CB Governor says T&T officially in recession

[eliteauto]

http://wired868.com/2015/12/07/recessio ... -culprits/

This recession did not creep up on us like the proverbial thief in the night. It was long in the making.

In fact, from as far back as the global financial crisis of 2008-2009, when Clico collapsed and the price of oil plunged from a brief high of US$140 a barrel to US$30, informed, patriotic citizens were warning governments: to go easy on the wild spending, to set aside more savings in the Heritage and Stabilisation Fund, to wean the population off dependency on subsidies, and, most of all, to diversify the economy from its over-reliance on oil, gas and petrochemicals.

Those who dared to speak out, who tried to inject sobriety into a society that was immersed in the stupor of oil dollars, were deemed prophets of doom and gloom.

While predicting oil and gas prices is risky business, the advent and rapid development of shale oil and gas in the USA since 2000 was a portent of the changing face of global energy.

Between 2008 and 2012, the USA ceased being our biggest market for gas (LNG). Fortunately for us, other markets in South America, Europe and the Far East still paid well.

But in October 2014, the price of oil plunged from US$90 to US$45 a barrel and remained there. And based on Saudi Arabia’s stance at the OPEC meeting in Vienna last week, it may well go lower—US$30, US$20, who knows?—before it stabilises or rebounds.

In the face of such stark realities and grim prospects, the PP Government increased spending, scraped the bottom of the NGC barrel for every available dollar, sold off some of the family jewels (FCB and PPG-NGL shares), extracted everything it could from the Central Bank, and, on top of that, borrowed beyond the $70 billion debt ceiling it established in 2011.

Note well that this looting of the Treasury and mortgaging of the nation took place when oil prices averaged US$90.

The spending spree intensified: laptops for all secondary school students, including the boys and girls who specialise in bullying and fighting.

The GATE programme, which was intended to broaden the base of young academics and professionals who would help build the country, was opened wide to include many who were not receptive to tertiary education.

A billion-dollar children’s hospital was constructed even as the paediatric wards in existing institutions remained under-utilised and health facilities were left under-staffed, under-equipped and short of vital medications.
And rest assured that, based on precedence, many people who love freeness will expect the Prime Minister to don a Santa Claus suit and traipse around the country sharing trinkets to the natives!

All of this nonsense has brought us to this sorry pass where the Government has to raise the debt ceiling to $120 billion, nearly 70 percent of GDP, just to run the country.

Had the previous Government—and Mr Patrick Manning’s before that—exercised restraint in spending our money, we might have been able to better weather the perfect economic storm and the recession that Central Bank governor Jwala Rambarran grandiloquently declared last Friday.

People like me who lived through the first oil boom when crude prices surged from US$1.80 a barrel in 1970 to $36 in 1980, and heard Dr Eric Williams boast “money is no problem” know only too well that oil dollars could be a big problem.

By 1981, with prices receding to around $20, prime minister George Chambers called for the tightening of belts.
“Fete done! Back to wuk!” Chambers advised a people who had become the Sheiks of the Caribbean.

Nobody heeded ‘Georgie’. The fete continued. By 1987, the NAR Government had to cut allowances and freeze wages in the public sector, and Selby Wilson introduced VAT.

The middle and upper classes who had wallowed in some wealth ended up losing their new cars and abandoning houses they could no longer pay for.

It was bad. Thousands lost their jobs. Businesses collapsed, among them insurance and finance companies. People lost their shirts, almost literally.

We witnessed the fall of the oil-giant, and it was heart-rending.

Now, I don’t expect this recession to be as bad or to last as long at that one did—seven years. We have some savings and elbow room to manoeuvre in. And once we share the sacrifices we must make equitably (not equally), then we can pull through and hopefully emerge from it stronger, wiser and better positioned to face the future.
Prime minister Dr Keith Rowley has an opportunity to lead the nation in a time of crisis.

I am, however, very angry with those who led us down this trip to nowhere, this descent into hell. What hurts even more is that they will continue to live in luxury as the masses suffer the consequences.

How I wish they could be in jail instead

[eliteauto]

http://www.cnc3.co.tt/press-release/bre ... ate-effect

BREAKING: Arcellor Mittal lays off 600 workers with immediate effect
Date:
Monday, December 7, 2015

The Steel Workers Union will host an urgent news conference at 5pm today as ArcelorMittal has laid off 600 workers with immediate effect.

The following is a news statement issued by the Steel Workers Union:

"In correspondence to all it workers ArcelorMital lays off all employees with immediate effect, in the first instance from December 7th to January 15th 2016. (Only a few workers are to remain on the plant for maintenance purposes.)

Steel Workers Union invites your media house for a media conference today at 5pm at its head office on 115 Southern Main Road, California (a short distance from the California Government Primary School)."

THIS STORY WILL BE UPDATED LATER

[desifemlove]

is that Rowley's fault too? http://www.theguardian.com/business/201 ... ine-months He controls the global steel industry, got it..

[zoom rader]

http://www.cnc3.co.tt/press-release/breaking-arcellor-mittal-lays-600-workers-immediate-effect

BREAKING: Arcellor Mittal lays off 600 workers with immediate effect
Date:
Monday, December 7, 2015

The Steel Workers Union will host an urgent news conference at 5pm today as ArcelorMittal has laid off 600 workers with immediate effect.

The following is a news statement issued by the Steel Workers Union:

"In correspondence to all it workers ArcelorMital lays off all employees with immediate effect, in the first instance from December 7th to January 15th 2016. (Only a few workers are to remain on the plant for maintenance purposes.)

Steel Workers Union invites your media house for a media conference today at 5pm at its head office on 115 Southern Main Road, California (a short distance from the California Government Primary School)."

THIS STORY WILL BE UPDATED LATER

Well this is sad I worked there and had great many friends was even a part of that union.

[Numb3r4]

Question, should I keep meh two gul or leggo one?

Go for the cheapest option, let go of both and switch to free online porn.

[Numb3r4]

i await zr and co. and uml and rfari to say dis rowley fault...like in three months he should stop all crime, cure disease, and bring heaven on earth...

i can state simply, that our finance minister with all his experience should be better at reading the economy than he appears. and not have made any grandiose budgetary allocations.

im sorry but from the track record. it really looks like pnm problem is that they dont know how to manage the economy. they use a bunch of textbook solutions, bourne in a world so old its outdated. proven by the fact that all the authors they use as mentors are dead.

doubles to $15, usd exchange rate... 10:1

and there goes pnm, setting up themselves to be discarded from the polls. this time everyone seeing it in plain view. pnm enter... economy screwed. happens every time.

between 2001-2010 there was record growth. and manage an economy in three months? which econ textbook did you read?

That growth could have been the result of significantly elevated oil and gas prices.

[DVSTT]

..Used Green and Unemployment Funds as collateral
Richard Lord
Published:
Saturday, December 5, 2015

Finance Minister Colm Imbert moves the motion on the Increase of Loans Ceiling under the Development Loans Act during yesterday’s sitting of Parliament. PHOTO: ABRAHAM DIAZ
Finance Minister Colm Imbert says the former PP government raided the National Gas Company (NGC) of almost $14 billion in cash. He made the claim while presenting three motions for debate in the House of Representatives yesterday.

The motions seek to increase the ceiling for government borrowing by $50 billion under the Development Loans Act, External Loans Act and the Guarantee of Loans (Companies) Act.

Imbert said the former prime minister Kamla Persad-Bissessar’s government increased the borrowing limits under the legislation by $32 billion in 2011.

Imbert said when the limits were increased the then government said it would not use all the funds. He said the former government used $28 billion out of the $32 billion.

“Only $4 billion left out of that 32 billion,” he added.

Imbert said, “Instead of seeking to further increase the limits they raided the NGC. They took $1.5 billion in 2013, $1 billion in 2012, $4.5 billion in 2015...They raided the NGC of almost $14 billion in cash. They went into the NGC bank account and took out $14 billion and used it for recurrent expenditure with no proper procurement.”

He also said the former administration “consistently went into the overdraft at the Central Bank, they raided the overdraft, they wiped out that whole $6.5 billion and then used up the entire $9 billion overdraft limit.”

He said, “They took $14 billion from the NGC in cash, they took $16 billion in cash from the Central Bank from overdraft and then they borrowed $28 billion...$58 billion, and rather than telling the Parliament what they were doing, they hid it from the country.”

Imbert said deposits in the Green Fund ($3.7 billion) and the Unemployment Fund ($8.3 billion) have been “pledged as collateral against the overdraft and they have borrowed against it and now those funds are not available to people of this country.”

Imbert said there was now no access to the Funds. “They have mortgaged the Green Fund, they have mortgaged the Unemployment Fund. So $8.4 billion in the government’s Unemployment Fund cannot be touched, so they mortgaged it.”

He told legislators, “With the continuing need for rolling out debt finance infrastructure as well as for meeting budgetary purposes, the Government must pursue a debt strategy which is sustainable and flexible.”

If those objectives were to be achieved, Imbert said, “The Government must create head room under the existing pieces of legislation to maintain a range of borrowing options in sufficient amounts so as not to unduly limit the country’s ability to make financing decisions which would minimise both the cost and the risk of the debt portfolio as well as ensure that the total public debt does not exceed sustainable limits.”

The minister added, “This debt strategy cannot now be implemented given that Government is constrained by the absence of adequate head room under the three pieces of legislation which permit it to borrow.”

He said the new strategy “will allow the Government to streamline its interactions with financial institutions which provide the financing requirements not only for the Government but for state enterprises and statutory authorities and also to adhere to best practices at managing its debt profile.”

He said the Government intended to ensure that T&T’s debt portfolio remained within international benchmarks as measured by the debt to GDP ratio.

He said in 2015 under the former government, “$1.8 billion in new loans have been contracted; Couva Children’s Hospital $1 billion.”

He said, “There were several new loans which were in the final stages of negotiations, prior to the Sept 7 election, which this Government is now saddled with. They just borrowed like they were going crazy.”

Imbert added, “In 2015, under the Guarantee of Loans Act, several loans in an amount of $1.3 billion are under review and Letters of Guarantee may or may not be cancelled.”

He said the current debt to GDP ratio of 46 per cent reflected an outstanding debt amount of $76.5 billion. “This amount is in excess of the statutory limit under the three pieces of legislation that exists at present,” the minister added.

He said the new Government did not view the proposed increase in the ceiling limit as a licence to borrow indiscriminately.

According to Imbert, the Government was seeking to increase the total limit by $50 billion via:

• The Development Loans Act from $30 billion to $45 billion

• The External Loans Act from $15 billion to $30 billion

• The Guarantee of Loans (Companies) Act from $25 billion to $45 billion

Also in Parliament yesterday, the Government and Opposition paid glowing tribute to founding member of the PNM Kamalludin Mohammed who died on Tuesday night at the age of 88. Imbert and Opposition MP Dr Fuad Khan were high in their praise for the contributions made to this country by Mohammed. He was awarded the country’s highest award, the ORTT, and he was also a recipient of the Order of the Caribbean Community. The House observed one minute’s silence as a mark of respect for his passing.

http://m.guardian.co.tt/news/2015-12-05 ... c-14b-cash

[bluesclues]

aahhh i see.... so that is how u spell 'traipse'.

[5onDfloor]

DVSTT, is there anyway the average person can corroborate those figures mentioned by MoF?

I find it hard to believe that a GOVT can be so vulgar and not exercise some form of civic conscience knowing fully well that we were in difficult times to be borrowing so much $Billions.

[DVSTT]

DVSTT, is there anyway the average person can corroborate those figures mentioned by MoF?

I find it hard to believe that a GOVT can be so vulgar and not exercise some form of civic conscience knowing fully well that we were in difficult times to be borrowing so much $Billions.

I'm wondering the same thing. I merely copies the article.here as it seemed pertinent but it seems like the usual he say she say political mud slinging to me.

[5onDfloor]

DVSTT, is there anyway the average person can corroborate those figures mentioned by MoF?

I find it hard to believe that a GOVT can be so vulgar and not exercise some form of civic conscience knowing fully well that we were in difficult times to be borrowing so much $Billions.

I'm wondering the same thing. I merely copies the article.here as it seemed pertinent but it seems like the usual he say she say political mud slinging to me.

I think the populace is to knowledgeable in 2015 for any politician to give fictional figures and not be called out on it. This is why i am concerned and what this corroborated by CSO or which ever body that can certify these figures. With that being said, how on earth can Kamla expect us to re-elect after such squandermania?

[pete]

But they callin them out on their figures since the budget.

[j.o.e]

Kamla mc..... just hearing about PP squandermania makes my blood boil, and sheep will defend it anyway

[1UZFE]

Kamla mc..... just hearing about PP squandermania makes my blood boil, and sheep will defend it anyway

I kno da feelin.

[zoom rader]

Any PNM achievements yet ?

[Allergic2BunnyEars]

Kamla mc..... just hearing about PP squandermania makes my blood boil, and sheep will defend it anyway

Thinking back to when they announced back pays and wage increases along with how the new highway was funded directly from the treasury along with no warning given to the nation despite them knowing we were in recession already makes me very irate.

[shogun]

Any PNM achievements yet ?

Booting irresponsible crooks out of office counts for some i'd think?

1 achievement per each useless UNC toe-lining minister. Do the math.

[S_2NR]

so when we protesting by parliament?

[Habit7]

Any PNM achievements yet ?

The Late O’Clock News near Bankrupt as Keith Rowley Keeps Making Good Decisions


POSTED BY: LATE O'CLOCK NEWS DECEMBER 8, 2015

The Honourable Prime Minister Dr Keith Rowley has mounted a financial war on The Late O’Clock News, the most popular local satirical publication in the known universe, by making decisions that will actually be of benefit to the people of Trinidad and Tobago.

According to the company’s Financial Officer, Stephan Taylor, The LOCN will go belly up by the first quarter of 2016 if Rowley continues on this “good for the country” trend.

“We cannot win this war,” said Taylor, while deleting ‘gifts for my daughter’ from his personal Christmas budget. “When he made the unpopular but necessary decision to increase the borrowing limit so that the money could be used to invest in the economy and stimulate activity to bring us out of the recession, I realized he was no amateur. There is no way we can survive unless he screws something up big time. And soon.”

Founder of the Late O’Clock News, Angelo Hart, believes that Rowley’s tactics were put into place long before he even became Prime Minister. “We have our eyes on everyone,” said Hart, reading and re-reading the headline news for the day. “Every baby that is born in Trinidad and Tobago is monitored from birth by our secret intelligence arm and Rowley is no exception. We suspected he had it out for us since 2008. To call out Patrick Manning, leader of your own party, at the expense of personal power?”

Hart slammed his laptop closed, shattering the screen into a thousand and three pieces.

“Only a wicked man like Keith Rowley would stand on integrity at the expense of power and have the best interests of the people of Trinidad and Tobago in mind all so he could take us down.”

The furious Hart jettisoned his broken laptop across the room and stormed out of the interview.

Asked what he believes Rowley’s motivations were for such measures, a watery-eyed Kwame Weekes, Editor of the esteemed publication, suspects that Rowley’s hatred for Late O’Clock News was born when the company revealed to the nation that he was indeed Anil Roberts’ absentee father. “It was the only chink in his armour we could find. He is taking revenge on us for doing our job. A**hole.”

Weekes has since relapsed into an old addiction. “I knew it was over when I read this morning that he won’t be spending any state money on ‘lavish state parties’ or alcohol. No alcohol? No ALCOHOL?” Weekes took a swig of a brown, rum-like substance before he continued. “Keith Rowley is not the leader we deserve, but he seems to be the one the nation needs right now. F*ck Keith Rowley. F*CK KEITH ROWLEY!”

Weekes broke down in a drunken fit of tears before passing out and waking up three hours later to submit this article to himself.

http://lateoclocknews.com/the-late-oclo ... decisions/

[bluesclues]

Kamla mc..... just hearing about PP squandermania makes my blood boil, and sheep will defend it anyway

Thinking back to when they announced back pays and wage increases along with how the new highway was funded directly from the treasury along with no warning given to the nation despite them knowing we were in recession already makes me very irate.

well i know you was here when i was saying all wah goin on now was goin to happen. i aint worried. wish i couldve got that diversifiaction plan i got going but sadly, im not your PM.

[BRZ]

Sad that it's mostly the middle class will really suffer, all friends of the previous admin had their bread buttered and they sitting pretty without any care.

[zoom rader]

PNM achievements to date

Job cuts
Wage freeze
Increased Taxes
Increases Crime

[Daran]

PNM achievements to date

Job cuts
Wage freeze
Increased Taxes
Increases Crime

And increased inflation despite a recession.

[5onDfloor]

Sad that it's mostly the middle class will really suffer, all friends of the previous admin had their bread buttered and they sitting pretty without any care.

Check the "spotters thread" in the Car Park forum for evidence of thickness of the butter.

[Numb3r4]

Honestly though this announce way over due the econimist Ved Seereeram was sayin this a long while now, and Mariano Brown said in an interview that this announcement could nave been made months now.

[5onDfloor]

Actually it could of been announced 9 months ago but who hired Jawala?

Which brings his intent to announce it now in question. It wouldn't of been prudent to make such announcement with GE due in 2015. Larry Howai, Jawala and Kamla misled us. Now from their opposition benches they are going to critic Keith Rowley for every unpopular decision he have to make in order for us to ride thru this storm.

[Daran]

Honestly though this announce way over due the econimist Ved Seereeram was sayin this a long while now, amd Mariano Brown said in an interview that this announcement could nave been made months now.

Well to be fair, it was inevitable and they didn't have the data to backup their assertions at that point in time.

But what worries me is that PNM knowingly entered office in the beginning of a recession and cut both VAT and IT, while decreasing the fuel subsidy to supposedly offset those adjustments. That in the end makes no sense whatsoever.

Whether things were looking up, cutting back VAT and IT was silly. A decrease in fuel subsidies would have been tolerated regardless.

Borrowing widely and investing in a rapid rail are costly mistakes at this point, that will require some severe austerity measures as O&G in the short or long term does not look good.

[Habit7]

PNM achievements to date

Job cuts
Wage freeze
Increased Taxes
Increases Crime

If you claim to belong to the oil and gas sector you will know that job cuts and wage freezes going on now for the past 2 years. For example BPTT quietly reduce 25% of the local workforce and show multiple ads to distract the public.
VAT will be reduced and UNC tax plan was not sustainable anyways, they were bring back property tax and their zero rating of imported goods is part of our forex shortage.
Murder looking like it might be down this year.

[5onDfloor]

^^agree about VAT and IT it was an election promise. They have to borrow now as part of a stimulus plan to heat up the Economy, that's basic economics 101. The question is what projects and who will the projects be geared towards. Personally I am against the rapid rail.

[EFFECTIC DESIGNS]

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