Est.2007

Barbados Underground

Bringing News and Opinions to the People

Downgrades …16,17,18,19 -Moody’s Credit Rating Condemns Barbados Bonds to the Ultra-High Yield Club

← Back

Your message to the BLOGMASTER was sent

CONTACT THE BLOGMASTER ONLY

Read full article: Ultra-High Yield Club Gets a New Member as Barbados Bonds Slump

We have had experts and commentators from Barbados and afar opined that the battery of credit rating downgrades levied on Barbados by the international credit agencies will add to our economic woes. Fighting to defend our peg to the US dollar becomes harder because running hard deficits as a net importer translates to pressure on the foreign reserves.

Barbadians everywhere EXCEPT yardfowls and Prime Minister Stuart believe there is no reason to be concerned. If one surveys the graph above  it is obvious Barbados bondholders are very concerned. Surely the conversation will now move to flight of capital.

Will somebody tell the prime minister to shut the hell up?

 

Discover more from Barbados Underground

Subscribe to get the latest posts sent to your email.

269 responses to “Downgrades …16,17,18,19 -Moody’s Credit Rating Condemns Barbados Bonds to the Ultra-High Yield Club”

  1. Own Area Avatar
    Own Area

    I want both FS and CS deported, and I real real serious.

  2. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    “In fact, it went as far as to warn international creditors that even though it was currently maintaining a stable outlook on its Caa3 rating, there was “a high probability” of a credit default by the island within the next two to three years.”

    The rating agencies made that statement very clear to Barbados’ CREDITORS…..I think that is the part arrogant Fruendel and Sinckler are missing.

    I wont want to see either of them waltzing around the island after insulting the people’s intelligence at that level…, these titles go to the minister’s heads rendering them stupid and non functional.

  3. Alvin Cummins Avatar
    Alvin Cummins

    Well Well &Tron,

    GDP per capita (PPP basis, US$): 16,670 (2015 Actual) (also known as Per Capita Income)

    Real GDP growth (% change): 1.6% (2016 Actual) (also known as GDP Growth)

    Inflation Rate (CPI, % change Dec/Dec): 1.7% (2016 Actual)

    Gen. Gov. Financial Balance/GDP: -8.2% (2016 Actual) (also known as Fiscal Balance)

    Current Account Balance/GDP: -4.6% (2016 Actual) (also known as External Balance)

    External debt/GDP: [not available]

    Level of economic development: Low level of economic resilience

    Default history: No default events (on bonds or loans) have been recorded since 1983.

    These are the important parameters to examine, and the last line is the most important..

    Barbados has not defaulted since 1983; over thirty three years ago.
    Growth is 1.6%
    Current account balance is -4.6% of GDP.
    Inflation rate 1.7%

    Why then are people being advised to panic; over what? The level of Foreign reserves is higher than it was in 1992, the time of the 8% cut, the economy is showing growth, and the level of debt is manageable. All that is happening is that the gamblers (the hedge fund managers, in Moody’s and Standard and Poor’s, are hoping that enough investors (who buy and sell them bonds overseas, will “jerk” the risk takers to bet on a devaluation etc, and they are frustrated because the government will not take the bait and act in a way that will become unrecoverable.
    Based on their report the important word in the statement:”…“a high probability” of a credit default by the island within the next two to three years.”, being PROBABILITY, is without merit. With the level of foreign reserves;at the moment, with growth in the economy, and further growth projected, the probability of the first default in 33 years is not realistic. And if push comes to shove, the solution for preventing this would be like a huge dose of castor oil. Hold your nose, swallow it, and then spend a couple of days in the toilet. Why then should people panic? Why then should the other Major political party want to take over this economy? Why then would other people want to form “third” parties and take over the running of the government? Unless, of course, they can all see the future in the distance, and realize that Barbados will survive, come what may. My message therefore is to “hold on” and exercise restraint and courage.

  4. Gabriel Avatar
    Gabriel

    Bloomberg drove a nail in this Freundel Stuart/Sinckler coffin this morning by placing Barbados at the bottom of the risky(Read:invest at your own peril)countries like the Congo,Venezuela and Mozambique.Stuart the biggest failure in the politics of Barbados thinks that his sovereign rating will be determined by some stupid asses of St Michael South,so he has nothing to worry about once he can find space at the Grotto and Valery for those ignorant people among his constituents.
    Barbados got to change this bad system of governance which allows JA’s like Stuart to float to the top.This would not have happened under David Thompson for sure.He would feel too shame to face the historians of Barbados in the 21st century,books to be written by the yet unborn.

  5. lawson Avatar
    lawson

    I took my dog Fruendal to the dog park the other day, all the canines were running around and sniffing each others butts I laughed and thought to myself my dogs smarter than that ,so I turned around to give him a pat and there he was sitting licking his nuts. There is nothing pretty about old dogs sniffing and licking. But whats worse is over the time there, I heard every owner say… dont eat that… at least once. So I tried to figure a way to stop this bad behavior, maybe give them each a bone, no they would eat it and get back sniffing , maybe split them up, no they were quite happy licking on their own So I tried an age old method with my old guy I kicked him in the ass did it work..no of course not ,,but at least I felt good about sending him a message. Vote BLP

  6. David Avatar
    David

    @Alvin

    See if you are able to comprehend this response to your position that Barbados has never defaulted so why panic. While what you have stated is correct understand that our financial sate has been deteriorating read falling foreign reserves and running sustain deficits (pressure foreign reserves). In other words our worsening position now threatens the possibility of you continuing to make the boast.

  7. Piece Uh De Rock Yeah RIght - INRI Avatar
    Piece Uh De Rock Yeah RIght – INRI

    When will it dawn on people that this “alternate side of the street parking” HAS TO STOP!!

    We are not in Barrow or Mottley’s day no more!

    Here we are debating between sniffing dog botsies (THE DLP) and dogs licking their nuts (THE BLP) which is a precursor to biting out clitorises.

    We need as a people to vote for competent individuals and brek up this BLP DLP ting.

    I shall again be praying for the flood-like rains to wash way Mugabe’s march tomorrow and do believe that Dr. Lucille Baird and Dr. Senator the Hon. David Durant will also pray wid de ole man too.

    [[By the way Lucille hehehheheheheh the “March for Mugabe” advert that you did the actual voice over, noticeable an audio advert and not a video, the one where you say ” you vex and you poor and all that crap”, tings must be real bad effing wunna cant get external talent to do wunna advertisements.

    Wunna keeping all of them inside house?

    That itself is suggesting (a) dat wunna brek (b) wunna ent trust nobody or (c) the pervasive sentiment is such that people dont want to be involved in no Mugabe March advertising support

    heheheheheheh i was going say dat only you and Degra feel dat wunna can read um wid de necessary emphasis heheheheh but…

  8. David Avatar
    David

    The chink in you position is that you have assumed that 100% of protestors will e marching because they are aligned with Mia and the BLP.

  9. Hants Avatar
    Hants

    “With general elections about a year away, a retired Democratic Labour Party (DLP) politician and senior attorney said Barbadians are fed up with the party he once served in Parliament.

    At the same time, former Minister of Justice Keith Simmons, QC, suggested voters were caught between the devil and the deep blue sea based on the choices for prime minister, and this could result in widespread voter apathy come the next election.”

  10. lawson Avatar
    lawson

    Piece lol you think these guys are going to come together for the good of the country. They will be like crew and passengers fighting for life vests as the titanic sank. if you like the direction your going in pick one if not pick the other. sometimes new ideas are better.

    a fella was telling his buddy how bad it was getting to work this morning it felt like he never was going to get there It seemed like he was going one step forward two steps back, his friend said but you made it in, thats because i decided to walk home

  11. Enuff Avatar
    Enuff

    Piece
    You continue to sound and look silly due to your obvious agenda, which is no different to UPP, CUP, BIM, PUP, Owen etc. The determination is so strong that contradictions, illogic and misrepresentations are prevalent in the arguments. Social media has been bombarded with messages for the March, with many different faces doing the lines. Unless this Lucille is mystique from X-men, your comment above is dead wrong! Don’t let your opposition to Mia blind your judgement.

  12. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Lawson…because ya will be detained at the Canadian/US border this summer and returnd to GTA, does not give you the right to freely hand out bad advice…lol

    Alvin..can you guarantee there will be no default in 2 or 3 years, you already have no credibility so we need guarantees. ..is your Ph.D. in economics…I will prefer listen to those who know, they get PAID on a daily basis for this job.

    All we are asking is for Fruendel to say HOW he will beat back a dealt instead of him insulting our intelligence b ytrying to get into a pissing contest with the rating agencies to distract his dumb yardfowls.

  13. Hants Avatar
    Hants

    @ The PM ( just in casehe read BU ) . What have you and your government done in direct

    response to the threats of devaluation and the further deterioration of the Barbados?

    @ The BU intelligensia. Given that the PM takes a lengthy studied approach to governing,

    please let us ordinary bloggers know if there is any “HOPE” or should I accept that

    devaluation is inevitable and the economy will collapse.

  14. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Again…

    All we are asking is for Fruendel to say HOW he will beat back a DEFAULT instead of him insulting our intelligence by trying to get into a pissing contest with the rating agencies to distract his dumb yardfowls.

  15. lawson Avatar
    lawson

    Well Well barbados needs a change, but just in case most people dont think so…. I have been dusting off that carpet bag that my great great great granpappy used on you southerners.

  16. David Avatar
    David

    @Hants

    There is always HOPE. We need a leadership at play in the country that will breath some confidence back into the space. It has been sucked over time based on the performance of the economy. Bear in mind one does not have to feel that the DLP is responsible. The bottomline is that it is what it is; a poorly performing economy.

  17. Wily Coyote Avatar
    Wily Coyote

    THE END OF BARBADOS FINANCIAL WORLD IS NEAR, from the pulpit of Wily Coyote.

  18. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Lawson…BLP is not a change, ok.

    Be careful that carpetbag is not used on you, these are real funny times and everyone has to keep their eyes peeled on the US..especially you poor whites, ya might be deported back to the EU and have to interact with Bulgarians and that lot, then ya will know the real definition of carpetbagging…lol…some racists in the Canadian parliament are already starting to act out….from drinking the trump koolaid….or ya may have to beg to settle on one of the islands off Nova Scotia and learn to speak Mi’kmaq.

    Piece….where is your buddy Walter PPK to give us some insight.

  19. Hants Avatar
    Hants

    @David,

    Is there any ” HOPE ” that action will be taken in the next 2 months ?

    Yes there is always HOPE but should we have to wait for a change in government or will

    the DLP do what is required to stop the collapse of the economy.

  20. Vincent Haynes Avatar
    Vincent Haynes

    Chuckle…..The DEM news conference going on now on VOB and CBC……..so far the Gen. Sec. cussin the Bees….interesting to note that no elected official is speaking.

  21. Vincent Haynes Avatar
    Vincent Haynes

    Hahaha……..I would conclude from that shambolic e-facts news conference,that they are very rattled…..not discussing downgrades but points out that we have never defaulted,have built schools and just got educ resources……very interesting.

  22. Alvin Cummins Avatar
    Alvin Cummins

    David;
    “…a poorly performing economy.a poorly performing economy.

    Is it really? I think the headline I saw of the proposed estimates of Expenditure referred to a 4.3 billion dollar expenditure.
    This in an island with 270,000 people, 166 sq miles, just a tourism and small (?) open economy. The majority of government expenditure is for wages, support (transfers) to govt. corporations, expenditure on HEALTH, EDUCATION, AND WELFARE SERVICES, and repayment of government debt. When Government spends 4 billion dollars, it goes back into the economy. Not so?
    I keep asking the question of economists; taking into consideration the amount of money Bajans have invested in housing; expensive housing at that, and single family homes, which to my mind are assets that must be considered as such, how is this considered by economists and rating agencies. THIS IS WHY I REFUSE TO PANIC. BARBADOS; WITH OR WITHOUT THE PRESENT GOVERNMENT, WILL NOT SINK INTO THE SEA TOMORROW, OR EVEN NExT YEAR. IT WILL STILL CONTINUE TO SURVIVE. So whatever happens in the near future, any investment in the country; bonds or otherwise will generate a return on investment.Do you expect to get the same returns on money you are keeping under the bed, or in the Bank, as you used to many years ago? The banks are awash with money, that is why interest rates are so low. Beside, when you are dead what happens in your absence will be doc concern of yours. You cannot live in the world of your grand children or great grand children.
    Wasn’t it Jesus; whom Christian Barbados adores, who said something like; ” Consider the lilies of the field, they toil not neither do they spin, yet your heavenly father provides for them, how much more so will he provide for you.”
    Oh ye of little faith.

  23. David Avatar
    David

    @Alvin

    You can have the last word.

  24. Tell me Why Avatar
    Tell me Why

    The General Secretary is doing more damage than the rating agencies. Is he a Conway?

  25. Bush Tea Avatar
    Bush Tea

    LOLOLOLOL @ David
    Bushie was wondering when you would finally get it about Alvin…

    Like our doomed political system, you seem to keep hoping that somehow, by doing the same thing over and over …with increased effort, (trying to talk sense to an idiot), you could one day see different results.

    Alvin is a distraction from rationality.

  26. Tron Avatar
    Tron

    @Coyote

    We are counting down the days … 1 % on this island will make a biiiig profit, the rest will go down the drain. We will see who still smiles after the ATM´s do not work anymore. Some will.

    We do not need any technical default to destroy the entire local financial system and its currency. Look at Greece. Did the Hellenic Republic default? No. However, the situation is “Two Steps away from Hell”. No credit, no construction, no heating during harsh winter, limited access to ATM and international wire transfer etc pp. The average Greek civil servant earns LESS than in Barbados. I repeat: earns LESS than in Barbados. And this is Europe, not the Caribbean.

  27. David Avatar
    David

    The linked report released today from the IMF is useful.

    https://www.imf.org/~/media/Files/Publications/CR/2017/cr1766.ashx

  28. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    This alone should tell the smaller island leaders how creative they must be, less reliant on one sector only to maintain an economy…larger islands like Jamaica, Trinidad etc have options and can withstand extenal shocks much better, small, resource less Islands like Barbados cant, that is where creativity and critical thinking skills become useful in leaders that are so blessed.

    “Similarly, the Caribbean remains on the periphery of the world trade network, but given the small size of many of these economies, the prospects to occupy a more central role in the global network are likely limited.”

  29. Gabriel Avatar
    Gabriel

    Just think of it!……One man has this country of 270,000 souls held to ransom and nobody can do anything about it because some law give him the authority to dictate what is to be done and when it will be done and how it will be done and where it will be done.And we all are both helpless and hopeless.All these clever and intelligent,well educated,prosperous Bajans.I recall a Trinidadian asking in 2007,how come this small country is doing everything right and is so well organized and his country Trinidad is so poorly served and badly managed.

  30. lawson Avatar
    lawson

    The american interest will go up three times this year which will drive other currencies down, so where will that leave you

  31. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    What do you suggest Lawson, you know the US economy will crash and burn eventually, their own hate and arrogance will take them down, I was all for adopting the dollar until I saw where the US is headed and the twooney is still too low……which basket of fading currencies do you suggest Barbados adopt.

  32. Professor Gilbert NMO Morris Avatar
    Professor Gilbert NMO Morris

    Almost 3 and a half years ago, I wrote in this space with a heavy heart for Barbados: here is what I said:

    Professor Gilbert Morris December 13, 2013 at 7:40 PM #
    “The Minister of Finance for Barbados has issued a comprehensive Short Term Growth & Sustainability programme. It will not work.”

    I am constrained to say I TOLD YOU SO!

    The difficulty for Barbados – as with the rest of the Caribbean – is that we inherited a command and punish economic model, that was meant for controlling ostensibly brainless people of whom nothing was expected. Our innovation across the region was to add cronyism and the facilitation of lackeys at the expense of our bright young entrepreneurial minds. As such, across the region, we have produced an economic model that is scloretic, for which our politics have become the tribal art of attempting to defend obvious nonsense.

    Our people know now that their chance of becoming their best selves and living their best lives is not at home, where – in Barbados as much as anywhere else in the region – successive governments have succeeded in cultivating a caste system, incompatible not only with the moral imperatives of our relevant histories, but also with the yearning, ambition and native genius of our peoples.

    Barbados has lead the world in Literacy Rates, but to what purpose?

    Bajans regale themselves with their comparative successes in the mark book, but where is the “silicon valley”?

    Barbados needs a comprehensive rethink.

    It’s future lies NOT a stale inert economic model that has produced one billionaire and a host of rent-seeking lackeys in 40-odd years.

    HERE IS WHAT TO DO:

    Start over. Rescind all oversight commissions!

    Appoint My good friend Sir Courtney Blackman and 16 others to a National Steering Committee and manage this crisis for the next 6 months with a maximum of transparency, with the power to subpoena persons and papers for public testimony on all fiscal and economic issues

    Cut government spending now!

    End all feckless liberal-minded enterprise projects, which just pay lackeys at the expense of efficiency and true achievement (Compare Singapore, which seeds parastatal corporations and then let’s them sink or swim and if they cannot produce financials they are foreclosed immediately by the Treasury).

    Give EVERY Bajan who wants a business license to establish a business aimed at export, licensee fee and tax exemption for 10 years

    Move all government routine processes – drivers & business licenses, government fees and other processes to eGovernment platform immediately

    Convert all government payments to blockchain using Bitcoin or other electronic alternatives

    Place all government owned infrastructure and land into a sovereign fund, 60% held by Bajan citizens, then JV with a global strategic partner

    Eliminate the Ministry of Tourism

    Convince all CARICOM nations to withdraw from the WTO

    Open Harrison as to a South Americans for Boarding school

    JV with Guyana to fund a super trade highway into Brazil, to provide a staple of Brazilian products to the Caribbean, to compete with Florida

    Set up Barbadian International Business Centre with Arbitration and commercial services for South American business

    Establish a 100 acres area as a tax free zone for international data storage and management

    The first options must be to reduce government expenses, and reduce the cost of doing business in Barbados, which has one of every tax in the history of mankind.

    Reduce governments tax share of GDP to below 18%

    Use timing options for initiatives, which allows government to maximize policy options squeezing out efficiencies, then switch to more sustainable programmes.

    Professor Gilbert NMO Morris

  33. angela Skeete Avatar
    angela Skeete

    Despite all the jubilation and attacks on barbados economy barbados is not a failed country a country which has endured and survived nine years of global negative impact
    In spite of all the downgrades its social network remains in place. There are countries like guyana and Jamaica whose citizens have fled their homelands looking for safe haven and security in barbados.
    Barbados would overcome these mitigating factors emerging as a country that never gives up against all odds

  34. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    I remember this, as we can see, the ministers did not adopt not one suggestion, they prefer crash and burn and take everyone down with them….as a matter of fact they do not even plan to take responsibility for their failed policies, they much prefer blame everyone other than themselves.

  35. Vincent Haynes Avatar
    Vincent Haynes

    Gabriel

    You have that right…….OSA had he and Agard remained in the party with pressure being systematically applied according to Dr Belle in todays Nation this govt would have fallen by now,more than likely with the support of the two vocal members of the govt…….no leader is bigger than a vote of no confidence ask Sandy……..OSA will be seen by his acts of omission and commission to be as responsible as the Dems for the economic collapse of Bim.

  36. Piece Uh De Rock Yeah RIght - INRI Avatar
    Piece Uh De Rock Yeah RIght – INRI

    @ The Honourable Blogmaster

    THe “chink” in my armour is that I do not now nor have i ever, nor will I ever kowtow to tyrants.

    How can you, in all honesty to the words of George Linnaeus Bank, get up and march with Mia Mugabe Mottley tomorrow?

    THis is the same being that put taps on the phone of the former Prime Minister is she not?

    THis is the same woman whose culinary dispositions are known all around the island?

    Whu happening?

    THis is the same woman who sat down in parliament in December when a Bill was drafted and passed to sell NHC land to BNTCL.

    IN effing December!!

    So whereas all uh wunna talking bout how she responded in January on the 17th with an announcement, I en give one twig bout January,

    Where was this woman IN DECEMBER, wunna wid me?

    My chink is that for right now what I am seeing is that wunna getting this “washed in the Blood” disease that says out of sight out of mind.

    Sooooooo because she start wearing white like the ladies in Havana, she suddenly has been cleaned of all past infelicities and suddenly so I must join in her band wagon cause, and let me get this right, “the effers called the Democratic Labour Party are effing up the cuntry and dem gots to go, so we want Mia”

    Not a pause,

    Nothing to examine what she is bringing we going with her band of illiterates lock stock and barrel.

    You know something?

    THe reason that you wont put up the organigramme here is clearly evident to me now.

    None of wunna want t compare the apples with the apples.

    Look, Adriel Brathwaite is a waste foop as was his predecessor Fumbles Stuart

    But so to was Dale Tets Marshall and Mia Mugabe when they held the same post AND she was ease dropping on her Prime Minister

    Doan get tied up with this ting.

    The problem is that wunna does forget real easy but I DO NOT

  37. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Lawson…as pretty as this sounds dont let it fool you, it’s the 8 years of hard work put in by the Obama administration after the mess of the Bush administration now bearing fruit, but given the chaotic swamp dwellers now in charge, it is fickle and not very likely to last much longer.

    Tbe problem with Barbados, Fruendel and his gang did not formulate a plan B for when plan A flopped nor did they have a plan B for that Plan B..,..they are not aware that was what they needed and it all backfired when they fired Worrell…because there were no back up plans in place. They get good ideas freely on BU, but the twist they put on them will end in failure, they do not listen and end up making themselves laughing stocks.

    http://bit.ly/2mJOYlD

    “The 19-nation alliance that uses the euro currency expanded 1.7 percent in 2016, an improvement from years of recession and anemic growth. Germany’s unemployment rate has fallen to 3.9 percent, although in crisis-stricken Greece, unemployment remains a painful 23 percent.

    In the United States, employers have been hiring solidly for so long that in some industries, they’re being compelled to raise pay. Hourly wages for the typical worker rose 3.1 percent in 2016, according to a report this week by the Economic Policy Institute. That’s much higher than the 0.3 percent average annual pay gain, adjusted for inflation, since 2007, the EPI said.”

  38. David Avatar
    David

    Isn’t it amazing that even if we were to throw out Moody’s and S&P (and the BLP) from the equation it still leaves the CDB, CariCriss, the Barbados Private Sector Agency and a host of other bodies who have issued government with repeated warning. YET the yardfowls remain blissfully hignorant.

  39. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Yeah yeah ACs, until they do, show us how they will do it.

    Has Fruendel decided how he will beat back default yet…they have all suddenly gone very quiet since Moody’s slapped them down yesterday, no big talk for Moody’s and Bloomberg, now they are all in hiding from phone calls and emails for comment, no Fruendel or Sinckler in sight today.

  40. Gabriel Avatar
    Gabriel

    David,
    The biggest slap is from Bloomberg.That is one financial network with a massive worldwide following.

  41. Exclaimer Avatar
    Exclaimer

    Check the date of this article:

    http://pulitzercenter.org/reporting/barbados-feels-heat-over-deteriorating-finances

  42. Konkieman Avatar
    Konkieman

    WWC, RE your reply to Lawson. What are we to do now.

    The US economy has much more upside compared to Japan, China, and the EU. And anyone else.

    Trump only has to do two things right:

    Revise personal and corporate tax rates as promised
    More relevant, repatriate the $1 trillion off shore from US companies with a lower tax structure with the requirement to investbin the US.

    That will create an economic boom, and no one else globally is set up to challenge it.

    If, and that is a risky if, this can be pulled off, we will see an expansion of the US economy bigger than the Reagan years. Depends a lot on Congress to cooperate.

  43. Piece Uh De Rock Yeah RIght - INRI Avatar
    Piece Uh De Rock Yeah RIght – INRI

    @ Well Well and Consequences

    You are wrong

    There was no Plan A for this Dream Team, I can tell you that, I know well.

    So all those other iterations are non-existent

    THis is precisely why I am chanting that there MUST BE A SERIOUS REVIEW of the people whom we vote for this time

    AND MUGABE AND HER LOAFERS MUST NOT BE AMONG THOSE

  44. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Piece….I thought Fruendel’s, Sinckler’s and Worrell’s short term fiscal policy for the revival and jump start of the economy which failed was plan A….so which letter did it fall under….please excuse my unknowing self…..and do educate me,.,..lol

  45. Exclaimer Avatar
    Exclaimer

    http://siteresources.worldbank.org/PROJECTS/Resources/40940-1118776867573/Barbados.pdf

  46. Alvin Cummins Avatar
    Alvin Cummins

    David:
    the report you referred to is interesting. the report inter alia said:’Cumulative GDP growth over 2013 to 2016 was nil, in contrast to 10 percent in the world.”.
    Growth in Barbados was 1.6% with 2%+ projected for 2017-18.
    You people are behaving as if Barbados is going to cease functioning tomorrow; no tourists are going to come, sugar exports will ceaSE, WE WON’T BE ABLE TO PAY FOR IMPORTS, CIVIL SERVANTS WILL NOT GET PAID, AND ALL BANKS WILL MOVE OUT. THE MONEY THAT IS IN CREDIT UNIONS WILL DRY UP AND THINGS will be
    Where has all this talk about default and this pessimism come from? WORSE THAN THEY WERE IN 1937 WHEN PEOPLE WORKED FOR LESS THAN FIVE DOLARS A DAY. In 1951 when I was working as an apprentice electrician I worked for sixty cents a week for the first month, going to work from eight to four. I started work in the Civil Service getting forty dollars a month (paid at the end of the month). Are we near to that at all? Get real.

  47. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    “More relevant, repatriate the $1 trillion off shore from US companies with a lower tax structure with the requirement to investbin the US.”

    Konkieman. …that’s the big IF right there….much of that $1 trillion US, read billions, will be repatriated from the trump family overseas companies, of which China just approved 38 new trump companies to do business there…..ya see what I am getting at….there are at least 12 countries with trump companies and those are the ones we know about….yep, definitely a bigly IF…..

  48. David Avatar
    David

    @Alvin

    The rate of growth is not enough to effective manage the economy. To borrow from the experts, a minimum of 3% growth is required.note that a significant % of GDP growth can be tracked to the paper growth in the banking industry.

  49. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Alvin…the Bushman is right.

    This is interesting…please note that the government response of damage control = LIES

    THE CL FINANCIAL CASE
    CL Financial, a Trinidad and Tobago-based institution with
    subsidiaries throughout the Caribbean, experienced cash-
    flow difficulties and was taken over by the Trinidad and
    Tobago Government
    Outcomes:
    • The insurance business of the Barbados subsidiary was
    found to be in statutory deficit
    • Another Barbados subsidisary
    –
    a finance company
    experienced a run on deposits.
    • The Barbados Response ( g damage control)
    – Government of Barbados, Central Bank and the
    insurance regulator gave assurances of the institutions’ soundness

    -CentralBank moved quickly to strengthen the THE CL FINANCIAL CASE (Contd)
    THE CL FINANCIAL CASE (Contd)

    deposits of the finance company-discussions initiated re:the sale of the insurance portfolio to another insurance company (in which portfolio to another insurance company (in which Government is a minority shareholder)-talks a real soon going regarding the sale finance company-

    Government of Barbados has established an Oversight Committee to manage the sale of the group’s assets Committee to manage the sale of the groups assets.

    It’s quite obvious from the link that these issues are at least a decade old, I remember clearly the rating agencies warnong bpth governments as far back as 2006, what is very clear is that in 9 years the present givernment is incapable of arriving at a viable solution for the economic problems despite telling the electorate that they could in 2008 and again in 2013 and gpt the nerve to think that they can drive that lie to the voters again in 2018….lying fir another 9 years will nit fix the problems if ya are incapable.

    So Piece was that Plan GHIJKLMNOP or Q that has failed….again..lol

  50. lawson Avatar
    lawson

    Well Well quit voting for a color rather than a good plan, I dont know how to value your dollar but the stronger it gets seems the worse its going to get for you.

The blogmaster invites you to join and add value to the discussion.

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading