Stop Blaming All On Global Economies

Submitted by Old Onion Bags

Why don’t the DLP give up on its campaign of blaming everything on Global Economies for its lethargy. Bajan are growing tired of it now. Everything during its 5 year term has been blamed on the Global Economies yet Brazil, Singapore, Taiwan Guyana Canada Sweden and I can go on and on…have been registering GROWTH during 2008-2012.

Why are these places immune from Global Economies.?…No.it is just their Ministers of Finance( unlike ours) has enough sense to know… an over taxed economy will present NO GROWTH…increasing VAT by 2.5 % collected $54 million but hauled in $-120 million in bounced cheques..netting minus $-66Million..They should be so ashamed to have published this…so what was the Controller doing all this long time…it only takes 4 weeks at most to know a cheque has bounced….but $-120 million..

That’s what you call sitting on your arses and twiddling thumbs

The Plight Of Greece And What it Portends For The World

Submitted by the People Democratic Congress (PDC)

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The very dire financial economic debt situation facing Greece at this stage is one that warrants significant study by many people in Barbados and beyond. Greece, which has been described on Wikipedia.com, as the cradle of Western civilization, the birthplace of Western democracy,  the founder  of  classical Western political philosophy, the originator of European art and literature and mythology, and the Olympic games, among other things, has since 2009 been experiencing muchly severe economic and financial crises of prodigious proportions enough to shake the historical foundations of that society.
So, as it verily stands now, this vastly under populated Hellenic country – much of which lies scattered in the Aegean, Ionian and Mediterranean Seas, has been forced to undertake a draconian hell-like IMF/EU bail out, since May 2010.

Such a gargantuan political financial catastrophe will surely make it seems that much of the social development that Greece has recently achieved and that has led many others to describe it  as a developed country, one with a consistently high quality of life rankings ( 22nd on the United Nations Human  Development Index),  and with a  high income economy, would be in the process of being reversed most disgracefully by such turn of events.

The Great Misdiagnosis

Reproduced from Financial Sense – Credit: Moneybrain

By Jim Willie - click image to read author's bio

Imagine a doctor who administers an elaborate treatment for a man suffering from multiple broken bones, joint arthritis, and fallen foot arches. The quack doctor orders massive amounts of liquids as though he has a horrible case of dehydration. The inept doctor also permits unlimited freedom of movement around the hospital and its grounds to the patient, as part of the blunt treatment. The man still cannot walk right or breathe normally, has trouble lifting any significant weight with the arms, and stumbles around from shaky legs. But he has plenty of fluids and freedom to roam, urinating like a race horse. With the heavy mistreatment that is badly off the mark, he has a new problem, diarrhea and bloat together. His doctor is an idiot, incompetent, but still given respect.

The doctor is the US Federal Reserve, led by the lousy economist who never ran a business, the mad professor from Princeton University. His claim to fame was revisionist history of the Great Depression. He was chosen to be the bagholder, to print money until no tomorrow. The USFed balance sheet is almost totally ruined, without hope of repair. The clumsy oaf professor posing as USFed Chairman actually admitted in public that he is confused why the USEconomy remains moribund, unresponsive to all the special treatment administered so thoroughly. Bernanke admits his incompetence. The national economy desperately requires a housing market revival that cannot come since banks are constipated with foreclosed homes in still rising inventory. The misguided licensed doctor continues to ply his trade, directing the wreckage, confused at the helm. Now the hospital is overrun by victims of the USEconomy, sinking under the weight of debt.

At least the health care sector is expanding as a business, the government sector too. Neither is productive. Meanwhile, the nation sinks into a depression, the debt approaches a default, and the USDollar faces extinction through revolt, rejection, and evasion. The nation suffers from lost direction, absent leadership, and unspeakable corruption from the climax of the Fascist Business Model introduced by the last administration with large doses of fear. The dominant themes in the USCongress and Executive branch are clearly paralyze, polarize, and partisan. Tainted money has been followed by tainted morality, policy, justice, and representation, enough to invite a public response. Let’s take a quick look at numerous pressure points, broken parts, and centers of ailment. The doctor is extremely busy in confusing both the patient and anxious family. They are repeatedly told the patient is on the mend, but he keeps falling down when attempting to move on his own power. The family has lost faith in the doctor, but no other medical professionals seem any more enlightened.

The Subprime Recession

Submitted by Looking Glass

New Model of Mortgage Lending - Click image to read more

Economic theories of recession tend to focus on particular aspects of the problem and assume rationality. Financial history tells us that recessions are not new and will continue to occur. Like stock market crashes they all have to do with finance: the rise and fall in value of assets. The current global recession is not really a consequence of increasing interest rates and rising inflationary pressures but appears rooted in the real estate collapse and its interlinkages with the credit market.

Politicians propose and put in place policies to prevent recessions. But not infrequently such policies, though well intentioned, have had devastating consequences. Something is suspect about a solution which is always considered logically correct despite the problem.

The Wall Street crash of 1929-32 led the automobile industry to lay off ½ of its workforce. The unemployed gathered at the Ford plant to request unemployment relief. A scuffle occurred with security in which five were killed. This led to the building of homes in the eight mile district on one side of the “WALL.”

The US government as part of the New Deal Reform—Fannie Mae and later Freddie Mac in 1981— underwrote the mortgage market, and by reducing the monthly cost facilitated the explosion of home ownership. But the homes were not for everyone. To qualify for loans from the Federal Housing Authority developers built homes in Detroit on the white side of the WALL. Blacks were deemed to be predominately uncredit-worthy and denied property ownership. The few who could afford it had to pay higher interest rates and meet other requirements. Government policy, in this case credit, separated the city by colour/race, later the country by credit rating and the Prime and Subprime as we know it today