accept forfeiting their deposit? Wow they must be loaded to be able to lose that all that money! But there again, money is no problem with these two!


  7. There is an abundance of ignorance and ignorant people in Barbados

    The result of the 2008 election said so to me
    …and the last BUY ELECTION confirmed that they are lot of un-informed stupid -cell-phine toting, BB messaging Cunts out there who do NOT KNOW –JUST DO NOT KNOW our recent experiences, past experiences or present experiences. If they were consious and aware , the results of the 2008 and 2013-BUY ELECTION would have been different.

    Brian Lara bats on a sticky wicket at Sydney and makes a double century. Keith Arthurton bats on the same wicket and complains about the wicket while getting 15 runs in a painstaking stay at the wicket. —Freundelitis is Keith Arthurton. Dont ask who is Brian Lara.
    It is called Horses for Courses

    Freundelitis does not inspire Confidence !
    –Anyone wants to dispute that ???

    JUST ASKING !


  8. FREUNDELITIS is the worst Prime Minister ever in the history of Prime Ministers

    I challenge anybody to name a worst Prime Minister

    FEUNDELITIS does not inspire confidence
    FEUNDELITIS makes Erskinny Sandiford look like SIR WINSTON CHURCHILL.

    The people in Barbados that vote DEMS in did BIM a great harm. We warned these Fother Muckers but they refuse to hear

    ARE WE GOING TO STAND IDLY BY AND LET THIS INEPT VISION-LESS, CREATIVE -LESS DLP ADMINISTRATION TOTALLY RUIN BARBADOS ??/


  9. @JUST ASKING | May 21, 2013 at 12:22 AM |
    There is an abundance of ignorance and ignorant people in Barbados
    _______________________________________________________

    I have to agree with you above post in its entirety.

    One of the main problems was that the business class, nor the middle class did not elect this government (we the middle class are struggling to stay afloat) It was the gimme this-gimme that, black berry, ipad, latest hair do, welfare begging persons who did. Note I did not say the lower economic ones because I know a lot of them did not. They never thought they had a chance to get reelected more that 19 or so. They had no plan in 2008 and especially not after the death of David Thompson. Since then they have been rolling the dice to make decisions, while the foolish continue to place bets on them.

    The business class has no confidence in them, hence they refuse to take chances of continuing to keep staff or even attempt to hire more staff.
    The few businesses that do hire/expand are constantly being beaten down by this do nothing, no decision government.

    Seems that bajans are being punished by the Dems for getting rid of Erskine Sandiford in 1994.


  10. @JUST ASKING | May 21, 2013 at 12:36 AM |
    FREUNDELITIS is the worst Prime Minister ever in the history of Prime Ministers
    _______________________________________________________
    I have to agree again, he really seems to be worst. May even be one of the worst in the Caribbean. Just shows every intelligent man is not Prime Minister material.

  11. The Dummy @ Dumo Avatar
    The Dummy @ Dumo

    Word around DLP insiders suggest that it is the intention of the PM to have a change to his Cabinet.

  12. Caswell Franklyn Avatar
    Caswell Franklyn

    Dummy

    You really mean that the PM is planning to re-arrange the deck chairs on the Titanic.



  13. Neither the DLP or the BLP has a clue how to manage the political economy and services industry sectors of Barbados!!

    Not one of these old ramshackled factions has a clue where the political economy and services industry sectors of this country must be taken forward!!

    Their advisors on how to manage the political economy and services industry sectors of this island also do not have a clue as to the fundamental strategies and programs that are needed to take this country out of this very deep and prolonged political economic depression that it is in.

    So, from Stuart, Arthur, Estwick, Mottley, et al, to Alleyne, Mascoll, Howard, Francis, et al, do not have the necessary vision, intellect, and competence to manage the political economy and services industry sectors of this country.

    All of these named individuals and many unnamed others of their ilk and the particular groups they operate within have for some time been assisting one another in the systematic destruction of many facets of the political economy and services industry sectors of this country.

    Take, for instance, the imposition of 184 per cent duty by the Minister of Finance on the incomes of those persons who have been importing their type of beef into the country as part of their final offerings to consumers.

    Such was sheer foolishness and ignorance on the part of the Minister of Finance and others that were involved in its imposition.

    Persons like James Paul and Bobbi McKay were equally very insensitive in supporting such a measure that was substantially undermining the functioning of those businesses that have been involved in the importation of the particular beef.

    Furthermore, whatever political and other methods and agreements that have been used in helping to bring a measure of quietitude to the issue should not be seen by the business people that have been affected by the 184 per cent duty as providing some win that they have secured themselves. There is really no win for them or anybody else!!

    For, that issue only points to a very tiny part of one of the most and very sickening and destructive problems that Barbados faces: the government of Barbados repeatedly taking from individuals and groups of individuals here in Barbados multifarious things that do NOT belong to it.

    These very productive business people ought to have known that there is no fundamental principle involved in the government stealing from themselves less than what it was stealing before. NONE WHATSOEVER!!

    These business people that have been grossly affected by that TAX, and too all other bu siness people in Barbados that have not been affected by that TAX – and when we say all other business people we mean ALL other business people that have not been affected by the TAX in Barbados – must know that the must get into social and political positions in the country where they are able to change or get change all of these criminal laws that provide for government taking from others things that do NOT belong to it.

    Indeed, the Minister of International business must be deluding himself in thinking that setting up some useless kangaroo committee to deal with the 184 per cent and other issues is an answer to this evil problem of the government taking from individuals and groups of individuals what does not belong to it.

    It is clearly not and he cannot pretend it will change this cruel and inhuman behaviour by the government.

    Anyhow, such mephetic thinking on the part of the Minister is bold evidence that neither the DLP, BLP, nor their advisors “have it” in knowing the political direction in which the political economy and services industry sectors of this country must go.

    PDC


  14. People’s Democratic Congress

    This is very interesting. Does the tariff include 17.5 per cent VAT, and when the products are sold will they also include an additional 17.5 per cent VAT, plus a mark up of 15 – 20 per cent or more?


  15. So PDC so tell the peopke of Barbados under these harsh economic conditions globally ……What strategics pollicies would you put in place to steer the economy on a road of viabilty without further wrecking and undermining social programs and increasing unemployment


  16. We can’t continue to borrow 1.2 billion to pay salaries. We need to rollout means testing. Surely some government departments who continue to hire reflect the height of stupidity. After 5 years it is NOT apparent that serious cost cutting is being done.


  17. I see both parties are headed to the US to get information on how to move the island forward, I wish them success seeing how the system has changed and adapting to a new order is very complex. Let’s hope they find someone in the Bajan community of Brooklyn with the knowledge of what is transpiring and ideas on how to move things along. Charlie Skeete would have an idea, if only they had listened to him initially.


  18. @ Well, Well,

    Given that the global problems started in the US and given that after nearly five years Bernanke, Obama and their advisers cannot come up with an answer, I wish them luck.
    Why don’t they go to Archbishop Holder, given that he has macro-economic views on job creation.
    Maybe Sinckler and Worell should have a session with him. The answer is simple: tighten belts, import less, work harder and more productively.
    Stop living above your means – both as households and as a nation.

  19. Gustav Gessert Avatar
    Gustav Gessert

    Caswell

    How you could say the man has or is loosing his mind? I do have to admit tho that the eyes are not usually wrong and therefore I have suspicions about not only Alleyne but Governor of the Central Bank as well.

  20. Adrian Loveridge Avatar
    Adrian Loveridge

    David,

    That $1.2 BILLION also has a borrowing interest rate. What was the rate the last public offering gave?
    Was it 6 plus per cent?
    I don’t have a calculator big enough,
    what is that in annual interest payable?

  21. just want to know Avatar
    just want to know

    I understand the DLP want to make Barbados a DICTATORSHIP, when the Chief Justice can take a case to COURT, when there are so many other cases, waiting for years and can’t be heard. Is it not true that a Chief Justice in any justiciary suppose to be impartial? Is it because the DLP brought him here, and Leroy Parris is suppose to be the DLP GOD FATHER, & the PM best friend? just want to know!!!!!!


  22. It seems Caswell has stirred up an ants nest by suggesting the government is looking to send home temporary workers. The NUPW has been forced to refute the accusation.

    The question BU will continue to ask: how can government continue to borrow to pay salaries?

  23. PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS Avatar
    PLANTATION DEEDS FROM 1926-2013 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS

    Well they cut out 20million from COW , That is a start , Also they found money to give them self a raise in pay at a time when we look for more funds.
    Next they can go after all the offshore accounts where the money is hidden .and make them show source if funds to switch for the new money to come out. If not let them burn it. All out side funds must come to the CB for inspection and Audit.
    minister already get a pay check and need not be paid more for doing the people work 10% added to the cost of the deal that is no deal to the or for the People.


  24. First time
    reading a PDC post in entirety
    The post sound sensible
    Dont mind PDC


  25. I was saying Dont mind PDC cussed me last week


  26. We are surprised that people like Frank Alleyne could have any special insights on political-economy matters.If you think things are bad now they are destined to be much, much worse just now. Instead of taking about the dead we would be better served by focusing our collective energies on the creation of the new world we see. We can start by considering the present establishment as illegitimate and totally incapable of making anything better. All that is required is a mental leap. A leap of faith that the people of Barbados have a better collective imagination than any government. Meaning government in the widest sense.


  27. If the allegation concerning the local Financial Services Commission’s directing credit unions in Barbados to remove their and depositors funds out of all non-bank financial institutions in the country ( Daily Nation Newspaper of Monday, May 20, 2013), is true, then this would be further and greater evidence that clearly points to serious and fundamental problems that are existing in the local financial system.

    Also the fact that, if true, this allegation of the directing of this relocation of funds held by credit unions and their members, from their location in non-bank financial institutions accounts – wheresoever they are – to where the law says they must be, in commercial banks accounts – wheresoever they are too, would be seen by the PDC and some others to have come right on the heels of the proposal last week by this DLP government to increase the limit on the amounts that government can issue in Treasury Bills and Tax Certificates, from BDS $ 1.75 billion to BDS $ 2.75 billion, must be of great and profound concern to many Barbadians about the entire functioning of this financial system in this country.

    PDC


  28. Hal Austin | May 21, 2013 at 11:15 AM |

    @ Well, Well,

    Given that the global problems started in the US and given that after nearly five years Bernanke, Obama and their advisers cannot come up with an answer, I wish them luck.
    Why don’t they go to Archbishop Holder, given that he has macro-economic views on job creation.
    Maybe Sinckler and Worell should have a session with him. The answer is simple: tighten belts, import less, work harder and more productively.
    Stop living above your means – both as households and as a nation.
    __________________________________________________________
    Hal………………..they certainly don’t need to waste more taxpayers money on a trip to figure that out, they could easily have picked up a phone and called Charlie Skeete, they are just pretending that they are doing something, i can tell them now, the answers do not lie in the US, they better start learning to use common sense and come up with their own ideas on how to design a workable syste,…….there are one or two states in Africa with intelligent leaders who have redesigned the system to benefit their own people, let that crowd wait for someone to do it for them. HA!!

  29. millertheanunnaki Avatar
    millertheanunnaki

    @ The Dummy @ Dumo | May 21, 2013 at 6:33 AM |
    “Word around DLP insiders suggest that it is the intention of the PM to have a change to his Cabinet.”

    One wonders if this politically moribund dejected and already physically worn-looking looking PM really has the testicular fortitude to make any change to a Cabinet full of incompetents that purloined the last general elections.
    What are the options open to him. If there is one ministry badly in need of a new face with a ‘thinking’ head and an honest clean mouth is the Ministry of Finance & Planning.

    Now who is on offer to fit the bill?
    The neutered pit bull whose voice of economic and financial matters has turned into that of a squeaky poodle after being put back in the agricultural dog house for nipping him master’s ankle but still wants to sit in the PM’s lap?
    This deputy dawg of a gunslinger would find few friends in Cabinet to join his shooting posse as long as Leroy Parris is the real, real chairman of the DLP and the de facto Cabinet chief.

    What about the star boy from the East who became a multi-millionaire from his corrupting ability to plant stone and wood without any buyers or occupants other than rats and soon to be unemployed vagrants and street people?
    Maybe he can get the economy to start sprouting some badly needed greenbacks but unfortunately for the PM most of the international financial institutions to which Bim is a member are located in the US of A and overseas travel is not an option for this other garrison boy.

    The only thing left is for the PM to turn to our one and only Wall Street graduate. An investment guru with mercurial abilities gained from his heyday at CLICO but sadly in a rather serious Physical Deficit position when it comes to common sense and honesty.
    Don’t expect the PM to take on that role of the Chief Financial Officer of the nation like his predecessors. Despite being a lazy sloth he is still intelligent enough to recognise his own limitations and accept his genetic technical incompetence from his short stint in that sweat box while David Thompson was on terminal sick leave.
    He just does not have the intellectual wherewithal to mix and match classical tomfoolery with economic and financial bullshitting.

  30. Gabriel Tackle Avatar
    Gabriel Tackle

    I heard this morning on the OCM Network that a case involving the Government of Antigua and a Power Company there, was settled by the Privy Council.The Government won the case twice. At the local High Court level and at the EC Supreme Court of Justice level.They lost at the Privy Council stage.Good news for those of us who would have preferred to have the Privy Council continue to deliberate on our Courts’ performance.


  31. @ Well Well | May 21, 2013 at 10:03 AM |

    “I see both parties are headed to the US to get information on how to move the island forward, I wish them success seeing how the system has changed and adapting to a new order is very complex”.

    This is from “U.S. Senate panel slams Apple over offshore tax strategies” @ http://www.theglobeandmail.com/report-on-business/international-business/us-business/us-senate-panel-slams-apple-over-offshore-tax-strategies/article12033928/#dashboard/follows/

    Offshore tax avoidance by multinational companies has become a high-profile issue. Cash-strapped governments worldwide are increasingly focused on wringing more tax revenue from corporations that often have interests in many countries and easily shift capital and assets across national borders.

    Suggest they may want to talk to Senators Levin and McCain about their plans to fix the US “flawed corporate tax system.”

    The parties do indeed need to determine how to adapt to a new and very complex order, which will no doubt impact the tax revenues from the “offshore” industry, to move the island forward


  32. Excellent post, miller. As the young would say, your post was “on and popping”.

    Caswell made a revelation on Brasstacks this morning saying that it was agreed in a high level meeting on Friday with at the Ministry of Finance that the government made the decision to lay off some temporary staff. He said his source was impeccable.Out comes the NUPW bosses and deny that they had any knowledge of layoffs. Well, as Peter Wickham said………….. the government cannot hide layoffs. We will soon know who is telling the lies!


  33. @Well Well
    They aint being instructed in to how to “move the Isand forward” they BEING TOLD THEIR ROLES in the NEW WORLD ORDER, and how they WILL do as they are TOLD.


  34. @ Well Well

    Tax payers money! You really think these people care about taxpayers. Their aim is to transfer resources to the .01%. In any event it is not taxpayers money. Our responsibility but not our money. The international banking system is controlled by private entities. The Bernanke et al are have long been playing a shell game – printing useless paper. This game will go on until we stop accepting fait currencies. This is coming soon.

  35. millertheanunnaki Avatar
    millertheanunnaki

    @ Prodigal Son | May 21, 2013 at 12:50 PM

    Thanks Prodigal. Your first contribution on this thread also makes for very interesting and informative reading. I am not totally au fait with what’s happening on the ground on a daily basis so I rely on you to fill in the blanks.

    But neither you nor I should be surprised (even if we are awfully concerned) about the day-to-day cracks showing up. This DLP administration was warned repeatedly about the dangers that lurk down the path they were taking the country. But instead of listening and heeding honest advice they reacted in the most viciously dismissive way. With the likes of ac and CCC branding us as a clique of BLP yardfowls peddling doom and gloom on this blog. Our genuine expressions of concern were treated with contempt and rebutted with lies and deceit. The lies told in that Transport Board nasty vicious ad along with the other privatization bogey will be their undoing in the coming months.
    We give them until October before the real foul-smelling shit starts to hit the fan and circulate right across the entire public service; even in the Cabinet.
    Sorry to say this Prodigal but the Bajan chickens have now come home to roost and there is no food in their craws to feed the young.

    Leroy Parris is the real poster boy for this corrupt lying dangerous DLP administration. He represents everything the current leaders of this once proud and dynamic DLP stand for and do on a daily basis.
    But behind every dark cloud there is a sliver of bright light. But first we have to expose and get rid of the liars and bold-faced crooks currently holding the reins of government through trickery and electoral fraud and vote buying.


  36. Our leaders are at an auction.WE, are what is up for auction, we are on the block,the cost of Barbados’s salvation is ADHERANCE to the new WORLD ORDER.
    If they come back and SUDDENLY at is “Bright and Breezy” initalyt for the Barbados economy, we have been SOLD.
    SOLD OUT BY THEM.
    Say GOODBYE.
    GOODBYE to your Freedom you are now POSSESSIONS of the NEW WORLD ORDER.


  37. @Adrian
    What is a Billion please??


  38. @Adrian

    The rates for Treasure Notes is around 6% and Treasury Bills is under 3%.

    Bottomline, the government cannot continue to borrow to pay wages.


  39. Not Taken…………………………..you can guarantee that those senators who all of a sudden care about IRS going after tax dodgers are tax dodgers themselves, they all have offshore accounts including/particularly Levin and McCain, they are the do so don’t like so crowd.

    Dr. Love…………..apparently their masters have not told them anything yet, they are still very much in the dark.

    Pacha…………the crowd of leaders in the Caribbean just have not caught up yet.


  40. Carol Roberts and Dennis Johnson are praising some songs
    with excitement and enthusiasm
    Giving unfair bias to
    the Lil Ricks and Edwins
    Stop it !
    The two of wunna doing bare foolishness

  41. Polly wants a Pit Bull Avatar
    Polly wants a Pit Bull

    Ha ha ha…looks like the fowls mouths vote buying prodigues have bitten off more than they can chew. Only three months after election’s promises of no lay offs and they are faced to ADMIT they LIED. Where is the pitbull in all this?HA HA

  42. Adrian Loveridge Avatar
    Adrian Loveridge

    Dr. Love,

    LOTS!


  43. @Adrian
    You got that in ONE!!


  44. @Adrian
    almost as much as the corruption.
    No seriousely I have NO idea how many millions make a Billion?.
    I have asked an every body seems to different ideas dependent which side of the “pond” they are.

  45. Adrian Loveridge Avatar
    Adrian Loveridge

    Dr. Love,

    I understand the English have now adopted the American BILLION which is a thousand million. The English billion used to be a million, million.


  46. I will got with oxford cause it has now been combined………….in today’s world it is a thousand million = one billion.

  47. Carson C. Cadogan Avatar
    Carson C. Cadogan

    PRODIGAL SON

    “Caswell made a revelation on Brasstacks this morning saying that it was agreed in a high level meeting on Friday with at the Ministry of Finance that the government made the decision to lay off temporary staff.”

    Caswell made a revelation on CBC TV that the Democratic Labour Party would only win the St. John seat.

  48. Carson C. Cadogan Avatar
    Carson C. Cadogan

    PRODIGAL SON

    Your man Seethru is bowing out of politics. No surprise to us, we always said that he was yesterday’ s man.

    Now in come RAWDON ADAMS!!!!

  49. Carson C. Cadogan Avatar
    Carson C. Cadogan

    Mia’s days numbered again.

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