Financial Crisis in the Forecast – Whither Barbados and SIDs?

The blogmaster is unsure how many Barbadians are going about business today blissfully unaware of the meltdown in global financial markets. Central banks around the world are reluctant to be aggressive with tightening monetary policy for fear it will trigger another financial crisis. The ongoing conflict between Russia and Ukraine will continue to spike inflation given disruption to global supply in a ‘post Covid 19’ period.

For Small Developing States (SIDs) there is no quick fix to the hardships that will have to be endured for an indeterminable period. The Barbados dollar is pegged to the USD and combined with being a net importer with key components being food and oil, as the local parlance goes – we in ducks guts.

This is no time to play politics.


Global markets are tanking ahead of a huge week for central banks

PUBLISHED MON, JUN 13 20224:40 AM EDTUPDATED MON, JUN 13 20227:58 AM EDT

Elliot Smith@ELLIOTSMITHCNBC

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KEY POINTS

  • Global stock markets are falling sharply after May’s U.S. inflation print reignited fears that central banks will be forced into aggressive monetary policy tightening.
  • The U.S. 2-year Treasury rate hit its highest level since 2007 on Monday morning and edged closer to an inversion with the benchmark 10-year rate – seen by many as a sign of an impending recession.
  • “While [the Fed] can’t sit there and say their job is to end job creation for the moment, that is basically what they need to do if they are going to get inflation back under control now,” TD Securities’ Richard Kelly said.

Read full CNBC report

121 comments

  • NorthernObserver

    @Pacha
    Stale news?
    May 14, 2022
    The updated basket implies slightly higher weights for the U.S. dollar and the Chinese renminbi and, accordingly, somewhat lower weights for the British pound, the euro, and the Japanese yen.
    The updated basket weights will come into effect on August 1, 2022.

    The Rouble is the best performing currency, albeit back to 2018 levels. And the Yuan isn’t far behind.

    May they both experience continued increases.

    Like

  • NO
    State News?
    The SDR system is nun by the UN, no?
    Moreover,, don’t these rebalancings correspond with the broad trends?

    Like

  • @NO

    Bloomberg agrees with you.

    World’s Central Banks Got It Wrong, and Economies Pay the Price

    https://www.bloomberg.com/news/articles/2022-06-15/world-s-central-banks-got-it-wrong-and-economies-pay-the-price

    Like

  • We will see how the market reacts to increase in rates by central banks. So far on market openings crypto is continuing to misbehave.

    Like

  • David
    What are u ou talking about.

    The presumption that central banks are some independent self directed entities unaffested by politics and the domination of the US dollar and dictation from the Treasury Department in Washington is well established economic belief system for which Bloomberg is the arch angel.

    No wonder all of them will get it wrong at the same time. Is thinking an occupation out of vogue?

    Liked by 1 person

  • @Pacha

    What is the rival governance or oversight system? Asking for a few friends.

    Like

  • David

    The new world order is trying to find that. But to continue talking these junk economics as if scientifically based is no different than religious belief systems.

    Bloomberg shiiiite. How many times have they been wrong?

    Liked by 1 person

  • Recession On: Lose your pot belly
    Markets go up and Markets go down
    He who checks for wealth and not his physical health shall fade away
    The rich is getting richer every day and the little that the poor man has got will be taken away do you hear what I say
    Dow Jones – 10 Year Daily Chart

    Like

  • David
    When will you misguided sheep learn the names of Richard Wolfe or Michael Hudson and many more interrogating this unreality with enormous success.

    Like

  • @Pacha

    Will ignore the establishment narratives.

    Like

  • Gangster Gangster, Its not about a salary, Its all about reality

    The Black Underground Black Markets are on the Up

    #WelcomeToTheRiches #PoohShiesty #ShiestySeasonSpringDeluxe
    Pooh Shiesty – Welcome To The Riches (feat. Lil Baby)

    Like

  • David
    That is NOT our view. Instead we should see, interrogate, ALL the narratives to be as so determinative like you are want to be.

    Liked by 1 person

  • @Pacha

    Isn’t this what the blog is about narratives and counter narratives contending?

    Like

  • David
    The master of obfuscations! Surely, even you can’t seriously consider that all the narratives could have been exhibited here. In any case, no set of alternatives narratives will ever permeate the wall of ignorance which remains your preferred economic belief system.

    Like

  • @Pacha

    What happens when one of the main oil refineries breaks down because as you know they have been operating full capacity to respond to the Russia Ukraine conflict?

    Like

  • David

    More of the same. A continuation of the recent spite in inflation and its concomitants.

    Liked by 1 person

  • @Pacha

    If you say so. What prevents you or any other from sharing and countering as you do? Share your views freely as you are permitted because singing in the pickanoise gang does not show your best side.

    Like

  • @Pacha

    Interesting times. No ready solutions in the short term for sure. The construct of globalization that contrived to weave economies and markets is biting in the rear big time.

    Like

  • David

    Not able with that weight of constantly dragging the unread. People who generally assume that the world within their minds is the solitary reality. Can barely manage at this level. No thanks!

    Liked by 2 people

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Pacha…the CENTER COULD NOT HOLD….and fell out….

    you warned them, so did many others….now the big question is, since the people CANNOT RELY or depend on government….exactly what will their next steps be….they must know they have to make an INFORMED decision and what to do going forward and this corrupt dangerous system is not it, that will ALWAYS BE STEPPING BACKWARD… once they remain in it…

    now that the BOTTOM HAS FALLEN OUT..

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    From what am seeing on other forums….people are actively GOING AFTER THEM…it’s that time…

    this cannot continue….with their brazen little minorities coming out like if this is the 1930s and they are updating us on how SUCCESSFUL THEY ARE AS PARASITES IN BLACK LIVES……….well IT’S OVER…so get ya frowzy tiefing asses back inside where ya belong…..

    they do not know JUST HOW OVER ALL OF THIS IS…..but wait, you will see..

    Like

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