“Harry,” said a frequent caller on my personal ‘Down To Brass Tacks’, “there is a report in Sunday July 31 NATION of a tête-à-tête between former Governor of the Central Bank Winston Cox and our up-North reporter Tony Best; read it.” So I did.
Mr Cox’s remarks are insightful and pertinent. They highlight the seemingly irresponsible position that is now being played out by the world’s superpower, both militarily and financially. Even the Chinese are bewildered at the lack of consideration that these world leaders are displaying.
I would not be surprised if the Chinese, who hold the majority of the United States’ debt ,consider diversifying in the future and not allowing themselves to be held to ransom. They have enough investment that diversifying into something like gold would not affect their flexibility.
Of course, when you say A, you have to say B. If they diversify, that weakens the US position and the very assets that still remain under the US portfolio. The Chinese are not mad at what is happening; they are dumbfounded. What is stupefying is that the collapse of Lehman Brothers, the mortgage market failure and the credit swaps in the US were the beginning of the present crisis that has gripped the whole world. How can American senators be so consumed with political power or lack of it? Does it mean so much to get rid of a black man?
However, Mr Cox made a subtle point that might be relevant to Barbados. He spoke of niche markets for small economies. Barbados is one such economy and through its smallness can very well slip though the cracks in this crisis. If we could fill a plane here and there, if we could encourage one or two international offshore institutions, if we could use our foreign exchange carefully so that existing businesses do not suffer unduly, if we could selectively purchase from abroad, if we could temper the concessions given to the foreign owned banks, if we could dampen the increasing charges of the commercial banks on the populace, if we could allow the citizens just a little more in order to survive, if we could think of the plight of the middle and poorer classes, if our Government could be less political and share information instead of keeping the people guessing, if the decision-makers had the knowledge, then we may just survive until whenever this crisis is over and Armageddon is averted.
“But Harry,” persisted the caller on my ‘Down To Brass Tacks’, “read the article by Mr Albert Brandford where he is talking about the weakening scene between the Government and the trade unions, how once upon a time they were best buddies, but now the Government may be in bed with the capitalist clique, once their sworn enemy.”
I read that article too and was surprised to see the closeness that has emerged over the past few years.
Is it the necessity to have the expensive political campaigns financed? Of course, you cannot hunt with the hounds and run with the foxes. Maybe the people who represent the foxes have to find foxholes, which they will do every five years or so.
The weak position of the unions may be attributed to their responsible attitude. The unions are aware of the worldwide situation. They see squabbles all over Europe, North Africa, the UK and the USA. How can they then in all consciousness quarrel for a big wage increase? Government has to borrow extensively to pay their salaries.
People also recognize the unions’ position, hence there are no strikes – which would achieve nothing at this point. But union bosses should not fear that people have lost confidence in them. What we need to see now is the Government to show some kind of support for its former ally and carefully monitor the rapprochement between itself and the third partner that has accounted for economic stability in Barbados. But you know that the unions cannot afford to pay Government bills. As the saying goes, ‘The merchants got the money but the union got the men’.
Nine-tenths of wisdom is being wise in time – Theodore Roosevelt.
