grenville_phillips

Solutions Barbados Blames the BLP and DLP for High Debt to GDP

Submitted by Solutions Barbados

solutions_barbadosManaging our national economy can be likened to managing a home. While there may be complaints about the food, washing, maintenance, and other services, if the mortgage loan is not repaid, then the occupants will suffer the trauma of being forced out of their home, and their previous complaints would become entirely irrelevant.

We are being manipulated into making complains about government services the primary criteria for judging the performance of those managing our economy. The primary measure of their performance is the risk to making those mortgage payments. Complaints about services is an important secondary concern. Of course, if we were not in debt, then the service complaints would become the primary concern.

Continuing with the home analogy, the bank (IMF) recommends that our debts not exceed 40% of our gross salaries (GDP). They have now grown to over 135% of our gross salaries and we have received repeated warnings by the bank about our ability to repay the debt. Concerned citizens have implored the current administration (DLP) to listen to better advice, but the DLP seems intent on only trusting their current advisors until the bitter end.

Many think that the solution is to go back to the previous administration (BLP). However, they brought us from the safe debt of around 35% GDP to the unnecessary 90% GDP on the sorry excuse that low-interest loans were available. It takes no special competence to negotiate a low-interest loan if you are within the safety of the responsible 40% GDP debt ceiling.

It should be noted that while the 2009 Moody’s downgrade occurred during the current DLP administration, Moody’s blamed the downgrade on the recklessness of the previous decade, which started when the BLP crossed the debt ceiling of 60% GDP, which the IMF recommended as the limit for advanced economies like Germany. But we wanted to ‘punch above our weight’, and used the deficit financing option irresponsibly.

By the measure of risk to repaying our loan obligations, crossing the safety of the 40% GDP debt limit to over 90% GDP, and more than doubling the national debt from $4.3B to $9.2B, must rank the previous administration as our worst. The current administration is behaving as if that is an enviable position to pursue.

https://solutionsbarbados.com/2016/04/14/brace-for-impact/

Best regards,
Grenville

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79 Comments on “Solutions Barbados Blames the BLP and DLP for High Debt to GDP”

  1. Well Well & Consequences April 17, 2016 at 3:56 AM #

    So AC…you and DBLP only know about fair and right labor laws when it has the potential to affect a politician’s salary….all other times ya’ll ready to poison the labor union’s headquarters.

    What I think Adriel Brathwit should also do as AG, is legislate that each and every politician should also buy indemnity insurance, so that when they take bribes from business people, give away contracts to those same business people in exchange for the taxpayer funded contracts, steal taxpayers money, practice their nepotism, cronyism and sexcapades using the taxpayer’s office, lie to the taxpayers, mislead everyone and misrepresent using influence given to them by the taxpayers…….chase down international criminals to help them run scams on the taxpayers, give away the island in the Cahill-like scams….their insurers will be made to reimburse the taxpayers for the ministers’ nastiness.

    Seeing that the ministers and MPs get along so well together with the insurance company executives, being esteemed friends, business partners, having all types of bed related relationships…that should not be a problem, the relationship should be perfect…devoid of misunderstanding.

    An amount of 5 or 6 million dollars in indemnity insurance per politician should suffice….seeing as most of them are lawyers and indemnity for lawyers is being proposed at 1 million, politicians touch way more of the taxpayer’s money than lawyers touch clients….I think that is fair.

    What you think.

    Like

  2. Solutions Barbados April 17, 2016 at 7:24 PM #

    Dear All:

    Thank you for your comments and criticisms. However, criticisms like hamicb65 (April 16, 2016 at 8:03 PM), which is reproduced below as an exemplar, are meaningless. Hamic needs to be more specific.

    “I heard Mr. Phillips on the Thursday April 14 brasstacks program, and I was disappointed with most of his answers to the questions of the callers and emailers. He seemed ill-prepared, and the answers seemed to be Mr. Phillip’s personal views and beliefs rather than the well thought-out and researched policies and plan of aspiring political party.”

    Exclaimer (April 16, 2016 at 6:21 PM) posted an exemplar of another type of meaningless criticism. He/she made a series of false accusations, then asked a series of questions, and then, without even waiting for replies to inform his/her conclusions, declared a conclusion anyway. Incredible. Clearly Exclaimer did not want a reply from me.

    AC’s criticisms were better, but strange. We were challenged not take a salary for 3 months. We accepted the challenge but proposed an improvement – not take a salary if reasonable milestones were not met. AC opposed the entire idea noting a violation of labour laws. OK AC, what if we agree to donate our salaries to the Salvation Army?

    Among the mass of unhelpful criticism (that which does not identify a specific deficiency to improve), they were some that appeared to honestly request a response. I will always prioritize time to respond to that type of criticism. Surprisingly, one came from Enuff (April 16, 2016 at 1:16 PM), who had recklessly tried to smear a private company – as he claims, without malice. Whether with or without malice does not matter – the end result is the same.

    Enuff asked “But weren’t you at some point during that time the Deputy Chairman of the Ministry of Economic Development Advisory Committee and head of BCSI? How did you advise etc without knowledge of the financial position of government?”

    My role was to identify and advise on activities that the private sector service providers and government agencies could implement in order to improve Barbados’ export capacity. National debt issues and policies were within the Ministry of Finance, of which I was not an advisor.

    Regards,
    Grenville

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  3. In and Out April 17, 2016 at 8:56 PM #

    This Granville Philips guy he’s hopelessly unknown doesn’t have a national profile looks a geek and his mouthing’s lack depth . Give him a pass mark for boldness . A better option for him would be to establish a smart business that brings in lots of foreign exchange and hires large numbers of Barbadians. If he pulls that off he gets the public’s attention.

    Good Lord drama queens Wayne and Tony Webster two fully grown jackasses along with Olutuye Waldron write unbelievable crap in the comments section of the media. Is Olu a Pan Africanist he claims? That guy pushes every position by the business elite against popular black government. His views for a Pan Africanist are stranger than fiction. The Webster clowns should be sold to a travelling circus. Two poppets who sicken readers with despicable and trite comments on anything progressive. If they are the cyber faces of the BLP whenever the elections are called the BLP will lose.

    Like

  4. Hants April 18, 2016 at 1:09 PM #

    Politics.

    http://www.nationnews.com/nationnews/news/80234/duguid-blp

    Like

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