International Monetary Fund To Barbados – “Cricket World Cup Is Going To Hurt Big Time”

owen-arthur-barbados-bribes-bim.jpg

The International Monetary Fund seems to be a tad concerned that Barbados has blown it’s brains out and recklessly emptied it’s wallet over a few cricket matches.

Although the Barbados Advocate article below is horribly written (probably just cut and paste from some source), it contains one very telling sentence…

“In general, Caribbean public investment has shown a relatively weak link with growth, suggesting the need to increase the efficiency of these outlays.”

In other words, we never see a real return from government “investment” of our tax dollars. No kidding!

Also unsaid in the IMF report is how much “public investment” finds it’s way into bribes, overbillings and secret commissions to crooked politicians and public officials. Of course, without integrity and conflict of interest laws, and mandated transparency through freedom of information legislation, this kind of theft will continue.

That’s why Owen Arthur and David Thompson and all the rest have not introduced Integrity Legislation in the past.

IMF CWC WARNING
Web Posted – Tue Apr 17 2007
By Shawn Cumberbatch

CRICKET World Cup (CWC) 2007 could hit Caribbean economies for six.

That’s the warning from the International Monetary Fund (IMF), which cautioned that the estimated $500 million in construction costs alone spent by Barbados and eight other host venues, were likely to score diluted economic benefits.

Future prospects, said the Washington D.C.-based financial institution, would hinge critically on the region’s ability to market itself as a tourism destination following the event, The IMF’s projections were contained in its just-released regional economic outlook for the Western Hemisphere.

In its analysis, the organisation said CWC had boosted private and public construction across the nine host countries, helped by generous tax concessions, external grants, and public borrowing.

It noted, however, that while the positive effects on the tourism sector could extend into the medium term, there is concern that the net effect of the CWC could well be negative in light of its heavy fiscal costs and already high public debt burdens in the region.

A brief examination of the growth and fiscal effects of the 2007 Cricket World Cup by IMF economist Padamja Khandelwal said the reason the economic benefits of the event would be watered down was because matches are spread across multiple countries, and are taking place in the midst of the peak winter tourist season when occupancy rates are already very high.

In general, Caribbean public investment has shown a relatively weak link with growth, suggesting the need to increase the efficiency of these outlays. Over the longer term, prospects for growth will hinge critically on the region’s ability to continue to market itself successfully as a tourist destination, to realise incremental revenues from the additional hotel rooms that have been constructed, and to address macro-economic vulnerabilities, including high levels of public debt, Khandelwal noted.

As CWC nears its closing stages, IMF officials said essentially, the net impact of it was unclear, especially in light of the associated fiscal costs to Caribbean countries. It pointed to studies of other states hosting large one-off sporting and cultural events (such as the 2003 CWC in South Africa and the 2002 FIFA World Cup in Korea/Japan), and said these places generally find a small net positive effect.

As an illustration of the bittersweet nature of the Caribbean’s hosting the sporting event, the IMF noted it had brought strong expansion in private sector construction to increase tourism capacity, something that was expected to continue into the medium term.

However, it added, because some private investors had received generous tax concessions in most countries for such investment, this will erode the tax base going forward.

According to the institution, it was clear Caribbean countries had banked on significant economic benefits from CWC, based on the expectations of selling close to 800 000 tickets, a two billion international television audience, and about 100 000 additional (non-Caribbean) visitors to travel to the region.

IMF CWC Warning

Preparations for the CWC have led to accelerated economic activity in the region, particularly since 2005, but have been costly in terms of direct government expenditure and provision of new tax concessions. Five new stadiums were built and others were upgraded, the IMF stated.

Some of the stadiums were financed by grants. Construction costs are estimated at US$250 million and additional public expenditures were incurred on infrastructure (roads, airports, hotels and marinas). Partly as a result of this expenditure, primary balances have deteriorated in most countries, and average public debt remained over 100 per cent of GDP at end-2006 in host countries.

… read the online article at the Barbados Advocate while you can, as that paper does not maintain archives. (link here)

44 Comments

Filed under Barbados, Barbados Tourism, CARICOM, Cricket, Politics & Corruption

44 responses to “International Monetary Fund To Barbados – “Cricket World Cup Is Going To Hurt Big Time”

  1. Silver Lining

    Yes, it’s not lookin good, but to add the one small plus in the whole affair, at least we’ll have nice stadia for the next 50-100 years (huge consolation, huh?)
    -and Boyzie and DeBoyz got rich off the whole thing
    so it wasn’t a total failure…spin,spin,spin..

    Other than that, our goose is cooked!
    Expect higher rate of VAT, or our old lurking friend Devaluation,
    or a Stabilisation Tax (memories of Erskine Snadiford And Friends, aka ESAF),
    coz the economic future cannot now be ‘bright’, regardless of spin spin spin!

  2. Marcus2

    The IMF can be ignored. The last time a Barbados Govt. took them seriouly was the DLP the darling of BFP. And the rest as they say is history. Ever since your DLP has been warming the opposition benches, almost TWENTY years now. Remember the IMF had an office in Govt. Headquarters? Don’t forget so easily, don’t let your hatred blind you.

  3. Jerome Hinds

    Marcus2

    April 17th, 2007 at 3:40 pm

    The IMF can be ignored. The last time a Barbados Govt. took them seriouly was the DLP the darling of BFP. And the rest as they say is history. Ever since your DLP has been warming the opposition benches, almost TWENTY years now. Remember the IMF had an office in Govt. Headquarters? Don’t forget so easily, don’t let your hatred blind you.
    ********************************************
    Marcus2,

    Do not get ahead of yourself….!

    The BLP gov’t under Tom Adams in 1982 first introduced the IMF to Barbados….!

    I guess what frighten BLP die – hards like you…is that Owen Arthur first introduced the IMF to Jamaica also with…..devastating consequences….!

    Marcus2,

    Who is the Minister of Finance in Barbados today……?

    We understand your FEAR……!

  4. New Reader

    See an earlier article on the IMF’s analysis at http://caribbeancomment.wordpress.com.

  5. Marcus2

    Any of you prophets of doom and gloom took a look at the stands for today’s match at the Oval?

  6. Marcus2
    April 17th, 2007 at 5:15 pm
    Any of you prophets of doom and gloom took a look at the stands for today’s match at the Oval?
    ————————————————————–
    Tell us Marcus2 tell us.

  7. No - Name

    Marcus2,
    I hope you have been listening to the cries of the vendors at the Oval, the small business persons who were the most exposed from the begining? I hope you have been listening to the taxi drivers; I hope you have been listening to the craft persons inPelican?

    If the LOC and WICB had not listened to public comments the crowds would not have been there. It was only when they allowed the lunch baskets, the music, the free tickets, that change begun to take shape.

  8. Pogo

    We can’t sit still and see BLP and DLP fighting their pretend battles on BFP’s pages.

    We have figured out there is only one party called DBLP. Should be called HogParty. They pretend to pass the power back and forth every decade but all of them politicians born from the same momma hog and making sure no way we gonna know how much they slurping up from the public nipple.

    The DLP/BLP manifestos over the last forty years have promised they would stop but the gluttony feeding accelerates. No one gonna convince us there are two political parties in Barbados.

  9. Patrick Porter

    Pogo

    Wait and see, only time will tell. Barbados is in deep do do and they will know after the CWC by how much. Marcus 2 don’t use the stuff you are on as it clouds your vision.The rumor in the international markets is a devaluation of between 15-30%. Arthur is going to use the excuse to tie the Barbados dollar to the EC, but however you look at it, it is a 33% devaluation. The IMF usually issues these warnings prior to the country making their own statements as has happened in many countries. So I would heed this warning and not just say as my Mum said this morning “they are always issuing these warning” and nothing will happen. I hope like hell that she is right, but I don’t see it.Barbados credit limit has reached it’s max and they can’t borrow any more money. The only thing that can save you now is a major disaster that will inflate the economy. I hope not but, from where I stand and what I see it does not look good. I think that we all need to come up with solutions to the big problems ahead, so that maybe we can save the people from starvation. In this instance I am not taking sides as I see the writing on the wall, I am just appealing for everyone to let us help our native land
    1. Freedom of information act
    2. Integrity Legislation
    3. Control on imports
    4. Government saving money instead of spending it like a drunken sailor
    5. Fix the health care problems. Start with the QEH and the polyclinics, like the one in St. John
    6. Give seniors a break on their taxes, they have paid enough
    7. Stop the imports of high end cars
    8. Control prices on esentials
    9. Reduce the departure tax at the airport, to encourge tourism
    10. Cut all minister and member of parliments wages by 10%
    11. Talk with the Unions and get a freeze on wages for 2 years
    12. Promote tourism in places other than the UK, example North America. And use the dollar spent wisely
    13. Be proactive rather than reactive
    14. Help the small business man, by cutting taxes by 15%
    15. Encourage industry,eg. computer based. Barbados has all the necessary requirements to fill this slot. But you have to go after them and not sit on yout butt
    16. And most of all live with in your budget. Do live live on a champagne life style when you only have a mauby budget
    I have posted this not to attack anyone as my party affilation is well know but rather as a guide to what we can do in Barbados

  10. Anonymous

    Are you for real Pogo? Your mother didn’t send you to school Pogo? Are you blind in one eye and can not see out of the other eye Pogo?

    Everyone, except you, can see the remarkable difference between the two parties!

    One is brilliant and the other is just plain dumb with nothing to offer. Why do you think that they are sitting on the opposition bench for nearly TWENTY years.

    It is a good thing the people of Barbados have more sense than you.

  11. BFP

    BFP Robert here.

    I must also be blind because I agree with Pogo that there is no difference between the two parties except who has power at the moment.

    Without rules governing conflict of interest, integrity, freedom of information and transparency, it doesn’t matter who we elect. They will be corrupted and be able to take our money without fear of law.

    We must enact laws or we will get the same thing again.

    Thompson wasn’t kidding when he gave his “fatted calf” speech you know!

    Why do you say the parties are “different” anonymous? Is your point that the DLP people are somehow more honest? Is that really your point?

    stupz

  12. Two political parties in Bim? where? 😀

    Patrick Porter you and whomever else believe this devaluation crap needs to stop. It is tired and quite silly. The IMF cannot make any country devalue it’s currency. They can advise you to do so, it is up to you too follow thru. No Government in Barbados would be so foolish to follow such advice. While the alternative to a devaluation is usually austere measures that usually leads a government straight to the opposition benches, devaluation in Barbados would cause the political and personal destruction of the individual members of that government. I have no fear of devaluation ,as corrupt, as Owen is he like many others have seen the devastating effects of devaluation, and that it is no longer an option even for economies not as strong and vibrant as ours is. Give it a rest, rumours in the international markets don’t get to decide such matters in our economy.

  13. Javon Griffith

    All this innuendo.

  14. Jerome Hinds

    Marcus2

    April 17th, 2007 at 5:15 pm

    Any of you prophets of doom and gloom took a look at the stands for today’s match at the Oval?
    ********************************************

    I agree, it was a very good crowd made up of :

    1. *** 2,000 free tickets given to the police…!

    + ( for the embarrasment of being searched )

    2. *** 3,000 free tickets given to Cable & Wireless staff…!

    + ( for appreciation of Cable & Wireless
    sponsorship )

    3. *** 1,500 free tickets given to primary / secondary schoolchildren…!

    + ( for the inconvenienced of being not at school )

    4. *** 3,500 free tickets given to religious denominations…..!

    + ( for praying for CWC 2007 SUCCESS )

    5. *** 30 BLP candidates with 100 tickets each to give free to constituents…!

    + ( Just like they had for the 40th Independence Gala at the National Stadium )

    Marcus2,

    So there you have it….over 13 , 000 tickets given out FREELY in a stadium that holds…..27,000…!

    The same is being planned for the 19 th , 21st & 28th of April 2007…!

    That is Owen Arthur LEGACY of CWC 2007..!

  15. 1partyState

    Barbados is a One Party State, just like so many other states.
    Half of them DLP, the other half BLP
    Same ole same ole.

    That’s why many people simply DON’T VOTE
    coz they know damned well it’s six-of-one/half-doz.-of-the-other Politricks

    That is the perception of too many people

  16. Jerome Hinds

    Marcus2

    April 17th, 2007 at 3:40 pm

    The IMF can be ignored. The last time a Barbados Govt. took them seriouly was the DLP the darling of BFP. And the rest as they say is history. Ever since your DLP has been warming the opposition benches, almost TWENTY years now. Remember the IMF had an office in Govt. Headquarters? Don’t forget so easily, don’t let your hatred blind you.

    ********************************************
    Marcus2,

    Do not get ahead of yourself….!

    The BLP gov’t under Tom Adams in 1982 first introduced the IMF to Barbados….!

    I guess what frightens BLP die – hards like you…is that Owen Arthur first introduced the IMF to Jamaica also with…..devastating consequences….!

    Marcus2,

    Who is the Minister of Finance in Barbados today……?

    We understand your FEAR……!

    *********************************************
    Marcus2

    April 17th, 2007 at 5:15 pm

    Any of you prophets of doom and gloom took a look at the stands for today’s match at the Oval?

    **********************************************
    Marcus2,

    On the subject of doom & gloom can you tell the BFP readers why :

    1. *** Tom Adams took Barbados to the IMF in 1982 after 6 years of BLP rule….?

    2. *** Why the Great Economist Owen Arthur took Jamaica to the IMF since BLPites claim he has the MIDAS touch…?

  17. ??

    Jerome maybe you should change your name to Loveridge you are starting to use numbers from the wind, just like Adrian … great work of Fiction.

    prove your figures or lose credibility.

  18. Jerome Hinds

    ??
    April 17th, 2007 at 8:51 pm
    Jerome maybe you should change your name to Loveridge you are starting to use numbers from the wind, just like Adrian … great work of Fiction.

    prove your figures or lose credibility.
    ********************************************
    ?? Question Mark,

    I am assuming you were not in Barbados for the past 2 weeks so the issuing of free tickets has escaped your attention….!

  19. Patrick Porter

    Adrian

    Just wait and see what will happen shortly. That’s all I will say to your comment

  20. Adrian Loveridge

    Jerome…
    Study ?? words very carefully.

    ‘maybe you should change your name to Loveridge, you are starting to use numbers from the winds’.

    The same wind as:

    ‘90,000’ visitors for the CWC Final Week.

    ‘75,000 cruise ship passengers’.

    ‘No loan (categorically) No loan by Government to charter Carnival Destiny’

    ‘Only 500 luxury villa rooms’

    Earlier today, I heard something about treating baked beans with Gamma rays to stop them causing wind.

    Perhaps this could also be tried on Johnny Walker Whisky as this seems to have the same negative effect as baked beans on our Minister of Tourism!

    And ?? you accuse me of spreading fiction?

  21. Jerome Hinds

    For the benefit of BFP community of contributors and especially….Royalrumble , ?? & Marcus 2 ….!

    Did you listen / heard the 5: 30 pm news on VOB for 2007 – 04 -17…..?

    The news report stated, with the largest crowd thus far vendors inside the oval & taxis outside the port are recording heavy losses….!

    ( albeit 13,000 free tickets ) made up the large crowd…!

    Now directly to Royalrumble , ?? & Marcus 2 ….are these heavy losses as a result of India & Pakistan missing…?

    Before you answer…remember this was the largest crowd thus far…!

  22. Rumplestilskin

    Well according to the BBC, the PM is putting his money where his mouth is and supporting cricket.

    According to the BBC at this link

    http://news.bbc.co.uk/sport2/hi/cricket/other_international/west_indies/6561977.stm

    ”Prime Minister Owen Arthur, an ardent cricket fan, has personally donated US$150,000, an amount that has been matched by local hoteliers. ”

    Wow. That must be two years net PM’s salary contributed to this cause, if the BBC is correct.

    Very generous and considering he would have expenditures just like the rest of us, for example a daughter just graduating from University, quite a committment.

  23. Rumplestilskin

    Most likely is higher VAT and a stabilisation tax.

    Devaluation for Barbados is fairly senseless as most of our production input, other than labour, is imported. Hence, devaluation will not only send the cost of living here up for Barbadians, albeit one intention of devaluation in reducing external spending, but it will also send up the cost of our main industries i.e. tourism and financial services, thus making us less competitive, not more as is the other main aim of devaluation.

    Thus, to reduce external spending by locals VAT and stabilisation taxes directly hit the spending power of locals while having a reduced impact on the input cost to main industries, which make such measures applicable for us.

    Nevertheless, it would be easier if we immediately cut spending on non-productive sectors such as unnecessarily road building i.e. flyovers.

    So thell me. WHY was it so important to rush these flyover contracts?

    WHY?

  24. CounkItUp.

    prove your figures or lose credibility. he sez,
    all the while saying that DLP has been in Opposition for nearly twenty years.

    DLP has been in Opposition for 13/thirteen years.
    That sounds more like ‘nearly fifteen years’ if u axe me
    but these BLP guys are so good at inflating figure$ and rounding-up to the nearest hundred or so, that somehow 13 years is(in their eyes) “nearly Twenty”
    Isn’t that a bit of a stre-e-etch ?

  25. Get In The Action

    Give Jack his jacket the Oval was full today with visitors. All the stars came together for a great day. The powers that be did well today!

  26. Get In The Action

    Jerome and Company

    I know that you have the interest of Barbados at heart, but the Oval was full today with actual visitors. Maybe you should give the powers that be a break. Or am I being too independent!

    There is one major worry – Adrian L is on air tonight on CBC and being silenced for nothing – loads of dead space . What the hell is going on!

  27. So Generous

    I noticed from the BBC link below that Owen$$ is giving away US$150,000 of his personal money. He must be rich.

    http://news.bbc.co.uk/sport1/hi/cricket/other_international/west_indies/6561977.stm

  28. Independent

    I dont believe anyone expected that Barbados would not get good visitor numbers for CWC particularly for games involving England. Barbados is the cricket “Mecca”. It is the ridiculous numbers quoted by Lynch, Dehring and Mottley to lesser extent that caused disbelief . Where are nearly 100, 000 cruise passengers in one week coming from? Hotels, taxis, vendors, pelican craftspeople, car rental people are crying out. They were assured by Decaires they would make millions. Questions are how and when? Floyd Reifer of Ultimate Entertainment set up at Deighton Griffith school is quoted saying they were misled about number of visitors. They cancelled a show because no visitors or locals came. Lynch arrogance personified is on televison bragging hotels exceeded their targets for CWC and he and government will have last laugh. Barbadians will be the judge of that Lynch.

  29. Independent

    Opening sentence to read”…..for CWC particularly for games involving our biggest tourist market England.”

  30. True Native

    Minister Lynch was bloviating on CBC TV Evening News tonight and I haven’t seen any comments agreeing with/refuting his allegations. Why is that? He was telling the truth – FOR ONCE? Please enlighten me.

  31. Maat

    It amazed me to think that Grenada could have been mashed up (90% of buildings damaged) by hurricanes and yet the government still allows millions to be invested in a cricket stadium and non essential services and infrastructure. I guess that is why so many Grenadians are attending this all important cricket tournament. (sic)
    We are about to enter another hurricane season, let us pray that none of the CWC hosting countries gets hit. Maybe the governments will do what the US government did in New Orleans (not the smelly area near Bridgetown) and shelter the needy in these expensive stadiums.
    A friend suggested that the latin for Politics breaks down to; Poli- meaning many, and tics- meaning, blood sucking creatures.

    Peace

  32. Jerome Hinds

    Get In The Action

    April 18th, 2007 at 12:45 am

    Jerome and Company

    I know that you have the interest of Barbados at heart, but the Oval was full today with actual visitors. Maybe you should give the powers that be a break. Or am I being too independent!

    There is one major worry – Adrian L is on air tonight on CBC and being silenced for nothing – loads of dead space . What the hell is going on!

    ***********************************
    Get In The Action,

    I listened to ” Best & Mason ” also and was aghast at how Adrian Loveridge contributions were repeatedly blanked out…!

    And do you still believe these guys need a break….?

    On a taxpayer funded radio / television station private citizens cannot give a different point of view to that of gov’t…!

    On a taxpayer funded television station DLP speakers from the Friday
    ” lunchtime ” lectures are shown only and not the audience to whom they are speaking…!

    Get In The Action,

    That is what happens when citizens give evil politicians a break…!

    Arthur , Mia & Lynch has already indicated their displeasure with the call – in programmes…!

    See what life would be like if the BLP wins the next election….!

  33. Jerome Hinds

    CWC 2007 is going great according to Noel Lynch…!

    The reasons why :

    1. *** Roosevelt King & vendors in and out of Kensington oval having a rough time re: sales…!

    2. *** Taximen in and around the port & the oval having a rough time re : passengers…!

    Noel Lynch on CBC tv on 207 – 04 – 17 says he and the BLP gov’t going to have the last laugh after CWC 2007 ends…!

    What a laugh that is going to be….!

  34. Jerome Hinds

    Hi friends ,

    I know this may be difficult for most of you but go to the BLP blog under the article titled ” Arthur is Capable ” and read the post of no less a person , than Royalrumble….!

    In that post , the salient part of which I have reproduced below, Royalrumble in essence confirms that the IMF may not be far away…!

    He admits in his post that my figure ( of – 12 . 0 % of GDP ) for Barbados DEBT is correct….!

    *************************************************

    Post reproduced from the BLP blog…!

    Royalrumble a.k.a Judas says 0n Apr 17th 2007 at 4:34 pm ,

    Jerome Hinds

    ” When I visited our Economic and Social Report 2005 your ” Barbados – 12.0 % deficit of GDP ” figure is confirmed….”

    *****************************************
    Royalrumble a.k.a Judas ,

    Then JACKASS what is the fuss about…..
    Whether the Economic and Social Report 2005 confirms it or The Economist : Pocket world in figures 2007 confirms it…?

    The important point here is that you & Owen Arthur for the past 13 years screwed up the finances of Barbados to the extent that Owen in 2007……tells Barbadians he cannot borrow any more money for the next 5 years…!

    And you tell us Owen is a CAPABLE….Great Economist…!

    Bhah…….!

  35. John

    Jerome

    Send RR back and tell him look at the table in Appendix 28 on the water delivered by BWA.

    Ask him if he sees anything strange in the numbers!!

    You should have a look too.

  36. Peltdown Man

    Sorry, guys, but devaluation would never make sense for Barbados, because only our sugar would be worth more in Barbados dollars. Everything else we make uses imported inputs, and these would be more expensive. The value-added component might be cheaper in the short run, but in the long run, increased import prices will force up wages and there would be no gain. Devaluation works only in countries that produce basic commodities. If we devalue, how much harder would it be for us to pay back foreign debt? Even the knuckleheads at the IMF can work out that one. I’m afraid that we have backed ourselves into a corner which will require us to sell off the rest of our real estate to foreigners in order to pay our debts. When it’s all gone, then what?

  37. John

    … devalue……

  38. True Native

    John: “Devalue”??

    Are you teasing, or throwing out a sprat, or what?!

  39. True Native

    John: The only thing I fear more than a trip to the dentist (no, I don’t mean you, Mr. Duguid!) is devaluation. Surely, if there is another way out, it would be better?

  40. Adrian Loveridge

    I too, after listening to a recording of Best and Mason last Tuesday was appalled at how many times CBC deleted my uttertings.

    I can assure every BFP reader that absolutely EVERYTHING I said that was blanked out, has already been said by someone else PUBLICLY including recent comments by the Minister of Tourism.

    As a point of principal, I personally will not appear
    again on the programme unless I have some assurances that was I say, will be aired.

    I am extremely troubled by the level of censorship that is going on within both the print and electronic media.

    Do we not have the right to know the TRUTH?

  41. Straight talk

    Adrian Loveridge,

    The truth will eventually out and I believe that all your well researched and documented fears will be vindicated, however swamped they may be by spin from Royal Rumble and the toady press.

    You have retained the integrity that both Government and Starcom have lost in their malicious treatment of a dissenting voice.

    Re: the 28 cruise ships, two more have now been sighted – Censorship has docked at River Road and Dictatorship is on the horizon.

    I am sure you are comforted in your crusade that the vast majority on this blog admire your courage and fortitude, in their support you.

    Always remember that there is not enough darkness in the whole world to put out the light of the smallest candle.
    Pip pip!

  42. Straight talk

    What happened there, George?

    Some weird inclusion at the end of the post.

    I have reposted the correct one, please remove the one previous.

    *******************

    comment by BFP george

    done.

  43. Peltdown Man

    John
    You have to explain why devaluation would be a good thing. You have to consider what it is that we sell that devaluation would make more globally competitive. If tourism is to be the main engine of growth, and most of our visitors come from Europe, then we have already effectively devalued against Sterling and the Euro, thanks to the weakness of the US$. If we devalue, of course, most inputs to the tourism sector will be more expensive, as they will be to any other local industry. Our real estate is already cheap for Europeans, and finally, if our external debt is in US Dollars, devaluation will make it harder to repay. Devaluation is a lose/lose situation.

  44. John

    True Native

    Just answering the question “When it’s all gone, then what?” which appeared in the post above.

    Peltdown Man makes a case why devaluation is bad and describes the alternative as backing ourselves into a corner!!

    I’m just saying that when we have avoided devaluation and backed ourselves into a corner, the sensible thing is then to devalue …… probably the only thing!!

    So why not do it before we find ourselves in a corner?

    That way we only have one problem!!