Governor Cleviston Haynes delivered a sobering review of the economy in 2018. The economy flat-lined or negligibly contracted as was described at today’s press conference. The focus of the government at the early period in office is to stabilize the economy that was in free fall for close to a decade. This cannot be denied.…
Governor Cleviston Haynes delivered a sobering review of the economy in 2018. The economy flat-lined or negligibly contracted as was described at today’s press conference. The focus of the government at the early period in office is to stabilize the economy that was in free fall for close to a decade. This cannot be denied.
The blogmaster is hopeful we will see growth strategies rolled out in the coming weeks and months. We live in hope?
Press Release Dec 2018v14.pdf (1022.19 KB)
All of you in here against the borrowing FX. How many of you willing to give up you toilet paper to save that FX.
You Vince?
You Mari?
Wily I think is overseas so he don’t really count until he come home and find out he got to use leaves or old newpaper.
Vincent Codrington January 31, 2019 12:50 PM
@ John 2
I have $500.00 in my wallet. But I will spend $200.00 on groceries and $ 300.00 on mortgage. And my utiities bills are due in two weeks. Does it matter that I have $500.00 in my wallet?
The bigger issue may be do u have or can earn the utilities money before they are due. If you cannot earn or scrape it up; This result in lights out and cold nights and nuff nuff tin food consumption and stand pipe duties? . Kinda sound quaint but that only works in the Hollywood. lol Reality is ausually more stark and a bi***h
@ Vincent
I have $500.00 in my wallet. But I will spend $200.00 on groceries and $ 300.00 on mortgage. And my utiities bills are due in two weeks. Does it matter that I have $500.00 in my wallet?
You have the opportunity of refinancing your mortgage which will allow you save 150/m. This will allow you to pay your bill until you find another source of income. Wouldn’t you refinance?
Anyone can come up with a scenario to please themselves.
OR
Someone is willing to loan you the money to pay your three bills at 1% interest (you have your family house and feed) wouldn’t you take it?
Be honest
Criticizing is easy.
What is the short term solution given the state of play on May 25?
It’s obvious some bloggers cannot or do not differentiate RESERVES and FORGIEN RESERVES, these are two separate and different entities in countries that have their currencies PEGGED to another jurisdictions currency. BARBADOS the majority of it’s FORGIEN RESERVES are in US DOLLARS and its remaining RESERVES are in Bajan MICKEY MOUSE DOLLARS. It’s like comparing apples and oranges, all called fruit however distinctly different. Over the past recent years Barbados has been using NIS Surplus funds as a central bank for Mickey Mouse reserve funds as well as leaning on commercial banks to supply additional funds under ever changing reserve requirements. FORGIEN RESERVES typically arrive via tourism and offshore sales revenue, however these in the last 10 years or so have been significantly less than the forgien currency spending. This necessitating significant costly international borrowing in order to support Bajans excessive life styles. This borrowing from Peter to pay Paul has reached unsustainable levels. The only solution to Barbados financial ills is UNPEG THE CURRENCY or SIGNIFICANTLY DEVALUE THE CURRENCY. Nothing tells Wily that the GoB has the ability to effectively manage a DEVALUED currency so FLOATING the currency is the only long term solution.
And how will floating help Barbados. Right off the blocks it going to be devaluation and you just stated that you do not see GoB ability to effectively manage a DEVALUED currency.
Didn’t Jamaica not float it currency in the 70/80s? how did it work for them?
@john2
Jamaica did float their currency in the 1970s and they went through a significant period of adjustment over the next 35 years, populace has now learned how to live within their means. I can also remeber Barbados laughing at Guyana when they floated, now tables have turned, its now Guyana laughing.
Bajans must realize, you included, you take the pain today and maybe live for another day or wait till tomorrow when there will be no medication for the pain and the patient will be TERMINAL, your choice.
How much turmoil did Jamaica go through in those 35 years.?
We all have our preferences and I would prefer Barbados (if it had to) to do a one time devaluation (like Trinidad) than to go through the “hell” I witness in Jamaica in the 80s.
Guyana did not come out of it economic woes because it floated its dollar but because of it discovery of oil. the Guyana dollar still aint worth …
What if we discover a treasure trove of oil offshore while still keeping our peg?
@Wily
Really?
When the average person refers to reserves we know that they mean foreign currency held by the country and or central bank.
Wily
Are you in the USA? If so how much debt is the USA in?
Does that mean the USA including you must learn to live within your means – or whatever it is you said about taking pain today?
Bigger countries with more financial support driven by productivity has tried this swap and borrow financial plan by The IMF a plan that all but adds up to little for nothing
These countries have failed and unable to benefit in the long run to keep their economies sustained on those plans
Most of them had to resort to higher taxation because negative factors along the way due to slow growth captized the financial support they were hoping to get them out of the woods
Barbados does not have any financial support by means of productivity as of present the FX accumulated by tourism seems to be nose diving
Question so how does govt plan to plug that tourism fx leak
@ Wily Coyote January 31, 2019 5:15 PM
“FORGIEN RESERVES typically arrive via tourism and offshore sales revenue, however these in the last 10 years or so have been significantly less than the forgien currency spending. This necessitating significant costly international borrowing in order to support Bajans excessive life styles. This borrowing from Peter to pay Paul has reached unsustainable levels.
The only solution to Barbados financial ills is UNPEG THE CURRENCY or SIGNIFICANTLY DEVALUE THE CURRENCY. Nothing tells Wily that the GoB has the ability to effectively manage a DEVALUED currency so FLOATING the currency is the only long term solution.
++++++++++++++++++++++++++++++++++++++++++++++++
Bingo!
Unless Barbados ups its forex-earning game significantly in the coming months how can it continue to have its Mickey mouse dollar pegged at a higher rate to the US$ than its major competitors in the regional tourism market and major trading ‘partners’ like T&T and Guyana?
Why is this forex hungry country allowing people to buy Mercedes without them having to earn directly the foreign currency to pay for these ill-suited luxuries?
All luxury vehicles should be sold in foreign currencies only; unless they are brought into Island by the owner(s).
Why should hard-working Bajans in the tourism industry kiss the condescending white asses so that a few unproductive parasites can live big off the hog?
Why is Barbados importing kale from Mexico, tilapia from China snacks from Indonesia and bottled water from all over the place while bragging about the quality and purity of its own BWA special?
What has become of the proposal to establish duty-free shopping zones where everyone will be expected to pay for imported goods (and some services) in foreign currency only and which must be sold to the Central Bank?
” On this Caribbean island where nearly 90 percent of food arrives by boat or plane, eating local is a novel concept that is only slowly catching on, the executive chef said, as she enthused over phone messages from farmers selling organic fruit.”
Was it the buying of vehicles or the high food import bill that depleted the FX?
OR
Was it the printing of money to pay the bloated public service that caused the depletion of the FX?
@Hal
“Third, after…???”
Whatever should be First and Second determined by wonder, deep thought, exploration and action that produces things of higher value. Walled thinking produces an enclosed route to nowhere fuelled by seeing only walls everywhere.
e.g a BSBA newsletter went on at length with copious references to Innovation and Entrepreneurship only to fall flat discussing the sole practical topic which was “marketing hotsauce in London”.
@ David
I would advise you to desist from commenting on the economy. You obviously don’t understand what a debt trap is.
It may surprise you to learn that even when the economy was being “properly”managed (Arthur)we had downgrades.
It is dangerous to simply regurgitate cliches without understanding the broader issue. Our economy has been on the precipice since the mid seventies.
What we are witnessing now is the ultimate result of poor economic management by both the Dees and Bees.
You cannot tax the country out of debt (Mascoll)and you cannot borrow it out of debt(Common sense) . The IMF is medicine not a cure.
By the way ah notice that according to de papers we get 80 million in foreign exchange from de cricket.
Like ah tell yuh -stop talking about the economy. You don’t understand it too well.
@William
A good thing your political career was cut short, you have the makings of a dictator.
David has found himself sounding like “ac”
What a thing ! he has all but box himself into a corner trying to defend Mia Mottley and her persistence drive to be the first PM of unilateralism without transparency
Even Caswell gets it
What a thing
@ john2
I hope that you don’t set policy in bim, but I suspect you do. Your posts sound like the misguided, outdated so called ecomonic orthodoxy that has gotten Bdos in this mess in the first place.
A prime example of your nonsense:
“Are you in the USA? If so how much debt is the USA in?
Does that mean the USA including you must learn to live within your means – or whatever it is you said about taking pain today?”
Now why would you compare Barbados with the USA?
Dullard
Oh come off it!
I am not involved in anything political in Barbados outside of my x.
If you had read all the posting you would have seen that what you think was a comparison between the USA and Barbados was not really a comparison . I was just throwing back what wily said about Barbados and me back at him.
Some of you really need to try understanding what you read before you start criticizing
@ Dullard
The first paragraph is pure …. sewage.
@ john2
I hope that you don’t set policy in bim, but I suspect you do. Your posts sound like the misguided, outdated so called ecomonic orthodoxy that has gotten Bdos in this mess in the first place.
A prime example of your nonsense:
If you didn’t understand then this is the paragraph you should have start and finished at!
“Are you in the USA? If so how much debt is the USA in?
Does that mean the USA including you must learn to live within your means – or whatever it is you said about taking pain today?”
Now why would you compare Barbados with the USA?
@johnny
Not really. What is there to understand about your comments?
I don’t find the decrease in income from Tourists “puzzling” at all.. the percentage of “All Inclusive” tourists is increasing dramatically …therefore less and less money is being spent locally on Accommodations, food and beverage, watersports, spa treatments, independent restaurants, taxis and Tours, etc etc…
The St Lawrence Gap is now 90 % All Inclusive, and many other hotels are changing to this model in 2019/20…its not going to improve.
Crooks playing with Numbers long talking, You all love to eat she-it all the time expanding on crooks!
Another post that I am unable to contribute on.
You would be surprised at how many rums has the word “reserves” in its name. Was going to get me some foreign reserve but could not find the brand.
Going to get me some Monopoly (the game) foreign reserve.
Oh Gawd! I just can’t contribute. The fantasy is too muc
Apologies, carry on without me.
Make a note D.
The blogmaster invites you to join the discussion.