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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

122 responses to “Financial Crisis in the Forecast – Whither Barbados and SIDs?”

  1. Donna Avatar
    Donna

    TOO effed up

    David,

    It only just occurred to me that I could never, no matter how hard I tried, understand this fiat currency system BECAUSE IT MADE NO SENSE WHATSOEVER!

    How silly of me not to have figured that out before! Why should it make sense, considering who created it and for what reasons?

  2. John A Avatar
    John A

    @ Donna

    See if you can Google the article where Warren Buffet explains why he will never own Bitcoin in his portfolio. He speaks in clear terms as to why it’s nothing but hype and based on nothing tangible

  3. 555dubstreet Avatar
    555dubstreet

    With more homeless people on the streets cardboard will go up
    I bought cardboard when it was 14¢ a ton and it is now worth 16¢
    I bought 3 tons of it.. so you can work you how much it is worth now
    I got a special deal where I can keep it all at home

    Steve Martin – Stock Market

    You Can Be a Millionaire

  4. David Avatar
    David

    @wargeneral

    What many do not realise is that G7 has imposed sanctions at sector and individual level, not country. It is the hypocrisy of the world we live in.

  5. David Avatar
    David

    @Donna

    Mindsets can be encouraged to shift/change with a concerted effort by sector players, the problem however is that key sector players are vested in the establishment read maintaining the status quo.

  6. David Avatar
    David

    @Donna

    A FIAT currency was/is needed to fund the unbridled conspicuous consumption habits of our global inhabitants intoxicated by it. The gold standard was abandoned and now there is talk about commodity/asset based system. With limited resources and inequity of distribution the blogmaster in not enthusiastic we will see FIAT replaced in our lifetime. Unless there is some cataclysmic event that triggers a tipping point.

  7. Donna Avatar
    Donna

    John A,

    I figured that Bitcoin thing out all by myself. Its logic eluded me.

    But I cottoned on to that because it was new. The fiat currency is status quo and so I assumed the fault was mine.

    I shall seek out the article.

  8. John A Avatar
    John A

    It’s a good read. Written in typical Buffet style where he asks ” on what is this invisible currencies value based?”

    The crash or correction will come as they do every so.many years. The magnitude of it only time can tell. Like the coming one the world will recover and life will go on.

  9. John A Avatar
    John A

    Donna it was a CNBC article in early 2022 based on his comments at a Berkshire meeting where he said he would not pay $25 for all the bitcoin in circulation. Lol

  10. Dullard Avatar
    Dullard

    ” on what is this invisible currencies value based?”

    The real value proposition of crypto, more particularly the block chain is the ability to track and record every single transaction in real time. When central banks begin to adopt digital currencies- and they all will, then the real “fun” will start.

    There will be no need for multiple currencies so one global unit of exchange will do.

    Governments (or the new global government) will have the ability to determine who has “money”, where it can be spent and how much. All with press of a button.

    Expect to see increasing talk of CBDCs as the world fragments amidst loss of US hegemony before final consolidation in a new global government.

    Thesis. Antithesis. Synthesis.

  11. John A Avatar
    John A

    @ Dullard

    We will never see that in our lifetime I guarantee that.

  12. 555dubstreet Avatar
    555dubstreet

    Investing In Marijuana CBD Stocks is the way to go

  13. Vincent Codrington Avatar
    Vincent Codrington

    @ David Bu
    Welcome to the real world. It is unfolding as it should.That is the reason I insist that we must understand where we are and how things work before jumping on every bandwagon that claims to be new. It will all settle down in due course. Keep your eyes on the weather cock and your hands on the tiller. We know how to sail.

  14. Dullard Avatar
    Dullard

    @John A

    See what? A single global currency?

    You may be correct. It may not be in our lifetimes. But it very well can be. No one can guarantee anything.

    But all the tech is there already.
    The only missing ingredient is the agreement of the masses and the right circumstances for introduction. That’s where the instability, dislocation and fear comes in.

    Things will get so chaotic that people will be begging for anyone who can put forward some seemingly sensible solutions.

    And CBDC solves many if not all the problems of conventional money…With the added bonus of absolute and total control by the govt.

  15. Pachamama Avatar
    Pachamama

    Dullard
    A lot of what you say is correct. However, do you have any idea how much energy these thing use. The cost of the systems to set up. The burn out rate of the equipment. The few large firms in this game.

    There may be some advantages to crypto and blockchain tech if based on real underlying value.

    Have you noticed that the Chinese shut them all down. And that the US is now attracting them all.

    That their market values have taken a beating. And that this weak point and as a bubble will burst soon?

  16. 555dubstreet Avatar
    555dubstreet

    Slave Trade Legacies of British and American Slavery
    Stock markets, Capitalism and Cities were built on Slavery
    Can you hear the voices of ancestors spirits
    they are singing in the heavenly choir

  17. David Avatar
    David

    Financial markets continuing to slide. It is officially a bear market.

  18. John A Avatar
    John A

    @ David

    Yes sir once you have fallen 20% or more off you highs you in a bear market and the fall is not over yet! As they say there will be alot of blood in the water by Friday.

  19. de pedantic Dribbler Avatar
    de pedantic Dribbler

    @David, re “Financial markets continuing to slide. It is officially a bear market” is that some lovely joke for the afternoon 😎

    Are you getting into ‘technical territory’ with the pronouncement of “officially” 🤣 … Gee, I mean after all is said and down the financial markets have been in downward ‘bear’ territory for the last two years since covid and despite the momentary upswings since as things moved back to some normalcy and governments throwing billions of $$ in to their economies we ARE still swinging wildly more down than up, brother!

    All that to say, you remark is quite amusing … for all those who have seen SIGNIFICANT losses on their portfolios or those like @Northern who have jumped out of stocks completely to cash safe-harbours this has been an ENDLESS bear market, bro!

  20. NorthernObserver Avatar
    NorthernObserver

    Lol….I told you back around Feb 14 I was out of the market, save the 4 oil related equities I owned.
    All of this was very predictable.
    Since May 2021 i warned about inflation. And watched as the Central Bankers played with their private parts, debating if what they saw was real or an aberration.

  21. Vincent Codrington Avatar
    Vincent Codrington

    @ Pachamama at 12 :16 PM

    Correct.Obviously you have done your homework. The platform on which it works consumes high levels of energy.

  22. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Pacha…based on something you posted yesterday…

    “Boso menɔa tã me o.”The whale does not live in a pond.”-Ewe proverb
    Explanation: Do not diminish yourself for others. Keep company with those equal to your character and capacity.”

    a hell of a conference. multilingualism was a plus…

  23. Dullard Avatar
    Dullard

    “However, do you have any idea how much energy these thing use.”

    @ Pacha
    In fact I do. Bitcoin mining alone uses as much electricity annually as the entire country Sweden.

    The high energy requirement is basically down to computational cost, involved in solving the math problems required to maintain the integrity of the Blockchain. So basically if the mathematics can be simplified in some way then the computational burden will be reduced resulting in less energy consumption. There are already people working on these things. Only a matter of time.

    But apart from bitcoin there are other protocols that use much less energy. There is no reason why bitcoin has to remain the standard. The Ethereum chain uses much energy. So if there were a mass exodus today from Bitcoin to the Ethereum network that would address a lot of the energy concerns.

  24. Dullard Avatar
    Dullard

    Oh and @ Pacha
    Do not confuse cryptocurrency with the Blockchain. Crypto currency is but one application of the use of a digital leger. There are many other interesting use cases that we are already in use in the works.

  25. 555dubstreet Avatar
    555dubstreet

    Dullard
    How much of your monies have you “invested” into Bitcoin and other crypto-currencies. Talk is cheap.

  26. David Avatar
    David

    @Dee Word

    https://finance.yahoo.com/quote/%5EDJI/history/

  27. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Clashes in Equador….poverty is now large and in charge…the way fuel prices are rising…buckle up..

    Libya was forced by protestors to shut down oil ports…more pain..

    why the hell would they give up all those weapons to the Ukraine folly……and now need some…sigh….that’s the 3rd or 4th country i have seen crying in the last week……

  28. Pachamama Avatar
    Pachamama

    Dillard
    Thanks for your critical insights but it would be hard to be convincing to this writer unless discoverable real underlying values are clear., not just sentiment

    In addition, reports are suggesting that less than one percent are actually used in settling accounts.

    Separately, El Salvador the crypto capital of the world will prove an important case study.

  29. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Pacha…wuhloss…lol

    “Emmanuel Macron ‘betrays Ukraine’ as French imports of Russian gas soar
    Arthur Scott-Geddes, Nataliya Vasilyeva 23 hrs ago
    …

    Emmanuel Macron has been accused of betraying Ukraine after figures showed that French imports of Russian gas rose during the invasion of Ukraine.”

  30. Pachamama Avatar
    Pachamama

    Waru
    He’s between a rock and a hard place.

  31. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    all of them it seems….but we sat and watch them put themselves there….don’t know who they are blaming these days…

    “France, Belgium and the Netherlands had snapped up shipments of the Kremlin’s fossil fuels at discounted prices after other buyers cut back their purchases during the conflict, Crea said.”

    if the people can’t see who and what they are dealing with worldwide, they never will…

    “While Russian missiles and bombs were raining down on Ukraine in April and May, France received 12 shipments of liquefied natural gas (LNG) and other fossil fuel products worth almost €900 million (£773 million), the report showed.”

  32. David Avatar
    David

    @Donna

    Here is the article John A referred you to.

    https://www.cnbc.com/2022/04/30/warren-buffett-gives-his-most-expansive-explanation-for-why-he-doesnt-believe-in-bitcoin.html

  33. NorthernObserver Avatar
    NorthernObserver

    The rock being his supposed alliances and the hard place being in the midst of an election. His own political skin will always come first.

  34. Lawson Avatar
    Lawson

    NORTHERN INVEST IN SINFUL STOCKS PORN,ALCOHOL,TOBACCO ETC CANT GO WRONG. i TRIED ECO STOCKS MADE ME FEEL GOOD BUT TOOK A BATTERING, EVEN GAMBLING STOCK IS A WINNER NOW CASINOS ARE BACK OPEN.

  35. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Monkeypox vaccine anyone….look how many cases they got, we will soon hear they reach one million..

    just keep Barbados’ crooks from this one…

    but somehow they putting the blame on Afrika…who aint got NONE..

    Lawson…you will need one..

    “EU Snaps Up 110,000 Monkeypox Vaccines – Deliveries To Start Late June

    Health Commissioner Stella Kyriakides has announced the EU will sign an agreement Tuesday with an unnamed supplier for around 110,000 monkeypox vaccines that will be delivered by the end of June.

    The bloc’s drug regulator was in talks with Danish firm Bavarian Nordic over its Imvanex smallpox shot – known as Jynneos in the US, where it has already been approved to combat monkeypox.

    There have been over 900 confirmed cases in the EU so far, while Germany and Spain have already ordered their own batches of vaccines.

  36. de pedantic Dribbler Avatar
    de pedantic Dribbler

    @Northern, what’s new re “His own political skin will always come first.” Was it not written that in the beginning was the Word… and he poured life into the Politician and He said: ‘your political skin will always be your first and ultimate concern’._ 😎

    And @David, I don’t reject the history good sir … was just putting reality to modern day currency, so to speak.

    Or said another say re history and modern perspective: You recall of course the days when Lance Gibbs’ 309 was the top standard in Test wickets … earlier today Anderson from England reached 650 wickets and that seemed so WOW stupendous in comparison, not so!

    But lo and behold of course it get no way close to the current 800 wicket standard by the Sri Lankan master and is still off Warne’s 700 odd … my only point brother … history may be a prologue for the future but the present often can make past comparisons seem almost a ‘nonsense’. Just saying!

  37. Lawson Avatar
    Lawson

    Dont fret about me Africa I have had chicken pox twice, I am probably immune. What is the new name gonna be , ?? loxpox they seem to be fishing around for something so people cat say its racist. Though I thought you said it was a gay disease. Fisters..blisters perhaps.

  38. David Avatar
    David

    @Dee Word

    No problem, reference to bear market was formal definition.

    @Dee Word

    https://www.usnews.com/news/business/articles/2022-06-13/us-futures-point-to-a-bear-market-heres-what-that-means

  39. NorthernObserver Avatar
    NorthernObserver

    Lawson…. don’t forget the fixed odds gaming. That is big 🤑🤑. It was launched rather quietly, because they were skinning horse racing again. And the selection process was less than transparent.
    For stocks….I’m not good enough to pick one. I just observe and react. Not good enough to get out at the top, or get in at the bottom, but if I can save 30% of my portfolio, for little me, that’s a win

  40. Lawson Avatar
    Lawson

    I am into the adult industry stocks in a small way, I invested in a company that rents out austrailian midget porn stars for dwarf tossing.

  41. Donna Avatar
    Donna

    David & John A,

    As I said many times, my preference is to study people, not money or financial systems. I take a cursory look and leave the intricacies to others.

    I welcome your attempts to make it easier for me to understand. I’ll get it eventually, I’m sure.

  42. Donna Avatar
    Donna

    Vincent,

    And the separation of the animals on the farm (or in the ocean) continues!

    Some being more equal than others.

    Sigh!

    Long live the revolution!

  43. Donna Avatar
    Donna

    There will continue to be those who consider themselves to be “THE ELITE” based on whatever criteria.

  44. TheOGazerts Avatar
    TheOGazerts

    Still in the market.

    Unable to hang with the bright guys but I know this “The reports of the demise of the USA are greatly exaggerated.”

    I know that we have a number of issuesJapan was supposed to each our lunch but suffered from indigestion. You are soon going to see ‘others’ vomiting.

  45. TheOGazerts Avatar
    TheOGazerts

    First comment and lots of typos.

    @scratchings
    “With more homeless people on the streets cardboard will go up
    I bought cardboard when it was 14¢ a ton and it is now worth 16¢
    I bought 3 tons of it.. so you can work out how much it is worth now
    I got a special deal where I can keep it all at home”

    Not bad.

  46. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    “I know that we have a number of issuesJapan was supposed to each our lunch but suffered from indigestion. You are soon going to see ‘others’ vomiting.”

    that’s the thing, they always manage to bounce back…lol..that’s why i refuse to take sides, because the pendulum can swing any where at any time..

  47. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Theo…these days i got so much going on, i can’t even enjoy the power plays….

    they got this power struggle between Taiwan and China…that one is exhausting just thinking about it…waiting to see if they are only grandstanding…..lots of distractions, but some of us know to stay focused on what we are doing…

  48. Redman Avatar
    Redman

    I live in Barbados.
    Sup with all the beggars at the kfc/ chefette drive thrus and gas stations/ supermarket parking lots?
    Sympathise with these folks but maybe they need to target the pedigreed austerity challenged big-ups & leave us struggling normal people alone.

  49. Pachamama Avatar
    Pachamama

    The Yuan upgraded in the UN holdings or pecial drawing rights system.

    The Russian Rouble the best currency of the year.

    More big deckie in dey crotch!

  50. Pachamama Avatar
    Pachamama

    Special -SDRs

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