24 July, 2009


Anguilla’s Government visiting London to negotiate increased borrowing power. I heard on Radio Anguilla news that Jamaica is negotiating a huge loan with the IMF. I think I heard something like $1.2 billion.

The Jamaica Observer has an interesting interview with Dr DeLisle Worrell. He deals with the issue of government borrowing. I urge you to read it. The most relevant paragraph, I thought, was:

The nature of our economies is that you have to be very careful on the nature of your fiscal spending - that you don't overspend beyond what your taxes will bring in and what you can borrow from domestic markets. If you go beyond that then you tend to create additional spending over and above what your foreign exchange earnings will support. If you do make that mistake you have to correct it fairly promptly. I think the failure of Jamaica and Guyana in particular, was that they allowed that situation of imbalances on their fiscal accounts which had very adverse and persistent effects on their balance of payments.

What do our leaders want to increase borrowing for? Is it for the big infrastructure projects due to start in 2010? I hear that several election hopes are resting on these projects providing jobs for the boys.

If so, guess who will be paying dearly in the years to come.

Perhaps I would not be so worried if they had told us what it was all about, and what the money was really for.


  1. As The Tsarina has already told the people, Don, "Quite frankly, it's none of your business" how government spends our money.

  2. Thankfully, Anguilla can't print its own money. And hopefully, the U.K. will say that it can't float that ridiculous $100 Million bond they wanted to float (before our leaders realized they needed the U.K.'s permission), nor give them any more lending room. That would force them to live within their means and cancel those insane major projects.

    To draw a parallel:

    In the U.S., only the Fed can print money. So what do you think the solution is going to be for that $10 trillion+ deficit? More paper money! Heck, they can even afford socialized medicine in these bad times. But the individual states? They can't print money and no one's lending it to them.

    As a result, the individual states will are going through harder dislocations sooner. They will also get their houses in order sooner as a result.

    Give governments a chance and they'll spend money they don't have. So don't give them the chance.

    Anguillian leaders merely have to return to a mindset and spending habits of, say, 10 years ago. Call upon Anguillian traditions of saving and sacrifice until times turn around.

    Rebuild upon the solid foundation of The Rock.

  3. The 2nd comment is brilliant and just about says it all. Well Done.

  4. Unfortunately, too many people wanted to "get a piece of the rock" (old Prudential Insurance commercial). Now "The Rock" is littered with unfinished business, and is starting to resemble Flint Michigan. It's sad what your "leaders" have left you. - Scotty


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