Economic Review of Economy – January to June 2019

Governor of the Central Bank of Barbados Cleviston Haynes delivers the Central Bank of Barbados’ review of Barbados economic performance in the first half of 2019 and takes questions from members of the media.

Central Bank Website

 

Click to read text of Barbados Review of the Economy January to June 2019.

136 comments

  • The central bank report is a nice, glossy presentation. Look forward to some analysis from the BU intelligentsia minus the partisans.

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  • Today was once again a wonderful day for Barbados. I quote: “the best performance realised in any comparable quarter over the past 30 years”.

    Now all we have to do is boost economic growth. I propose the dismissal of 10,000 civil servants so that the state has money again for real investments. Less human capital and better infrastructure.

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  • Here is the Doing Business Report 2019 compliments of John A.

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  • I wonder if some here capable of thinking for themself or will drink blindly what they are told.

    Let me paraphrase the gloss and shine here for you and bring it to the basics.

    The IMF happy as targets met (more taxes on the backs of bajans successfully delivered)

    Government revenue up mainly because of their new 8 month land tax year where they charge we 2 land tax bills in 8 months.

    The fuel tax collect nuff more than the road tax but you notice no figure was given, it must be was too much to mention.lol

    Taxation on the whole up cross the board first six months of this year. Any housewife could of told you that.

    Now the part that was “quietly whispered.” ECONOMIC GROWTH ACROSS THE BOARD WAS DOWN 0.25% FOR THE FIRST 6 MONTHS CONFIRMING WHAT SOME OF US HINTED AT. WE ARE NOW IN A RECESSION.

    Anyhow don’t mind that the Bajan break, the IMF happy and we collect more taxes in the last quarter than ever before off the backs of the poor tax paying bajans.

    Sorry to tell you we have no growth plan as was evident in the contraction of the economy, even though we had higher tourist arrivals. So with all the tourist we get the rest of the economy do so bad, that it right off the tourism gains and we end the first 6 months with a slower economy than last year for the first 6 months of this year. Any shop keeper could of tell you so though.

    “Don’t worry though cause we intend to continue with our austerity plans while promoting growth.” Don’t ask me what that mean I ain’t figure it out yet..

    Thus ends today’s paraphrase of the central bank half year report in simple bajan English.

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  • @ John A

    We are now OFFICIALLY in a recession. Do you believe the official statistics? Where is the BERT growth going to come from? When are our policymakers and academics going to explain the economy to us?What is the central bank’s methodology? Is it DSGE or DGE or what? We are playing voodoo economics.

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  • @ Hal

    You noticed I say NOW cause I towing the rope the governor now gave me to confirm it. If I said so before i would of been called unpatriotic or something worst

    Liked by 2 people

  • @ John A

    Remember the mindset: think Crop Over; we must play only Bajan music. Take the same mindset to the economy. Only Bajan economists can discuss the Barbados economy. Foreigners not wanted. So, it follows, we are the only ones equipped to explain the Bajan economy. Remember Plato’s Allegory. It is all bogus. But the people buy in to it. It is obeah with a PhD.

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  • @ Hal.

    I got to agree with you because it’s amazing how they dwell on tourism and then slide over other areas with Little discussion at all.

    But let’s look at where we are. We are down on last year economy wise which I have been saying for months, but growth will along with a growth plan, depend on the ease of doing business so how we doing there? Crap we worst than last year there too!

    So 18 months after elections i got to ask what these 30 really doing? Bert has no growth in it other than growth in taxation. It is harder to do business this year than last year and we are now, according to the governor’s figures in a recession.

    Help me understand where the growth plan really is!

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  • So basically we neither have an economy for growth to take place in based on the half year report from the governor, nor do we have a favourable environment for doing business in, as that also deteriorated based on this last report.

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  • @ John A
    Don’t ask me, ask Prof Persaud. He is the expert.

    Liked by 1 person

  • David

    This analysis and or forecast seem incongruent with what is happening presently in the global environments.

    Nearly all European countries are showing near-zero growth or decline. For example, Germany will report next week and we expect GDP growth to be less than one percent or most likely minus one percent. Germany is the industrial centre for Europe.

    We need not look at indicators of emerging economies – Argintina, Turkey, Brazil, etc

    We have said nearly 18 months ago that there will be a recession by the end of the first quarter of 2020.

    More precisely, we expect a deep cyclical recession. Capitalism gives us these cycles every 7 years on average, we’ve had the last one in 2008/9. We are therefore more than 2 years past due.

    That delay was only made possible by flooding international banks with near free money.

    ‘Central banks are literally at the end of their ropes’, on monetary policy. On the fiscal side, there is not much more they can do either. Central banks are on those ropes again.

    Cleveston Haynes, seems like a good guy and we know he has a duty to tow the party line, but his story is dated or at least not consistent with the emerging macroeconomic trends.

    If we’re right and this recession comes will anybody remember this near-rosy picture painted here today?

    Liked by 2 people

  • @ Hal

    No no he would tell me don’t worry another report not due for 12 months. 😂

    I should not laugh but the whole thing really is becoming comical in a bad way .

    Liked by 2 people

  • @ John A August 10, 2019 3:25 PM

    How is the economy supposed to grow if it is raped and strangled by about 30,000 civil servants and many more employees of state enterprises?

    But can we blame the government here? Only to a small extent. Read the contributions here carefully, then you will notice that the Marxists and the bureaucrats of the broken, rotten welfare state are in the absolute majority. As soon as you demand moderate, sensible cuts (eg that they work one hour more per week), they cry and talk about slavery. Yes, slavery. I think that is really an insult to history.

    I’ll take any bet that the majority of the population would rather re-elect the DLP and inhale shit on the south coast than accept any structural reforms of the welfare state.

    The government therefore has little or no room for manoeuvre.

    The only possibility would be to suspend the elections for 10 years, to ban demonstrations and to restrict freedom rights in order to carry out the vital reforms against the resistance of an unreasonable population.

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  • Again I ask where is the opposition spokesman on this? Should he not by now have dissected this report and come to us on it?

    You mean we that not getting pay a blind cent must do it here for them?

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  • @ Tron

    Sorry can’t agree with you. We elected 30 who claimed to have the answers they have failed to deliver. The BERT plan never had growth in it as we all said here. The first responsibility this government had was to move urgently on fixing the leaks in the Indirect taxation systems, they didn’t. Instead they left all the revenue to leak from that source and then came with a wash of new tax measures like the massive land tax increase. They did the exact same thing they accused sinkler of doing, they tried to tax their way out of a revenue issue. Let me give you a practical example of this approach.

    A supermarket has a theft problem so rather than addressing it they carry up their prices. Less people shop the ” tiefing” continues and business slows more. So what do they do? They increase prices again and leave the theft problem unaddressed so business slows more. Sound familiar?

    The civil service may not be at its best but we can’t blame them for failed policies and implementation. The truth is the economic advisors all want sending home!

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  • I again remind the brains on BU:
    IMF operations are declared successful but the patient dies.
    Of course the best economic policy with which only the ignorant would disagree is to have no elections for ten years and fire all public servants.
    Another brilliant move will be to ban all public comment. These are the measures that all patriotic Barbadians must embrace. To even question the governor’s report is an act of treason against the state. These unpatriotic nit wits should be ashamed of the free education and assistance given to them going back to the years of free khaki.
    These uneducated misfits like Hal Austin Pacha and John A cannot even count the contents of a package of soda biscuits but are commenting on the economy. We should have banned them when they attacked Worrell as well. What the hell Pacha knows about the global economy.
    Declare a state of emergency and locked them all up. Damn Traitors and misfits. Bun dem! Time to shut down the welfare office too.

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  • @John A

    You too note of the graph which illustrate 12 weeks reserves trend line? This graph and the optimistic comment can only make sense if the agreement with the external creditors is completed.

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  • David

    Also, this bank governor sounds, looks like and using the same lines of arguments as the first governor and every one since.

    There is something wrong with that!

    Present circumstances require a different language

    Liked by 1 person

  • @ John A August 10, 2019 4:46 PM

    I agree with your assessment of the property tax.

    However, I see the situation with the civil servants somewhat differently. We must finally discard the ballast of more than 50 years. Those who are afraid of work or not good enough for the private sector can no longer rely on a stress-free life in the civil service. I am quite sure that with a reduction of 50% or even 70%, the administration will continue to function as it has done so far. You know very well that many ministries are more like sleeping cars than offices where people work.

    Barbados has no long-term chance of survival with a spoiled population that always only want to get into the bureaucracy. They scream here on BU and complain about certain contractors, but the masses always wanted to be servants in the administration. Therefore, I blame the problems less on the government than on the people themselves, who want their misfortune as it will come.

    I am very sure that the IMF has also advised the government internally to reduce the number of civil servants, but the government has so far rejected this in consideration of the masses’ sense of entitlement. So the best thing would be to suspend the elections for 10 years and to give the island a real cure in order to drive the population out of its foibles.

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  • @Pacha

    Who described the Governor as a creature?

    He is not the Fed Chairman.

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  • A country being run on gimmicky and smoke and mirror policies
    The realities on the ground are in total opposite to what this Govenor states
    This report is one built upon a Bert program and have said or done nothing which deals with barbados social enviroment and govt abilty to create jobs in the near future
    An A+ for the IMF and a D – for the country

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  • Remind us how the country got here. The people have pay a price by the mismanagement of a few.

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  • @enuff

    Is Jeremy talking foolishness?

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  • @ David.

    Yes i don’t even see the sense of the governor focusing on the reserves and bragging about them being at $1.2B. We have not paid a foreign creditor for 18 months so the reserves must be high. If you bank 18 months salary and don’t pay a bill you bank book wouldn t look good too!

    I have to agree with Pacha this whole report was grossly misleading in real terms. Now mind you I don’t blame the governor, he got a job to do. I blame the poor ass opposition for not challenging it and keeping the public informed on our reality.

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  • @John A

    Have you watched Jeremy’s video? He reported foreign exchange reserves fell in real terms between 200 and 300 million.

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  • Sir William

    Wuh wrong man!

    Why yuh talking in jest?

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  • @ Pacha

    Ah just trying to understand the deep dangers of excessive kool aid consumption, Suh !
    People like you want to destroy this country .Wunnuh had me fool but me eyes open now. Traitors !!!

    Liked by 1 person

  • @ David.

    Yes Jeremy has confirmed what we have been saying here for a while and getting curse for saying it. He made his points in terms all call understand.

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  • @John A

    How he ended the video explains why political and economic expediency will trump any citizen concern. The Blue Horizon will be built how the beach access is managed will be interesting. It will tell how big are Mia’s balls.

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  • Sir William

    We are sure you have one ah dem old time sayings, that would cover this.

    The Bajan duopoly has been doing a great job at destroying the country already.

    Why would this writer want to reinvent the wheel?

    Those who love the duopoly are doing a great job as well, by making sure it continues to destroy Barbados.

    All we have to do is ‘nothing’, and our enemies will self-destruct, sooner or later, carrying all of us with them.

    The best way to destroy Barbados is to be part of or support duopoly. Ah lie!

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  • @ David.

    The PM will have to decide on that Blue Horizon issue which side of the fence she will stand on.

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  • @ David August 10, 2019 7:42 PM
    “How he ended the video explains why political and economic expediency will trump any citizen concern. The Blue Horizon will be built how the beach access is managed will be interesting. It will tell how big are Mia’s balls.”
    ++++++++++++++++++++++++++++++++++++++++++++++++

    What about the Hyatt erection?
    Is the Hyatt no longer the ‘hard-seed’ poster boy for the Guv’s pipeline of investment projects?

    Isn’t this the same guv who, in previous reports, used to wax lyrically about the game-changing economic benefits which would arise from the construction of the Hyatt hotel to rival his ivory tower in Church Village?

    Base on Jeremy Stephen’s insightful analysis of the country’s lifeblood, aka foreign reserves, where is the forex coming from to underwrite the construction of these hotels?

    From the same foreign lenders whom the Bajan government would like to pretend it has over a barrel labeled: “Persuad’s deal or stuff it”?

    The guv’s report is just another cornucopia of politically tainted propaganda copied from his predecessor, ‘full of sound and fury signifying nothing’.

    You mean the guy is that meticulously reckless as to boldly omit making a provision against the ‘reported’ foreign reserves to reflect the contingent liabilities arising from the suspension of foreign debt repayments?

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  • @ Miller.

    Omitting the reality was just a technical error one might conclude if naive. The thing is the central bank has to be one of the few institutions that can present financials and not make an allowance for their foreign payables. Can you imagine if a company presented their financials to their shareholders and omitted the liabilities to their foreign suppliers.

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  • Seems like Jeremy Stephen is another unpatriotic Barbadian. Imagine he talking nonsense about austerity lasting longer and foreign reserves dropping. I can’t believe we educate these frauds. Is this what free education has bred: intellectual frauds. He has to go on the same list as : Hal Austin John A and Pacha! We negotiated the quickest deal with the IMF; the economy looking better lots of green sprouts showing up and he got the nerve to be so negative talking about Brazil and dem places so. He’s an ungrateful brute. But tell he that we gine soon ban all public comment. We gine stop all this five year election cycle crap. We gine straight fuh ten. We gine send home all he civil service friends and turn round this place again because we turn um round about three weeks after we get in already! Jeremy Stephen is another ungrateful intellectual that the tax payers in this welfare state waste duh money pun. But don’t worry we gine soon throw the welfare state in the Careenage. Tek dah Lying Jeremy.
    He sound like Pacha. Bun dem.Ah can’t wait till the snow come later in the year and freeze Hal Austin backside. Ah getting sick of all dem . By the way wuh the A stand for John ? I dun guess but……….

    The Duopoly Rules

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  • @ William.

    You better be careful we don’t track you down and back a septic truck up and offload the contents on you lawn. Lol

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  • @John A

    To be precise the central bank report makes mentions of the outstanding payables but how can there be specifics until an agreement is consummated?

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  • Remember the mindset: think Crop Over; we must play only Bajan music. (Quote)

    Why are you such a despicable, lying man?

    I can’t remember anybody saying you should only play Bajan music during Crop Over. You are a LIAR.

    People said that there is a place for all music and performers during the festival, but the bands should jump to Bajan music. What’s wrong with that?

    What about your criticisms of Muslims and Muslim women wearing their head-dress and the new Barbadians as you call them?

    As BajanNY would say, you are a bullshiter from the Ivy.

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  • No growth plan.. No dice
    Mia yuh hear dat
    Mariposa gonna repeat one more time
    No growth plan..No dice
    Dont care wuh Lorenzo or Enuff tell you
    The realities on the ground says different

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  • Foreigners not wanted.

    Is this the same man who is always criticising Indians and Chinese, who are also foreigners living in Barbados?

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  • @ John A August 10, 2019 10:04 PM

    The figures reported are just a concoction of fudged estimates to reflect the expectations and, in some cases, demands of the political masters of whom the guv is just a robotic “creature”.

    The CB has no independence in reporting on the true state of the economy.

    Why do you think the previous guv was kicked to the kerb?

    He just couldn’t stand it anymore since loosing his extended fascination with the art of Creative Accounting and making up his own unemployment statistics.

    We just wish the discredited former guv would be more contrite and come clean by telling the truth about that $300 million in forex which went “missing” just after the 2013 general elections.

    Maybe that’s the amount the same ‘vindictive’ guv had set aside as a contingent liability to settle the foreign creditors who are now demanding their pound of Bajan forex flesh.

    Liked by 1 person

  • @Robert Goren August 10, 2019 10:43 PM

    Don’t pay Hal the Bullshitter from the Ivy any attention. BoJo got plans to build more jail capacity to put his sorry ass in and throw away the keys.

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  • We should all accept that Barbados is a banana republic with only one industry. Our primary objective should therefore be to improve tourism as a product.

    My proposals:

    Legalization of the use of cannabis for tourists and expats.

    Beaches for “topless” and nudists.

    Fast lane on the highway for tourists and expats.

    Better access to the beach from the roads for everyone (there are also individual tourists in the hinterland).

    Shops especially for tourists and expats, where they can shop tax-free for foreign currency.

    Relocation of the locals away from the platinum coast to the interior and instead construction of new hotel complexes.

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  • @ Tron

    I really enjoy when the CBG gives these semi annual fits of fantasy “REPORTS” and your tongue in cheek replies, brings out the best in the duploy ostriches.

    Blog comments to date are largely in agreement that the economy is not showing any signs of recovery but is falling into RECESSION. Recovery is but a figment of imagination in the minds of the political elite.

    Barbados as a COUNTRY is BEGINNING to see the FAILURE OF THE 65 YEAR OLD SOCIAL EXPERIMENT, welcome to the Soviet Union reallity of the 1990’s.

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  • Don’t pay Hal the Bullshitter from the Ivy any attention. BoJo got plans to build more jail capacity to put his sorry ass in and throw away the keys. (Quote)

    Great analysis. Well done. Is this part of Brexit? Is this an original idea or one he got from Trump?

    Liked by 1 person

  • Here is a govt that prides itself on having foreign reserves after asking the poor and vulnerable to pay govt bills
    While the rich reap the sweets in waivers and write offs
    Lawd have merci
    Btw it would be most interesting to know how much of the 290million dollars have been paid back to the IMF

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  • Do you understand how the draw downs from the IMF work?

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  • @ Miller

    As a friend of mine likes to say a mix of guestimates and estimates combined.

    What should have been done in reporting those reserves is that a provision should have been made for foreign debt repayment hence leaving us with a true picture of net reserves. You know you have not paid the people a blind cent so you bragging about reserves, so what happens now if they demand a lump sum payment on the unpaid 18 month period before offering new terms? You have no provision in place for such an occurance do you.

    We fail to realise we have 18 months of liability and growing under the old agreement. You think the lenders will say ” wunna is good people and we like Persaud so forget bout dat.”

    This is careless book keeping not to mention grossly misleading that no provision has been made against the reserves for debt repayment.

    Anyhow when debt repayment has to be made and that 18 months brought up to date, along with the new payment terms implemented, wunna don’t hollow hard when the reserves get “cat spraddle.”

    Liked by 1 person

  • @John A

    On what basis would the creditors demand 100 of outstanding if it would force the economy to tank?

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  • @David
    ” On what basis would the creditors demand 100 of outstanding if it would force the economy to tank?”

    On the basis that their owed the f…in money. Barbados bragging about all the forgien currency reserves they have is one incentive for these debt holders to demand FULL IMMEDIATE PAYMENT. Unfortunately these off shore debt holders are not normal DUMB BAJAN local debt holders.

    Liked by 1 person

  • @David.

    First the creditors don’t care about our economy they want their shareholders money. The effect it would have on us is our problem. When Courts send the marshals for your unpaid for bed, you think they care where you going sleep tonight?

    We have 2 debt issues here now. The foreign debt balances and how they will view the debt run up over the last 18 months under the old agreement. No bank is going to wipe the slate of the 18 months of accrued liability without expecting some payment on it, even if it’s 50 cents on the dollar, even though they are entitled to the whole dollar.

    My point is we owe hundreds of millions in unpaid debt yet the governor has made no provision on the reserves for debt service. To walk about saying you are a millionaire when you owe away half a million in unpaid debt is therefore ludicrous for a man to do far less a country!

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  • @John A

    Do not agree with you this is how external creditors operate. There is precedent setting behaviour to support.

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  • @ David

    So you think the mouthing of Persaud is an example of how external debt holders should speak after 18 months of not paying a blind cent?

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  • We seem to forget we signed for and took an agreed amount and hence we owe the creditors every blind cent. If they choose to negotiate on that say thank you. They are not legally obligated to negotiate and have every right to demand full payment so don’t let Persaud and them talk RH like ” we feel we are in a strong place to negotiate from.”

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  • @John A

    Just saying to publicly provision for any amount would prejudice the negotiations between WO and the creditors.

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  • @ John A August 11, 2019 10:07 AM

    That’s what a ‘contingent liability’ is all about.

    Even if the provision is based on, not what is fully legally owed, but on what the Bajan government (on Persuad’s advice) is prepared to pay to remove this monkey from the back of the country’s future capacity to borrow to maintain its high standard of import-based conspicuous consumption lifestyle and its ability to improve the credit rating status in order to attract the kind of FDI required to build its much touted hotel corridor as the engine of future economic growth.

    If we are to dismiss the high probability of financial gerrymandering to meet the window-dressing for political propaganda purposes we can only assume that both the guv and his master puppeteer the MoF appear to be way out of their depth on this rather serious matter of international finance.

    Liked by 1 person

  • @Miller

    The government is obviously using the one billion reserves to feed public confidence, you will agree this is an important behavioral factor in engineering consumer confidence?

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  • @ Wily Coyote August 11, 2019 4:20 AM

    If we chase 50 percent of all bureaucrats off the island, we can cut taxes by 50 percent. We will then definitely experience an economic miracle.

    So there are 10,000 to 15,000 civil servants between us and the revival of the island. For 50 years they had a carefree, stress-free life at the taxpayers’ expense. It is time for them to emigrate to Costa Rica or Guyana.

    Every company that has 50 percent ballast on board must discard it, whether before or during insolvency. It’s like a hot-air balloon. You throw off ballast to ascend.

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  • @ David August 11, 2019 11:01 AM
    “The government is obviously using the one billion reserves to feed public confidence, you will agree this is an important behavioral factor in engineering consumer confidence?”
    ++++++++++++++++++++++++++++++++++++++++++++++

    It’s nothing but fool’s gold! Barbados needs to bite the bullet and deal with reality instead of living in a bubble of the pipedream of living above its means.

    Isn’t this another interpretation of that laughable but rather appropriate analogy of the government spinning tot in mud or running around like a black cat in a dark room while being chased by 26 blind men and women in a Cabinet not knowing their elbows from their arses?

    The government is looking for a good excuse to make the Bajan dollar find its real value in the market place.

    Let the people blame the foreign creditors for the pending across-the-board devaluation of their standard of living with the mickey mouse dollar the rat which upsets the ‘golden’ applecart.

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  • @Miller.

    Yrs I agree with you 100 percent. We could of picked up an amount say 60% of what was due in payments over the 18 month period and placed that amount as a pending payable against foreign debt settlement. Anything like that I would of agreed with. He could of said to us ” look we got $1.2b in reserves but we owe on it so I going book $300m for debt service. To just totally neglect debt owed and not make a provision for it is totally unacceptable and would not be permitted by any accountant firm in a financial statement.

    Why then should we accept such on the greatest financial statement which is that of the central bank?

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  • @Miller

    You avoided the question. How important is stoking and managing consumer confidence.

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  • @John A and Miller

    You have peruse the central bank report at page 19 when represents total debt outstanding?

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  • @ david.

    Recognising debt on page 19 and not making a provision for it in the reserve net balance is nonesence. So what he going do show a massive loss of reserves in next year’s report when money for to get paid out?

    Total madness

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  • Meant got to get paid out

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  • @John A

    How would you advise government to provision for it?

    Liked by 1 person

  • The reserves are in hand!
    There is not a schedule as yet for the (restructured) debt to be paid.
    When there is a schedule in place then the CB can make provision for allocating amounts for the due dates.

    Some of us would like different but it is not necessary. What is necessary is to report the facts not to speculate as to the outcome of the negotiations.

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  • @ David August 11, 2019 11:25 AM

    Which is more important at this stage of the country’s financial health?

    Consumer confidence or foreign investors’ confidence?

    Where is the foreign money going to come from in order for consumers to actualize their consumption desires for imported goods and services?

    From Mark Maloney and his Hyatt pipedream?

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  • @Miller

    The foreign investors are aware we have defaulted (SD). What we must do is close the negotiations as soon as practicable. Whether we estimate some unknown number will not influence the level of reserves.

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  • The governor gave a REVIEW of the ECONOMIC PERFORMANCE for the first half of the year.

    Its a review not a budget.

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  • @David.

    Let me put in plain English here for those that either do not understand basic procedure, or for political reasons choose to ignore it.

    The governor is reporting on the period January to June during which the repayment of debt liability was encured, it was not paid hence a provision must be made for it. Added to that he has an unpaid liability for last year that has not been paid either that must be accounted for.

    Let’s say the total liability for this period came to $400M for purpose of discussion, any accountant firm would FORCE their client to pick it up as a payable due. That is financial fact not fiction or financial yardfowlism. Debt don’t just disappear from financials because we chose to ignore it, or because we haven’t agreed to pay it either in part or in full!

    Now if we are so sure that we are nice people that we will be forgiven half of this because we have such good negotiators, we should have at least made a provision against the reserves for $200m. Remember doing this would not have been permitted by any accounting firm, but because we are Bim and are different to everywhere else in the world, then we should of made this provision against the reserves at the very least.

    Now bear in mind the longer Persaud et al drag their ass on the payment agreement, the liability post default is growing, hence the need to make provision for it becomes greater. The cost of unserviced debt doesn’t remain stagnant because we choose to ignore it. Don’t pay your credit card on time and see what happens.

    David this is not a small payable that you can slide under ” miscellaneous” but a substantial and growing amount due in total under a sovereign agreement.

    So those that want to bend global accounting practices for purpose of yardfowlism carry on smartly. As Miller said you fooling yourselves you got reserves that are propped up by fools fold.

    I would happily discuss this with anyone using arguments based on global accounting and financial practices. For the others who say Bim different, direct those views to the next showing of Laff It Off.

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  • Lol show me a budget that got in income and not expenses and liability.

    Lord I deading here 😂😂

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  • @John A

    Assist a simple blogmaster.

    Are we discussing the Bugetary Proposals or the appropriations Bill.

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  • Is there a difference between REVIEWING (looking back) of the economy for quarterly reporting purposes and the REVIEWING of the economy for budgeting purposes (making adjustments)?

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  • @ David

    We can argue about the amount to provision for the debt repayments due to the external creditors.

    What we can not argue though is that the true level of foreign reserves is less than the headline figure being bandied about by the Guv. Therefore the chest thumping around this is totally misleading.

    So your assertion that “whether we estimate some unknown number will not influence the level of reserves.” is patently false.

    Besides, though the exact figure is not known due to the ongoing negotiations, there is a known range which is easy to calculate given the views of the two counterparties.

    Liked by 1 person

  • @Dullard

    The point was made that the central bank review list total debt outstanding which will have to be paid from the reserves. It is as simple as that.

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  • @ David.

    We are focusing of the central bank report.

    Ok in past years when we were servicing our debt the repayments would have been made hence reducing the reserves automatically. So when the governor reported on reserves at June 30th say, the figures he would of quoted would already of had the loan payments taken out, hence the reserve figure given at June 30th would have been factual. Agreed?

    Now let’s move to post default reporting. The payments on the loans were not being made as this was after we defaulted. The reporting system would never have encountered such a situation before because we always paid our debts. So for the first time the governor is faced with what should have been the creation of a new line under the reserves, let’s call it ” pending liability post default “. So for the reserves to show reality to us the public post default im the report, they should have been shown something like this.

    Total reserves. 100 dollars.
    Pending liability 20 dollars
    net reserves. 80 dollars

    The problem is that prior to the default the format the central bank report used was fine. For the first time in our history though we now have a new issue. The issue of unpaid loans under the review period.

    So to state to the public that our reserves as shown above are $100, when in fact they should be $80, is misleading to say the least and inaccurate to say the obvious.

    Also remember in the absence of a new debt repayment schedule we are legally bound to the existing loans. The central bank if those loans were paid, would of deducted the payments from the reserves prior to reporting. Agreed? So why are they not now showing these said loans as due then in the same report ? Did these loans suddenly disappear from our books just like that “Poof”?

    The facts are under our current loan agreements the unpaid loans over the last 18 months are a legal sovereign outstanding liability and must be therefore made provision for in our reserves. If we are fortunate enough to negotiate a reduction in these loan balances to say 60 percent of what they now are, then next year’s report would then reflect this adjustment to the pending liability owed.

    People seem to want to forget the central bank report is the report on our financial performance and cheque book balance in simple terms. It must therefore give the most accurate account of our true position to every Bajan as a shareholder in our islands financial position. They are therefore duty bound to not only show debts serviced, but also those they were directed to ignore by our learned advisors on the debt restructuring committee, unless of course Persaud can present a letter signed by all foreign creditors stating all debts have been forgiven!

    Like

  • @John A August 11, 2019 10:07 AM

    I would expect the loan payments to be in accounts payable unless the financial statements were prepared by a book’s cooker – lol

    Liked by 1 person

  • @John A

    Your position is respected.

    The governor must be aware of the state of negotiations and felt comfortable gliding over this matter in the half year review.

    Like

  • @ Bajan in N.Y

    You too bad for true. Lol

    You like the young chef that tell the master chef he had nuff experiencing in cook, when asked what he said ” his father’s book.”😁

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  • @ David.

    No the governor has a responsibility to report based on what the facts are at present. He must therefore report based on current loan liabilities until such time as new loan agreements are in place.

    It’s like you having a $2000 a month mortgage but are in negotiations for a lower payment of $1800. The point is until the $ 1800 is approved and implemented you are legally obligated to pay the $2000 a month and show that as current liability.

    What the negotiators do or in this case don’t do, have nothing to do with the central bank accurately reporting on our true position based on current liabilities.

    All the talk about not doing it so as not to affect negotiations is bare bird droppings. Any foreign creditor who looked at the report were the current loan payments shown as outstanding, would quickly say ” ok they have at least shown their old loan payments that we are hoping to negotiate on.”

    You don’t think that would of given them more comfort than not showing a red cent as a provisional payment?

    Sorry ain t giving the governor no pass there on that red herring for an excuse. That Koolaid glass can stand right there!

    Liked by 1 person

  • @ John A

    Dr Worrell is a key adviser to the foreign creditors and he knows the internal workings of the central bank. What do you think he tells his clients? Do you think such tinkering with the numbers will fool Dr Worrell? Only the public are misled.
    I have called before for the central bank to make public its methodologies. If I want to know about the current account of the US economy or the UK economy, I won’t go to the Fed or the Bank of England. We need a reformed and independent central bank, but our politicians like power.

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  • @John A

    You recall when the former Governor rubbished the unemployment stats produced by the BSS and did his own survey?

    There must be precedent which gave comfort to Governor Haynes.

    #justsaying

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  • @John A

    You have heard the stories about former Governor Worrell sitting at his desk with a calculator crunching numbers produced by his analysts?

    #comical

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  • @ Hal

    That is my point exactly. You may be able to fool some of the Koolaid drinkers and party faithfuls with this nonscence report but all like now the goodly doctor on his Casio calculator there doing just what I was asking for . He there adding away with $1.2 b minus what due under loan A and B for the last 18 months equals.

    I just find it unfortunate we as a people are given such a report and don’t challenge it and ask for certain critical data to be included. The handful of us that do ask are too small to force change too I guess.

    Like

  • @ David.

    The thing is though no matter how you play with numbers certain data can not be altered such as loan balances and dates.

    Like

  • @John A

    Let us see how the Governor and WO resolve the issue. We must be confident they have a plan. They are being paid big Rh bucks.

    Like

  • @David

    You know the reason i take time to explore issues with you here is not for the benefit of we old men like myself, Hal, William and Vincent. We have played our innings already. It is my hope that it will encourage younger people to start digging deeper and asking questions. We want the young ones to start thinking for themselves and not swallowing whole what they are told. We need those in their 20s and 30s to hold those in power accountable. If that is done effectively they become the watch dogs of our economy, hence replacing the opposition and press who have dismally failed us.

    They are the ones whose voices we want to encourage here. If they come and seek clarity then let us help them and not criticise them back into silence.

    Mind you we old men don’t plan to hang up the keyboards just yet so don’t get wunna hopes up! Lol

    Liked by 2 people

  • @John A

    History reveals that well functioning societies of the past respected mechanisms to transfer knowledge from the seniors to the younger folk.

    You may be aware this blogmaster respects your view. Cannot say the same for others LOL.

    Liked by 1 person

  • @ John A

    The trick is to make a bold statement, such as a quarterly/half yearly report, and then refuse to enter any discussion. If you do not answer questions you cannot have your argument dissected. I call it the Bajan Condition. It is the weakness of learning by rote; once you have said your bit there is nothing else to say.

    Liked by 2 people

  • @ David.

    Thank you. The beauty of getting older is you don’t give a rat’s ass anymore about those that have a problem with what you say. Lol

    Liked by 1 person

  • @ Hal

    That sound to me like “The Hitler Approach” and that didn’t end will for him or the people in Jonestown.

    I have noticed that though and what has become very apparent with these new politicians especially those now in opposition, is that they question nothing!

    You think if you had men in opposition today like Tom Adams, Barrow or Owen this Central Bank Report woundnt of been torn apart by now! I could hear Barrow now “fellows you forget to include the debt what happen?” Then he would of went on to paint their tail. Or Tom with his dry sense of humour “really gentleman what have we done here?”

    This group is a sad and dismal failure like the press when it comes to the public’s enlightenment.

    Liked by 2 people

  • A couple of years ago I posted this positive documentary reportage from Aljazeera about Barbados. What became of those individuals who were featured in it?

    https://www.aljazeera.com/programmes/earthrise/2014/12/barbados-goes-green-2014122185541151944.html

    Like

  • The beauty of getting older is you don’t give a rat’s ass anymore about those that have a problem with what you say. Lol(Quote)

    Well said. You could not careless about a beauty parade. You don’t want to be Mr Popular. Respect to rats.

    Liked by 1 person

  • TABLE 6 – PUBLIC DEBT OUTSTANDING.

    Like

  • Click to read text of Barbados Review of the Economy January to June 2019.

    Like

  • Our Blogmaster, David, is acting like a MORON with respect to Financial Book Keeping with respect to Assets and Liabilities, he’s a prime Bajan example of what has led to the Countries FAILED STATE STATUS.

    Like

  • John A everyday you on here talking about paying back external creditors .My queztion are you one or are you Dr Worrell? The creditors will be paid in due course, when a mutual agreement is reached between Barbados and them not before so rest yourself and stop the speculation and gloom and doom everyday.It is becoming tiresome and gives the impression you have an agenda, which personally think you do.

    Like

  • @ Lorenzo

    Just like you and others are apologist for the party my sole interest remains that of the country. I really don’t care to enter into any discussion with blind loyalist like yourself as a result. As I said before I help vote David in and Freundel out. Thankfully I was not born a sheep.

    If being pro state means being anti-party then please sign me up right away as parties will come and go but our island hopefully will outlast all of them.

    If you can’t discuss issues based on facts without dragging party politics into every dam thing, then please dont waste my time responding to my comments, as this is the last time I will respond to yours as long as yardfowlism is at the root of your response.

    I leave you and others be they B or D to partake in acts of yardfowlism and party propaganda. May the sheep continue to graze in the propaganda of their divine shepherd. Lol

    Liked by 1 person

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