Moderator: 3ne2nr Mods
hover11 wrote:Redman,Redman wrote:bluefete wrote:Very good question. They are already in the clutches of the IMF. Remember a couple years ago when Barbados fired over 3,000 civil servants due to IMF conditionalities?
But China is dangling goodies, like in so many other developing world nations, that it would be very hard for Barbados to refuse their offers.
I see no problem once they can pay back, but with an economy highly dependent on tourism, anything can play.hover11 wrote:bluefete wrote:So Barbados Barbados a week ago, the response was a thinly-veiled charge of racism.
It was ‘a reflection of unconscious bias’, Miss Mottley told the Sunday Times, to question the country’s links with China: ‘It suggests we can only exist as pawns of someone and if it is not the British empire it must be the Chinese empire.’
.
Germany is offering 1.5% financing for projects that use German goods and services.
Fact.
Concessionary terms that include repossession for failure to honor the repayment terms.
Fact.
Countries are trying to stimulate their economies with Fiat currency
Fiat currency cost nothing to create.
Look at it another way...they are exchanging currency that is being debased for hard assets that are scarce.
It's the borrowers responsibility to repay.
Or lose your chit.
We did the same with the loans to the Guyana etc.
Except we didn't penalize them for not repaying.
I could be wrong but didn't we lend Grenada a hefty sum of money and they simply said they cannot repay , we took no recourse and simply wrote it off as a bad debt that is madness we making it bad for ourselves as Caribbean brothers
Lender isn't losing.Dealing with China is like dealing with the Devil.You already lost when you make the deal.China wants you to default, so they can claim your business/land.Redman wrote:hover11 wrote:Redman,Redman wrote:bluefete wrote:Very good question. They are already in the clutches of the IMF. Remember a couple years ago when Barbados fired over 3,000 civil servants due to IMF conditionalities?
But China is dangling goodies, like in so many other developing world nations, that it would be very hard for Barbados to refuse their offers.
I see no problem once they can pay back, but with an economy highly dependent on tourism, anything can play.hover11 wrote:bluefete wrote:So Barbados Barbados a week ago, the response was a thinly-veiled charge of racism.
It was ‘a reflection of unconscious bias’, Miss Mottley told the Sunday Times, to question the country’s links with China: ‘It suggests we can only exist as pawns of someone and if it is not the British empire it must be the Chinese empire.’
.
Germany is offering 1.5% financing for projects that use German goods and services.
Fact.
Concessionary terms that include repossession for failure to honor the repayment terms.
Fact.
Countries are trying to stimulate their economies with Fiat currency
Fiat currency cost nothing to create.
Look at it another way...they are exchanging currency that is being debased for hard assets that are scarce.
It's the borrowers responsibility to repay.
Or lose your chit.
We did the same with the loans to the Guyana etc.
Except we didn't penalize them for not repaying.
I could be wrong but didn't we lend Grenada a hefty sum of money and they simply said they cannot repay , we took no recourse and simply wrote it off as a bad debt that is madness we making it bad for ourselves as Caribbean brothers
Well govts have their social and regional concerns.
It's a thankless balance that feels like a lose lose proposition.
I'm not endorsing anything....but interest rates are so low that the lender is actually losing value on the loan....if it is fixed at 2% then they not even making rate of inflation
Modern day slaverySuperiorMan wrote:Don't mind Chinese owning the Caribbean.
Very smart and competent people.
It's between them and Europeans/US. Fine people.
You missed my point there.The lender IS going to take the asset.They know this before the deal is made.We already losing our ports and pitch lake to China.It isn't so far fetchedRedman wrote:Well mathematics says they are.
Once the loan is in good standing the lender is gaining 2% interest while his money is losing purchasing power at the rate of inflation.
Negative real rates benefit the borrowers...unless the lender takes the asset.
timelapse wrote:You missed my point there.The lender IS going to take the asset.They know this before the deal is made.We already losing our ports and pitch lake to China.It isn't so far fetchedRedman wrote:Well mathematics says they are.
Once the loan is in good standing the lender is gaining 2% interest while his money is losing purchasing power at the rate of inflation.
Negative real rates benefit the borrowers...unless the lender takes the asset.
Long before C19.Redman wrote:timelapse wrote:You missed my point there.The lender IS going to take the asset.They know this before the deal is made.We already losing our ports and pitch lake to China.It isn't so far fetchedRedman wrote:Well mathematics says they are.
Once the loan is in good standing the lender is gaining 2% interest while his money is losing purchasing power at the rate of inflation.
Negative real rates benefit the borrowers...unless the lender takes the asset.
They know this?
Well maybe they do...maybe that's the point of the C19...kill air travel and sea borne commerce related infrastructure into default.
But it is the borrowers responsibility to repay and to make sure he can repay.
Don't blame china if our political directorate are willing to accept 30 pieces of silver.
DevilZ wrote:If people study history they will see it repeats itself. look at the underlying causes for the fall of the roman empire and you will see parallels with what is happening now to the western powers: the USA and UK. Switch to the winning team while you still can, we're in the middle of the transition
Kenjo wrote:DevilZ wrote:If people study history they will see it repeats itself. look at the underlying causes for the fall of the roman empire and you will see parallels with what is happening now to the western powers: the USA and UK. Switch to the winning team while you still can, we're in the middle of the transition
Ent , worse case US /UK fights with China and either way we have our feet on both sides
Return to “Ole talk and more Ole talk”
Users browsing this forum: No registered users and 129 guests