Trapped by Financialzation

“The lost decade since the financial crisis is living up to that old adage that when you get economists in a room, you’ll get eleven opinions. The old guard is unable to explain to people just what on Earth is going on”Grace Blakeley

A pulse check of the level of debate concerning all matters affecting Barbadians in this space and elsewhere has fallen short of the mark, IF, we are to be regarded as an educated people. Of concern is the gimmickry we accept from our political and civil leaders instead of reasoned perspectives and efficient implementation of projects. Some say this is where education has failed us.

Many of us align to views based on political allegiance, school tie, built up neighbourhoods and the like. In recent days this blogmaster has retreated from the incessant stream of nonsense which abounds to read. On the bed stand is the book Stolen (How to Save the World from Financialisation) by Grace Blakeley. Although Blakeley’s focus is on the United Kingdom and USA her observations are relevant to Barbados given we are an island buffeting in the exhaust of global turbulence.

The relevance of what financialization to the Barbados space defined in the book as the

…increasing role of financial motives, financial markets, financial actors and financial institutions in the operation of the domestic and international economies. In other words, financialzation means more and bigger financial institutions – from banks, to hedge funds, to pension funds – wielding a much greater influence over other economic actors – from consumers, to businesses, to the state (blogmaster’s emphasis)…

should be of interest given the approach being undertaken by government to stabilize the economy. It seems we have wired our success to a financial model sector as a means to fuel growth. A good example is the ease we accept asset growth in the financial sector which translates to household and commercial debt and – wait for it – a widening current account deficit.

The blogmaster posits that a variant of financialization has exposed  itself in Barbados by the wholesale sell out of local companies fuelled by the expectation of shareholders to maintain profit margins. The government cannot dictate or influence credit or pricing policy given the close 100% ownership of the financial sector. Local players cannot influence the price of food because the major supermarkets and wholesalers are foreign owned. Even the entertainment space is controlled by foreign agents.

The author makes the point that households traditionally worried about wages and wage bargaining, these days they worry about debt. Businesses historically focussed on producing a quality product or service in a market space there had a competitive edge or advantage, these days it is about monitoring share price, dividend scheme,s borrowing and watching key performance metrics. For both individual and business it has become fashionable to borrow more than earn. Therein lies the problem – a conspicuous consumption model fuelled by greed.

To the blogmaster’s simple way of thinking we have a financial system that prey on the establishment by extracting interest earned from burgeoning debt. In such a model only the owner of capital will benefit from the riches.

The thesis position of the book is that we are living through the tail end of finance-led growth and that every capitalist model must end in crisis. It is up to Barbados to position itself to be able to rise like the proverbial phoenix from the ashes.

In recent years successive governments have borrowed and borrowed to respond to the lifestyle needs of consumers.

And so here we are.

 

153 thoughts on “Trapped by Financialzation


  1. @ David.

    I would answer that one way. Go into any supermarket this week and try to buy a pound of local tomatoes that look like tomatoes. Nobody got and why? Because as little rain fall they done with. Now tell me in 2019 how come none of these farmers haven’t said if I had a greenhouse I could grow tomatoes year round regardless of weather. We ain t ready yet my friend!

    How therefore can anyone look at how we view agriculture and seriously say we see it as a business when those responsible don’t?


    • @John A

      Now we are cooking with gas.

      @Vincent

      Oil and food combine to create a large import bill does it not? We have had this discussion about the utility in having linear discussions.


  2. @ David.

    The same is true for alternative energy. We talk nuff about implementing it then we negotiate a contract with the light and Power that sees its production restricted by quotas.

    Again nuff long talk with little to back it up for the investors.


  3. Government Hates to Lose Revenue. Government Now is the Sole Importer of Fuel and when they sell it to the BL&P what you are looking at is the Loss of Importation and the loss of the Sale and they also have to factor in the Loss for the Big Boys for Buying the Fuel. The Fuel Cost from the BL&P is nearly Double what they charge for Electricity. …Do you think the Government will give up that Cash Cow so easily?

    As far as the Duties on Food…Taxation through the Roof…The Result is a Diseased Nation…Cancer Diabetes, Heart Decease…you name it we got it!

    The Final Nail in the Coffin …CARICOM gone Rogue under the Leadership of our COMMUNIST CARICOM Ambassador as the Mouth Piece for the PM on Climate Change…Hysteria, Drama and Lies Can’t done…Pathetic…All in the name of Climate Emergency being Pushed by the UN (One World Government Ploy)

    YES, THERE IS A CLIMATE-RELATED EMERGENCY. IT IS THE THREAT TO OUR WAY OF LIFE IN THE FREE DEMOCRATIC WORLD – IMPOSED ON US BY CLIMATE ALARMISTS, MANY OF WHOM DO NOT REALLY CARE ABOUT CLIMATE CHANGE, PEOPLE OR THE ENVIRONMENT. IT IS AN ASSAULT NO LESS FRIGHTENING AND DAMAGING THAN THE WARS THAT HAVE PLAGUED MANKIND SINCE THE DAWN OF TIME. IT’S TIME FOR PEOPLE AND GOVERNMENTS TO STAND UP TO THE POWER-HUNGRY ALARMISTS, ANDNOT COW TAIL TO THEM.

    FOR GOD’S SAKE DO NOT LET EVIL WIN…

    WHY CARBON DIOXIDE IS THE “MIRACLE MOLECULE OF LIFE” FOR GREENING OUR PLANET

    This stunning mini-documentary reveals why eliminating carbon dioxide would WIPE OUT humanity, all plants, all animals and nearly every ecosystem on the planet.

    https://www.brighteon.com/5820639339001

    Carbon Dioxide “pollutant” DEBUNKED!

    This rational, science-based explanation completely DEBUNKS the false “climate change” narrative on carbon dioxide.
    https://www.brighteon.com/5820620279001

    IS GLOBAL WARMING A SCAM? – David Icke | London Real

    https://youtu.be/MSkNIpNWX0k


  4. @ John A September 17, 2019 3:44 PM
    “I would answer that one way. Go into any supermarket this week and try to buy a pound of local tomatoes that look like tomatoes. Nobody got and why? Because as little rain fall they done with. Now tell me in 2019 how come none of these farmers haven’t said if I had a greenhouse I could grow tomatoes year round regardless of weather. We ain t ready yet my friend!”
    ++++++++++++++++++++++++++++++++++++++++++++++++++++

    Simple, there is NO revenue being generated for the government on locally grown and sold tomatoes. But there is clearly some port charges etc (and even VAT if put into a can by some distribution outfit in Florida or Trinidad)

    Nex time you visit your favourite supermarket look around at the shelves and you would notice that 80% of the items on the shelves are processed and put in a can, bottle or package by some overseas supplier.

    Do you really feel the government would slaughter this readymade (imported) tax-laying goose to please the local food growers and suppliers?

    Why do you think the government encourages the importation of rejected New Zealand old meat (mutton) which should really be sent to zoos while the local black belly sector continues to languish as an object of curiosity and political bullsh**t?


  5. That New Zealand “lamb’ is of very poor quality. last lamb I bought was Bajan black belly lamb that was of much higher quality. Such a shame!


  6. @ Miller

    That’s my point in that all we get in nuff talk. To replace fossil fuel with more reusable energy is a major loss of tax revenue. Likewise local food as opposed to imported, more losses of revenue again. Plus remember the Trini owned supermarkets got interest in the Trini based manufacturing and packaging.

    We will reach the point though where foreign exchange may be the priority, as opposed to tax revenue. If that decision is made, then every dollar saved in foreign exchange would be seen as a dollar earned. I guess we will wait for the IMF to tell us it first before we act.


  7. (Quote):
    Government Hates to Lose Revenue. Government Now is the Sole Importer of Fuel and when they sell it to the BL&P what you are looking at is the Loss of Importation and the loss of the Sale and they also have to factor in the Loss for the Big Boys for Buying the Fuel. The Fuel Cost from the BL&P is nearly Double what they charge for Electricity. …Do you think the Government will give up that Cash Cow so easily? (Unquote).
    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    That is the most sensible contribution you have made to this whole Fossil Fuel discussion with your anti renewable energy views.

    What we would like to hear from you is not whether climate change is real but what do you think happens to the billions of tonnes of carbon generated by modern human activity?

    This energy from the Sun took Mother Nature, mainly in the form of trees, hundreds of thousands of solar years to put in her belly (ground) but which so-called homo sapiens, in his industrial haste, has taken less than 400 years to return to the sky and ocean.

    Isn’t such an act of self-inflicting destruction equivalent to a stupid person sleeping in a windowless room and burning a fuel which contains high levels of carbon monoxide?


  8. Miller see the Above Article posted… Freedom Crier September 16, 2019 7:15 PM

    The climate change hoax has collapsed. A devastating series of research papers has just been published, revealing that human activity can account for no more than a .01°C rise in global temperatures, meaning that all the human activity targeted by radical climate change alarmists — combustion engines, airplane flights, diesel tractors — has virtually no measurable impact on the temperature of the planet.

    Read more @

    https://hoax.news/2019-07-12-climate-change-hoax-collapses-new-science-cloud-cover.html

    https://www.naturalnews.com/wp-content/uploads/sites/91/2019/07/Agriculture-Beautiful-Blue-Clouds-Country-Countryside-Farm.jpg


  9. Miller…IT’S ABOUT THE MONEY, NOT THE CLIMATE

    GLOBAL WARMING IS THE PERFECT EXCUSE TO EXTRACT MONEY FROM THE POPULACE.

    The EARTH IS DESIGNED TO HEAL ITSELF. The One that Created the Earth, knew the potential of man that He placed on it man and planned accordingly. One Volcano Spews out more Carbon than all the exhaust fumes of all vehicles put together and the earth assimilates it. Remember Greenland was green at one time and the land was very productive. The Earth has always had Cycles of changes…

    Remember the Oil Spill in the Gulf how long did it take for the earth to heal itself? In Kuwait in Saddam Husein time when all the beaches were covered in oil spilling into the ocean, the left said it would take 100 years to get rid of the oil and within two years it was cleared up. The left look to make a Grand Crisis out of every opportunity because as they say ‘Never Let a good crisis go to waste”.

    Do you remember in 1975 when we were advised that the earth was going into an Ice Age, and also the big scare that we would have severe food shortages because of the earth’s population? There was also another scare that the world’s population was so large that we would not have enough food 21/2 Billion and now we have 2&1/2 Billion people more with a Capital Band the world now is better fed, than in those days and there is no Ice age.

    Now the latest scare is Global Warming/Climate Change what better way to control man and every living animal that breathes Air than to talk about CO2. There was 17 times more CO2 in ages pass than there is now. And they are looking to Tax Cow Farts and Charge us for breathing…

    Global Warming Provides A Marvelous Excuse For Global Socialism…Margaret Thatcher and may I add Global Submission.

    The intent of Leftist Socialism always is to continually exercise more control over the people as well as to take their hard earned money. The 100% Governments receives only 30% goes back to so called improve services. The rest is consumed by Bureaucracy. Who capitalizes on Climate Fair Politics and on all that they put in place, the only ones that benefit are the Elitist.

    https://www.facebook.com/photo.php?fbid=1105410906324351&set=p.1105410906324351&type=3&theater


  10. Welcome Vincent Appreciated Anytime…

    THERE IS NOTHING NEW UNDER THE SUN JUST NEW PEOPLE PUSHING EVIL DESIGNS!

    When people go to a Seminar and they sit in a nice Comfortable room with the Air Condition working and the Air Condition working normally brings in Fresh Air at a Controlled Rate. The Parts Per Million of Carbon Dioxide in the Atmosphere will easily reach 1,200 PPM. Outside in the open air it is only 400 PPM and they are no Ill Effects Caused to the People in the Room. If they had a Plant in the Room, the Plant would be thanking its lucky Stars for being in such a Sumptuous Environment…

    If you were to make a Pie Chart of All the Gasses in the Atmosphere, the Pie Chart Space allocated for the CO2 on the face of the model would not even be the thickness of the line. Of this one thickness of the line, one Thousandths of the Thickness of that line is caused by man and for this amount, the Climate Alarmist want to put the World through Hell . Go Figure!!

    For Sane People looking at the world, living in the world, and becoming wiser with age, we see man’s Folly in Everything around us where Belief of Nonsensical things are held as Facts and Facts are said to be Out Dated. Moreover, in the Environmental Sphere a New Religion is Born, and that the Existence of Man is Evil and Nature is Good. In order for this Religious Zeal to Thrive, the Cult of Climate Alarmism is being pushed by people that think of CONTROLLING others. You will find that their Core Beliefs are to impose their wills on others and this Religion of Environmentalism is the Method they use. Even Hitler was an Environmentalist and a Vegetarian and never smoked, all of the Good Virtues of Virtue Signalling in this New Religion of Climate Alarmism!

    This stunning mini-documentary reveals why Eliminating Carbon dioxide would WIPE OUT Humanity, All Plants, All animals and nearly every Ecosystem on the planet.

    https://www.brighteon.com/5820639339001

    Carbon Dioxide “pollutant” DEBUNKED!

    This rational, science-based explanation completely DEBUNKS the false “climate change” narrative on carbon dioxide.

    https://www.brighteon.com/5820620279001


  11. Is this a “Back to the future” moment or a Retreat into the Past? Mia is musing about establishing a “National Bank” (forget about how she is using Freundel’s playbook of using overseas audiences to hint of possible future decisions). Mia’s attempt to rationalize the sale by the OSA Gov’t of BNB falls flat on its face when she tries to hint that she wouldn’t have abandoned the minority position of the Thompson led Gov’t in 2009. Mia conveniently overlooks the fact that a minority shareholder is about as potent as a eunuch in a harem.

    Mia then wanders into the area of “unbanking” i.e. the inability of Bajans to open bank accounts unless they have a utility bill and she references some sort of “paper” that one of her Ministers drafted prior to assuming his present position which makes me wonder if with all the Ministers/Consultants and advisors in the Ministry of Finance why they can’t draft regulations acceptable to all Banks on acceptable criteria for opening Bank accounts ( the Big banks in Canada were forced to draft rules that allowed residents of poor neighbourhoods who were turned away by them when they wanted to open accounts ( Banks don’t like poor people).

    BTW does Mia know that Small business persons have a hard time opening accounts at major Commercial Banks? If she doesn’t she should talk to a few and listen to their complaints.

    https://barbadostoday.bb/2019/09/24/national-bank/


  12. @ Sargeant September 24, 2019 9:37 AM
    “Mia conveniently overlooks the fact that a minority shareholder is about as potent as a eunuch in a harem.”
    +++++++++++++++++++++++++++++++++++++++++++++

    LOL!! Simply the best use of an analogy on BU! Love it to bits.

    Sargeant, you really have a way with words, man.

    BTW, the word ‘eunuch ‘is the Biblical euphemism for the Bajan He/She boy-girl aka bull**er.

    Nothing new under the human sexuality sun.


  13. Eunuch is a male who has had his testicles removed, and who therefore cannot achieve an erection, and cannot impregnate a female. It and also mean an XY person who was born without testicles.

    The Biblical eunuch is not a euphemism for male homosexuality. In the Bible male homosexuality is described as “men who lie with men”


  14. @ SirSimpleSimonPresidentForLife September 24, 2019 10:25 AM

    Why would your bible encourage the castration of males?

    Shouldn’t it be seen as an abomination just like a woman having an issue of blood and ought to be put away for 9 days?

    We will never forget about what you said ought to be done to boy children.

    Deny that you recommended the castration of young black males as a final solution to the crime problem especially involving violence against women.

    Wouldn’t such an ‘operation’ be simply turning them into loving law-abiding impotent he-wo(e)men like your ‘girly’ boyfriend from “whiteHill”?

    Then there will be no biblical-type ‘begetting’ of violent boy children by testosterone-lacking males.

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