96 responses to “Governor DeLisle Worrell Warns Foreign Reserves Continue to Fall”

1. 

   Bush Tea

   January 8, 2017 at 10:10 pm

   
   

   @ Snusmas
   These two have made a deal with the Devil and have common objectives. Neither will work after politics.
   +++++++++++++++++++++++++++++++++++
   Boss, typically after such ‘deals’, they will neither work after politics, …or play…
   Their mentor David T was much more astute than all of them put together, and thought that he had an ironclad ‘deal’ too…..
   Bushie has reached the stage where he just feels pity for such idiot ‘dealers’.

   As another ‘David’ put it…
   Fret not thyself because of evildoers,
   neither be thou envious against the workers of iniquity.
   For they shall soon be cut down like the grass,
   and wither as the green herb

   In Bushman lingo…
   Let dem keep on thieving…. brass!!
   …and doan bother to wail..
   Cause their ass will soon be grass
   when Karma puts her whacker in their tail…

   Loading…
2. 

   Bush Tea

   January 8, 2017 at 10:45 pm

   
   

   Is Hal serious with his question?

   Barbados currency is akin to a village in Chalky Mount deciding to adopt ‘broken ceramic plates’ as their currency of trade among themselves….because lots lie around the place.
   This is all fine and well in Chalky mount if there are exchanging local fruit and clay pots, and rewarding their kith and kin etc.

   When they want to buy stuff from ST George and St Thomas however, where no one wants their shiite currency, it is ONLY by pointing to REAL REAL money that they have – in a REAL bank somewhere, that anyone will take them seriously.
   Such funds are accumulated by some residents who are working for REAL money, while the other residents are mekking shiite sport with their mock money.

   The problem, with adopting REAL money instead, is that your WORTH is then judged by your productivity vis a via other persons in other jurisdictions WHO ARE PRODUCTIVE.

   …and there is NO way that our shiite public sector army of occupation could justify their salaries in US dollars without being subsidised by the few productive private sector workers AND BY UNENDING GOVERNMENT LOANS.

   It is BETTER by far to legislate an across-the-board 20% wages and salary cut, ….but, (brass bowls that we are,) we have instead, legislated that option away….

   Jackasses never cease to amaze…..

   Loading…
3. 

   nineofnine

   January 8, 2017 at 10:57 pm

   
   

   @ Well Well & Consequences

   My thoughts on Barbados adopting the US dollar as the currency of the realm…dictates a wait and see position, from what is developing on the world stage.

   The USA dollar is as strong as it ever was though figures and reports do reflect differently.
   Expect change.

   President-Elect trump has won the election which is an election process of The United States Corporation Inc, (a French registered company). This Corporation will be dismantled in the very near future and replaced by THE REPUBLIC OF THE UNITED STATES OF AMERICA. President Trump will resign and new elections will be called. He will win AGAIN.
   He will usher in the new currency which will be of even greater value than what it is now, bringing benefits to every living person on the face of the planet by a system/economic entitlement termed NATIONAL ECONOMIC SECURITY and REFORMATIONS ACT… (N.E.S.A.R.A.) . THIS ACT is already formulated and in place. All systems AND countries are abreast of and await its initiation. All new currencies are already printed and in place with real gold and precious metals as its backing. (Not fiat instruments).

   N.E.S.A.R.A. must be initiated by the Republic of the USA.

   Trump is being bashed by opposing forces. Lay aside this onslaught for his purpose has been duly prepared for this cause for he will alieve the world of debt as fore-ordained by The Royal Families of Antiquity. It matters not whether you accept this or not. It is eminent.

   Disclosing this initiative, will it matter in the very near future whether we adopt the US Dollar as the currency of the realm? Maybe we should, although we as well as all nations and people will be debt free and enriched. This is the new beginning and we may be all on equal footing as it relates to status of economies. Pass events curtailed its implementation..(the assignation of Kennedy and 911), yet it is eminent

   Also on the world stage, we see the BRICS Alliance on the move to counter the strength/dependence/use of the USD. With $100b pooled in contributory reserves, there is still much to be done for membership must increase to really have a greater effect, This alliance to me is a mare facility for lending of which Barbados has also aligned itself. Subject to correction, $80m was the membership fee.

   Also to watch is the Chinese economy, it may be termed the dark horse for global dominance, but they too are having issues economically though their expansion is something to watch as we see they are mining Africa, holds a substantial percentage of economic business (Corporate) in the USA as well as in many countries worldwide, Though their footprints are expanding, they will need to build many more allies in order to be effectively regarded as a global consideration.

   The European Block has nothing to offer as they are currently being destabilized for ruthless ulterior motives. This also includes the British pound.

   So evaluating current conditions and near future edits, I would say we should .

   @are-we-there-yet January 8, 2017 at 6:37 PM #

   “Conspiracy Theory” was a term coined by the CIA to thwart the truth, so too is the term “FAKE NEWS”.
   The same fake news will return to haunt you… its only a matter of time.

   Loading…
4. 

   Alvin Cummins

   January 8, 2017 at 11:17 pm

   
   

   David,
   Solution 1. Buy fewer vehicles. Thus use less fuel, oils, parts etc.
   2. Import less.Tighten the belt tighter. Pay more attention to your needs and not your wants.
   3. Buy more bonds (Government)
   4. Encourage more visitors.
   5. Grow and consume more locally produced products, and consume more agricultural commodities.
   6. Be more contented with what you have

   Loading…
5. 

   Well Well & Consequences

   January 9, 2017 at 2:48 am

   
   

   Nine of nine, it’s a wait and see.

   Loading…
6. 

   Hal Austin

   January 9, 2017 at 3:27 am

   
   

   Bush Tea,

   Yes. It is a serious question. I am sure the people in Chalky Mount are decent people, but what is the economic case for a mountain of foreign reserves in the present global economic architecture?

   Gabriel,
   You are more right than you might have intended. Look at those countries that have adopted the Greenback as their legal currency. In fact, in Barbados it is already unofficially so, you can use US dollars as your currency when in Barbados; US dollars are also used as a tool to shift capital from Barbados.
   The problem with this is that it takes monetary policy out of our hand and puts it in Janet Yellen’s, which by pegging is already the case.

   Loading…
7. 

   charles skeete

   January 9, 2017 at 6:01 am

   
   

   “BRIDGETOWN, BARBADOS, CMC – ECONOMIC Affairs Minister Dr David Estwick says the economic situation in Barbados is so bad that there is need for a wage freeze and the sale of state assets to help the government ride out the situation.”

   As far as I am aware public workers have not had an increase since 2009 so there has been in effect a wage freeze which does not appear to have assisted Government in their efforts to arrest the situation.

   Loading…
8. 

   David

   January 9, 2017 at 6:03 am

   
   

   He is obviouslytalking about a wage freeze across the board both private and public.

   Loading…
9. 

   Bush Tea

   January 9, 2017 at 7:47 am

   
   

   @ Hal
   There is a need for a mountain of foreign reserves (a large Chalky Mount bank account) because the brass bowls are addicted to imports from St George and Christ Church. They apparently CANNOT live without such luxuries as BMWs, imported fruit and wines etc. Even to fix potholes requires FOREX, since they cannot be bothered to develop local approaches to solving even basic problems.

   Adopting the FOREX as their default currency is UNTHINKABLE.
   ..Local politicians cannot then manipulate the money supply….
   ..Earnings would be tied to actual productivity (by international standards)
   ..The whole order of society would then be based on MERIT – shiite man!! ..we can’t have THAT!

   In short, it would become VERY difficult for politicians, lawyers and other low life scammers to maintain the kind of society where shiitehounds who contribute little, are able to reward themselves handsomely with ‘cut plate currency’ ..and to then glibly convert that to FOREX ..to acquire real worth for their albino-centric desires.

   If you think the grand-master-crooks in society will give that up (.. or that the brass bowls who they are exploiting will ever realise that they are being played…) then good luck to you boss.

   Loading…
10. 

    Piece Uh De Rock Yeah Right – INRI

    January 9, 2017 at 7:54 am

    
    

    .A den of thieves…

    There are and continue to be many here who, even in the face of the obvious, continue to believe, erroneously that

    a.there will be a modicum of recovery under any administration that is run by, or composed of ANY one of the DLP read Donville or Estwick – You have seen what any one of them is capable of and it is faeces

    b.There are others here who, (i) even in the face of the obvious ineptitude of this administration through its criminal cohorts, (ii) even with the daily evidence of diminishing forex (iii) exacerbated tenfold by a pervasive miasma of death of requisite innovative thought and a dearth of any strategies whether in food substitution/growing our own/collaborating with Guyana to grow our own**, generating income in traditional areas read tourism or other areas.

    When anthropologists or them bright menses dat does study societies speak to the seeming disproportion between poverty and “breeding nuff chilrun” they speak to a what a gambler might call “Point spreads or even money propositions.

    These fellers say that with nuff chilrun the parents in these dire socio-economic circumstances arrive at the notion that nuff kids means that one going get out and IF ONE GET OUT THEN ALL GET OUT.

    But his is a coolie concept read, it works for different ethnicities other than for black people.

    Notwithstanding that self denigration comment “in the Castle of My Skin” de ole man puts it to you that with 16 DLP ministers (and the other clowns that have been appointed but did not face the polls) WITH 16 horses or is that donkeys, more like waste foops, in 8 years the cuntry has been unable to even field 1 person in that assembly of jackasses that has been able to make a difference IN ANY EFFING THING.

    Now the Honourable Blogmaster hath posited elsewhere that Pornville is safe but and de ole man is a sorta-reader of characters read guesser, de bajans in Pornville’s cuntstituency (and it has to be a cuntstituency since a king ruleth over a kingdom, a duke over a dukedom that it follows that a cvunt rules over a cuntstituency) dat he got it “lock down”.

    But de ole man respectfully submitteth that ALL DEM AS*ES IS GRASS and every single on of them is seen as being the reason that the country has all these potholes, all this crime (and violence) all this employment disruption/unemployment

    These men are not in the category of Josephs who would have shorn up the granaries for the lean years but they are seen as the rodents and rats that came in the full light of day, while the Bajan populace was awake and teifed the resources of the country.

    $5 million dollars fuh my dead mudder, nuff millions at the Grotto, more millions at all the Housing projects, even more at the Barbados Water Authority, several millions more at MTW and the transport board WHEREVER YOU GO TEIFERY!!!

    Worrell was out of his depth for a lonnnnnggggggg time long before we say him doing this sort of buffonery depicted below.

    Loading…
11. 

    Hal Austin

    January 9, 2017 at 8:24 am

    
    

    Bush Tea,
    I agree with you. People are living above their means. I have previously pointed to people on moderate salaries trying to live the life of Riley.
    But the imports only cover the current amount balance; what is the economic argument? Bush, I will argue that most people who talk about foreign reserves, including economists like Frank Alleyne, do fully understand the economic argument.
    It is a consensus view they were first told as students and repeat like parrots from their student notes to generation after generation of students. Get DeLisle Worrell to tell you about the economic case for foreign reserves, or that economic illiterate Chris Sinckler.
    It is like talking about the classical gold standard in these new times.
    Bush, we have car dealers offering 100 per cent loans to buy new cars. Where is the regulator, the central bank, the minister of finance?
    To restrict this will not infringe WTO rules. I suggest corruption is at play. Another example, this time a failure of education: why do people want big gas-guzzling SUVs when they cannot pay their bills?
    It is all based on the fraud that Barbados is a developed country; a country that cannot even supply water to large sections of society, even if the owners of golf clubs can continue to water their courses; even if people can continue to wash their cars.
    We are badly governed, and have been for the last 50 years? But like alcoholics we must first admit that truth.
    In the meantime, Bush, you or any politician can still advance an economic argument for large foreign reserves in contemporary society.

    Loading…
12. 

    Bush Tea

    January 9, 2017 at 8:40 am

    
    

    @ Hal
    I agree with you. People are living above their means.
    +++++++++++++++++++++++++++++++++++++++++++
    It is not possible to agree the above with Bushie…. since the bushman actually believes that we are producing BELOW our capabilities. Bushie knows of the unimaginable capability of the human spirit…… and, painfully, of the abject brass bowlery that currently prevails.

    The above apart, you fail to appreciate that the ONLY reason these jokers can get away with the shiite that they are doing is by ‘fronting’ a large bank account to our external creditors as assurance that they are likely to be paid for the goods we want – but CANNOT afford -(because we are lazy and unproductive – not because we should not desire good things)

    …and don’t waste time asking Worrell one shiite.
    Did you see that video of him trying to explain the currency exchange tag? the old emperor had no damn clothes…
    It is obvious that Froon keeps him and Stinkliar in place so that as PM he would be the smartest of the lot – although he clearly has no clue….

    Loading…
13. 

    Hal Austin

    January 9, 2017 at 8:42 am

    
    

    current account……..

    Loading…
14. 

    Artax

    January 9, 2017 at 10:49 am

    
    

    Hal Austin January 9, 2017 at 8:24 AM #

    “Bush, I will argue that most people who talk about foreign reserves, including economists like Frank Alleyne, do fully understand the economic argument.”

    @ Hal Austin

    How is it that economists do not fully understand the economic argument about foreign reserves, but you do?

    Your argument re: “It is a consensus view they were first told as students and repeat like parrots from their student notes to generation after generation of students,” could be applied to subjects such physics, agricultural science, mathematics, chemistry, biology, Spanish or French.

    Explaining foreign reserves is beyond the scope of this forum for reasons of the complexity of the issue and space, because such an explanation would be lengthy due to the number of variables that must be explored. However, I will try as much as possible to stick to the basics so as to avoid the use of too much theory.

    Firstly, you must get past the mindset that foreign reserves are held specifically to facilitate the purchase of BMWs, Mercedes Benzes or to support exorbitant life styles.

    We must appreciate that keeping foreign reserves supports the economic model under which Barbados has been operating over the years. Successive administrations have MAINTAINED a FIXED EXCHANGE RATE monetary policy, pegged not to the £, €, or ¥, but to the US $, at an exchange rate of US$1 = BD$2. Therefore, since the dollar has not been devalued or floated, Barbados holds foreign reserves to support its exchange rate policy.

    You must also take into consideration that the US$ is the MAIN INTERNATIONAL MEDIUM of EXCHANGE. Similarly to how individuals “hoard” US currency because they are travelling to other countries that do not accept Barbadian currency and where the US$ is readily accepted, Barbados cannot use BD$ in the international markets to finance trade, purchase of goods and services, service debt, etc., and must have foreign reserves to undertake these activities.

    If the Barbados dollar was devalued or floated, then the country would have to change its economic model and pursue alternative, “compatible” economic policies. In a floating rate system, the exchange rate is determined directly by the relevant market forces of supply and demand, and is liable to fluctuate continually, as dictated by changes in market conditions. Although governments may not be keen on moving to floating the dollar, a floating rate system has many advantages, such as its relation to international economic stability, economic policy and the balance of payments and increasing the effectiveness of monetary policy. However, this is a topic for a different discussion.

    Foreign reserves are also held to provide markets with the level of confidence the country can support its debt servicing capacity or meet its external obligations; maintain a reserve for national disasters or emergencies; to provide a policy option if the country experiences serious liquidity problems in its foreign exchange market (foreign exchange markets have the potential to become unstable during economic shocks). There are also other considerations that I would not go into at this point.

    Loading…
15. 

    Hal Austin

    January 9, 2017 at 11:06 am

    
    

    Artax,
    A simple example. Financial economics are different to academic economics. When I was a little boy a car mechanic was a totally different beast to one today. Modern mechanics work with computer on wheels.
    One advantage I might have had, compared to people like Frank Alleyne, is that I worked through the crisis – eight hours a day, seven days a week, nearly 52 weeks of the year.
    This included listening and learning from people at the sharp end – and occasionally making a small contribution.
    No matter how much you read and study a subject, unless yo have some practice you tend to miss some of the details. Financial economics is an applied skill.
    With humility, I mention out of modestly that in 2008, I was awarded the Association of British Insurers Lifetime Achievement Award for reporting on the build up to the crisis. The year before I won the life insurance and investment award.
    It was this observation that led to my founding the MA in Financial Journalism at City university.
    When I speak I do not do so from any expert knowledge, but from a body of accumulated information gained from talking to real experts.

    Loading…
16. 

    NorthernObserver

    January 9, 2017 at 11:36 am

    
    

    @Artax
    Austin poses some interesting questions.
    Why is the “accepted” cover 12 weeks and not 4, 8 or 16? In the 90’s didn’t Barbados slip well below 4 weeks at one point.
    Why is the peg 2:1 and not some other ratio?

    It would seem much of this is based on faith, trust and confidence? And the real issue is not the exact amount of forex in reserve, rather, other financial measures as it relates to other sovereign debt and operations, and our ability to cover those costs.

    In one breath the MoF tells us he is expanding our internal borrowing capacity by $1 Billion, and in the next we are told the BRA is owed $1 Billion (without mention of its ageing). And the BIDC owed another whack in upaid rents.

    Hence why the GoCB referred specifically to FISCAL measures/policy?

    Loading…
17. 

    Hal Austin

    January 9, 2017 at 12:13 pm

    
    

    The problem is learning by rote, rather than putting on your critical faculties. The principal reason we stockpile foreign reserves is to hedge against an unlikely event ie bird flu, a serious hurricane, etc. and the reserves would provide with a means of meeting our outstanding debt.
    I have in front of my a copy of the Radcliffe report as I type. The arguments about foreign reserves are just a more recent one similar to the classical gold standard argument, and a century before that, the debate between the so-called Currency School and the Banking School, with the Currency School arguing that only notes and coins were good enough as real money, while the Banking School argued that deposits etc were also genuine money. We now know the Banking School won that argument.
    Barbados has not had what insurers call a once in 200 years event since Sept 22, 1955. Why are we saving Bds$1bn in a warehouse when it could be better used in these tough economic times.
    A better way of managing our foreign liabilities is through a rolling programme of quarterly hedging, in that way we will be guaranteed having the funds to cover any emergency costs, while having the freedom to use the money.
    I appreciate there is a limit to local expertise, but that can be bought in. Instead we have an unofficial policy of Barbadianising every senior position, no matter what the quality of the person.
    Credit is the oxygen of our financial system, which is being starved by the foreign-owned banks. It is the job of government to ease this logjam. Use $50m out of the $1bn to establish a post office bank, meeting the needs of households and small businesses.
    Let the credit unions establish a joint credit union bank; the truth is our politicians are ignorant of banking and financial engineering and do not trust any policy implementations that they cannot control. They will feel redundant.
    Monetary policy is about the control of borrowing and lending, ie the central bank; while taxation is that of the minister ie fiscal policy.
    What has happened is that this government has destroyed our international line of credit through its profligate borrowing and increasing debt to GDP, which is now one of the worst in the world.
    What are the liquid reserves? If you want an idea of how much the central bank is out of it, just apply the rule of 70 to their fantastic growth predictions. If we took the exaggerated 1.5 per cent projection, it will take us nearly 47 years to double the economy.
    Compare that with the projected 5 per cent aggregate growth for the region, giving them 14 years in which to double their growth. In other words, in simple terms, the region will outgrow us a minimum of three times.
    Apart from the unpredictable event, the other main reason for reserves is to re-balance the current account in cases of capital flight or sudden hikes in commodity and/or service charges.
    But fluctuations in capital movements are nothing new to Barbados, that is why despite claims to be a small open economy we still have strict exchange controls.
    The truth about accumulating foreign reserves is that we have always done it that way. I am sure that is what Chris Sinckler was told during his course on international trade at Cave Hill.
    We need a new paradigm, a new mindset, a new way of thinking, but the old guard is keeping out new ideas.

    Loading…
18. 

    Artax

    January 9, 2017 at 1:04 pm

    
    

    @ NorthernObserver

    “Why is the “accepted” cover 12 weeks and not 4, 8 or 16?”

    One of the reasons why countries have foreign exchange reserves is to limit external vulnerability by maintaining an adequate amount of liquidity to absorb external shocks during an economic crisis or when access to borrowing is curtailed.

    The 12 weeks is a calculated ratio.

    Reserves have shown to generally increase as a ratio of imports of goods and services. This ratio is used as an indicator of the country’s current account vulnerability and a common rule that a ratio of 3 to 4 months of foreign exchange reserves is considered adequate for the country to cover its imports or all external short-term debt.

    +++++++++++++++++++++++

    In the 90’s didn’t Barbados slip well below 4 weeks at one point.?

    Yes, “in the 90’s Barbados slipped well below 4 weeks at one point.” According to IMF international financial statistics, Barbados’ reserves in 1991 went to 1.139 month; 1991 – 2.259; 1993 – 2.08; 1994 – 2.472; 1995 – 2.294; 1996 – 2.812; 1997 – 2.262 and 1998 – 2.983.

    Loading…
19. 

    David

    January 9, 2017 at 1:08 pm

    
    

    @Hal

    One billion in foreign reserves? That is a number from the past. Bear in mind also we have borrowed when the market rate was low to shore up reserves. The inflow was not linked to real growth.

    Artax can confirm.

    Loading…
20. 

    Hal Austin

    January 9, 2017 at 1:17 pm

    
    

    David,
    It is a rounded number. Common in financial mathematics.

    Loading…
21. 

    NorthernObserver

    January 9, 2017 at 3:46 pm

    
    

    @artax
    Thank you.

    So while the forex reserves have been slipping, that is of concern but not the primary issue.
    That issue is our overall DEBT load, which is taking a larger and larger bite out of our revenue annually, and also growing because we continue to spend more than we are taking in. This in itself limits our ability to borrow beyond our shores.

    What about our continued inability to collect taxes owing, land, VAT, income etc? Doesn’t this suggest, the citizens, like their government, are using borrowed money (unpaid taxes) to live on? This exacerbates the public accounting issues.

    Loading…
22. 

    David

    January 9, 2017 at 3:55 pm

    
    

    There is also pressure of domestic spending on the reserves as well. This places pressure on the foreign reserves. This is why the printing of money has come in for tongue lashing from all and sundrysundry including the IMF.

    Loading…
23. 

    charles skeete

    January 9, 2017 at 7:36 pm

    
    

    “David January 9, 2017 at 6:03 AM #

    He is obviouslytalking about a wage freeze across the board both private and public.”

    Are you nuts? Sure the private sector would definitely like that but how can that be achieved without the connivance of the BWU and Unity and would you think the Government would be so stupid to alienate such a large proportion of the voting public. And do you not think a public sector wage freeze would stagnate rather than stimulate the economy? I am not an economist so I just asking.

    Loading…
24. 

    Artax

    January 9, 2017 at 8:47 pm

    
    

    @ NorthernObserver & David

    Many reasons could be attributed as to why Barbados’ “forex reserves have been slipping.”

    Despite what government would want us to believe, it is clearly evident investor confidence in the stability of Barbados has declined, mainly due to the consecutive credit rating downgrades. When this occurs, investors will engage in “capital flight,” i.e. they will take their money out of the country by converting the proceeds from the sale of their domestic currency investments into foreign currency.

    Government cannot continue to defend the exchange rate, in terms of political and economic factors, as well as the decline in foreign reserves.

    Loading…
25. 

    Artax

    January 11, 2017 at 12:09 am

    
    

    https://www.barbadostoday.bb/2017/01/10/another-downgrade-for-barbados-2/

    Loading…
26. 

    David

    January 11, 2017 at 4:45 am

    
    

    Want to bet that CariCRIS will be dismissed as a regional fly weight entity?

    Loading…
27. 

    Hal Austin

    January 12, 2017 at 3:21 am

    
    

    Since 2008 I have been calling for a de-pegging of the Bajan dollar and fixing it against a basket of currencies and commodities. I was poopawed. Now it is getting serious currency. H|ad that happened years ago the economy would have been in a much better position.
    I blame Sinckler and Worrell, tweedledee and tweedledum.

    Loading…
28. 

    Bajanfuhlife

    January 12, 2017 at 6:21 am

    
    

    Peter Wickham , Mia Mottley’s political advisor told her “do not offer any SPECIFIC solutions” to any issues in Barbados. Notice the word SPECIFIC.
    Wickham’s memo includes the need to say cut spending but never say where so as to avoid any of the political fall out because the only place left to cut is WAGES and SALARIES or go and beg your creditors for an ease with the repayments which they most likely will not give and which would cause further panic in your financial system. So Mottley was advised to use buzz phrases like “spending can be drastically reduced with a little creativity”,lol, etc.

    Hence the BLP smokes and mirrors will continue as they try to push a narrative that they have some magicians who will find miraculous solutions to everything in Barbados with a bunch of recycled MPs like Trevor Prescod and Glyne “wuk fa wuk” Clarke and a few others that do not have a damn clue . Just give the BLP power and manna will start to fall from heaven, millions of taxpayers dollars will appear, tourists who were sitting in Europe waiting for a BLP administration will decide to take a vacation and spend like crazy.

    No wonder Peter told her not to be specific, just throw out the bait and let the fish bite. Bajans are more intelligent than Peter Wickham and his Mottley crew believe.

    Loading…
29. 

    David

    January 12, 2017 at 6:44 am

    
    

    It doesn’t matter who won’t say where to cut we will have to find where just not given the state of public finances.

    Loading…
30. 

    Artaxerxes

    January 12, 2017 at 9:38 am

    
    

    Hal Austin January 12, 2017 at 3:21 AM #

    “Since 2008 I have been calling for a de-pegging of the Bajan dollar and fixing it against a basket of currencies and commodities.”

    @ Hal Austin

    Once again I must admit that there is merit in you above comment.

    I prefer to discuss these issues by using models to further explain the theory, but I cannot do so in this forum.

    As I mentioned in a previous contribution, Barbados has to pursue economic policies compatible with the economic model under which the island operates. And this includes monetary (exchange rate) policies that afford us the capability of maintaining the exchange rate peg.

    You are aware that, and against the background of rapidly depleting foreign exchange reserves, Barbados has been running persistent balance of payments and fiscal deficits while pursuing exchange rate/monetary policies to maintain the fixed exchange rate.

    Under the prevailing economic environment, continuance of these policies will ultimately lead to a currency crisis, whereby investors, after losing confidence in the country’s ability to meet its debt and other international obligations, will see their domestic assets in favour of foreign assets, (i.e. CAPITAL FLIGHT), which may have 3 results:

    1) A devaluation of the dollar
    2) Moving to a floating exchange rate
    3) Borrowing from organisations such as the IMF or entering an IMF program.

    Under a fixed exchange rate system, monetary policy has proven to be ineffective in influencing economic growth. While, in a floating exchange rate system, monetary policy could bring about a short-term decrease or increase in GDP, because it affords the Central Bank the ability to adjust policy to affect the economy’s macroeconomic conditions.

    If there is sluggish growth or a contraction of the economy, under a floating exchange rate system, CBB could increase the money supply in an attempt to spur GDP expansion.

    Barbados has been experiencing sluggish economic growth for the past 10 years. Under a fixed exchange rate system, the CBB cannot effectively increase economic growth by increasing the money supply. We have been increasing the money supply to finance domestic spending and the deficit. Hence, we may soon lose monetary autonomy.

    Loading…
31. 

    Commentator

    January 14, 2017 at 4:02 pm

    
    

    NEW YORK – Moody’s Corp has agreed to pay nearly $864 million to settle with U.S. federal and state authorities over its ratings of risky mortgage securities in the run-up to the 2008 financial crisis, the U.S. Department of Justice said on Friday. … The credit rating firm reached the deal with the Justice Department, 21 states and the District of Columbia, the Department said in a statement. The agreement comes two years after S&P Global’s Standard & Poor’s entered into a $1.375 billion accord with the Justice Department, 19 states and the District of Columbia over similar claims. Standard and Poor’s is the world’s largest ratings firm, followed by Moody’s – See more at: http://www.nationnews.com/nationnews/news/92460/moody-agrees-multimillion-dollar-settlement-us#sthash.pWcZ59l6.dpuf”

    Are these the Moody’s and S&P’s that persist in harassing little insignificant Barbados? The US government not only found Moody’s and S&P to be crooks and corrupt. The US government also deemed them cheats and fined them billions for misleading people. So much for the bandwagoners who jump and wave when Moody’s and S&P come to town to unfair little Bim.
    Fine the heck out of them USA………… USA !USA!USA!

    Loading…
32. 

    Vincent Haynes

    January 14, 2017 at 5:04 pm

    
    

    Commentator January 14, 2017 at 4:02 PM #

    So Moody and S&P are crooks……..who cares…….the world of business listens to them…..that is the bottom line…..so try and organise your affairs in such a manner that you do not need the business world……simple….can you do it?

    Loading…
33. 

    David

    January 14, 2017 at 5:17 pm

    
    

    What about CariCriS?

    Loading…
34. 

    Commentator

    January 14, 2017 at 7:28 pm

    
    

    Vincent Haynes January 14, 2017 at 5:04 PM #
    Commentator January 14, 2017 at 4:02 PM #
    So Moody and S&P are crooks……..who cares…….’

    Pure hypocrisy when the Canadian solar investors brought projects your kind protested that they were prosecuted in Canada and therefore not welcome. A similar fate awaited a number of foreign investors who fled and took their FDI leaving Barbados without a cent in sorely needed foreign exchange, The situation is the United States the world most powerful government have convicted Moody’s and S&P as criminals. They are therefore unqualified to judge little B’dos. There is the equivalency. Knock off your childish hypocrisy.

    Loading…
35. 

    David

    January 14, 2017 at 9:24 pm

    
    

    Commentator aka waiting

    Loading…
36. 

    Vincent Haynes

    January 15, 2017 at 8:41 am

    
    

    Commentator January 14, 2017 at 7:28 PM #

    When will you all learn that the world is not fair,those “crooks” control the decisions made by the lenders,so continue crying as no one is listening……..better to get up and start trying to solve these problems in the next 18 months if you know whats good for you.

    Loading…
37. 

    Violet C Beckles CUP

    January 15, 2017 at 6:03 pm

    
    

    http://epaper.barbadostoday.bb//launch.aspx?eid=bc6d1f24-5796-463c-9882-da1cdc6a2deb

    Once again SB, learn to Listen to CUP
    listen to the news cast
    then go to page 8 and 9
    listen to what MOF Sinkman say about IDB and land,
    When you read where the 60 million Dollars was to go ,
    Write down the names of the areas and what even plantation names you can see,
    Take notes this is real Life not a computer chart and no History.
    Living People , Humans , Who Live and DIE and need to Live Well in the middle of Life,
    Learn Barbados true History hidden and removed by crooks If you want to help the same people that you want Vote from , We did , We know , Catch up ,
    for right now we see you here to split the CUP Votes and to allow the DBLP or the BDLP to get back in , Know who your enemies are ,We have to clean out the Gully , Unless you are the back up of the DBLP Fraud government,
    We have all of what they said in this news cast that made it to much for the MOF,
    We I sat with him face to face in the UDC, He said, “We Do not pay twice” We told him he paid the wrong people,at that time it was over 90 Million paid out for fraud lawyers and fake land owners,

    He even used the word CLEAR TITLE , a term the lawyers of Barbados run from ,

    Loading…
38. 

    hindssight

    January 28, 2017 at 3:22 pm

    
    

    Hi Hal Austin You stated
    “Since 2008 I have been calling for a de-pegging of the Bajan dollar and fixing it against a basket of currencies and commodities.”

    Loading…
39. 

    NOT A YARDFOWL

    February 20, 2017 at 6:41 pm

    
    

    imagine that not even an entire year has gone yet since MAM brought a no confidence motion againt the CBG and look what unfolding now. What these bunch of Political mishaps that call themselves the Deceitful Lied party will blame this on. The self inflicted blows they gave our economy. How much of the people money they got in offshore bank accounts. Lord help this small Island before it SINK.

    Loading…
40. 

    lawson

    February 26, 2017 at 2:11 am

    
    

    whats the basket of currencys…the iranian rial the rupiah the dong the kwacha lol

    Loading…
41. 

    Well Well & Consequences Observing Blogger

    March 3, 2017 at 3:43 pm

    
    

    http://bit.ly/2m3RkJv

    Lawson….. look, jokes cant done..lol

    Loading…
42. 

    Well Well & Consequences Observing Blogger

    March 3, 2017 at 3:47 pm

    
    

    Hal mis-spoke…lol

    It totally makes no sense.

    Loading…
43. 

    Well Well & Consequences Observing Blogger

    March 3, 2017 at 3:53 pm

    
    

    http://www.independent.co.uk/news/world/europe/europe-visa-free-travel-americans-european-parliament-vote-a7609406.html

    I totally agree with EU to restrict travel for Americans, they should not be the only people allowed to travel so freely when millions of their citizens are among the most violent.

    “The European Parliament has voted to end visa-free travel for Americans within the EU.

    It comes after the US failed to agree visa-free travel for citizens of five EU countries – Bulgaria, Croatia, Cyprus, Poland and Romania – as part of a reciprocity agreement. US citizens can normally travel to all countries in the bloc without a visa.”

    http://www.independent.co.uk/news/world/americas/us-politics/jeff-sessions-recusal-special-prosecutor-more-likely-russia-donald-trump-links-a7610056.html

    Look Lawson…exactly what we wanted..

    Loading…
44. 

    Hal Austin

    March 3, 2017 at 3:56 pm

    
    

    Hindsight,

    Yes. Since the crisis In my Notes From a Native Son.

    Loading…
45. 

    Hal Austin

    March 3, 2017 at 3:57 pm

    
    

    Lawson,

    Certainly not the Canadian dollar. The trouble with this forum is that one has to repeat the same thing for every new voice. I can’t be bothered. Get hold of Notes….

    Loading…
46. 

    Hal Austin

    March 3, 2017 at 4:33 pm

    
    

    Artaxeerxes,

    I have also called for the government to abandon the popular consensus of foreign reserves and opt instead to play the currency futures market to meet the requirements of any shocks – what insurance companies call a once in a 200 year event.
    Even David likes talking about foreign reserves. I think the mantra of foreign reserves have got hold because it has been taught at Cave Hill for decades by people like Frank Alleyne, regardless of the changes in global finance since the 1980s.

    Loading…