Submitted by Looking Glass
Fallacious diagnoses, especially those made by the morally suspect, beget fallacious remedies. Some politicians laden with infirmities see them as natural, even noble qualities. Like a beast of burden laden with deficits of the past they shift the burden to the other side. And so Lord Arthur, cackling with malignant pomposity, tells the Conference the present government mismanaged the public finance “on a scale without precedence… …one that will take an extraordinary effort to fix.” Among other things his government paid the bills, rescued the country from economic distress, and generated a surplus which the present regime turned into a deficit (Advocate 11/14/2010). Can a person or group of persons mismanage or control what wasn’t there? Comic books stupid without pretence make more sense.
In assessing economic performance we need to grasp historical facts. Without them the facts become distorted and biased. The national budget is forced into fiscal deception leaving us with a false picture. According to Barbados is Bankrupt (4/22/ 06) the national debt had risen from $2 to $4 billion. Elsewhere it was said that the debt had been “narrowed debt to 6% of GDP in 2006-2007”. If that were the case sustainability would not have been a problem. The IMF (2006) Report would not have projected debt at 75% of GDP by 2011, the 2008 Report would not have noted the “75% likelihood the debt ratio will exceed current levels,” and the 2009 recommendations would have been quite different. Substantial ongoing GDP decline and borrowing mega billions by the current regime would be required in order to increase the debt ratio from 6% to 75% in just three years.
Fiscal deficit does not address the total national debt (TND) which happens to include the sum total of “all-budget” loan guarantees and contingencies. In 2009 the regime’s share of the $64 bn TND amounted to no more than $3bn (Indebtedness: No End In Sight). Given our static economy it is unlikely the current debt (which will increase) can/will be retired in say twenty years. As was noted in Walking On Thin Air we will be looking at a large black mass sitting on the edge of serfdom.








Yes!! Absolutely nothing at all coming out of this year’s Financial Statement and Budgetary Proposals that were delivered by the Minister of Finance and Economic Affairs, The Honourable Chris Sinckler, on Monday, 22 November, 2010, and coming out of the Reply by the BLP Opposition Leader, The Honourable Mr. Owen Arthur, the next afternoon, has suggested that these two political scions and their respective parties – the DLP and BLP – have a proper firm grasp of the severity of developmental crisis engulfing Barbados at this stage.









