The Grenville Phillips Column – Prepare for the Nightmare

Grenville Phillips II, Leader of Solutions Barbados

Solutions Barbados is the only political party that has published a workable economic plan that does not require IMF funding.  The BLP and DLP have embraced development philosophies that no longer work when a country is in this level of debt, and have taken us to the brink of economic ruin.  That is why many economists recommend that borrowing from the IMF should be part of their economic plans.

Should voters choose to elect Solutions Barbados candidates in the upcoming general election, then they can finally experience well-managed government services and a fair economy in which all participants can benefit.  Since we are not following the BLP/DLP failed development philosophies, every resident can become healthy, wealthy and educated if they choose to, without being politically favoured.

If Barbados has the misfortune of electing any other Party, then as soon as the election results are announced, they should prepare for the worst, because within one year, they will likely be living their nightmare.  Mercifully, they may only have to survive the 5-year term of the nightmare that they voted to experience.  Some useful post-election advice follows.

Those with cars need to ask their mechanic to replace every part that will likely need replacing within the next 5 years, especially the wheels and shock absorbers.  If persons cannot afford to have them installed now, then they should at least purchase the parts while they can still afford to.

Persons should not apply for home mortgages, and those who were recently approved for a mortgage should not take it.  Those with houses need to complete any outstanding maintenance projects such as power-washing and sealing concrete driveways, painting external walls and roofs, and installing new tiles and faucets.  Everyone should consider purchasing a new computer, cell phone, camera, TV, microwave, washing machine, and any other device or home appliance that may need to be replaced within 5 years.

All employees in an export related sector should try to protect their salaries.  Such employees should request that the basis of their current salaries be in US dollars, but paid in the equivalent Barbados dollars.  If the company claims that it only exports say, 50% of its products, then the employees should not expect to have more than 50% of their salaries protected.

Persons in this ‘export’ category include maids and gardeners in foreign-owned villas, all employees in the tourism and international business sectors, and all employees of those who directly export goods or services.
Persons who can access their pensions should try to protect them before they are worth less.  Those who do not qualify to access their pensions should weep for their dependents and join their fellow Barbadians, who recklessly decided to suck whatever is left after the salt that they voted to suck has gone by not voting for Solutions Barbados candidates.

All of this will be necessary because the IMF has one main role – to protect the country’s foreign currency earnings from the country’s residents.  They are well-aware that if you have access to foreign currency, you will spend it.  They are there to ensure that the foreign currency is used primarily to repay those from whom we borrowed – it does not belong to us.

To prevent us from using foreign currency on our needs or wants, they will likely devalue our currency to make the foreign currency very expensive for us.  They will also significantly increase income taxes so that we will have very little money to spend.  Finally, they will increase sales taxes so that after we have spent our remaining money on our bare necessities, there will be nothing left.  So the foreign currency will be protected from us, and we will basically be working for nothing, like slaves.

In an IMF program, we should not expect our politicians to represent our interests.  That is because the IMF has learnt a very important lesson of slavery – feed the overseer and he will beat his fellow slaves.  Therefore, the only persons who normally do well during an IMF program are politicians, who are rewarded for carrying out the IMF’s instructions without mercy.  It is instructive to note that when the IMF doubled the income tax rates on Guyanese, their politicians offered no meaningful objection whatsoever.

Grenville Phillips II is a Chartered Structural Engineer and the founder of Solutions Barbados.  He can be reached at NextParty246@gmail.com

77 comments

  • Well Well & Cut N' Paste At Your Service

    You should have been pounding home this reality to the voting populi for the last year, you now have mere weeks left to get that information embedded in their heads.

    Like

  • Owen and Sinckler go into a bakery shop.

    As soon as they enter the bakery,Owen steals three pastries and puts them in his pocket.

    He says to Sinckler : “See how clever I am? The owner didn’t even see anything, and I don’t even need to lie. I will definitely win the next election.”

    Sinckler says to Owen: “That’s the typical dishonesty you have displayed throughout your entire life, trickery and deceit. I am going to show you an honest way to get the same 3 pastries without stealing or lying, and also prove that I am much clever than you!”

    Sinkler goes to the owner of the bakery and says: “Give me a pastry and I will show you a magic trick?”

    Intrigued, the owner accepts Sinckler offer and gives him a pastry Sinckler swallows it and asks for another one. The owner gives him another one. Then Sinckler asks for a third pastry and eats that, too.

    By this time, the owner is starting to wonder where the magic trick is and asks: “What did you do with the pastries?”

    Sinckler replies: “Look in Owen pocket!”

    Like

  • Well Well & Cut N' Paste At Your Service

    Lol…good one, their trickery is what has brought the island to its knees, enriched them, but there is no guarantees that one or two of them will not end up in some prison somewhere.

    Like

  • Well Well & Cut N' Paste At Your Service

    And I wholeheartedly agree with this commenter…this government should not even make it as opposition when they are finally kicked out of parliament….none of them should be accepted into public life evervagain, let them go work for their minority masters who pulled their strings so effectively….for 10 years.

    “harry turnover
    February 2, 2018 at 6:24 am
    John,how can you call the man an IDIOT ?….the man is a FIDIOT.
    Only 4 more months with those FIDIOTS.Can’t wait to get a NEW Government and a NEW Opposition.
    As I have said before they are so disgusting that Bajans shouldn’t want them in Opposition either.”

    Like

  • Barbados will never be what it used to be . . . but that happens with every passing day so we will fess up and face it, but UPP’s la-la “dream” will never be realized with the cheap nationalistic arrogance he is displaying here. Barbados is fortunate that it can still apply to a lender of last resort. A temporary administration under the IMF is not a retreat to colonialism, it is a perfectly reasonable receivership, and we will emerge slightly different, but we will emerge. Does he think the world owes us a pass for punching above our weight because we are cute?

    Like

  • millertheanunnaki

    @Bajan Yankee February 2, 2018 at 5:07 AM

    Good one there Baje, you have us ‘ROFLOAO’.

    We are amused by your talent to ‘pilfer’ a well-known joke and plagiarize it to suit the flying-fish and cou-cou taste buds.

    It damn well sums up how well the DLP was able to outfox Owen by telling the electorate that the BLP’s privatization grapes were sour.

    Like

  • Well Well & Cut N' Paste At Your Service

    Barbados has been to IMF before, you the negotiator, have to make sure the terms you are negotiating with IMF dont turn you into a Jamaica or Guyana..

    ……there is already a precedent in place for loan negotiations with IMF and Barbados,….just use the damn template.

    Like

  • Bernard Codrington

    @ Falernum At 8:37 AM

    You do jest don’t you? Did you pay any attention to the experience of Yanis V with the Troika? Please review the YouTube paste. Yanis is a professor of Economics. Do you see any body from Barbados out smarting the IMF? That is what one has to do. It is politics not Economics or Finance.

    @ WW& C at 9 :01 AM

    You should elaborate and let Falernum know what has been the outcome of using that template without adjustments. I believe he is Willing to Learn

    Like

  • Well Well & Cut N' Paste At Your Service

    Bernard…ah got too much stuff going on to elaborate and was really not in the region when the negotiations occurred, but know that Barbados emerged from that IMF agreement unscathed. … back then, of course given the time that has passed, it is a reality that adjustments to the template used back then will havd to be made, it is a new era nearly 2 decades later, the outgoing government is not intelligent enough to negotiate at that level.

    I dont know if it is the same greek dude…but i do remember that Greece started off by making some outrageous demands for their bailouy, which Germany shut right down….and it has been downhill ever since.

    Like

  • Well Well & Cut N' Paste At Your Service

    bailout. …

    Like

  • Where in recent times has what GP describes above the result of an IMF programme? Certainly not in St.Kitts or Grenada. Yet, GP continues to wonder why not even the BCCI is interested in his merchandise.🤣🤣🤣😂

    Like

  • All of the prominent local economists have come public to denounce the idea of a devaluation of the currency. The latest is Dr. Winston Moore. His good point is that most hotel rooms are priced in USD which means a devaluation will not change the price for the consumer. This is where BU wanted to take the conversation on the blog below: we need to puncture the emotion when we discuss devaluation.

    Like

  • Devaluation? What devaluation? Has the esteemed jackass of finance not already devalued the Barbados dollar? I don’t know about you but my family and I have never lived before as we now live. It is no longer a joy to go to the supermarket or shop for clothing, Filling the car tank with fuel is a thing of the past so too is an annual overseas vacation. Dining out now means dining in the yard at home and gift giving in now a lingering memory. Devaluation? What is left to devalue beside the little pride we have left?

    Like

  • All of the prominent local economists have come public to denounce the idea of a devaluation of the currency. The latest is Dr. Winston Moore. His good point is that most hotel rooms are priced in USD which means a devaluation will not change the price for the consumer. This is where BU wanted to take the conversation on the blog below: we need to puncture the emotion when we discuss devaluation.(Quote)

    Since most Barbados hotel rooms are priced in US dollars, a devaluation of the Bajan will mean a de facto increase in the price of hotel rooms. In reality, consumers/visitors may be paying the same in US dollars, but in local currency there will be an increase. So paying the overseas-based service companies will cost more in Bajan dollars. That increase will fall on Bajan hotel owners.

    Like

  • millertheanunnaki

    @ David February 2, 2018 at 11:14 AM

    David, it is not a matter of wishing Devaluation on Barbados. It is that Barbados is fast heading down the devaluation road because of the way its economic vehicle is being driven.

    How can you behave like a drunken driver who doesn’t know the route but enjoys cussing people and dismissing the many warnings about your bad driving habits and don’t expect to run off the road?

    Devaluation of the Bajan dollar, given the current economic trajectory, is nothing but an accident waiting down the road to happen.

    All of this Devaluation pitfall could have been avoided is a welcome break had been taken 4 years ago and a visit paid to the IMF pit stop for a change of the incompetent driver in the MoF seat and a proper maintenance job on the economy undertaken with Privatization the major plank of economic reformation.

    What makes the Barbados economy so special as to avoid devaluation when the political driver just cannot drive and his cabinet passengers are just as totally inebriated with the ‘spirits’ of incompetence?

    Liked by 1 person

  • millertheanunnaki

    @ David February 2, 2018 at 11:14 AM
    “The latest is Dr. Winston Moore. His good point is that most hotel rooms are priced in USD which means a devaluation will not change the price for the consumer.”

    Aren’t all hotel rooms in the Caribbean priced in “USD”? What makes Barbados so special as to be immune from devaluation?

    The effects of devaluation are to make the cost of living (col) for ‘local’ residents higher and the cost of labour- the hotel industry’s major input -cheaper to hotel operators.

    This increase in the col would spur the locals to greater productivity to earn more money and the switch to locally produced food instead of the imported processed crap.

    Like

  • When a Canadian or American pay for their Hotel room most pay with a credit card, a debit card or cash in Canada or the USA.

    How many of those “USA dollars or Canadian dollars” actually pass through the Barbados economy?

    Like

  • David
    Everyone knows devaluation suits producers of products for export.
    I hearing a lot of talk about reducing the public service, but the first approach to dealing with the public service is increased earnings by focusing on the speed of transactions. Providing online transactions is not the only or key requirement, but the use of other methods such as RPA and SCM. Notice I haven’t said anything about ISO.🤔

    Like

  • The point being overlooked is that supporters of a currency devaluation point to the cost for the tourist being cheaper. Dr. Moore rubbishes the point.

    Like

  • millertheanunnaki

    @ David February 2, 2018 at 1:39 PM

    “Rubishes the point”??

    He has also rubbished the privatization proposal but yet this administration has gone full-speed ahead in ‘selling off’ its profitable commercial assets.

    The same set of factors that forced the government hands to sell off its silverware so too would the same set of factors be the driving force to take the country into a devaluation cul-de-sac.

    Fast disappearing foreign reserves to support the peg coupled with a government in a fiscal straightjacket and unable to borrow from overseas or print Mickey Mouse dollars at will or dip its hands deeper into the NIS cookie jar are factors which help makeup for the perfect storm of a monetary high wind in Barbados.

    Like

  • The point being overlooked is that supporters of a currency devaluation point to the cost for the tourist being cheaper. Dr. Moore rubbishes the point.(Quote)

    If the Barbados dollar is devalued, all things being equal, visiting Barbados will be cheaper from the US and other currencies the Bajan has been devalued against. Economic 101.

    Like

  • Well Well @ Cut and Paste @ Your Service

    yeah…but shit running in the streets on the south coast nullifies all ah that.

    Like

  • millertheanunnaki

    @ David February 2, 2018 at 1:39 PM

    David, what about the level of foreign direct investment in the form of buying or building second homes or retirement villas?

    Isn’t the ROE between the UK £ and the local dollar a major reason for the significant cut back in the real estate foreign market?

    What about the effects on the ‘fixed’ pensions of returning nationals or people wishing to retire in Barbados and would be brining their foreign-denominated pensions to finance their ‘tropical’ lifestyles?

    Like

  • @Miller

    We know of the many causal factors but at the root is the lack of confidence in a supposedly educated people to act.

    Like

  • Steupsss
    Devaluation has nothing to do with what is ‘good for the economy’ or ‘best for Barbados’ … or even what best suits brass bowls.
    Devaluation is a reduction in the ‘level of equivalence’ that an economy is able to maintain in a competitive world.

    You and your neighbour were once ‘on par’ because you both worked hard, and were both productive enough to accumulate a reasonable level of savings and look after the children…..

    The neighbour continued to work hard, store up savings, look for new and creative ways to be productive and his children chipped in with their own contributions….

    Meanwhile, you running behind every shady deal that you see; you into all kinda con games with car parts, drugs etc; your children are unmannerly and lazy …and even your damn toilet is leaking sewerage into the living room for the last two years….

    How the hell can you expect to remain ‘on par’ with that neighbour?
    ….when you BREK as shaving cream; yuh owe Tom Dick and Bizzy; you already sold the fridge, car and washing machine to buy medicine for your druggie son, and now yuh looking to sell the damn stove to pay the interest on the $700,000 Benz that you took on credit last year – because the neighbour bought a new BMW…..

    Boss, your donkey is ALREADY devalued.
    Everyone is only awaiting the verdict from the highest court on the matter….
    It is just a matter of time….

    Like

  • Talking Loud Saying Nothing

    The Caribbean region has become a nighmare for so many of her citizens:

    “The island where 19th Century land ownership is at risk”

    http://www.bbc.co.uk/news/world-latin-america-42719015

    Like

  • I always thought this guy was kind of a halfwit, but then he surprises me. Not a simpleton.

    It was all going great till the IMF stuff: “In an IMF program, we should not expect our politicians to represent our interests. That is because the IMF has learnt a very important lesson of slavery – feed the overseer and he will beat his fellow slaves.”

    The idiocy expressed is beyond belief.

    But he’s right with everything else. It is going to be a nightmare. Too many half-wits sucking so deep on the public tit and thinking they’re owed it because “feed the overseer and he will beat his fellow slaves.” The economic and historical illiteracy in that is stunning.

    Like

  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    David February 2, 2018 at 11:14 AM #
    All of the prominent local economists have come public to denounce the idea of a devaluation of the currency. The latest is Dr. Winston Moore. His good point is that most hotel rooms are priced in USD which means a devaluation will not change the price for the consumer. This is where BU wanted to take the conversation on the blog below: we need to puncture the emotion when we discuss devaluation.

    …………………………………………………………….

    Exactly. We don’t need a devaluation, we need to be rid of the Barbados dollar. Can’t be a Forex shortage if we all trade in Forex (except it would no longer be foreign).

    Like

  • @Bush Tea.

    A $700,000 Benz quoted in BBD, but 150,000 in USD. That is no 2 : 1 peg. More a political pegging for the clueless masses, still thinking they are the master race of the Western hemisphere. Or 4.66 : 1 in the real world.

    Like

  • Frustrated,

    Many parts of South America and Africa work with USD or EUR as local currency. It is time for the Barbadian masses to accept that 51 years of half-cooked education, dysfunctional administration, sleeping courts, poor quality of services and invisible work ethic finally take a toll. It is time to accept that Barbados is not different from the other non-developing countries in the region.

    The low numbers of forex do not lie. Next downgrade is due very soon. And there is not much space left for another downgrade.

    Liked by 1 person

  • @Blogmaster
    I notice the Minister of Northern Affairs, Community Tourism and Water Testing has a new interest in your product?

    Like

  • Tron February 2, 2018 at 4:42 PM #

    Brilliant analysis.

    Liked by 1 person

  • @NO

    Always!

    Expect as we get deep in the silly season the BU bullseye will get larger for some.

    Like

  • Frustrated
    Dollarising the economy as done in the BVI’s is one of the ways out.If we were serious about earning forex,these 4 o 5 cruise ships I see daily in Port Barbados ought to be a target market to improve our forex coffers on a regular basis.Ground tours with an entertainment component at a reasonable price per head should leave thousands of US dollars when the ships sail and it will be spread throughout the economy.An in depth study of the cruise industry’s contribution and ways to get their disposable spend should be included in our marketing plans and strategies going forward.

    Like

  • Bernard Codrington

    Is the earning of foreign exchange the real issue? Who is utilizing the foreign exchange earned? When we abandon the local currency and utilize a foreign currency , what effect will that have on local production and employment ? Are those who have no access to foreign exchange to suck salt?

    @ Tron
    @ FB

    Mek muh understand what wunnuh saying?

    We are really and truly in the Silly Season ; but that does not give bloggers a carte blanche to engage in partial analyses.

    Like

  • On the BVI’s, and more particularly TCI’s, they are both British Overseas Territories which use the $US. But when shit hit the corruption fan a few years back in TCI, they were back to the ole motherland begging to bail them out. Not interested in independence, just autonomy, until they need help.

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  • Bernard,

    Introduction of USD would be public admission that Barbados is no more independent than BVI. And we get rid off Central Bank and all the employees there.

    “Are those who have no access to foreign exchange to suck salt?” The civil servants will pay the price, since there is nobody to print Mickey Mouse dollars anymore.

    Like

  • @ Grenville Phillips II wrote ” Since we are not following the BLP/DLP failed development

    philosophies, every resident can become healthy, wealthy and educated if they choose to,

    without being politically favoured.”

    PLEASE VOTE for Solutions Barbados.

    Utopia is possible.

    Like

  • Good old bajan pride would prevent the dollarization of the economy.When Barrow set up the Central Bank and took Bim out of the control of the ECCA,he did not envisage a Minister of finanace who knows not his ass from his elbow,who knows not the value of a decimal point who is one of the bigger liars in the cabinet,who is an insult to economists and the private sector,in short who is one of the biggest brass bowls breathing the fresh air of the realm.We can do without these numbskulls and wannabees.The longer Stuart takes to set the election date the worse off Bim will be because of the confidence factor in this ‘acting’government.

    Like

  • Can anyone explain why Stuart thinks he needs not hold a press conference regularly as a means of communicating with the citizens who pay his fees monthly?Only brassbowls would continue to be insulted like this.This man likes the trappings of office but not the responsibility of consulting with the citizenry nor the accountability of his stewardship.

    Liked by 1 person

  • Well Well is quite right

    And for an engineer the writer has accurately estimated the world of woe normally associated with countries unable to avoid the downside of neoliberal capitalism.

    Like Well Well, we have been disappointed that such a theoretical construction was not made flesh on the streets of Barbados under an SB flag.

    Fundamentally however, we are still highly unconvinced that the proposed programs and policies of SB are sufficiently untethered from the same neoliberalism, which its leader purports to be able to better manage, to make any difference at all.

    His is squarely about tinkering not revolutionary transformation. Not about the remaking of the Bajan man, the Bajan woman. And in this the SB, not unlike Barbados as an artificial entity, beckons the dustbin of history.

    Like

  • In addition, it has become very popular here, on BU, to blame the people of Barbados for the failures of political management by those who are said to be the leaders, party leaders.

    And the leader of SB has taken the same cop-out.

    We happen to know a truck driver for a global corporation. That driver manages a large truck. His bosses care not how an accident happens or who is responsible. They run their business and manage the truckers based on the unnegotiable precept that the driver, as manager, is responsible regardless of causation.

    For them an accident cost them time, money, interferes with delivery systems.

    But lazy politicians, BU commentators and Bajans themselves continue to make the cop-out of lowered expectations – a gold standard!

    These are the same people who like to talk about ISO9000 and productivity as if Bajans can only be lazy.

    Where is the increase or competitive throughput of the commentariat, the politicians, the worthless political leaderships?

    We condemn them all!

    Like

  • talking loud
    this is where diniro and his buddy steal the best parts of barbuda under the guise of helping. Just like the magician you gotta watch the hand doing nothing,when he is out trashing trump watch what is happening quietly

    Like

  • Well Well & Cut N' Paste At Your Service

    Agent Lawson…we still gonna lock up all you russkies that invaded US.

    The governments on the islands have been selling out to the likes of Dinero for decades…..this will be no different, that is all they know to do, those who present themselves as leaders are never blessed with the skills to do anything else….have not fpr the last 50 years..

    ….it will take new generations of real leaders with fresh perspectives who will think it’s beneath them to practice the archaic hand me down schemes of present day governments…but, they cannot use the same templates….doing the same things and expecting different results ….is what is currently happening, these have not figured that out yet.

    So you do you feel this morning…lol

    Like

  • WW its pretty sad when the russians cant be bothered to interfere in your elections

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  • bajans have always been ahead of the curve, everyone is going crazy over bit coin…but barbados has always had two bit money.

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  • Well Well @ Cut and Paste @ Your Service

    says the Canadian whose loonle fell to nearly 50 cents only a year ago and had even me worried.

    no one will interfere in Barbados election, with eyes wide open, the voting population have to see for themselves the process used by their own selfish aspiring leaders to blind them for over 50 years….and put a halt to it now that they know.

    you worried about bitcoin which everyone knew was a fly by night scam, really, lol…ah hope ya invested ya pension in bitcoin.

    you should be thanking your lucky stars that Justin is not a trump fan or you and family will in the near future find yourselves shipped to Siberia as cheap labor for putin, better keep praying that he is soon locked up or impeached before your next premier falls in love with the russian idea..

    you do know that trumpanzees do not know whats next for them in the US, right…lol

    Like

  • Well Well @ Cut and Paste @ Your Service

    as i said, voters are awake….the intelligent ones.

    stretching it out to all will not change the minds of voter…they ran out of time, time is longer than twine, tick..tock

    https://www.barbadostoday.bb/2018/02/02/bajans-say-economy-will-be-a-factor-in-election/

    Bajans say economy will be a factor in election
    Added by Katrina King on February 2, 2018.

    Barbadians believe the ruling Democratic Labour Party (DLP) should pay a steep price at the polls for its handling of the economy.

    Following this week’s announcement by Central Bank Governor Cleviston Haynes that the island’s foreign exchange reserves stood at a 22-year low of $410 million, or 6.6 weeks of import cover, well below the recommended 12 weeks, residents were holding little hope for a recovery under the watch of the DLP administration.

    In fact, a random survey by Barbados TODAY found a deep thirst for an immediate general election, with some pointedly calling for a change in Government in order to get the country on a new economic path

    Like

  • Well Well @ Cut and Paste @ Your Service

    and when lies return to bite, politicians have to start educating themseves, the islands population is not even 300,000 and ministers can never squeeze blood from stone…never

    Both entities are currently forecasting that economic growth will slow to at least 0.5 per cent this year, down from one per cent in 2017 and 1.6 per cent the previous year, with Government’s overall expenditure on the increase and lower than expected tax revenues from the austerity measures introduced last year, including the controversial National Social Responsibility Levy which generated only about $115 million, a long way from the $218 million it was expected to bring in from July 1, 2017 when it was raised from two per cent to ten per cent of the customs duty on imported and locally produced goods, to the end of the fiscal year in March.

    you want a prime minister who can negotiate in the best interest of the PEOPLE…all the people and not just for and with minorities, someone who has a tract record for winning disputes.

    you want a prime minister who will FIRE any minister for any wrong doing immediately period, Fruendel is a wuss…my balls are bigger..

    you want a finance guru who knows math, you do not need a fly by night minister of finance, look where that got ya, thieves and scam artists need not apply..

    Like

  • As the peoples of the world, in their billions, rise up against the elites SB and Grenville Phillips, the son of the corporate undertaker, seek to protect the very establishment.

    We say let it die on the vine.

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  • Well Well @ Cut and Paste @ Your Service

    whats the old saying about dogs and their vomit again…well here it is in live and living color…

    Pacha…the awakening worldwide is now seeing arrogant, lying, obnoxious world leaders no matter how big or small, well and truly hated by the populi.

    https://www.barbadostoday.bb/2018/02/02/going-the-imf-route-is-an-option-sinckler-says/

    Government appears to be softening its resistance to seeking the support of the International Monetary Fund (IMF) to turn round the economy. Two…

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  • Wily estimates that BARBADOS $ at best is worth 0.12US$, this means a devaluation of some 400% is in order.

    Wily is not an economist, however Wily is an avid reader of IMF Articles, LEADING economists analysis(ie: Marla Dunkharan), Scotiabank, RBC BANK, etc. which are all in general agreement that the BARBADOS $ is worth between 0.10 and 0.14US$.

    Devaluation itself is not thing that will lead BARBADOS back to prosperity, however devaluation will result in the necessary mental correction to the BAJAN perspective. Prosperity as BARBADOS has known in the last few years will likely NEVER RETURN.

    Like

  • Wily Coyote February 3, 2018 at 11:17 AM #

    Don’t worry. The economists themselves do not agree what they are talking about. In macro-economic policy government’s objectives are threefold: managing domestic monetary policy, managing the exchange rate, and control of capital flow.
    We have ceded the exchange rate to the Federal Reserve, there is no inward capital flow and domestic monetary policy is chaotic.
    In short, government has lot control of the economy. Taking back control of our exchange rate is not the worst that can happen, since that is our sovereign right; to put the brakes on inward and outward capital flow we can start by outlawing the use of the Greenback as legal tender in Barbados. And, finally, the irresponsible credit-driven monetary policy is a catastrophe waiting to happen.

    Like

  • Well Well @ Cut and Paste @ Your Service

    used to be the BBD was worth 0.35US in the early 90s….that is a long free fall, they are lucky to be still anchored to US.

    Like

  • Theophilius Gazerts 261

    Also not an economist
    But would prefer to keep my money in my pocket and not have a “necessary mental correction to the BAJAN perspective.”

    Can someone tell me the benefits of devaluation and why we must devalue the Barbados dollar. And please, I begging you please don’t tell me “we already devalue”. If we are already devalued why do we have to do it again?

    Like

  • Theophilius Gazerts 261

    BTW: An excellent column by Grenville
    He has shown you the future
    Make and live with your decision. You will have only yourself to blame

    Like

  • Well Well & Cut N' Paste At Your Service

    Lol…dont mind Ha, Ha Austin ya hear, let the Brits devalue the pound and you will hear him squeal like a pig…

    ….., the pound dropped to just about 2 bucks in Barbados last year, ah bet he he did not travel out of UK at all.

    Like

  • millertheanunnaki

    @ Theophilius Gazerts 261 February 3, 2018 at 12:02 PM
    “And please, I begging you please don’t tell me “we already devalue”. If we are already devalued why do we have to do it again?”

    The decision to ‘officially’ devalue the already de facto devalued Bajan Mickey Mouse currency has already been taken out of the hands of the impotent local authorities.

    They have failed miserably to take matters in their own hands by earlier stroking the economic bishop while belling the monetary cat.

    It’s just now a matter of the Bajans ‘begging’ between being screwed in the fiscal mouth or up their monetary backside.

    Either swallow their pride and take the slippery wood of major lifestyle adjustments in their big mouths or expect to feel the impact of a large piece of iron where the sun does not shine.

    As the donkey told the pig on the way to the market: ‘Sweet life ain’t long life’.

    Liked by 1 person

  • Well Well & Cut N' Paste At Your Service

    Miller…ya friend Stinkler NOW sees IMF as an option, huh..lol

    Just remind him that HE SAID…if there is any devaluation. …he will resign.

    Of course with a little over 12 weeks to go before the government is forced to call election….his tail will be out of parliament before IMF negotiations.

    Like

  • @ Miller
    Boss…
    You like you acquired Bushie’s whacker yuh…..
    but…
    Ease off de throttle a bit though….
    unless yuh looking to kill a fella…?

    Like

  • Well Well & Cut N' Paste At Your Service

    Lawson….#YoMemo….lol, haha ha, lol.

    Like

  • Theophilius Gazerts 261

    This was simple…
    Reflected what many of you were saying but it did not mention the hocus pocus magic that some think comes with devaluation. It also mentions inflation, I did not see anyone talking about inflation. Suspect the tourist will get a rise in cost as well….
    Tell me what does Barbados export???

    https://www.thestreet.com/topic/46324/devaluation.html

    Like

  • Theophilius Gazerts 261

    Doing it from first principles… not what is bad for the D. What is bad for the D is bad for all of we.

    Like

  • millertheanunnaki

    @ Bush Tea February 3, 2018 at 2:12 PM

    Bushie these vagabonds have outdone the BLP when it comes to doing shite; both figuratively and literally. You have a lot invested in Barbados (including your genetic future) and you ought to more concern about what is taking place as the conditions required to produce the plague are beginning to build up, rats and all.

    It’s all your fault for reading up the Devil with his pitchfork on the Garrison.
    Since you put your mouth on Froon and his goons, things have gone from ‘pissy’ poor to shitty worst.

    How could this pack of nincompoops make light of the shit on the South coast by trying to blame others and by cussing people who dare to express serious concern.
    Just look at how the MoH described one of his community-minded constituents, Adrian Hockey Donavan an “Up and On” fellla from the old Mafiosi!

    You need to get rid of this lot or else all economic and social hell would break loose as the gates of hell are opened like the sluice for the Grame Hall swamp.

    Even Solutions Barbados would do, just to see the back of this lot of jokers from hell.

    Like

  • Theophilius Gazerts 261

    Don’t misread and think I have some kind of alliance for the Demonic party.
    They need to be removed
    But we are not going to cut off our nose to spite our face
    Barbados first …. party second

    Like

  • millertheanunnaki

    @ Theophilius Gazerts 261 February 3, 2018 at 2:51 PM
    “Tell me what does Barbados export…”

    Tourism services (sea, sand and fun) and rum.

    Devaluation could act as a major stimulus to the production of more local molasses for the rum industry and locally-grown fruits and vegetables as the western world (source of tourists to Barbados) becomes more vegan in culinary fare.

    With every ‘dark’ crisis comes a set of golden opportunities. Don’t let the pending devaluation crisis go to waste.

    Like

  • Theophilius Gazerts 261

    I don’t see Tourism as getting cheaper, the hotel rooms will stay the same Us price.
    Vegetable will be sold to the hospitals at the same going rate. Is a pound of patoatoes cost $2 BDS and the the exchange rate becomes 7 to 1 the pound of potato now cost $7.00. Nothing get cheaper for the tourists…

    The only impact I see is that even those who are not locked into the tourist industry will be paying more..

    We need to think this through.

    Like

  • Theophilius Gazerts 261

    My state of mind…
    “BU is not qualified to say if to devalue or not- clearly we need to address government spending, increase productivity in the country especially in the export sector, address debt servicing challenges and a dose of private sector investor confidence. How will a devaluation attack these systemic problems we have failed to effectively address in the last two decades?”

    Like

  • millertheanunnaki

    @ Theophilius Gazerts 261 February 3, 2018 at 3:00 PM
    “But we are not going to cut off our nose to spite our face
    Barbados first …. party second”

    Good call for placing patriotic ѱ altruism before narrow political party expediency.
    But is the ♯ rat boxcy ♯ listening?

    How can the measures necessary to stop the country from falling over the cliff of devaluation be implemented without a fresh mandate from the people, the employer of the political class?

    Why is the main jokey doctor in the dlp pack allowing the patient to purposely deteriorate knowing full well the longer the delay of the necessary radical surgery the quicker would the Devaluation undertaker be at the door.

    Like

  • Theophilius Gazerts 261

    My last comment on this.
    We have to be patient with whoever inherits this mess as I doubt if this mess can be fixed in one term.
    No one word policy can fix this.

    Like

  • TG###….it takes two words….lower expenditures.
    It is coming at the Nth hour.
    The signals have been out for some time.
    Now one hears from the MoF, he has received a report from the IMF on SOE’s. Dr JR a few weeks ago addressed T&S, which involved many of these SOE’s, at a DLP Friday lunch and learn.
    Appreciate, the Ministry and the CBB have equally qualified individuals, who could have told us what is within the IMF report, years ago. But now, they have an external body to blame the forthcoming expenditure decreases on. And you can bet, it will be spun better than I ever can.
    This will hopefully not alienate the faithful on ‘social economy’, otherwise known as ‘compromising political capital’
    We will be reminded the real reason is the revenue shortfall, [not expenditures] all the private sector operators and others who have failed to remit VAT and pay other taxes. No mention will be made of tax refunds owing. In other words, “it en we fault”. We did our best and were true to the party values.

    Like

  • millertheanunnaki

    @Theophilius Gazerts 261 February 3, 2018 at 3:16 PM #
    “I don’t see Tourism as getting cheaper, the hotel rooms will stay the same Us price.
    Vegetable will be sold to the hospitals at the same going rate. Is a pound of patoatoes cost $2 BDS and the the exchange rate becomes 7 to 1 the pound of potato now cost $7.00. Nothing get cheaper for the tourists…”

    What you mean to say is that the impact on the tourists spending locally would be neutral when their foreign currency is converted to Bajan dollar.

    With a ROE of 2:1 moving to 7: 1 the tourists would still be able to cover the cost of 1 pound of potatoes.

    If we take your argument to its logical conclusion then Jamaica should be having much less tourists than Barbados.

    You are missing one other factor from your analysis.

    That increased cost of $7.00 for the pound of potatoes might just be sufficient to push the lazy Bajans to switch to the use of locally-grown potatoes, tomatoes lettuce cabbage etc instead ofconsuming the imported equvalent sprayed with chemicals to make them look fresh in whichever foodcshop owned by overseas interests.

    Same thing applies to the increased cost on imported fossil-based fuels.

    Now that would be a real stimulus to the alternative energy sector.

    Like

  • miller with deals like sandals has you may have eat local but the tourist wouldnt. hookers would cost the same as usual for bajans … but WW … the cost of antibiotics could cut into your profits and put you in the poor house. If you have your fellas make their condoms out of local sheep intestine you could save a few bucks ..but if you raised your own sheep that would be even better. Time to brush off that old taxi license for the hard currency… no mam we dont have meters in our cars ..we are highly educated and can tell time. I always wondered why there was such a charge to get rid of the nelson statue till it became obvious when I would see it six times on a taxi ride to the harbor.

    Like

  • Devaluation is not about TOURISM, it’s about forcing a mental, physical and schycological adjustment on the BARBADOS populace. In other words it’s to FORCE Bajans TO LIVE WITHIN THEIR MEANS.

    Tourism costs will adjust itself over time. BARBADOS Economy cannot survive on tourism alone, a different direction is required and a disciplined approach to implementation.

    Devaluation will essentially result in……. reduction of civil service, adjust employment levels, reduce SOE’s, etc., etc. These necessary adjustments will be taken out of government hands.

    Like

  • @Wily

    Notwithstanding the noble expectation you have posited the real reason a devaluation is on the radar is about rapidly diminishing forex. If we can’t defend the peg we will have to go cap in hand with no bargaining chips on that table with the IMF.

    Like

  • David February 4, 2018 at 10:25 AM #

    DEVALUATION will solve the FOREX problem and would have prevented the FOREX problem.

    Devaluation and floating currency or realistically pegged currency will insure the HORSE IS ALWAYS PULLING THE CART and not the cart pushing the horse and the government will be forced to fall inline accordingly.

    Like

  • @David February 4, 2018 at 10:25 AM #

    DEVALUATION will correct the FOREX problem and would have prevented the FOREX problem.

    Devaluation and a floating currency or realistically pegged currency will insure that the horse is always pulling the cart vs the cart pushing the horse. Pegged currency is well outside the capabilities of SMALL(poor) THIRD WORLD countries.

    Like

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