est. 2007

Barbados Underground

Bringing News and Opinions to the People

,

NIS Government Paper for Trash

The blogmaster thought it timely to highlight one of several NIS blogs in a COVID environment for obvious reasons. After many years of calling for certified audited financials spanning different governments we are none the wiser – David, blogmaster

Is it irrational for citizens of Barbados to lend their accumulated savings , gratuities and separation packages to the GoB? Based on GoB track record is it unreasonable to expect repayments of those loans? Would you prefer the citizens to buy imported luxury consumption goods with all their income?

The citizens now senior were making provisions for their old age. The interests payments were intended to augment their income /pensions and to educate their children.

Interest rates on GoB papers rarely exceed 7.5 % and they were down to 6% in the last 5 years,. It is a serious breach of contract for GoB to squander its reputation as a country which honours its debt obligations. It is going to be difficult to gain the confidence of lenders in the future. A very short sighted decision.it was to default.

– Vincent Codrington

The blogmaster was reminded that the National Insurance Scheme is the holder of over 2.5 billion in government paper based on their website.

What does the restructure of government debt restructure for NIS and Central Bank of Barbados government holdings?

How will the reduction in investment income impact the fund’s capacity to deliver pensions to senior citizens?

Of greater concern is how will retirees negotiate the economic hurdles posed by the debt restructure because of what they thought was astutely investing in government paper to supplement retirement income. The reality however is that any investment carries risk, government paper is no exception.

Investments

256 responses to “NIS Government Paper for Trash”

  1. Talking Loud Saying Nothing Avatar
    Talking Loud Saying Nothing

    @ Waru,

    I tried replying to you on Grenville Phillips’ Column but it is now closed. You asked Enuff to air his views on the link that I had posted regarding Qatar.

    Qatar has a population of 2.5 million and is a country that punches “well above its weight”. Look at its stance against crazy Saudi Arabia, UAE, Egypt, USA, et al. It has stood firm to its principals and seems determine to go it alone even it means distancing itself from her larger neighbours.

    It should not be a case of Barbados negotiating with Qatar with outstretched hands. A sensible country would certainly not place its eggs in one political and economic basket as is the case with our relationship with China. The exchange could and should be a mutual one based on fairness and equality.

    Just in case you need reminding China has a population in excess of ONE BILLION! This “relationship” that we are entering with the Chinese government is a chalice filled with poison where there can only be one winner.

  2. T.Inniss Avatar
    T.Inniss

    I am going to use the word ‘MAY’ rather than ‘WILL’ because it is still early days yet and there is still time for Mia to redeem herself.

    However if Mia continues on this path she has started she may cause the greatest damage to Barbados and the barbadian psyche out of all our former prime ministers.

    Let us look at this disastrous yet hubris filled decision to default on bdos debt.No matter how the operatives and Mia herself try to sugar coat it,or how they try to put chocolate over it – the fact is if it smells like poo poo and looks like it and has all the characteristics of poo poo – then the verdict is in – it is what it is.

    Mia’s rush to default without giving herself some time to talk with the creditors domestic and foreign;to listen to knowledgeable persons of all stripes to avoid this action and to consider the consequences of same spoke volume as to the temperament,judgement and skill or lack thereof of this person who so badly wanted to be prime minister.

    .

    Her insistence on fulfilling her campaign promises which she knew would send Barbados into a further tailspin – clearly demonstrated someone who was intent on playing politics and not providing good governance.

    So I ask if Mia knew how hamstrung the economy was why did she:

    Give the civil servants a 5% increase which from all reports – has put many of them in a worse position because of the new tax brackets and the other imposition of taxes;
    Why did Mia Reverse the decision to have students pay their tuition fee at UWI – which represented a mere 20% ,while govt continued to pay the bulk of the cost at 80%.

    Why was this done before an evaluation carried out as to the direction she intended to take the country and the appropriate skills (therefore types of degrees) required.

    Why did she give an increase in pension which the NIS can’t afford which from all reports could be anywhere between 20 million to 40 million – and on the same hand take it back in taxes.

    *Why did Mia create such a enormous, unnecessary cabinet filled with retired politicians,friends family and then add to that include political campaign facebook manager,failed political candidates as advisors and on and on.

    Didn’t Mia realise that money is scarce and every cent we saved was necessary.

    But for her she felt that the same way she deceived the public through propaganda on facebook and social media sites and through media workers in electronic and print – well to her it would be easy to shut the people up by throwing a press conference every other day,or running helter – skelter overseas and appearing large and in charge – when in fact those people in these large developed countries,don’t care squat about this little Dot in the Caribbean sea.

    To her to throw the pensioners,and those who invested their little savings – under the bus by this decision to pay them next to nothing -this to Mia was nothing big.After all,she covered her back with almost all her candidates as ministers – and she give the union a little something to shut them up.In addition she will be able to boast when election comes around – you see the Dems didn’t want you to have free university education ( which is a lie since they were only being asked to pay 20%) – however I Mia Amor Mottley saved the day.

    Even though this was done on the backs of those who can’t go out and find a job at this time in their lives and who are going to be left destitute.

    DOES ANYONE REALLY THINK DURING HER TIME IN OPPOSITION MIA WAS REALLY FORMULATING PLANS ON THE BEST WAY FORWARD TO GET THIS COUNTRY OUT OF THE ECONOMIC DOLDRUMS?

    OR WAS SHE JUST RUNNING AROUND BARBADOS,THE CARIBBEAN AND INTERNATIONALLY TRYING TO MUDDY THE WATERS AND SHUT DOWN ANY VIABLE INVESTMENT OPPORTUNITY,OT CAST A NEGATIVE IMAGE ON BDOS SO AS TO HURT THE LAST LOT AND THEREBY ENSURE SHE BECAME THE FIRST FEMALE PRIME MINISTER.

    Anything after that is icing on the cake peoples.

  3. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    For years the smart in mind and body knew that retirement was evident if not inevitable. Thus their ability to earn an income into retirement was a smart thing to do. None of us know at what number our “ticket will be pulled/punched” unless suicide or life imprisonment(Dodds at HM pleasure) was part of your plan. So we plan to live until the day we die. We plan to “live” as opposed to “survive” until the day we die.

    We were advised and schooled by our grand parents and parents and then later on by financial advisor (some with a policy or financial plan to sell us) to put away something for a rainy day; but retirement is more like a slow famine with reduced resources ending with your death. How morbid the thought.

    In the recently past we implemented a social security safety net; the NIS but it requires you to make contributions etc. There are personal retirement saving vehicles. Again they require a contribution from you. So the accepted understanding is that you save/invest when you have the income for the retirement years.

    In Barbados they are few real investment opportunities for the average man. The stock market here is not the vibrant and not attractive. Also, the average bajan is not attracted to direct share owner ship; even in the USA that is a similar occurrence. Indirect share ownership occurs through 401K plans & insurance policies & company provided retirement plans etc; something similar happens in Barbados as well.

    Some will be lucky to benefit from political patronage but they are the minority. Even doctors and lawyers and not-so-big-ups, need to invest for the retirement years. It has become par for the course of life; just as INFLATION is par for the course.

    There is land investments; like being a small landlord; small farmer; or a small business person. By sheer probability only a few can succeed in these areas and last time i checked ALL will/must retire. That leaves a large portion of the population that must find an investment vehicle to provide income for the retirement years in addition to their NIS benefits.

    Thus GOB investment instruments. There were widely available. Very secure even guaranteed until recently. Were competitive with saving rates paid by retail bank and credit unions. GOB paper could be used as collateral and some were trade-able/negotiable. GOB paper allowed for a certainty of cash flow at known intervals.

    Some investors were well aware of the other investment issues like Trade Confirmers and recently CLICO. So what does a man with $50K+ to do? A man who was just refunded his company pension contribution that faces an income hit if he takes the cash or no income tax hit if invested in GOB paper. A man that is well aware of the INFLATION demons in society.

    That was recent history. Today is another day with a new view on GOB paper. But the questions still persist. What and where can an average many invest that is handed $50K plus as a separation package at 45+ years old. This is something that has not change and is (a bad) constant in the barbadian invest horizon.

    We live in Hope(wherever that may be) but for many it doest seem to be Barbados. That place called Hope must be rather over populated by now i figure.

  4. ks Avatar
    ks

    The picture painted by the NIS Investment Portfolio is indeed a sorry one. How could a government ‘rape’ its citizens in exchange for now worthless paper? Will NIS ever see this money paid back? Heaven help our grandchildren!

    What is even more disgusting is the fact that not one person will be held liable … except morally by us citizens. But what will that do…. nothing! I am sure they are sleeping well and not worrying about personal finances……… the bed was made comfortable before the 30-0 defeat!

    Will I ever invest in a government bond, debenture, etc. again??? NEVER, NEVER, NEVER!!!

  5. David Avatar
    David

    No Jeff Cumberbatch column today.

  6. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    The NIB’s over investment in GoB paper violated the investment guidelines set by the Investment Management Committee.
    Sovereign Debts are low risks everywhere in the International Economic System. Governments are expected to repay even if it takes a hundred years. We have noted in BU that the money borrowed to compensate plantation owners for emancipating the slaves ,was only recently repaid by the UK government.
    For years GoB held UK War Bonds. Governments must lead by example. We use to joke on BU about Barbados becoming a Banana republic. Walking away from Sovereign Debt is what Banana Republics do . Are we there now?

  7. David Avatar
    David

    @Vincent

    You must be aware of the arguments forwarded by Denis Kellman, Darcy Boyce, Chris Sinckler et al that it did not matter ring fencing the NIS Fund if the economy of the country was collapsing?

  8. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 9 :27 AM

    The raid on NIS funds started long before they admitted the Barbados economy was collapsing. Unfortunately the technocrats, who should have advised them to the contrary, seemed to be of the same view.

  9. Bush Tea Avatar
    Bush Tea

    @ Vincent
    Walking away from Sovereign Debt is what Banana Republics do . Are we there now?
    +++++++++++++++++++++++++++++++++++++++++
    Boss…
    When Froon stated that Parris was ‘NOT a leper’, and took NO action in the Great CLICO robbery we got the ‘banana…’

    Then…
    When Stinkliar introduced the Shiite tax to force Bajans to PAY Bizzy for a service which OTHER businesses were PAYING the same Bajans to provide….
    ..and THEN created a tipping fee to make illegal dumping attractive….

    We got the “Republic…’
    So…
    Boss, we HAVE been a Banana Republic now for years….

    It was at THAT point that it no longer made sense ….EVEN IF CASWELL HAS BUPPED….
    The only result will be grass…..

  10. David Avatar
    David

    @T.Inniss

    Let us for the sake of argument accept all you have stated is correct, the optics of a large cabinet does not look good etc. tell us how a DLP government would have managed the situation given the stat of 68 cents out of every dollar servicing debt. Bear in mind the several credit rating downgrades kept pushing up the interest owed. Coming after the former government dismissed the international credit rating agencies. Tell us what was the plan, selling our profitable natural assets is not the right answer.

  11. David Avatar
    David

    @Vincent

    Do you agree with Senator Caswell et al who are of the view the NIS and the Central Bank should be established independent entities?

  12. WARU Avatar
    WARU

    Talking Loud…yes, the China relationship is iffy at best, not much to extract from Barbados but the ministers of government are not the brightest bunch and that does not bode well for any negotiations that will benefit the majority population. ..given that China is very skilled at negotiating to benefit themselves…only.

    That also goes for any local government negotiations with Qatar….there is too much proof that local ministers are incapable of doing anything to benefit anyone other than themselves and those just as crooked as them..

    All Enuff is interested in is boasting about the 30-0 election result, limited intellect…not realizing or even seeing what is right in front if him…. the 29-0 that is patiently waiting around the corner come next election..

    That is ..the plight of yardfowls..

  13. Bush Tea Avatar
    Bush Tea

    Unfortunately the technocrats, who should have advised them to the contrary, seemed to be of the same view.
    ++++++++++++++++++++++++++++++
    What technocrats what???!!
    Pack of shiitehounds.

    The VERY clear position articulated by BA on BU best explains the status quo with these ‘technocrats’.
    Barrow took over a large plantation with thousands of uneducated brass bowls.
    He tried to accelerate them to human status with a ‘welfare approach’ of entitlement that was quite appropriate for the situation then.
    The products of that entitlement have since adopted ‘entitlement’ as some kind of permanent RIGHT… so that we now have complete certifiable CLOWNS being kept in leadership and ‘advisory technical’ positions – NOT OUT OF MERIT, but because we have to give them a chance to get through…..

    This rot has long reached the top (started when Arthur was given the pick “because he could not otherwise get a job…”)
    No wonder he appointed a chicken feed man as Supervisor of insurance …and sent home the deputy who took the job seriously….

    ….grass ahead.

  14. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 9 :38 AM

    The NIB and The CBB are as independent as they need to be. HM the Queen appoints the Archbishop of Canterbury. After she has done this,he listens only to God.
    The boards of these two entities need to follow the guidelines and adhere to a high level of professionalism. They have the code of ethics of their professions as the ultimate authority. Their reputations are at stake.

  15. WARU Avatar
    WARU

    “He tried to accelerate them to human status with a ‘welfare approach’ of entitlement that was quite appropriate for the situation then.”

    That right there is the problem….that cultural financial crippling that has occurred because 1966 necessities have become outdated and obsolete. … none of the two governments wanted change, neither of them wanted to EMPOWER the people financially and let the PEOPLE become self sufficient AND independent..

    ..that culture of foolish ministers pretending to be saviors of all things economic and financial while invoking over and over ad nauseum the names Adams and Barrow and alternating the same political idiocy every 5 or 10 years to the same electorate who elect them…cannot continue anymore it is not sustainable. ….has not been for over 20 years….

    The PEOPLE have to become ENGAGED….INVOLVED…in their own survival regarding alll things ECONOMIC and FINANCIAL…to generate cash flow and wealth accumulation…to become truly independent.

    Why are these ministers too stupid to see all of this…government controling people, what they think, do and how they survive and forcing political parties on every citizen to join up as clueless yardfowls …does not work anymore in banana republics.

  16. Guest Avatar
    Guest

    …1 This is MAM made.
    …2 No investigation of what caused the sudden decline in the reserves
    …3 No action against businesses and individuals that divert US$ revenue to overseas accounts
    …4 No action against those owing millions in taxes of all types
    …5 No action to reduce a public service that is not earning its keep
    …6 No action to investigate goods passing through the ports without paying the appropriate duties
    …7 Pursuing political promises of paying all UWI fees
    …8 Pursuing political objectives of making “every” MP a minister to allow for the senators and consultants being hired
    …9 No attempt to use assets to pay the debt holders
    …10 Failing to place the burden of the cure on those that caused the problem – those that refused to pay their taxes; those that bribed others to evade paying their taxes; public servants that failed to collect the GoB’s revenue; and the politicians

  17. Vincent Codrington Avatar
    Vincent Codrington

    @ Bush Tea at 9 :44 AM

    I agree that political interference does frustrate the system. But it is we , the citizens, that allow it to happen. Many of us do not know our rights.

    Anyhow I intend to move my @#&% out the way before you and My Love mistake it for grass. LOL!!

  18. David Avatar
    David

    @Vincent

    Your comment is accepted as being tongue in cheek.

  19. Guest Avatar
    Guest

    …11 The division of the country into MAMhaves and MAMhavenots without reference to past effort

  20. Guest Avatar
    Guest

    …12 No investigation of the members of the last administration after accusing them of corruption

  21. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    The issue as i see it is that the average bajan is now stuck. With no real place to invest for the future or retirement. Many bajans in the not to distant future will be faced with an income gap between NIS and the real cost of living. Retirees want to live and not just survive. Without the additional income that investment bring the INFLATION demons will quick devour any saving(under the mattress) left on the retail banks. Insurane vehicles are now all designed for cash-flow purposes; other than getting emergency loans which reduce maturity benefits etc.

    Barbados 20 year out is going to have a severe pension and retired poverty income imbalance. The older folks with just NIas maybe not be seeing the golden years as a treat but more of a sentence in misery. Look for increases in suicide and imprisonment of elders; either as a escape from reality or a fact that they have given up caring for themselves.

    we live in Hope. by now an over populated place.

  22. Tron Avatar
    Tron

    Didn´t Tron warn you about the gov bonds at NIS years ago? Didn´t he predict a serious cut for NIS pensioners? Read the old blogs … Like the decline of the offshore financial sector …

    And look where we are now … This is just the beginning. More cuts and devaluation are next. It is only a matter of time … Some might still laugh about me. Well … Soon you won´t laugh anymore.

    However, we shall be FAIR AND BALANCED. PM MAM was just the messenger of Big Sinck´s insane financial policies when it comes to the declaration of default and cutting gov bonds. Maybe you understand now WHY she lifted guaranteed minimum pensions … because lots of pensioners will receive by far less now and will fall back to the minimum pension.

    The Achilles´ heel of PM MAM´s policies lies elsewhere: 1) BERT does not propose any substantial cut in the Barbados civil service despite the fact that the civil service is 30-40 % too big and that the civil service in its current shape cannot be reformed. 2) BERT does not show any ideas to generate growth of forex income. I do not take tourism into account since this industry already reached its peak.

    Hard times are ahead. Soon the population will be divided into happy forex earners and clueless receivers of Mickey Mouse-dollars.

  23. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @Tron September 30, 2018 10:45 AM

    How do you explain this to person that took 20 year GoB paper in 2000. as part of their portfolio to diversify their income stream as they reach 70 years old etc. is it their fault to make the best investment available in 2000 when they they made the 20 year investment?

  24. Tron Avatar
    Tron

    Addendum: Isn´t it funny that the DLP-supporters on this forum don´t press for a massive purge amongst the civil servants? Not for me. After they appointed so many personal friends and stalwarts during the last ten years, eg at the Barbados Supreme Court, the DLP as well has zero interest to cut down the numbers. This simply shows that they are out of ideas as well. They bear the sign of the branding iron of the plantation called nepotism.

    As said before: As long as Barbados keeps its bloated public service the country will decline. The decision is crystal clear: Either sending home 10,000 civil servants or sending the whole island into hell.

  25. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    If we borrow too much from China, we may not have to sell any GOB assets cause China will just repossess then for non payment if we reach that far in decline. African countries and Sri lanka are seeing and feeling that borrowers MUST be paid once you tek the man money.

    CHINA is not a panacea for our debt issue, i hope we all recognise that.

    And living in Hope may be repossessed if we don’t pay our loan

  26. Tron Avatar
    Tron

    @ sirfuzzy (i was a sheep some years ago; not a sheep anymore) September 30, 2018 10:54 AM

    Investors where in good faith until the rating agencies turned the rating down to B. Right.

    However … Those who invested in 2000 where also amongst the voting population. Barbados is an independent country and a democracy. If the population ruins the economy and the financial system through wrong decisions at the ballot box they have to bear the losses. The population had the chance to establish a party or to vote for a party with liberal economic policies and a vision of a lean bureaucracy. They didn´t.

  27. Hal Austin Avatar
    Hal Austin

    The BLP government has just re-assembled the chairs on the deck of the Titanic. But, what does it all really mean? As the late Ben Pimlott reminds us, a new government comes under enormous pressures, but it also has numerous opportunities to make radical change.
    This is particularly so when there is a shift in the national mood, and a new, younger government with fresh ideas and visions, take up the mantel.
    He made the pint that for the opportunity to be taken, it must take up power with energy; he goes on: “The first hundred days is not just a timespan. It is a symbol, with a powerful historical reference: the controlled hurricane of reform and innovation that occurred un the United States at the lowest point in the Depression, when unemployment stood at 17 million. It provided the start of the New Deal, an idea that gives every despairing democratic people hope.”
    I have written about this before on BU, but within the first three months – not 100 days – of coming to power, Roosevelt introduced 15 major new laws to shore up a massive social revolution.
    The UK’s post-war Attlee government, which gave us the NHS, social security and a nationalised Bank of England, isnnot a bad model to follow.
    For Barbadians looking for a similar, if smaller, social revolution, the BLP government has failed. The NIS is one key Barbadian institution crying out for radical change, as the Auditor General reminds us every year.
    It was abused by the Thompson/Stuart regimes and badly managed by Dr Justin Robinson and his various teams. The changes announced recently by the government has not instil in us any confidence. A fish rots from the top and if the board of the NIS is a symbol of what passes as BLP dynamism, then this too will fail.
    We do not just want change in personnel, but new ideas, new proposals for our long-term savings and social security. Again, as I have said on numerous occasions, the key to modern public policy reform is to search the world for similar models of change and shaped one fit for the social ecosystem in Barbados.
    We are either serious about change, or are playing silly, little party political games.

  28. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    Tron September 30, 2018 10:59 AM

    The civil service is a beast onto it own. its not just the last 10 years but from the 1970’s that political patronage has been handled as positions in the civil service. I am sure every new administration will remove some and install some “lackies” into the civil service.

    The civil service(permanent opposition) will protect its own, whether Bee or Dee its an unwritten code of conduct. The BAR assn does something similar. It protects is own… The civil service is kinda immune to certain political behaviour.

    The govt actually operates at the speed of the willing or unwilling civil service(servants). nothing that MM wants done will not be done unless she has the agreement of civil servants. I have never seen a PM or MP get anything done by merely uttering words or cranking out policy.

    the civil service is not known to be suicidal. So cuts to it will be done where it least does damage not the opposite.

  29. TheOGazerts Avatar
    TheOGazerts

    “DOES ANYONE REALLY THINK DURING HER TIME IN OPPOSITION MIA WAS REALLY FORMULATING PLANS ON THE BEST WAY FORWARD TO GET THIS COUNTRY OUT OF THE ECONOMIC DOLDRUMS?”

    This question has already been answered by several.

    If we were really honest, we would admit that our salvation is well beyond the reach of Mia. A small island, small population, no ‘real natural resources’, and with just sea and sand like the hundreds of places with a shoreline. Mia does not have the ability to reach into the basket and pull out five fishes and feed five thousand.

    One can even argue, that given the severe constraints facing Barbados and given the five years in the wilderness, the performance of the current administration is well below the level one would expect for a recovery, So the answer to your question is No! No! No!

    Or as others has put it
    “Barbados is a failed state” (I prefer to use the word failing)
    “Our ass is grass”

    The requiem is being written but it is incomplete.

  30. Vincent Codrington Avatar
    Vincent Codrington

    @ sirfuzzy at 10 :30 AM

    I share your assessment of the future impoverishment of our senior citizens. They certainly do not deserve the burden that is being put on them to reduce this nebulous concept of a debt overhang.
    The real sources of the need to borrow to pay for unproductive G O B expenditure have been exposed ad nauseam on this blog. Instead of dealing with them they have zeroed in on the hapless pensioners in the departure lounge,hoping to reduce their obligations by their early departure.

    But that is only kicking the can further down the street. Unless GoB addresses the economic and administrative maladies, the financial collapse, as hinted at by GP, will take place sooner rather than later.

    Again I plead:
    Stop rearranging the chairs on the deck of the Titanic.
    Stop the loud distracting music .
    Get on with the job of putting the economy on the growth path.

  31. TheOGazerts Avatar
    TheOGazerts

    @Tron
    “If the population ruins the economy and the financial system through wrong decisions at the ballot box they have to bear the losses.”

    I agree with 98% of your comments but must disagree with that one.

    The position that we are in did not happen because of wrong decisions at the ballot box. Regardless of the outcome (B or D) we have been on a downward spiral towards our doom. People can only vote for who is on the ballot, but we have been given a coin with two heads.

  32. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @ Vincent Codrington September 30, 2018 11:21 AM

    Get on with the job of putting the economy on the growth path.

    From an investor prospective “what does Barbados have to offer than he cannot get elsewhere and cheaper?”

    What’s our real prospects on getting the needed forex and growing this economy in a sunstined why for the next four years?

    Do we have to adjust to a new NORMAL? Are the glory days of the past just that in the PAST?

  33. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @ TheOGazerts September 30, 2018 11:27 AM

    (quote) People can only vote for who is on the ballot, but we have been given a coin with two heads. (quote)

    ———-+++++

    You are so right. The duopoly is a lot to blame. We need to stop flipping a “coin” and start “rolling” a “dice” at least the dice got more that 2 outcomes.

  34. Enuff Avatar
    Enuff

    What does owing taxpayers income tax returns for 3-4 years mean? What does failing to pay NIS contributions after deducting from employees’ salaries? What is failing to pay contractual obligations for services rendered? What is failing to pay court judgements? Defaulting?

  35. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @ Vincent Codrington September 30, 2018 11:21 AM

    Get on with the job of putting the economy on the growth path.

    From an investor prospective “what does Barbados have to offer that s/he cannot get elsewhere and cheaper?”

    What’s our real prospects on getting the needed forex and growing this economy in a sustained why for the next four years?

    Do we have to adjust to a new NORMAL? Are the glory days of the past just that in the PAST?

  36. Hal Austin Avatar
    Hal Austin

    Barbados’ infrastructure is in a “woeful state,” and while the Government does not have the finances to deal with all the issues it will prioritize the critical needs, Prime Minister Mia Mottley has said.(Quote)

    What waffle. If this is the case, she has been prime minister now since May 24, what is her programme to improve things? Can we do this in Mandarin?

  37. Bush Tea Avatar
    Bush Tea

    Vincent said…
    Again I plead:
    Stop rearranging the chairs on the deck of the Titanic.
    Stop the loud distracting music .
    Get on with the job of putting the economy on the growth path.
    +++++++++++++++++++++++++++++++++++++++++++++++
    Too late Vincent.
    Study the phenomenon called Inertia.

    Stinkliar accelerated our donkeys towards the cliff so rapidly that only by crashing into something head-on (like a concrete wall) will we now be able to stop before the cliff….
    So it is either a head-on wreck (without seat belts – i.e. -Forex) …or over the cliff we go….

    It would have taken a souped-up Caswell – with an aggressive BUP, to apply the necessary brakes four years ago to stop this Island wreck safely….

    They would have had to;
    – lock up about 200 SENIOR people bout here…
    – Confiscate about 1000 bank accounts, homes and other properties from those guilty of fraud and outright theft…
    – Deport about 50 foreign enablers…
    – and execute about 40 locals (in China type fashion) after suitable trials in REFORMED courts lasting no more than 2 months.
    THEN we could have had a fighting chance ….

    The alternative is grass – either from the crash, …or the cliff…

  38. David Avatar
    David

    @enuff

    What percent of government paper in owned by pensioners?

    Could the government not have been more aggressive in ring-fencing this group given the fact investment income from government securities was planned for and encouraged by successive governments? Yes we know there is inherent risk even with blue chip but what is the downside to not protecting this group? Pressure on the social services? Does morality come into play? A well ordered society owes a higher responsibility to look after the young and aged?

  39. Tron Avatar
    Tron

    @ TheOGazerts September 30, 2018 11:27 AM

    As you hinted, so far Barbadians had the choice between two socialist parties, where the BLP stands somehow between a socialist movement and a social democratic one. There is no liberal or conservative party in Barbados, or at least none successful so far.

    Therefore I added that the population did not establish (I should have added: support) a party with liberal thinking. That was the big failure.

    To make it very clear, Theo: I do not advocate total privatization, eg selling the sanitation service and the water authority since this did not work well in many other countries. What Barbados needs is a general haircut for the civil service (in the offices, not for the field workers like police, garbage truck men, as somebody pointed out) and the closure of many redundant SOEs. Gov should keep those SOEs generating forex, being important for national security or providing basic services like sanitation and water.

    Addendum: The decision to privatize the tourist SOEs but to force tourists to pay for them is a very wrong decision. If a SOE does not attract enough users by free will it must shut down.

  40. WARU Avatar
    WARU

    And despite the below article and confirmation by government of the billion dollar debt now owed to creditors…the Mia government still REFUSES, using the RULE OF LAW available to her, TO VIGOROUSLY PURSUE those:

    … owning taxes,

    …owing the NIS Pension Fund,

    …the money missing from the treasury through various housing scams by government ministers..

    ….and all the money stolen from the people by the last administration and their friends in the minority business community..

    …which should all be RECOVERED because it is the people’s money, not Mia’s money, she has no right thinking she is the one to say, it’s OK the people can eat that MASSIVE loss of hundred of millions of dollars through government corruption…just because the thieves, criminals and perpetrators of those thefts from the people over a decade are all her friends…she has no right….while still having the nerve to complain about the 1 billion dollar debt to creditors..left by her same friends..

    So how does that make any sense to Mia and her ministers…they must think the people’s missing hundreds of millions of dollars don’t count…that can be the only explanation….then her government should not complain about the high debt because she is not doing her job of RECOVERING THE MONEY that was stolen so she can PAY DOWN the 1 billion dollar debt that they are now crying about..

    “Government has started to have preliminary discussions with several entities it is indebted to.

    Minister in the Ministry of Finance Ryan Straughn told the Sunday Sun that after these discussions reach an advanced stage, priority would be given to repayment but it would be a phased process since the country is $1.2 billion in debt, dozens of agencies are owed, and the adjustment period under the Barbados Economic Recovery Transformation (BERT) programme is underway.
    The minister was reluctant to provide a list of the entities owed, saying they wanted to treat to the debt as equitably as possible.
    “The truth is the debt is over a billion dollars. The Government owes almost everyone in Barbados,” he admitted. (BA)”

  41. WARU Avatar
    WARU

    It is hard for me to envision that a government that touted and sold itself as intellectually capable to the electorate…CANNOT now see that unless they recover that money that was stolen, they will continue to go around and around in circles with that billion dollar debt.

  42. Guest Avatar
    Guest

    … What is it called again if you facilitate a crime?
    … Is the biggest ever ripoff of the Barbados middle class being facilitated by the GoB for the benefit of known criminals?
    … Was the GoB ordered to reduce the standard of living for this group?
    … Will any GoB assets be sold and to whom at what price?

  43. Enuff Avatar
    Enuff

    David
    There are always options. Yes it would be useful to know what percentage is owned by pensioners; but also what impact ring-fencing pensioners would have on other investors. What is the full impact of the decision not to ring-fence pensioners on their livelihood? This is where robust analysis and debate is required as oppose to conspiracy theories and egofowlism. Policy made without evidence is just talk.

  44. David Avatar
    David

    @enuff

    Agree and this is why there is a careful a conclusion to be made that this would have been done by governmen’s financial advisors BEFORE asking bondholders to sign away retirement income, inherent risk not withstanding.

  45. TheOGazerts Avatar
    TheOGazerts

    Man, you talk like you have a seat at the table and not helping out one your best buddies
    I like your comment
    “Policy made without evidence is just talk.”

    If I was a critical thinker, I could complete the below… Can you help
    Policy made despite evidence …
    Policy made ignoring evidence …

    Please submit the following
    TheoGazerts_Resume.pdf

  46. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @David

    These pensioner may outstanding loans and obligations. Will reducing their income mean any combination of the following.

    a) They cannot now fully pay their land tax commitments?
    b) Cannot make repairs or pay the CU or Bank for repairs to house or property or any loan
    c) Cannot easily pay their medical bills or life/health insurance policies or property insurance
    d) Cannot fully take care or help out of their children/spouse/ siblings/ grand children?
    e) Cannot get the lawn cut or handy word done (not providing gainfully employment for others)
    f) No xmas spending on the in laws or grand children
    g) Helping out financial your children and siblings and others
    h) Spending less on their food bills or having to change their nutritional habits for the worse
    i) Help establish the groundwork for “depression” and promote other associated behaviour of that type.

    These are few of the issues that pensioners are faced with; of the above some things that can be cancelled are property insurance; vehicle insurance etc. But things to do with other living person are not that easy to deal with and can promote mental health issues and its associated effects.

    Thus any cancellation will have a ripple effect on the service provider and wide economy. Also the govt service that was not used may now be called upon to provide a service that was previously non-utilised More pressure on govt servicse that will mostly likely be under increased pressure from increased usage by new users, etc

    Some Econ PHd thesis will probably show the impact of the “pension class” on the Barbados economy.

  47. WARU Avatar
    WARU

    Garbage and sewage tax combined is $46.50 from end of September…that should generate massive revenue over time for those two collections..

  48. WARU Avatar
    WARU

    That’s Enuff…for ya…..the incomplete…lol

  49. Hal Austin Avatar
    Hal Austin

    We need a new long-term saving plan. The word ‘pension’ messes up the thinking. The answer is simple: ring-fence the existing system for those aged 45 and over and do a bulk annuity deal with a provider; establish a new compulsory defined contribution system for those aged under 45, with key access points – births, marriages, and home-ownership. Investments would be managed by an independent investment manager, with a set parliamentary mandate (ie the base rate plus ten basis points), asset allocation set by an investment committee, and stock-picking research bought in. Not Oppenheimer – .
    At death the assets would go to the estate.. Most urgently, however, we need a system independent of government, reporting annually to parliament, and with pensions-savvy people running it. The NIS is not a piggy bank.

  50. David Avatar
    David

    @sirFuzzy

    When a society cannot protect its senior citizens it says many thing all of which are not complementary.

    If one cannot trust our governments which by definitions reflect the people. What does it say?

    Do not answer!

1 2 3 … 6
Newer Comments

The blogmaster invites you to join the discussion.

Trending

Discover more from Barbados Underground

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

Continue reading