CB Governor says T&T officially in recession

[Habit7]

Seeing that we in a recession I am guessing they not going to bother with the RR again?

RR is will be an IDB loan meaning we could starting paying for it after a grace of 5 years at 2-3% for 30years.

I would want to believe that was one of the major factor for raising the debt ceiling. We can't say we not going to start because at this current time we have no money, it is a long term investment to increase productivity, reduce subsidies and increase connectivity across the island.

[desifemlove]

PNM achievements to date

Job cuts
Wage freeze
Increased Taxes
Increases Crime

And increased inflation despite a recession.

Eh? Theres some special econ class for unc people?

[5onDfloor]

I heard a very pertinent question asked today. Economy class teach u that during a recession the repo rate is reduced to increase lending and a by product is economic activity. If Jawala knew this, why he raised the repo rate couple months ago?

Was it an attempt to "create discord" knowing that the PP govt chances of retaining govt was very slim? This all seems to be part of a plan to mash up the place.

[Allergic2BunnyEars]

I heard a very pertinent question asked today. Economy class teach u that during a recession the repo rate is reduced to increase lending and a by product is economic activity. If Jawala knew this, why he raised the repo rate couple months ago?

Was it an attempt to "create discord" knowing that the PP govt chances of retaining govt was very slim? This all seems to be part of a plan to mash up the place.

There is a link in this thread to his speech in which he puts forward an explanation.

[5onDfloor]

Will read it thanks.

[pugboy]

our situation is slightly different from standard economic theory
we have tons of cash floating around, plenty liquidity
the whole country population is not suffering as you can probably see by the cars on the road
the country itself maybe suffering from gdp but plenty people making plenty money

ie gap getting very wide between rich and poor, middle class disappearing

[zoom rader]

our situation is slightly different from standard economic theory
we have tons of cash floating around, plenty liquidity
the whole country population is not suffering as you can probably see by the cars on the road
the country itself maybe suffering from gdp but plenty people making plenty money

ie gap getting very wide between rich and poor, middle class disappearing

Yep and this government plans to pick up that liquidity with increased taxes.

[pugboy]

We already have a huge sector of population(urp cepep)which is fully supported indirectly via social handouts from the rest of the population

[The_Honourable]

Last Friday was another of those stomach-churning debate presentations. Minister of Finance Imbert wanted to raise the debt ceiling – something Kamla Persad-Bissessar immediately made a comment on – and he needed to move a motion to convince the house and the nation.

The moment I read the motion on the Parliament’s website, I got concerned. Raising the debt ceiling doesn’t affect the current work force. I’m currently paying off the debt Patrick Manning’s years in office incurred. Raising the debt ceiling will be affecting the generations that are not yet old enough to vote and select a government. No, not the ones in secondary school. They will be paying off Kamla’s debt. The children just entering day care.

Read More: http://eternalpantomime.net/2015/12/07/ ... o-society/

An important question that was asked in the article is one of my concerns:

"Was Governor Ramberran aware of the economy’s contraction? If he was, why was he silent then? Was he colluding with the former Minister of Finance to present a picture of a healthy economy? If he was not aware, why was he not aware? Can we trust him to have the country’s best interests at heart? Is he working with or against the current Minister of Finance? Can the obvious tensions between the two of them lead to even further economic crisis?"

[Redman]

I heard a very pertinent question asked today. Economy class teach u that during a recession the repo rate is reduced to increase lending and a by product is economic activity. If Jawala knew this, why he raised the repo rate couple months ago?

Was it an attempt to "create discord" knowing that the PP govt chances of retaining govt was very slim? This all seems to be part of a plan to mash up the place.

Low interest rates are stimulating generally.

However TnT is at the bottom of an interest rate cycle.

Painting every policy decision with a political brush is a waste of time.

See Wade Mark...and his lack of.credibility.

Our issues today are.due to the fact that all govt s have failed.to put a policy in place to manage our revenues when times are good.

And like every rainy season we are surprised by dark clouds on the horizon.

[S_2NR]

Trinidad should be ok. The drug trade is recession proof

[BRZ]

our situation is slightly different from standard economic theory
we have tons of cash floating around, plenty liquidity
the whole country population is not suffering as you can probably see by the cars on the road
the country itself maybe suffering from gdp but plenty people making plenty money

ie gap getting very wide between rich and poor, middle class disappearing

THAT GAP started to WIDEN during the last 4-5 years! go figure!

[pete]

Trinidad should be ok. The drug trade is recession proof

Time to do like Jamaica and start cultivation of medicinal marijuana for use in the USA.

[S_2NR]

Not talking about weed pete lol

[Allergic2BunnyEars]

Will read it thanks.

Original link no longer works on the CBTT website unfortunately. You can find the speech here:

http://www.central-bank.org.tt/sites/de ... ec2015.pdf



CBTT's response to breach of confidentiality accusations from private and financial institutions:

http://www.central-bank.org.tt/sites/de ... iality.pdf

Excerpt:
"Following the biannual Monetary Policy Forum on the 4th December 2015, the Governor of the Central Bank has been subject to widespread criticism for the dissemination of certain information to the public at large as it pertains to the usage of foreign exchange by the business community. Such dissemination has been inaccurately deemed a “breach of confidentiality” by certain groups within the private and financial sector.
.

[5onDfloor]

I heard a very pertinent question asked today. Economy class teach u that during a recession the repo rate is reduced to increase lending and a by product is economic activity. If Jawala knew this, why he raised the repo rate couple months ago?

Was it an attempt to "create discord" knowing that the PP govt chances of retaining govt was very slim? This all seems to be part of a plan to mash up the place.

Low interest rates are stimulating generally.

However TnT is at the bottom of an interest rate cycle.

Painting every policy decision with a political brush is a waste of time.

See Wade Mark...and his lack of.credibility.

Our issues today are.due to the fact that all govt s have failed.to put a policy in place to manage our revenues when times are good.

And like every rainy season we are surprised by dark clouds on the horizon.

Are there not funds like Stabilisation & Heritage fund,Green Fund levy, Consolidation fund and Unemployment relief funds? The last two funds, one was depleted to build Pt. Fortin Highway and the other was mortgaged against borrowing of the PP govt.

[mero]

Not talking about weed pete lol

Weed trade is actually pretty lucrative in Trinidad

[pete]

It also has the potential to be a lucrative legal business but no.. conservative trinis.

[16 cycles]

when house and land price gonna drop??? /srs question

[Dizzy28]

^ When the recession turns into a depression!!

[Daran]

when house and land price gonna drop??? /srs question

When Trinidad no longer becomes the transshipment point that we are.

[bluesclues]

Trinidad should be ok. The drug trade is recession proof

it is so funny us should say that. because one very strong policy for beating recession in modern times and as has been in history in other countries is to lax on the persecution of marijuana. not only will it save alot of money that wouldve been wasted with law enforcement chasing bush burners, it will keep productive working class contributing to the economy instead of in jail and allow a higher availability of police officers for serious crime persecution.

one thing is clear. we cant afford to risk any of our contributing resources during these times. and raising the debt ceiling in the face of this recession i say is Absolutely NOT Necessary. a few things need to be adjusted. like government contract assignments for the construction sector and these things they like to spend money in to stimulate an increase in gdp. a major error theyve been making is in paying these contractors big big money for projects that cost nowhere near what we're paying for it. if u really want to stimulate the economy through large contracts, theres something that has to be dealt with. u have to get the money into the workers and laborers hands. not the contractor. meaning, the contract should include a wage dissemination protocol. which the company must follow. meaning, if i give u a big contract lets say worth 10million. i dont want to find out u kept 5, paid your workers minimum wage, barely finish the job and then ask for more to finish because u dont want to spend from your 5 million u stash. that cant work. get more money in the workers hands so they can go out and splurge. this began with kamla's moves to raise minimum wage. a move i not only supported but suggested as a means to ensure our people have a balanced quality of life vs the cost of living. and this is something that should always be monitored and adjusted to defeat poverty.

in all truth, as was mentioned, we are not in bad shape. but things can turn sour very quickly, so we do NOT have any right to be spending wildly or taking loans at this time.

i tell the pnm as they get in office.. they have one job... keep the country afloat for the next 5 years without increasing the deficit. if they do that im sure the country would be satisfied to vote them in again. but they wanted to come with rapid rail and a set of grandioseness as is classic pnm governance. but if all else fail i may have to have a sit in with the PM because regardless of which party is in power, i cant hold my ideas for myself when the country needs them now.

our priorities are in establishing savings and moving out of deficit completely. pnm should have nothing else higher on their agenda.

[streetbeastINC.]

Remove completely gas sybsidy immediately

[Dizzy28]

Remove completely gas sybsidy immediately

Given the subsequent inflation that will follow as prices go up especially because of the high % of the subsidies on diesel this will cause total chaos.

[desifemlove]

ok....so we have five years of Kamla absolving responsibility for the mess, nd saying everything Rowley fault.....i guess UNCs happy wit dey choice, so who iz i to complain....

[Chimera]

money lender and banks have real house and car to seize from now

[bluesclues]

when house and land price gonna drop??? /srs question

this is easy. watch me be right as i have been for the past 16 yrs.

the price of housing and reealestate is going to bust a little while after the pnm justifies and introduces the property tax. as you know, banks are now going to be offering insane car and have been doing the same for housing loans for a few years. whats going to happen is... and when you make you money off this i expect u make a donation to me i poor lol

land sales will increase into 2016 as prices lower for those with excess lands to get rid of what thye cant aford to make use of or pay property tax. then, when the government goes into an additional 50bn dollar deficit, the housing market with its 100,000 debtors will crash, causing the banks to force mortgage owners to pay off their debt instantly. if they are unable to pay off their mortgage in a timely manner as requested, their houses will be siezed. by the time oil hits $25 the car market will also bust, and b14 will start selling for $20,000 and less(real fix up). then all the people that have been trying to gain a footing in life will have opportunity to advance themselves and all those who have too much more than they need will be at risk of losing it all to keep it all.

the vultures, who read this post, will be saving their money waiting for the bust and then buy a mint for relatively next to nothing. also large scale vultures are waiting in the cut to buy out state enterprises.

i just lookin to buy a bmw for a $100,000, a piece of land for 50k and build a house on dat for 150k and i good. which i should have acquired within the next 5 years. i know how to play this game whether pnm fails or succeeds. i have a solid track record of predictions right here on tuner. lets see if i will be wrong.. for once lol

[pete]

Why they going to make people pay off their mortgage instantly?

[Dizzy28]

Why they going to make people pay off their mortgage instantly?

Because Bluetradamus said so!!!

[EmilioA]

Let me see if I have this right.

Trinidad's economy is not a standard textbook economy. Our productive sector and our cash flow are not linked.

Oil and drug money (money laundering) increase liquidity . But there is no domestic production to absorb this so it doesnt help employment. So money goes into imports. Causing inflation and depreciation of currency.

Now local production has stalled becuase of the global economy --low oil prices, low demand for steel. Cuasing unemployment . But drug money is still flowing through Trinidad causing inflation.