Submitted by Tee White

If it’s now going to be ‘national meeting hand’, then obviously the first principle would have to be that it’s voluntary. I have never heard of a meeting hand where you have to be in it even if you don’t want to. If individual public sector workers choose to accept the government bonds on that basis, then that’s their choice. If however, any individual is forced to be part of the ‘national meeting hand’, whether by the union leadership or government, then it’s not a meeting hand at all.

The government is persisting with this idea, claiming that its aim is to “carry as many Barbadians as possible”. But there’s a simpler and much fairer way to “carry as many Barbadians as possible”. That is that those who have benefited the most over the last 6 decades from turning the island from a sugar cane plantation into a one legged tourism economy must put their hands in their pockets and put some money on the table now that the wheels have come off the donkey cart that they, and the politicians they paid for, built to serve their own interests and which has now got the entire country in a predicament. They’ve become multi-millionaires and billionaires by changing agricultural land into residential land and selling it to developers, by signing lucrative contracts with the government to manage government owned hotels, by linking up with foreign tour operators and in a million other ways. They have full their belly for the last 60 years and now the bill has arrived, they want to pass it to the workers to pay. No way!

A special Covid 19 tax on those with deep pockets should provide the government with all the funds it needs. Remember if you tax a billionaire at 99% of their wealth, they would still be a multi-millionaire at the end of it. They still wouldn’t have to worry about where their next meal is coming from, how to pay their rent or  water or electricity bill.  That’s the way to “carry as many Barbadians as possible”.

https://barbadostoday.bb/2020/05/26/govt-signals-shift-from-forced-to-cooperative-savings/?unapproved=673434&moderation-hash=7f0f8d4337e5dcb6d1bf4a53d7a8055c#comment-673434

401 responses to “National Meeting Hand”

  1. Disgusting Lies and Propaganda TV Avatar
    Disgusting Lies and Propaganda TV

    @Tron when a gov’t is elected they control the ship SS Barbados with 280,000 souls on it…..They either can either navigate the ship or let it set adrift . COVID-19 is a GLOBAL catastrophe that is hitting all countries. It is no different from a meteor threatening to hit the earth in 6-9 months. All govt’s worldwide are thinking how they can navigate their ships. The investors are looking at all these ships to see where they will put their money. They can look at the SS China, SS Japan, SS South Korea or or look at the SS USA or SS Brazil whose leaders seem not to care where the ship may go or the souls in it. I prefer to HOPE NOT to fail than no simply ASSUME it will fail. Once a crew can convince the others souls and investors that they have a VIABLE survival plan they will gain their confidence. The old captain and crew were tossed over board, people are allowing the current captain and crew to do their job. In MY OPINION it is so far so good…the other souls would have their opinion.


  2. @ Disgusting Lies and Propaganda TV June 1, 2020 1:13 PM
    “For what its worth fact that Dr. Kevin Greenidge, a Bajan, was able to work with the IMF and able to turn around govt’s DIRE economic position in May 2018 to have Bdos receive several upgrades from default in less than 2 years and now devised this BOSS program tells me we have an “extraordinary” person at work here. Further credit to all Bajans here and worldwide.”
    +++++++++++++++++++++++++++++++++++++++++++++++++++

    We agree with you, totally, that little Kevin G. the ‘Home Alone’ kid, has been the big ‘BOSS’ of a star boy in the management of the Bajan fiscal affairs for the last 2 years.

    As a matter of fact, he ought to-out of pure patriotism- resign his posting with the IMF and return to the MoF as the overall titan of a man in charge.

    Now where would that leave poor Ryan, Avinash, Marsha and the outcast Clydie, the Malik with teeth?

    You even have qualified bullsh**iters like the ant the physically deficit Jepter fiscal Inch coming out of the wood work to advise you lot on what to do.

    But we just can’t have so many smart academic rats in just one economics advisory hole, can we now?

    After all, poor little Bim is no bigger than the average county in NY or borough in London.

    The people of Bim deserve a real ‘BOSS’ in the art of financial gerrymandering, not so?

    But before you reply just, please, let us know where are those statutory agencies (like the BTMI) so dependent on the receipts from the tourism business going to get their funding to pay meet their monthly payroll commitments.


  3. @ Disgusting Lies and Propaganda TV June 1, 2020 3:19 PM

    Our government has indeed dealt with the pandemic much better and much more successfully than many other governments. In particular, the tourism industry trusts us because we have not closed the airport. That was a good move. I therefore do not see any problem with the recovery of the tourism sector. We are in pole position here compared to other West Indies.

    Surely our government has also managed better than the previous one with the few resources available. Let me just remind you of the sewage treatment plant on the south coast, which was put back into operation just a few weeks after the 2018 elections.

    As you can see, the BLP has a clear prerogative with neutral commentators like me. Those who constantly criticise the elected government instead of critically examining the objective circumstances work for the DLP, which we certainly do not want to see again in power.


  4. Annunaki, surely you jest at June 1, 2020 6:48 PM or help us to understand.

  5. WURA-War-on-U Avatar

    Suriname now has 34 infections, up from 0, after only opening for one week for the election.

    but don’t mind me.

  6. WURA-War-on-U Avatar

    So where did the gossipy fowls disapppear to …ah fell asleep, slept well too, but still drowsy…hope yall slept as well.

    Social media is well and truly lit up..

    Going back to catch a few more winks…bonne soiree…or is it bonjour….lol..peu importe, vous rappatre plus tard.


  7. @Greene

    Does this article explains it better for you?

    Teachers get deeper insight into BOSS

    MEMBERS of the Barbados Union of Teachers (BUT) were given deeper insight into how the proposed Barbados Optional Savings Scheme (BOSS) would work, as educators began the process of mulling over whether they would participate in Government’s plan to create fiscal space.

    Yesterday, more than 500 teachers met with Government’s senior economic advisor, Dr Kevin Greenidge, via Zoom,where teachers were able to ventilate concerns about the plan, which entails public workers agreeing to take a percentage of their salaries in bonds.

    The robust discourse ranged from concerns regarding the procedures for opting in and out of the programme, to guarantees that investors would receive their monies once the bonds matured in four years.

    Teachers were especially mindful that during the debt restructuring in 2018 by the Mia Amor Mottley administration, bondholders took a haircut and they were worried about a repeat of history.

    However, Greenidge told them that savings bonds were not touched in the

    debt restructure and that bonds issued under BOSS had the same iron-clad protection.

    “Everything is guaranteed, because a bond is a financial instrument bonded by laws. The last time we did debt restructuring, we didn’t restructure savings bonds. So it is guaranteed; you will get your money,” said Greenidge.

    He explained that workers did not have to undergo the tedious task of opting in and out of the scheme each month, should they not desire the savings instruments.He revealed that civil servants could get forms as early as July, where they would indicate how much, if any, bonds they would like and that decision would stand for the duration of the 18 months unless a change was indicated.

    “After the initial form, anytime you change your mind, you have to send instructions. So if at the fifth month you decide that you want to stop or that you want a little bit less, you just send instructions with the changes, but if you don’t send new instructions, the old instructions would be acted upon,” he pointed out.

    Teachers also asked the

    economic consultant to explain why public workers were at the centre of this programme, and why the bonds could not just be sold on the open market to whomever might desire them.

    To this, Greenidge replied that Government did not have a financial problem but rather a fiscal space issue that could only be resolved by shifting around line items on the current expenditure.

    “You need to understand that there is a difference between fiscal space and financing. Imagine that I have a 40-foot container and in that container I have all of my expenses. Even if I have all of the money in the world outside of the container, I am only allowed to spend what is inside of that container. It means that you don’t have a finance problem because you have all the money in the world, but rather you have an issue of fiscal space.

    “So if you want to add expenses, you have to pull from an area,” he explained, adding the country’s foreign reserves were quite healthy at $1.7 billion. (CLM)

    Source: Nation newspaper

  8. WURA-War-on-U Avatar

    https://www.dailymail.co.uk/news/article-8377793/Seven-members-staff-single-primary-school-test-positive-coronavirus.html

    “Seven members of staff at the same primary school have tested positive for coronavirus, as thousands of pupils returned to the classroom across the country today.

    Arboretum Primary School, in Derby, has been closed following the positive tests, with the staff members, who have mild symptoms, now recovering at home.

    The school is believed to have remained open throughout the lockdown, with children from local schools and those of key workers attending.

    It will now remain closed for a week to undergo a deep clean, before reopening next week.

    It comes as thousands of children returned to school today, with restrictions eased to allow reception, year one and year six pupils to go back to the classroom.

    Up to two million pupils were due to return to lessons, though it is thought that as many as half a million did not.”


  9. Why is Dr Greenidge blatantly misleading ordinary Barbadians about these bonds? Why is he assuming a political position, when he is an unelected consultant?
    The bonds are legal instruments, that much is true, but they can be defaulted on? They are also call bonds, so the issuer (the government) can call them in at any time and decline to honour the coupons, just paying the principal. A call bond has no greater legal status than any other form of IOU. Its strength are within the four walls of the contract.
    He also claims the government does not have a financial problem, just one of fiscal space. He must define what he means by fiscal space since it means different things to different people. It is at best, economic hocus pocus. The government of Barbados is insolvent, its outgoings are greater than its revenue.
    Further, it has ran out of ideas. What Barbadians urgently need is transparency and honesty. Let us go back two years and work forward. What is the current situation with White Oak and the two-year old default? We were told last year that a provisional agreement had been reached with external creditors. What is the current situation? Is White Oak still being paid?
    Plse explain in simple terms the transition from BERT, to BEST now to BOSS. What are the economic forces that have driven these changes? The president also came off her sick bed to announce a CoVid economic council; since then the name has change and eight chairpersons of sub-committees have been announced.
    Were these eight the extent of the economic council? Who are the members of the sub-committees? The sub-committees were given four weeks to submit proposals. How is that progressing? Why is government announcing plans ahead of the reporting by these sub-committees?
    Dr Greenidge has inadvertently allowed himself to be caught up in political trickery. He, and others, have perfected the art of turning economic debate in to political debate then in to definitions of party allegiance.
    So, in this little universe, to object to BOSS is to object to the government and the BLP. In warped minds, this extends to a rejection of Barbados. In simple language, to oppose BOSS is to be unpatriotic and un-Barbadian. This is the extent of the corruption of our public discourse.


  10. @David,

    thanks. but that does not change anything. i believe i understand the bond issue details and the talk about fiscal space for want of a better term. i do not discuss matters in any depth that i dont have more than a passing familiarity with.

    bottom line is that govt wants to cut it wage bill- the financial and economic fallout from covid has depleted its resources. the public/civil is where most of the wage bill is located. so short of firing workers govt has to cut salaries. the only difference between this and Sandy’s 8% is this comes in the form of a bond that matures at 5% in 4 years. Sandy’s was a straight wage cut. To make it palatable and make use of the bond money Govt will direct it to capital works. this is suppose to ease its borrowing in the open market (if there are any lenders) for said capital works


  11. @Greene

    The reason for posting the article is to address an earlier comment by one about making the bond issue available to the general public first time. We can move on,

    >


  12. ok…cool.

  13. NorthernObserver Avatar
    NorthernObserver

    @HA
    You know the answers to your multiple questions.
    Dr. Greenidge, it has been said, is soon departing. Hence any future criticisms can be laid upon him. A good candidate to wear the current mask.
    The obvious mislead, and it was not in “..” is that Barbados does not have a financial problem. But no good salesman seeks to explain himself? You are correct fiscal space has several meanings, but it ‘ sound sweet doh’, so the listener can allow it to mean whatever they choose.
    The secondary mislead is this continuance that a pile of borrowed Fx is an asset, when it is largely a bunch of loans. But this isn’t new either.
    The tidbit continually avoided, is the GoB defaulted on T-Bills. They converted a short term instrument into a long term bond. This was a direct shot at the monied, because few, if any, ‘ordinary’ Bajans (MTA tells me this means those who take public transport) owned them.
    Early call, extension of term, cut in rate, all mean getting less.
    You are similarly correct, Barbados despite the default, which decreased it’s debt and servicing costs, (a major expense category) remains insolvent.

    Doan worry, de Steel Donkey coming down……


  14. @ Northern Observer

    I try almost every day to keep the discussion about financial economics, but those cleverer than I am keep shifting it to politics, in general, and party politics, in particular.
    Then there is the mantra, an illogical obsession, about foreign reserves. And, when you asked what is FX needed for, they go in to some mumbo jumbo about paying for imports. @Vincent raised this earlier. And these believer are so convinced they are saying some spectacular that they pat themselves on the shoulder.
    But, Dees and Bees, they continue on their own sweet way, singing from the same song sheet. They are of the same mind set, not one can tell the other to stop. Then our wonderful media will turn to people of a younger generation, preaching the same message, for quotes, as we call it in the business.
    Let us start again: decouple from the Greenback and fix against a basket of goods and commodities; make the use of the Greenback as legal tender illegal; get rid of parliamentary pensions and replace them with a six-month resettlement grant; get rid of the BDF, by transferring most of the men and women to the police (with re-training), and the Coastguard and re-establish the Regiment as the principal military organisation; and establish a prices and incomes commission to manage any increases in wages and prices.
    Once we have done that as stage one of our economic reforms, then we can move to stage two: reform the educational system from nursery to university; establish a sovereign wealth fund; re-start some of our industries such as shrimp finishing, the dry dock and invest heavily in rum (with a legal definition of Barbadian (Bajan) rum; create a compulsory savings scheme (Not BOSS) with a strict investment mandate (locally, regionally and globally), reporting annually to parliament, not to the minister or government.
    I can go on and on, but you get my drift. The final proposal will be explaining to Barbadian in simple, understandable language, any new policy proposals.


  15. @NO

    All you have stated where do we go from here?

    You didn’t address the confidence factor, it is worth anything?

    >


  16. @Hal,

    do go on. may come in handy. i want to see what the rest of your ideas look like


  17. @ Greene

    We have fifty years of an economic mess to clean up, which cannot be done on a blog that functions like a Tower of Babel.


  18. There you again. Always disparaging. Tell you what, share your email with Greene and take your arrogant self offline BU if it serves no value.

  19. NorthernObserver Avatar
    NorthernObserver

    @HA
    Allow me to dig down.
    Tomorrow the CBB announces the decoupling proposed, and institutes a new peg in whatever combo of currency/commodities. What are the benefits? Does the “new” $BDS have greater global acceptance? Will this stop local people and businesses from seeking the Greenback, Sterling or Euro?
    Which parliamentarian is going to forego the current system in favour of yours? Even your Ivyman Prescod will object. I say meet me halfway, force them to contribute to a pension plan, the longer they serve (and contribute) the larger their pension.
    Get rid of the bodies listed.
    I tend to avoid ‘commissions’, so you would need to explain how it is formed, run etc.
    You can make the Greenback illegal, along with any of the other currencies in the basket, again what challenge are you solving?

  20. NorthernObserver Avatar
    NorthernObserver

    I used peg but I meant fix.

  21. NorthernObserver Avatar
    NorthernObserver

    #Blogmaster
    I am swapping windows today, I’ll reply later


  22. @ Northern Observer,

    The Bajan dollar will not have global acceptance in our life time. That is not the purpose. The thinking behind fixing to a basket of currencies and commodities is that we have an idea of our weekly, monthly, quarterly, annual commitments. It means we can plan with a degree of certainty.
    At present the Greenback is used for about 60 per cent of global trade, the euro for about 25 per cent and the elephant in the room, is the renimbi.
    That is the main benefit. Floating against other currencies means the cost of importation will reflect market changes. I have said before, we can trade in derivatives for a basket of essential goods.
    At present we have no control over our money, as real monetary policy is set in Washing DC, not Church Village. Every time the US dollar appreciates, the Bajan appreciates. And at a time like this it is the last thing we need.
    About the parliamentary pensions, asking this lot to vote for such changes is like asking a turkey to vote for Xmas. We have a 29/1 parliament and if our president had any ethical bones in her she could change this at a stroke.
    It is not appealing. Most of our lawyer/politicians enter politics not to effect change, but to secure a lifetime pension. We need ethics in our politics. We do not need a pension plan just for politicians.
    As things are, Barbados, with 280000 people, has more pensions than the tax man can remember. We need pensions reforms, and urgently, but for every working man and woman in the country. If you want to discuss my proposal, then we can do that at some other time.
    If a member of parliament loses his or her seat s/he will be entitled to a resettlement grant then they are on their own. A part -time job in parliament should not entitle anyone to a pay packet for life.
    We have a perverse system in which a former prime minister (and governor general) get a 100 per cent pension. This is madness, lunacy. Extravagant. Robbery.
    Then you get a greedy persons like Owen Arthur, entitled to a 100 per cent pension, then accumulating other appointments like kids picking sea shells. Mottley knows this level of greed and can exploit it. She is head and shoulders above these mediocre politicians. And, of course, you get the Donville Innisses who no matter how much they get they still want more. Mottley plays them like toys.
    The way to change this is to change our politics. Instead of tolerating politicians getting on platforms and ranting, (like Kerrie Symmonds getting on a public platform talking repulsively about horning a man) have them in a community centre answering questions from voters and get candidates to commit to change. No change, then they know not to come again – nor their parties.
    We also need to control the uncontrolled rises in consumer prices, which trigger wage demands. To control it we need a body; call it a commission, working party, authority, council. The name is not important; it is what its role is. Just look at the prices at Massy in Oistins or Emerald City to see what I am talking about.
    As to making the Greenback illegal, the benefit is obvious. At present government does not have a clue about the money supply in Barbados because a large part of that is this foreign currency. There are US$70bn dollars in circulation outside the US. Do you know how much of that is in circulation in Barbados?
    It is a matter of controlling our currency (liquidity). That is the challenge. If you have US dollars in Barbados then change them at the bank.
    There is more than that, but that will do for now. At some point we must move to the west coast and attack the moneylaunderers who use inflated property prices to shift money in and out of the country. The problem with this is that the property owners get their cut, the lawyers get their cut, the estate agents get their cut, and government gets its cut. So who cares about a little moneylaundering? At some point we must start jailing some of these crooks.
    But when the OECD and others attack such criminality they are called racist.

  23. NorthernObserver Avatar
    NorthernObserver

    @HA
    I have crunched some numbers and while I agree a ‘basket + commodities’ will yield a fluctuation more in line with global reality, I cannot foresee the ‘degree of certainty’ you suggest. Any control by Church St seems no truer, than the current.
    We will have limited monetary tools then, as is the case today.
    So I ask, are Barbadian challenges monetary or fiscal? In the last 20 years, the island has been largely unable to balance between inflows and outflows (as you noted) I am unsure how a different peg will change this?
    Close the BDF and move them to police; rearrange the furniture? Pension reform is meaningful, but it won’t happen tomorrow.
    We control our own currency. Since forever, Barbadians have sought safety in a hard currency. I cannot blame them. The liquidity issues pertain to the GoB, not the island. They spend more as a legal entity than they collect.
    I am confused, as to how we change that by your suggestions.

  24. NorthernObserver Avatar
    NorthernObserver

    @blogmaster
    To briefly answer you, politely, Barbados needs a recalibration of responsibility and accountability. At both the public and private levels.


  25. The BOSS economists should say that they are managing cash flows if that is what they are doing and stop talking about reducing the wage bill. The wage bill is the wage bill paid in cash or any other item of value.


  26. @ Northern Observer

    Nothing is certain. The success or failure of all social and economic policies depend on where they come on the axis of probability. As to monetary and fiscal policy.
    My proposals are monetary (ie central bank responsibility), but all this can be reinforced by sound fiscal policy (ie under the minister of finance). If you believe exercising our sovereignty by controlling our economic future, rather than drifting along in the jet stream of the Fed, will not make a difference, then good luck to you.
    You said things have only gone bad over the last 20 years, or imply that. I say things have been bad for the last 50 years. I am afraid I cannot explain this any more simply to someone who has financial knowledge, but by fixing to a basket of currencies and commodities that we consider essential to our day to day living, then anything outside that can be considered a discretionary spend.
    Since we will know our outgoings (servicing debt, essential imports, etc), then we can trade in the futures markets. That will make a huge difference because trading in the futures markets means we do not have to pay up front and that cash can be invested more creatively.
    Let us make it simpler: if you work and earn X Can dollars; you know your outgoings: food, mortgage, heating, etc. You plan for this. Some of those bills are paid monthly, some quarterly, others annually. In the old days, my mother would keep piggy banks for each future payment. So, when the payment is due it will not come as a surprise. Futures trading, covered with suitable insurance, is the equivalent to this domestic planning.
    I am surprised you should say getting rid of the BDF and transferring most of the soldiers to the police and Coastguard is shifting chairs on the Titanic. I will not try to explain this to you or BU readers again, work it out for yourself.
    You say pensions reforms would not happen ‘tomorrow’. I am not sure if you mean literally or figuratively. Why not? Pensions reforms can take place within six months in a small island and progressive changes will transform the nation – from expanding the capital markets, to the future enrichment of households because members will have two sources of retirement income. As you know, pensioner poverty is the worst kind of poverty.
    Modern pensions planning is not rocket science. Since 1981, when General Pinochet introduced the new pension scheme to Chile, the world over has been modelling it pensions on that creation of a dictator – the Australian superannuation; the New Zealand Kiwi Saver; the UK’s stakeholder (and others), the Police pension scheme, the 401(K), and numerous.
    As you know, the Canada Pension Plan Investment Board was created in 1997 and now holds assets of Can$400bn. Also look at Sovereign Wealth Funds, from the Norwegians to the Pacific islanders. We cannot continue making excuses for our inaction.
    Further, at present we DO NOT control our own currency. It is fixed to the Greenback, the superior currency, and fluctuates along with the Greenback. We have no control over that. That reality is not talked about in public in Barbados, but that is the reality.
    For example, most global trade (60 per cent) is priced in US dollars. If the dollar appreciates, as it has been recently, then we pay more for the importation of the same goods and services; if it depreciates, then we pay less.
    As tourism from the UK is our main product, then the exchange rate between the Greenback and sterling is important. If the rate is not favourable to sterling, then we will lose tourists. The only people who will come will be those with a heritage connection to the island.
    The liquidity issue is not just one of the government; that is true for the simple reason if government has to service more debt than it can afford then it has problems. But the major problem is the money supply. As I said, there are two currencies operating in Barbados: one official, the Barbados dollar, and an unofficial but popular one, the Greenback. None of the authorities in Barbados know how many US dollars are in circulation in Barbados. All they can do is guess.
    I am saying ban the use of the Greenback, thereby giving government full control over the money supply, since by definition, use of the Greenback will become a criminal offence – both by the customer and the shop owner – the spender and receiver.
    My apology, if you are confused. When I am confused I usually take a walk and a gin and tonic.


  27. What is the difference?


  28. (Quote):
    The BOSS economists should say that they are managing cash flows if that is what they are doing and stop talking about reducing the wage bill. The wage bill is the wage bill paid in cash or any other item of value. (Unquote).
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    A man or woman who knows his or her genuine accounting onions from the BS in those economists’ doublespeak.

    Hasn’t the government moved away from the cash basis to the accrual basis as copiously explained by the inventor of that branch of accounting cum economics called ‘Kellmanomics 101’ specially written for those who like things as clear as mud?

    The government is about to face severe cash-flow challenges which only a blind juggler in a circus can fathom.

    When are these people going to stop pulling wool over the eyes of the financially-naïve Bajans?

    Shouldn’t the elected members of Parliament assigned the responsibilities for such financial and economic matters be communicating with the public sector workers and the people of Barbados instead of some ‘hired’ advisor?


  29. @Miller

    What is your point?

    If revenue inflow has slowed isn’t obvious the government must implement short term fiscal measures to counter?

    You have lodged your criticism now move to alternatives.

    >


  30. @ David June 3, 2020 7:40 AM

    There are only two ways to reduce the wage bill.

    Cut the pay or reduce the numbers on the payroll.

    The private sector players have seen the necessity. It’s only a matter of time before such realities catch up with the government as does the printing of money to meet expenditure commitments without the capacity to earn future incomes.

    Can you paint another scenario?


  31. @Miller

    The predicament the country is in does not make it a binary problem to solve. Sacking thousands of public workers will not improve the country’s lot at this time.

    >

  32. WURA-War-on-U Avatar

    Miller…look at the bright side, the fowls ran off to start their gossip blog with the best gossip and only truth they could NOT REFUTE about the corrupt in the parliament and their bag man, they never thought it would happen, they did not even leave a feather….so in a hurry to start their gossip blog..

    ..now we get to dismantle the evil apartheid racist system that they enabled and condoned againdt their own people for decades….and we await those who have the power to do their jobs and dismantle the money laundering empire and criminal syndicate that not only stretches across jurisdictions but that the crooks and thieves will refuse to dissolve themselves…


  33. @ David June 3, 2020 8:06 AM

    How about doing a Sandie déjà vu which eventually earned him the political encomiums which even the great OSA had to acknowledge since he benefited tremendously from such a bold decision?

    So what is the government going to cut to suit its current revenue cloth?

    Debts obligations? Expenses and material costs? Transfers to statutory agencies and persons like pensioners and those on welfare?

    Why have public sector workers on the job with no materials and equipment to work with?


  34. @Miller

    The government has to buy time until global economic growth takes root.

    There is a time for short term strategy, to compliment medium and long term.


  35. @ David June 3, 2020 8:42 AM

    Exactly!
    So why not lead by example and cut the fat where it exists the same way the private sector players are forced to trim? There is a symbiotic relationship between the two players.

    How about getting rid of some of those ‘excess to current requirements’ advisers and consultants and keep those who can make a difference like the Greenidge fella who has made ‘measurable’ contribution?

    This not the time to carry deadweight as ballast in and around the kitchen Cabinet. Too many cooks paid to concoct dishes of BS can sink the leaking lifeboat.

    The country needs a lean mean management team to keep it above water; not those paid to just piss in the boat.


  36. Of course when you think a person like Dr Greenidge is “excess to requirements”, we don’t hold out much hope for sensible contributions to flow therefrom.

    Of course when you think these individuals are “concocting dishes of BS”, when both union leadership as well as many rank and file overwhelmingly and enthusiastically support the proposals, we don’t hold out much hope for any sense to flow therefrom.

    Enuff, you need to come and make light work of these clowns as you usually do.


  37. @ Khaleel Kothdiwala June 3, 2020 2:01 PM

    Are you implying that those economists employed (and on the payroll) in the standing army for finance matters and economic affairs (and who have been trained at the great University of the West Indies and others overseas) are worth only diddly squat (or what the Bajan Paddy shot at) in the grand scheme of things and in the eyes of the IMF and other lending institutions?


  38. Khaleel
    I have been busy. The first of my 4 meetings this month (the ones the Milluh and crew accused me of lying about) was today–a lovely 36 storey building with an impressive zero carbon energy strategy, circular economy strategy and an innovative way to blend public space with research, creative industries and education. It should be a beautiful addition to the area, especially as it will be right next to the 15-storey one I did a similar meeting on a year or two ago. I will now read the earlier posts.


  39. Khaleel
    I have nuffin to say to people who repeatedly said the debt restructuring would end in tears, in the court and not with a resolution. People who inspite of the assurances that the savings bonds were not touched in the debt restructure would be safe from any future haircut, continue to cast doubt. People who never advised a 4-H club but are experts. Some who berated the government’s handling of COVID and started to compare B’dos with Jamaica and other regional countries. Ask them for the current stats. I was strongly against reopening the supermarkets so soon and thankfully doing so did not lead to a spike. I ask again, where would be now without the debt restructure? I have been here long enough to realise that the Salemites’ predictions never come to pass. So I good.


  40. I see Don Marshall is now saying Caribbean governments should get over the fear of borrowing from China. Is he mad, or simply got up on the wrong side this morning? Tell him to talk to the Sri Lankans.

  41. NorthernObserver Avatar
    NorthernObserver

    @HA
    You are correct, I remain confused. While I get the greater certainty, greater to me is still ‘small’. Nor the control you can foresee. Don’t forget I live within an hour’s drive of Greenback border. Everytime they have flatulence we feel a bowel movement coming. And we have in your terms, a currency heavily weighted in commodities, albeit it floats. We are hit just like you for a Bajan holiday.
    You seem to think $US is the only ‘other’ currency in circulation? If you effectively ban (force exchange)
    $US, you have to similarly ban £, € and $Cdn or they will just switch from one hard currency to another?
    We are back to exchange control?
    I prefer to focus on fiscal policy and other policy where the GoB acts as the referee and rule setter, and not the owner of any teams, or even the league. The latter is becoming more popular across the globe. And governments are known to be copy cats, just like other human groups.
    @VC keeps saying, the systems are in place. Some haven’t been used in so long, the developing rust makes me wonder if they are still operable.
    Or if anybody knows they exist.
    Appreciate I share many of your views on pension reform.
    In my simple world an expense is an expense.
    Nor do I object to derivates.


  42. @Northern Observer

    I think it is a question of understanding. I have not given any impression, certainly not intentionally, that the Greenback is the only other currency in circulation, either in Barbados or any other country.
    But, it is the most popular for the simple reason that most commodities are priced in US dollars (60 per cent of global trade) and that there are US70bn Greenbacks in circulation outside the US.
    I will give you an occasional experience of mine. Every time I am in Grenada I offer to pay huskers in Barbadian dollars and every time it is refused.
    I will ask the price of coconut water, for example, and they will say $7, then when I go to pay, they will say US. I will smile and walk away. It is an old Grenadian trick.
    No other currency, whether CARICOM, European or North or South American, is used as legal tender in Barbados the way the Greenback is. I am not talking about travellers cheques. When I say ‘ban’ I mean just that. ALL currencies will have to be exchanged in a legal institution, ie banks, cambios, etc. Make it illegal for traders to accept such currencies.
    Fiscal policy is fine, but for over 50 years we have not had any creative fiscal policies that would improve the life chances of ordinary Barbadians. The latest is BOSS, which is flawed in concept, execution and as economic theory. It is nonsense. Desperation. I find it difficult to understand how intelligent people can associate with selling economic snake oil in this day and age. It is governmental Madoff. Bogus. I will love to debate with Prof Persaud, Dr Greenidge or any of the leaders of this fraudulent policy, on line , in print, or live.
    But we must take back control of our monetary policy from the Fed by decoupling from the Greenback as a matter of urgency.
    As to fiscal policy as a vehicle for change, I have over the years given a long list and will gladly do so again.

  43. Disgusting Lies and Propaganda TV Avatar
    Disgusting Lies and Propaganda TV

    @Econodini From what i understand, with the BOSS program giving an option of a bond as part payment to a monthly salary, govt doesn’t have to look for that CASH for that month to pay that employee i.e…the “trick” is to get as much people to not take CASH for that month and for them not to “CASH IN” the bonds for the longest time possible (up to 4 yrs) and to put as much of a worker’s salary (as an individual worker allows) into to bonds. It is managing monthly EXPENDITURE i.e. diverting CASH payment down the road. I.e. in the best case scenario govt would only have to look for that money in 4 years.

    Also if one can read the Protection of Wages Act, it is not illegal. In fact with govt negotiating with workers unions, it reduces the ILLEGALITY of paying part salary as bonds. So, hypothetically, if the unions agree with govt that rock salt can be an acceptable form of legal tender it can be used. It is also OPTIONAL meaning that a public sector worker can opt NOT to accept the bond for that month and get cash instead.

  44. NorthernObserver Avatar
    NorthernObserver

    @blogmaster
    If we begin to list the “Barbadian” operations no longer owned by Barbadians, one appreciates FDI. So confidence is a big factor. I think confidence was returning, it is now in abeyance. We can blame covid, but it was waning before covid. Some key areas were being deftly avoided. The broader market tends to interpret silence as negative.


  45. @NO

    It is the reason for asking about your pulse check of the big C. Agree with you.

  46. William Skinner Avatar
    William Skinner

    @ Hal
    This is the problem. You say that you can’t understand intelligent people supporting BOSS.The question is : Why are we always saying we want change but find ourselves going back to the same models that have failed us.
    You support a basket of currencies, why not lobby for a common Caribbean currency instead. Does the BDS currency have the strength to really float about the market?
    The only problem with BOSS is the bungling the PM introduced. The idea is creative.
    It was the same thing with NSRL. It was not properly explained and stupid politics got in the way. The NSRL was an instrument to ensure the corrupt private sector paid its duties up front.
    So here we have two policies designed for the same exact purpose -to collect money, the Treasury needs now. It’s a creative fix.
    During the elections, it was said and we did match against the NSRL, that once it is removed, prices would fall. It has been removed and prices have still risen dramatically. Far from making the private sector pay money owed to the country, we wrote off their arrears.

  47. NorthernObserver Avatar
    NorthernObserver

    @Hants
    Loan
    In IMF speak, an augmentation of the existing Fund Facility.


  48. @Miller June 3, 2020 7:05 AM
    (Quote):
    The BOSS economists should say that they are managing cash flows if that is what they are doing and stop talking about reducing the wage bill. The wage bill is the wage bill paid in cash or any other item of value. (Unquote).

    All bonds issues raise capital and create a liability. I this case the govt is borrowing the money from Barbadians. Why are we trying to make it make complicated when it is that simple.

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