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Showing posts from August, 2018

Texas Lynchings and Tenor Saw

After lynching "stopped" motor vehicles were a common way for whites to kill blacks in America without putting the KKK label on the crime. Lonely straight road, hit and run. Was "common assault". East Texas had one of the highest lynching rates across the US South. This is common knowledge all over the world. In fact, lynching was still taking place in Texas as late as the 1998, when James Byrd Jr was beaten and dragged behind a truck until dead in Jasper, Texas. As Dylan sang - "Many martyrs fell" -RG In response to: Tenor Saw: still cutting edge

Crime Monster

This crime monster has been growing for 50 years. We won't tame it in a year or two. The best we can do for now is control it with intelligence information. Jamaica is small, everybody knows who is doing what. With time we will solve some of the socio-economic issues like growth and land reform. Then "we good". -RG In response to: Samuda fears violence will disrupt redevelopment plans for Red Hills Road

Pit Bull Attacks and Dangerous Dogs

Pit bulls are not in the same category as rottweilers. Rotts are herding dogs, bred to drive and guard cattle like a German shepherd. A pit bull is a fighting dog, bred to "bait" bulls and bears. A Pit bull locks his jaws when he bites and is unable to open them for some time. There is a tool sold to open pit bulls jaw when they lock, it is called a break-stick. I have never heard of a German shepherd or Rottweiler break-stick. Ban pit bulls. Simple We are talking about bad owners with a vicious fighting dog. Not you playing with your mentally healthy pets. Many terriers are determined biters. They never needed a break-stick in mass circulation until pit bulls strarted getting into the wrong hands. Their bite reflex is too strong when they are in "hunting mode". When trained (or abused) by these bad owners, even just in "training-play" they are reinforcing a genetic breed instinct that is just too strong for the dog to overcome. In effect, the d...

GOJ Policy Rate

They don't have much room left to lower the signal interest rate, so they have chosen not to defend the dollar instead. The inflation makes JMD loans cheaper to encourage credit activity, and the devaluation makes exports and JMD assets cheaper to boost exports and FDI. As long as inflation is down, do they really care that much about the dollar? The banks are making record profits, GOJ is betting that they won't try and raise JMD loan rates. So this way GOJ can keep their powder dry with the USD reserves and they still have 2% to play with on the signal rate. They saw what happened when the US fed rate went to zero and they basically have to throw up their hands after that. -RG In response to: BoJ governor encourages consumers to 'shop around' for low interest rate loans

JMD USD Devaluation

There seems to have been a glut of food (overproduction) recently which kept inflation low. So the gov't can "steal" a little devaluation and economic activity without the inflation cost (for a while at least). Why would they spend reserves to defend the dollar if they are getting what they want with devaluation? Cheaper exports, cheaper local assets lower cost of local debt (basically lower interest rates). All this should mean higher export and FDI activity, higher credit and business activity. Non dollarized (USD) savers see low inflation, and the rest are dollarized or have inflation-protected savings. Maybe in the future they won't bother to defend the dollar when prices are low. -RG In response to: Thursday, August 23, 2018

BOJ Reserves and Devaluation

I'm starting to realize that It's not so much that GOJ is trying to devalue the dollar. It's more that they don't care enough to spend reserves to defend it. They don't care because devaluation will get them what they need. Inflation eats into the banks JMD loan profit, and loosens monetary policy, which is like the lowering of interest rates that everybody has been crying for. The banks are making massive currency trading profits. A lot of Jamaicans save in USD. When they sell or transfer a little from their US acct to their JMD account they don't look at the price they get. The dollar is $137, the banks are transferring at $132. That's a HUGE spread! Especially when you think of the total trading volume across all those transactions. For so long, both the GOJ and opposition were crying for lower bank profits off the backs of Jamaicans. The Clarke administration might get the credit for being the one to actually do something about it. -RG In respon...

Election Fitness

That's right. It's a massive task and a toll on the body to win an election. You haffi fit!. Andrew had the support in 2011. Everybody was saying it's young people time, but he wasn't fully ready. The leadership was thrust upon him, and he just didn't know how much effort and "running up and down" it would take to unseat someone like Portia who can pack a political meeting anywhere she goes. She "ran circles around him" in 2011. The 2016 Andrew was very different. Notice Seaga's comments at the victory speech. He said that in 2016 Andrew was "acting like a leader" and he "circled the island 3 times." He learned his lesson. He will be fit and ready next year when he calls it. -RG In response to: No election now, says Holness

The Change Vote

The heat is on. It can be difficult to judge the political mood in the air. Canvasses can help, but the most experienced political types at Belmont Rd and Old Hope Rd will look around for recent elections in the region to see which way the wind is blowing. The opposition for many years just threw the entire govt of Barbados into the cold. Who is the real opposition for decades in Jamaica? Notice how Andrew talks about the PNPs 22 years in power. Belmont Road can feel the energy. It is still in their favor, but Wheatley, growth, corruption and crime has taught them how fragile it is. No one can convince me they will risk it all and wait until 2020. No one. -RG In response to: Defeated Hayle promises to topple JLP at next poll

Jamaica's Football World Cup Campaign

I understand your point if you're comparing him to other regional presidents. But people are looking at the World Cup performance and FIFA ranking of other countries with our population and experience. Croatia (ranked 4th) is in our population range, and doesn't have the massive diaspora talent that we have and they have just made it to a World Cup final. Costs rica is considered in another league above us (ranked 32) and has the World Cup history to prove it. Japan went to the World Cup for the first time with us and has dwarfed us in football respect and World Cup appearances since then. Many teams in the World Cup ( including the hosts that performed so well) were ranked below us going into the tournament. We are not matching up to our sports potential and athleticism. -RG In response to: Ricketts deserves a lot more credit

Political Battleground and Party Coffers

Interesting: Chang hinted at two things. 1. What we know: They are opposition, they will never have the spending power of the business friendly JLP while they are in govt. The opposition are also battling the old news story that campaign donor funds were "redirected" last time around. What he said: "The opposition has no organizational structure" etc. Translation: The opposition has no money. 2. What we know: Elections are not due until 2020, but the drums are beating out on the ground already. So if number 1 above is true the JLP would want to draw out the opposition to spend what little they have sooner rather than later. What he said: "Whether elections are in 1,2 or 3 years" Translation: Election is next year, so we would love if you (oppo) start spending what little you have sooner rather than later. We certainly don't want to wait for something else to go wrong with the economy or crime, (or our cabinet!) and then you get a boost and actuall...

Crime Plan

Good work! But respectfully sir, our tiny island is still one of the most murderous places on earth. This is the result of decades of marginalized youth having their own children grow up without guidance and having access to guns. We understand it won't be cured for now, the best we can do is control it until we tackle the bigger socio-economic problems. I wish you had said more about how corruption feeds crime. Fighting corruption would free up the economy by removing that 3 to 5% (minimum) drag on growth every year, and deal a blow to crime at the same time. That's a powerful change that could be your legacy. Anti-corruption ministry maybe? -RG In response to: Criminals running scared! PM says anti-crime plan is working very well

NWC Pipe Network and Water Quality

Due to corrosion and blockage, there are some gruesome discoveries when pipes are opened for maintenance. For instance, there are pipes in use right now in uptown Kingston that if the pipe itself is 12 or 18 inches diameter, there is only 4 or 6 inches of opening left for water to flow. The NWC has consultants and partners with equipment looking for leaks and blockages etc but I wonder what their progress is, and what the real water quality situation is in their supply system. I suspect the chlorine level is at maximum or above in many cases; just to cut back on stomach issues that would affect water customers in those areas. Not good. -RG In response to: Mark Wignall | Dirty water and petty politics

JFF Leadership

Quite right. Football Jamaica needs investment more than anything. Which means you need things in place for the "money" to look your way. First on the list is leadership to sell the vision, and to provide governance with transparency. Its nothing against Ricketts personally. I don't really care who it is. Some might say that the name McNab called is not without controversy in the area of sports organization. The requirement is just that certain skill sets need to be in place at the top. -RG In response to: McNab unconvinced by JFF leadership

Holness Hits Back

Sounds like he has a corruption card to draw man, or if not he is working on it. After all, he has to make sure it doesn't bring down his side too. People are shell shocked by what happened to Wheatley, including Andrew, (and the opposition! Ha!). Robinson saw a weakness, got up and called his name, and in no time he was gone. There is also a lot of election talk in this speech. I don't think he will wait for 4 or 5 years to call it. He will draw the corruption card and call it right after. Portia waited too long in 2007 and again in 2016. He is no fool. He won't let that reach him. Too much risk with crime, corruption and low growth to wait until 2020 or '21. I think we will have elections next year. -RG In response to: Holness hits back!

Barbados Election and the Change Vote

The English speaking Caribbean is very similar culturally and politically among its member states. So when the old "politicos" see a country throw out one entire side of parliament (and the incumbents at that) they start looking around to see which country is next. The current opposition in Jamaica has formed government for so many years over the last generation that the JLP is still basically the opposition here. Notice how Andrew painted them as such in his recent speech, talking about their 22 years in power. If I was one of the experienced election watchers at Old Hope Road, I wouldn't be too happy to see the apple cart turned over in that violent fashion so close to home. -RG In response to: Attorney elected new leader of Barbados opposition party

Corruption in Building Approvals

Corruption is killing growth. The public might be surprised to know that many large parish councils that people think are professionally run, can't issue approvals for any decent project without getting a "yes" from certain individuals. It has nothing to do with the adequacy of the design or the drawings. It's all about the adequacy of the "payment". Project approvals should be online as it moves through the departments and officials with either "approved" or "awaiting approval". If a project has been sitting for months waiting on one persons signature, the public should see "awaiting approval" beside that persons name. They should have to justify the delay, otherwise they can withold their signature as long as they like waiting on their "payday" -RG In response to: RED-TAPE BLUES -PM laments slow pace of building approvals