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Moody’s Downgrade Barbados AGAIN

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Press Statement re: Moody’s Downgrade by Leader of the Opposition, Hon. Mia Amor Mottley Q.C., M.P.

Mia Mottley, Leader of the Opposition
Mia Mottley, Leader of the Opposition

Barbadians need urgently to sit up and take stock.

We cannot expect to continue to do the same things over and over and get different results. Yesterday’s further downgrade by Moody’s by a staggering 3 notches must jolt us into our true reality.

We were warned that increasing our overall debt, especially our reliance on short-term debt, will lead to a further downgrade. Yet the Government continues recklessly to do so. Two weeks ago we increased the Local Loans Limit to $4 billion and now today we are increasing the limit under the Special Loans Act by $1 billion to $2.5 billion.

We were warned that continued Central Bank financing of our fiscal deficit will put pressure on our exchange rate. Yet the Central Bank continues to do so.

We were warned that increasing our fiscal deficit and missing our targets for fiscal consolidation will lead to a further downgrade. Yet the Government continues unashamedly to do so.

We were warned that declining foreign reserves will lead to a further downgrade. Yet the foreign reserves dangerously continue to decline in spite of the Government’s borrowing to prop them up.

Regrettably this downgrade by 3 notches also comes against increasing difficulties by the Government to raise medium term money with them having challenges with a recent 2019 Issue of Bonds. The market is reflecting their lack of confidence in this Government’s management of the economy and its fourth attempt at fiscal consolidation.

How many more people and institutions must speak, through their words and actions, before Barbadians tell this Government that the message is clear from everyone who assesses our economy? How many more Barbadian workers, families and businesses must be sacrificed before we recognize that all Barbadians must stand up and call a spade a spade.

The definition of madness is doing the same thing over and over and expecting a different result.

Our economy is in crisis and NO ONE has confidence in this Government’s policies nor in its ability to lead us out of the crisis.

The deafening silence of Barbadians is the greatest ally to this Government’s incompetence. The voices of all Barbadian patriots in the private sector, union movement, academia, church, civil society and among our general population must now be heard for it cannot be business as usual.

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254 responses to “Moody’s Downgrade Barbados AGAIN”

  1. William Skinner Avatar
    William Skinner

    @ Hamilton Hill;
    “There is no difference, none whatsoever in the Barbados Labor Party and the Democratic Labor Party. Till Barbadians decide to take back Barbados we are doomed.’
    You are absolutely correct. The Prime Minister is also correct when he says that they(parliamentarians) represent the political class. He should have gone on to say that they are really the Black political management class. And they(BLP/DLP) have failed miserably . How can we trust either the BLP or DLP?
    The following points clearly show that there is no difference or as we say in Barbados”same difference”.
    Hamilton Lashley went from one to the other without even pausing to catch his breath ! Dr. Clyde Mascoll, spent 25 years criticising the Barbados Labour Party’s economic policies, especially Arthur’s, now he is its chief economic affairs spokesman. We seem to forget that Dr.Mascoll brought a no confidence motion,against the BLP, in relation to some land thing in St.Peter. He accused the BLP of corruption in relation to the GEMS issue. Had he had won the election , when he led the DLP, he would have been Prime Minister(DLP) and right now he will be castigating Owen and company ! Mia Mottley spent 14 consecutive years in government(cabinet) and was unaware that Black Barbadian women were still working on plantations for starvation wages.
    The country apart from the economic crisis also must deal with a political crisis where both parties are now proven to be totally bankrupt of ideas and cannot carry Barbados forward even without a crisis.
    As the Mighty Gabby once said in his calypso, “Wind force” “DLP BLP NDP same party…………..”
    Time for real change but I would not hold my breath. Barbados is BLP/DLP country and unless there is a major shift ,almost of volcanic and earthquake proportions ,the current collective BLP/DLP political class will prevail.

  2. Artaxerxes Avatar
    Artaxerxes

    ac | June 4, 2014 at 9:11 AM |

    “that`s right arterexes we all know where the moody place the focus going foward..however the picture also points us back to the high level of incompetence that was allowed to fester and boil under the blp administration and which has now reached a boiling point …as for ac rabid comments wether or not agrees with. this present govt of handling the economic problem is open for all kinds of debate however all gloves are off as to how this country got into this hell hole in the first place”

    Surely, if you had read the previous information I posted, you would not have contemplated that response. Like it or not, during the BLP’s term in office, Moodys noted the country’s prudent fiscal and monetary policies, low and manageable external debt, the country’s comfortable debt profile, improved economic fundamentals, as well as social and political stability.

    I prefer to deal with facts than the shiite that Sinckler, Donville inniss, Kellman and all the other politicians vomit.

  3. David Avatar
    David

    Sober reflection of the recent downgrade can be illustrated as follows:

    Tbe downgrade will add 1.1 million in interest more to the credit suisse loan. Remember there is a loan clause tied to credit rating. Time to act!

  4. Well Well Avatar
    Well Well

    Both political parties are too busy being a political class of CLOWNS, with a political CLOWN SHOW…..why would a prime minister if he knew what he and his other ministers were doing have to boast of a political class, what the hell is a political class anyway, fcuking idots…….steupse.

    Charlie Skeete said it well.

    http://www.nationnews.com/articles/view/moodys-downgrade-no-surprise/

  5. ac Avatar
    ac

    speaking of clown as a proud member of such a faternity it is my dubious pleasure to welcome u artexeres to. the club. as. your comments are also a reflection of yardfowlism and tokenism with a very well seasoned approach to place blamely solely at the feet of present govt while ignoring the critical factors that got us in this mess..until these issues are forcefully brought to table which. underscores the inherited beast lying in the belly of this sick economy..getting out and remaining out is going to a uphill climb…btw i have put ur clown hat in the mail….welcomed to the club. Bozo..

  6. Hants Avatar
    Hants

    Here is a promise that Mia can copy and win the next election.

    “TORONTO – Progressive Conservative Leader Tim Hudak upped the ante Tuesday in defending his widely questioned plan to create a million jobs over eight years, saying he would QUIT as premier if he failed to deliver on all of his campaign promises once elected”

  7. Well Well Avatar
    Well Well

    The Bushman said:
    “Did the PM not answer your question yesterday when the house of assembly almost appointed Lammie Craig a saint…?
    Did he not define a “Political Class”?
    Did he not say that DESPITE ANY WORDS BETWEEN THEM, IT WAS THEM AGAINST THE REST OF US?”

    And more importantly Stuart let the world know that DLP/BLP are a clique of SCUM OF THE EARTH political clowns who got each other’s back, with Craig being deceased BLP and evil as shit a definite stain on the earth who has thankfully been removed, but with the DLP prime minister singing his praises instead of telling Bajans where the DLP went wrong in the last SIX YEARS, it is very clear that the population is in big trouble and for not 14 years but at least double that going forward..

  8. enuff Avatar
    enuff

    Well Well

    I am no fan of PM Stuart but he was correct! Too many “sit in their ivory towers” away from the scrutiny of the electorate yet want to influence decisions, criticise amd know it all. The political class can only get better through better membership.

  9. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    The People’s Democratic Congress has evolved fourteen (14) very fundamental principles so far concerning Money and its various uses in Barbados.

    We venture to write that the eleventh of these principles deals with the inescapably striking fact that Money CANNOT be spent by persons, businesses and other entities – including government – on giving incomes/revenues to the relevant other persons, businesses and other entites in this country, and especially in such contexts whereby the former do NOT get market incomes or revenues to be able to so give such incomes/revenues which themselves must otherwise emerge out of any broadly enough defined structured commercial activities anybody any entity is involved in.

    But it is the last part of the principle that we are moved to represent again on here at this point in time; and which is a tragedy that must be exposed for what it is: and which as it is is a small part of the basis of the informing of the utter wretched intellectual political bankruptcy and idiocy of DLP and BLP governments in this country.

    Such a circumstance is the flagrant failure of DLP and BLP governments over the years to make substantial use of a very crucial and fundamental principle, and to apply it to the government sector itself over which they have been presiding.

    This principle tenors how businesses and the other relevant entities in this country must be able to present/give (provide/pass on) ANYTHING (resource, asset, good, service – human or other ) – under specified contractual arrangements – to the relevant others of the same ANYTHING (human and other capital, resource, asset, investment) until their expirations, their voidances, and under those same contractual arrangements be able to take from ANYTHING (money: nominal remunerations/credit transfers) that which is or can be used by virtue of what it is, to give the SAME ANYTHING (money: nominal remunerations/credit transfers) – until their expirations their voidances, to the relevant other people, businesses and other entities, and by such constancy, coterminity, circularity, etc. of such activities altogether making signíficant contributions to the advancement of the Barbadian society.

    So it must be no wondering why Barbados is in such a prolonged political economic depression, and will be for quite a while, for one of the primary reasons being that an indisciplined, inefficient unproductive, unrational oligarchy – the government – has long been failing to adhere to, and to carry out, and when it clearly ought to be doing so too – a very fundamental common sensical principle of business any where.

    PDC

  10. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    @AC

    You gone back talking bare shite again? Spewing your allegiance shite when you refuse to look at the facts of what this current-don’t Understand- one-shite party is plunging the island towards. I told you if you do not bring balance views I am gong to delve into your ass light what lightning is thunder. Woman are you so blasted corrupt and blind that you do not see what is happening. Everyone know the bull shit the Barbados Labour Party wrought but you refuse to see the shite that this bunch of clowns have made worse. If I read anymore partisan shite from you I am going to start back calling you by your real names. YOU ARE WARNED WOMAN.

  11. HAMILTON A HILL Avatar
    HAMILTON A HILL

    @ William Skinner.. yours are very well made points that one could only hope others would use for purposes of enlightenment. You said that even though you knew that it is time for change you would not hold your breath, for this is BLP/DLP country. My father before he died told me stories of life in Barbados pre 1937. I distinctly remember his mention of the sense of hopelessness and despair that prevailed then, and that same sense he articulated seems to have now begun to blanket our Barbados again. The point I seek to make is simply that when a people is convinced that it has had too much they will seek and find change. Let me make clear the fact that this is not a suggestion for modern day Barbados to follow the method of our fore fathers, for I am quite sure that the heads which will be cracked and the persons shot would be those with whom I best identify, and that is not what I want for those whom I love.

  12. Well Well Avatar
    Well Well

    Enuff…..actually i was wondering how Lionel Craig got so wonderful that he was more important to rant and rave about than the problems with the downgrade which also happened yesterday, seems to me that Stuart is also sitting in his political class gilded ivory tower just like the other idiots….sorry, six of one DLP…half dozen of the next….BLP, all of that is not helping the situation, but we can hope they open their eyes one day

  13. GEORGIE PORGIE Avatar
    GEORGIE PORGIE

    WELL WELL
    they WILL open their eyes one day, JUST LIKE THE RICH MAN OPENED HIS EYES IN HELL!

    LOL
    THE DLP HAS PROVEN ITSELF AS THE BEST PARTY TO SCREW BARBADOS

    ONE BLOOGER ASKED SINCE WE WERE JUNK STATUS BEFORE WHAT ARE WE NOW

    THE ANSWER IS JUNK STATUS MINUS THREE

  14. Artaxerxes Avatar
    Artaxerxes

    ac | June 4, 2014 at 9:43 AM |

    “speaking of clown as a proud member of such a faternity it is my dubious pleasure to welcome u artexeres to. the club. as. your comments are also a reflection of yardfowlism and tokenism with a very well seasoned approach to place blamely solely at the feet of present govt while ignoring the critical factors that got us in this mess..until these issues are forcefully brought to table which. underscores the inherited beast lying in the belly of this sick economy..getting out and remaining out is going to a uphill climb…btw i have put ur clown hat in the mail….welcomed to the club. Bozo..”

    I must thank the person who wrote that post for you….. its articulation is not reflective of your knowledge base, as such, it’s clear that you did not write it.
    I must also thank you for welcoming me to your clown club and giving me the name “Bozo”. However, I must respectfully decline your offer of membership, because with you as president, along with all those other DLP clowns (including the real author of your post), it’s surely be a case of the blind leading the blind.

    I also concur with your sentiments and endorse the labels given i.e.
    “yardfowlism” and “tokenism”. If by bringing facts to substantiate the truth should merit me being labeled as such, I accept those names with open arms.
    You, on the other hand, continue to blame everyone else for what’s happening in the island instead of accepting that this present administration should take some responsibility. This, on your part, also reflects “yarfowlism”
    and “tokenism”……….. or are those names only ascribed to those persons who may have a different perspective than that of the DLP?

    AC, when you could suggest that those persons who voted for the BLP are responsible for the recent downgrades, I am through responding to or commenting on anything you contribute to BU.

    Galileo Galilei said “I have never met a man so ignorant that I couldn’t learn something from him.” AC you have proven him wrong.

  15. Due Diligence Avatar
    Due Diligence

    islandgal246 | June 3, 2014 at 11:44 PM |
    ……………….. NEVER have I seen such a group of misfits trying to run a country with a bunch of zombies supporting them. They continue to hide in the dark and plant cane.

    In the words of Mr. Fumble – Dem like a bunch of blind men trying to find a black cat in a dark room.- or something like that

  16. Well Well Avatar
    Well Well

    GP……..for some reason the present government actually fails to see or appreciate the seriousness of the situation and we can be believe that they go to bed at night wishing the mess will all go away by morning, this is very serious……wishing their own mess away, distracting the electorate with petty nonsense about political class, what is a political class and can it exist without the taxpayers money?

  17. islandgal246 Avatar
    islandgal246

    The politicians are in deep waters way over their head and pretending that they are still in control. In control of what? The boat has too many holes to block up and it is sinking fast. Brace yourselves my fellow countrymen fasten your seat belts and hope that your injuries won’t be life threatening. AC are really that stupid to come here and try to spin political yarn for the DLP?

  18. Bush Tea Avatar
    Bush Tea

    LOL @ Enuff
    The political class can only get better through better membership.
    +++++++++++++++++++
    You are so predictable….and naïve……
    That is the single worse possible piece of advice that is possible in Barbados.
    So should we seek to improve the crime situation by everyone joining a gang?
    Is the best approach to the drug problem for us to each pick a drug and try it?

    We all know that misery loves company, and that you would feel more comfortable with many more yardfowls under your control, but it is OBVIOUS that once someone, – even a honest fella – joins up, then he has to subjugate his morals to the party…. to keep party secrets, do party dirty-work…… You ain’t hear Freundel say it is nasty business…?

    The VERY BEST. THING anyone can do is exactly what Caswell did…
    1 … GET TO HELL OUT!!!!
    2 …..and start BUP to do EVERYTHING DIFFERENTLY……

    Join party shiite….?!?!? 🙂
    ….man Caswell ….what happened to step two….?

  19. islandgal246 Avatar
    islandgal246

    Where do we go from here? Both political parties are an embarrassment. They are unwilling to change the status quo. Now If I were the PM I would do the following:
    1. Fire the MOF and find a SUCCESSFUL businessman with some integrity to replace him.
    2. Fire the Central Bank Governor and replace him with an independent individual who has no political bias.
    3. Fire the Minister of Health and replace him with Donville or some person with a business/medical management background.
    4. Fire Dennis Kellman and Mara Thompson. They serve absolutely no purpose to the people of Barbados except taking salaries they haven’t worked for.
    5. Fire Dennis Lowe and hire someone who clearly has the interest of Barbados and Barbadians.
    6. Fire the man Marston wunna brought in to overhaul the justice system. He hasn’t done anything to show what he is being paid to do.
    7. Fire the MOE Ronalda Jones. He is an embarrassment and has done absolutely nothing to improve our education.
    8. Fire those ministers who have done nothing but take a salary every month.
    9. Disband the community councils, they are a drain and a waste of money.
    10. Make the summer camps a voluntary project and let the parents pay something and let the children bring their meals.
    11. Reduce/eliminate the VAT on water, electricity, drugs and locally produced foodstuff. These are vital for existence of our countrymen.
    12. Fire the Minister of Aviation and the Minister of Tourism.
    13. Raise the pension age for all politicians to the same as the rest of the citizens of this country.
    14. Fire the Minister Byer-Suckoo, she clearly cannot manage.
    15. Abolish funding the Football tournaments.

  20. islandgal246 Avatar
    islandgal246

    #16. Pass integrity legislation ASAP

  21. GEORGIE PORGIE Avatar
    GEORGIE PORGIE

    islandgal246 | June 4, 2014 at 11:06 AM |

    RE AC are really that stupid to come here and try to spin political yarn for the DLP?

    THAT IS A RHETORICAL QUESTION MADAM

    AC DOES SPIN YARN ABOUT EVERYTHING

    SHE SHOULD BE MEKING FOREX BIM SPINNING YARN

    AND YES …SHE IS STUPID REAL STUPID

    EVEN MORE STUPID THAN BALAAM’S ASS

    BU IS REAL FUN!

  22. Hants Avatar
    Hants

    The Bank of Canada left its benchmark interest rate unchanged at one per cent today.

    An unchanged rate means governor Stephen Poloz does not believe the Canadian economy is strong enough to withstand higher interest rates, despite lingering concern about high consumer debt and rising housing prices

  23. Standard. And poor Avatar
    Standard. And poor

    This Georgie person is a fascinating study in pathology. Full of hate, clearly disturbed, a zealot, but still somehow not only functioning but teaching young minds. Man I’d love to see his therapist’s case notes?

  24. Standard. And poor Avatar
    Standard. And poor

    As the most recent literature in the field of neuroscience has demonstrated beyond doubt, there is a very fine line (sometimes crossed) between religious zealotry-induced anger and true sociopathy. Somebody with this level of hatred and anger is clearly in the at-risk category and might be a danger to himself or others.

    Islangal is probably wrong about this individual being a chronic drinker. Sociopaths are not normally acute substance abusers. She is right, though, in suggesting isolation as a possible causal factor in triggering sociopathy.

  25. Standard. And poor Avatar
    Standard. And poor

    I have been unable (because of time constraints) to read all of the GP articulations in full. But a careful scan reveals the standard symptoms of low anxiety and feckless disregard found among many sociopaths. I will try to read the other articulations in full later.

  26. Standard. And poor Avatar
    Standard. And poor

    In the meantime, In professional practice I have always had my doubts about Chris Patrick’s triarchic concept of psychopathy, but I must concede that the GP articulations do seem to conform to the model.

  27. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    The Barbados Today onlines News is carrying a feature on their last page from that crooked son of bitch from the Barbados Labour Party Cline Clarke. Clarke the crook is asking for more perks for politicians.

    A veteran politician is suggesting that when Barbados’ economic fortunes turn around, parliamentarians should get increased benefits, including a hike in their pension and health insurance.

    Representative for St George North Gline Clarke also suggested that the eight-year minimum requirement for parliamentarians to qualify for pension should be lowered to five years.

    The Barbados Labour Party (BLP) MP told Barbados TODAY he believed the improved compensation was deserved, as he complained that too many politicians have made financial sacrifices to assist constituents but then themselves wind up in bad situations.
    Gline Clarke

    Gline Clarke

    Clarke said some of those people who had devoted their time and energy to the people who elected them were left in degrading positions, unable to survive on their “meagre pensions” and forced to rely on family members for financial support.

    “After spending so many years in here [Parliament], there should be something where parliamentarians can have a decent pension to live on comfortably. We don’t want to be rich. What we get is meagre . . . in terms of living from day to day, it’s really meagre,” he said.

    “I’m suggesting a system where, if you become a parliamentarian for five years, you be pensionable. There are some parliamentarians who serve for 25 years and at the end of that 25 years they have to remortgage their homes. Some of them have to pass on their mortgages to their children and they have to rely on their family,” Clarke lamented.

  28. Standard. And poor Avatar
    Standard. And poor

    An MRI might reveal cerebral lesions but even then the condition is almost entirely intractable. Not even talk-therapy is helpful with such patients.

    I’m marking time because I am away from my personal library. I will get to it in a matter of hours.

    In the meantime it is my professional opinion, based on a non-full reading of patient GP’s articulations, that he might pose a clear and present danger to himself and others. Some intervention by social services is strongly advised.

  29. Hants Avatar
    Hants

    @ SSS,

    I read that and was surprised.

    A pension after 5 years regardless of your performance ? Lunacy especially given the performance of Bajan politicians.

    If you work for 25 years and have to remortgage your house it is your problem.

    We all have to take responsibility for our actions. Instead of a Benz drive a corolla and invest the money you save.

    Mia needs a to have a conversation with her peeps and get them to focus.

  30. ac Avatar
    ac

    save wunna breathe yardfowls ac not one of the many who voted gor a hovt wiyhout vision and the abilty to spend money in projects that would guarantee stabilty and sevurity for. the coimtries economy…ac have a big problem with people who can.t handle their. finannces no matter how much money they have been given..anf that can be attached yo a fourteen year blp govt.ac could not care less how winna blp yard gowls feel wunna steer the ship and now want to distance wunna self from some of the inherited causes.giving self serving sutions to sell..sell.sell.

  31. David Avatar
    David

    @Hants and SSS

    Has the monies for approving minibus licenses runout?

  32. PLANTATION DEEDS FROM 1926 TO 2014 , MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS OF BARBADOS, BLPand DLP=Massive Fruad Avatar
    PLANTATION DEEDS FROM 1926 TO 2014 , MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS OF BARBADOS, BLPand DLP=Massive Fruad

    http://www.cbc.bb/cbcbarbados/index.php/business/item/3497-private-sector-and-bcci-worried-about-downgrade

    LISTEN TO THE LONG TALK , COVER UP TALK , SUCKERS TALKING TO FOOLS , KEEP TALKING TO AND SEE IF RAIN WILL COME UP.

    LAND LAND LAND , DEEDS DEEDS DEEDS, CLEAR CLEAR CLEAR – TITLE TITLE TITLE , FRAUD FRAUD FRAUD ,STAY ON THE SINKING SHIP AS THE CAPTAIN HAVE ALREADY LEFT,

    NO Clear Title , No Audit, No fixing , No telling the truth ,
    NO Economy ……Fraud will not stand or be held up by white people with money , for CROOKS , LIARS , SCUMBAGS,
    THESE NIGGERS WITH PIMP TITLES THINK, THEY CAN FOOL THE WORLD, The Bankers and the World just watching to see how far the DBLP government will let Barbados slide to JUNK TO THE 9TH POWER

  33. are-we-there-yet Avatar
    are-we-there-yet

    SSS;
    Somebody mussah put something in de water dey was drinkin in parliament yesterday. Bare foolishness!

    Hants;
    Perhaps she should ban them all from speaking in public except from scripts which she provides, LOL. And, by the way, what does the equally ridiculous comments by the PM about the political class and the dirtiness of politics and his relishing it, and his silence on the downgrade, inter alia, tell you about him?

  34. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    I am not so familiar with the skulduggery of this BLP crook. But I do know a few things about the son of the bitch that entitle me to call him a crooked bitch. Maybe David, he is feeling hard times because he gave away the money to the women. Now that his luxuries are diminishing, catching at straws seem to be the only alternative left. So why not at this juncture make a desperate plea amidst the harsh economic times and massive layoffs. Maybe the nonsense that the other idiot who is Prime Minister spew out of his mouth in parliament yesterday or today gave him the motivation to come forward and put forward this obvious piece of self interest. My summation of Mr. Cline Clarke — A BASELESS INSENSITIVE CUNT.

  35. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    I concur with my boo AC with her partisan comments on this one, them lot on the other side have not blasted shame. Raise the age of pension for civil servants to almost 70 whilst this Johnny wants there’s after 5 years thieving tax payers money under the cloak of political service.

  36. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    @David

    Release my comment please. It is my democratic right to profane the crooked and corrupt and call them by the expletives that are fitting to their name and nature…RELEASE ME!!!!

  37. Hamilton Hill Avatar
    Hamilton Hill

    @ David. ..as per your post timed at 1:35pm, we are all in a quandary. Be that as it may, lets remain in such for fear of pissing off the Barbadian Intelligencia, for lets not forget that they are the ones who control free speech and are driven to do away with this blogging thing.

  38. Artaxerxes Avatar
    Artaxerxes

    Moody’s Investors Service for downgrading Barbados’ government bond rating to B3 from Ba3. The outlook remains negative. The three-notch downgrade reflects the following drivers:
    • Reinforcement of negative fiscal trends given (i) the increasing size of the fiscal deficit, which exceeded 11% of GDP in FY 2013/14, and (ii) our expectation of continued challenges to fiscal consolidation;
    • Increasing government debt ratios projected at above 100% of GDP by FY 2014/15, coupled with elevated short term debt issuance and gross financing needs in excess of 30% of GDP in 2014 and 2015;
    • Moody’s expectation of a decline in international reserves this year, due to large current account deficits and weaker private sector inflows;
    • Central bank financing of the fiscal deficit that will increase pressure on the country’s currency peg to the US dollar.

    We should pay particular attention to Moody’s concern about the Central Bank’s financing of the fiscal deficit. Essentially, governments usually finance their deficits by levying taxes or issuing bonds. Bond issuance has either a direct or indirect influence on monetary policy, while taxation has no effect. Recently, government has embarked upon excessive issuance, which will eventually worsen the government’s future fiscal condition. This will result in the Central Bank being forced to acquire government bonds, resulting in the independence of monetary policy being compromised.
    This monetary financing involves the resort of governments to the Central Bank’s resources, in other words the issuing of new money in order to finance the surplus of public expenditures generating budget deficits.

  39. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    Also when you read Clarke’s justification for his assertions you can tell that he is one who is a complete stranger to the truth. If he can bring the proof of any politician remortgaging their house(s) i will cut off my hand and eat it. Even Hammy La, who to me, is the poorest of all politicians got something out of his ‘Several Years” reign. Clarke your tongue wags like the pitch fork of the devil. You and Fruendel Stuart definitely got something in common.

  40. lemuel Avatar
    lemuel

    Standard and Poor:
    Throwing around jargon does not make you a trained professional or a trained professional would come here based on mutterings and proceed with a FULL diagnosis!! That makes you a psycho babbler!!!

  41. enuff Avatar
    enuff

    So Bushie what is the intent of your BBE if not better membership?

  42. lemuel Avatar
    lemuel

    Artaxerses:
    I understand your commitment but the DLP is not and shall not listen. Tell Mia and her POLITICAL CLASS crowd to start the marches, when the marches become in full swing and some of the political class get their ASSES bust in by the POLICE, then poor people like me can come out not the other way around.

    By the way, poor people have nothing to gain when the shit hits the fan, most of the political class have access to the US or Europe; all of we poor people must stand here and smell the SHITE!!

    People Mia talking SEDITION!! Who wid we!!

  43. ac Avatar
    ac

    arterexes u calling me igrunt..how about mia igrunt solutions calling fuh marchesand u call me igrunt. for forming an opinion that is factual

  44. David Avatar
    David

    @Hamilton

    It is no secret to some that money was made to zhave minibus/zr liscenses approved by passing a buck below the desk. Several MoPW from both sides.

  45. lemuel Avatar
    lemuel

    David:
    In the case of the ZR and Mini Bus license, most of them are now owned by Indians. If you do not believe me ask Pandoor who ran against Billie Miller in the City.

  46. Artaxerxes Avatar
    Artaxerxes

    lemuel | June 4, 2014 at 2:35 PM |

    “Tell Mia and her POLITICAL CLASS crowd to start the marches, when the marches become in full swing and some of the political class get their ASSES bust in by the POLICE, then poor people like me can come out not the other way around.”

    I’m sorry sir, but I cannot tell “Mia and her political class” anything…. I am neither a member of supporter of the BLP or the DLP. I contribute to this blog, independent of thought and party.

  47. Bush Tea Avatar
    Bush Tea

    @ Enuff
    Righteous character.

  48. lemuel Avatar
    lemuel

    Artaxerxes:
    Well tell Miller to tell Mia then!!!

  49. Artaxerxes Avatar
    Artaxerxes

    lemuel | June 4, 2014 at 3:56 PM

    Don’t waste time asking anyone to tell Mia anything. The BLP’s number is in the phone book, they have a website and a postal address, use these media to send your message.

    I certainly will use similar media to ask Freundel to tell us about the recent downgrade.

  50. David Avatar
    David

    The following document was sent to give another view of the role of credit rating agencies:

    Credit Rating Agencies Reducing reliance and strengthening oversight

The blogmaster invites you to join the discussion.

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