WE NEED A Horatio to keep the bridge. Two songs keep echoing in my head for the last week or so: Who can I turn to if you turn away? Stormy weather, now me and my man ain’t together; it’s raining all the time.
There is no easy answer to the fix in which Barbados finds itself at this present time. Suffice it to say that after the failure of the recent Budget performances of the Government, a change of guard is necessary.
After all, are we going to do the same thing over and over again and expect different results? Question is, was Central Bank Governor Dr DeLisle Worrell right in putting his foot down?
Now if I am a senior member of the bank, and I am approached by Minister of Finance Chris Sinckler to assume the leadership of the bank, I would be in a pickle. If I say yes, what would be my fate? Dr Worrell was fired because he objected to printing more money, so what is expected of me? If I say no . . . Dr Worrell was fired.
Annoyed we may be because our governor has allowed the situation to deteriorate to the extent that we are facing a catastrophe, his removal has opened the floodgates for our minister to have his way. That way seems to be further destruction of the economy.
This only confirms that the stonewall against further printing of money and worsening of the foreign exchange and confidence has been removed with Dr Worrell’s departure.
Barbadians should ask if the continued printing of money is healthy for our economy. We are in self-denial if we say that it is good. Look at the reserves. Politically speaking, hard decisions we cannot take now, so print more money even though every Barbadian dollar out there impacts on the foreign reserves.
The Wild Coot has not changed his opinion of the technical skills of Dr Worrell and his exceptional reputation outside of Barbados. He has no doubt that his friend has misstepped badly over the past few years, especially with respect to the commercial banks, but now, the Central Bank employees must be in a dilemma.
They have published on record that the printing of money can be deleterious to the economy. Mr Minister, what have you done? It is just that you are afraid of the political fallout. In third form at Harrison College eons ago, the Wild Coot, referring to the Government learnt, ‘Aunque la mona se vista de seda, mona se queda!’ (the higher the monkey climbs, the more he shows his tail – an English version). God help us!
If printing of money has brought us to a sad state of our foreign reserves, what then would further printing do? Armed with the same board that facilitated printing and a new governor who has no choice, we will see our reserves decline further – true as John 3:16.
The political claptrap heard on Down To Brass Tacks last Thursday is pure rhetoric and has no sense of the reality of Barbados. We must bite the bullet now either by way of reducing spending (this will necessitate sending home Government workers, statutory corporation and private sector employees, or reduce wages or hours), or reap the whirlwind in three months’ time.
But Wild Coot, there is a law passed by a former prime minister that requires a two-thirds majority. Are we stuck?
The reaction of Nero indicates, just like in the FATCA issue, that he does not understand finance and what is at stake. How could there be a bassa-bassa between the Minister of Finance and the Governor of the Central Bank without it being a matter that deeply concerns the Cabinet?
What kind of Cabinet do we have? Indeed, the whole situation requiring that the ability to finance going forward would be uppermost in the discussions of the Cabinet. Does it mean that Nero was asleep during any such discussion?
Of course Nero cannot make comments when the matter is sub judice, but he can make decisions as to who should be Minister of Finance, and who should be Governor, and who should comprise a new board. Must all issues be couched in political rhetoric?
Must all of our politicians address the citizens as if they are idiots? Dangling 14 000 jobs in thin air or a proposed hotel structure on the oil-infested old Mobile location, still dripping with the old tanks?
The Barbados Business Association has called for the revival of the Social Partnership. All of this is wishful thinking. This suggestion would require first of all that the Government disclose the true situation. It would also mean that the Government admits that it is unable to handle the present crisis.
• Harry Russell is a banker. Email quijote70@gmail.com.
