I'm looking at the Central Bank's page and it appears accurate to me, well, I shouldn't say accurate but the procedure looks right. A basket of items multiplied by the cost of each item multiplied by the weight of each item.
http://www.centralbankbahamas.com/public/RPIDEC05.pdf


It's the weighting that is off. Fuel -- tremendous spike in fuel prices. Affects everything from transportation, to the electricity that BEC makes, to the Blue Hills RO water plant, to barging water from Andros, to the food supply etc etc, and it is lightly weighted.

The keepers of the formulae have not had a real-life validation in years. (In my opinion)

Now I don't mean to be picky, but you might want to check this observation for accuracy. I do think and recall that the Currency Board system was to ensure that parity ie fixed exchange with British sterling and all other curriences and full convertiblity. :hammer: Now I have a sneaky feeling I might be correct here you might want to check your fact well observation.

Now I don't mean to be picky, but you might want to check this observation for accuracy. I do think and recall that the Currency Board system was to ensure that parity ie fixed exchange with British sterling and all other curriences and full convertiblity. :hammer: Now I have a sneaky feeling I might be correct here you might want to check your fact well observation.


Yes you are right. When I mentioned that we had a currency board, I did not say that it was in relation to the American dollar. It was in fact backed by the British pound. And as such, it was fully convertible. Bahamian money could be bought and sold and exchanged at cambios, banks, and money changing kiosks around the world.

As a matter of fact, Bahamian money from that era (the original paper notes) are a highly sought after commodity among collectors world wide, and have done extremely well in appreciating in value as investment grade collectibles.

Incidentally, the currency board was the last time that our money was backed 1:1 in hard currency. But then again, in those days, US money was backed 1:1 by gold in Fort Knox as well.

Fantsastic thread.

It's the weighting that is off. Fuel -- tremendous spike in fuel prices. Affects everything from transportation, to the electricity that BEC makes, to the Blue Hills RO water plant, to barging water from Andros, to the food supply etc etc, and it is lightly weighted.

The keepers of the formulae have not had a real-life validation in years. (In my opinion)


Well, it looks like the only year they have numbers on is 2005 and fuel fluctuates throughout the year between 140 to 210 percent of expenses. 2006 is when fuel costs really spiked so I'd expect the numbers to change - you may have access to their 2006 findings but I'm just working off of their website info. I also have to ask, are you counting all uses of fuel rather than simply households?? The increase in fuel costs to corporations or institutions would be passed onto households. And if those increased costs of fuel affected everything. Then wouldn't the weighting remain the same for every basket item??

Fantsastic thread.



Yes it is. My notebook is full.

Bingo. It would make Bahamian goods & labour more attractive. The Bahamas is losing market share, because our vacations are so bloody expensive. See the Guardian article today about Cuba. If we dropped restrictions, made a freely convertible currency, have the omnibus business license (like the FNM is enacting) , then we would be a very attractive place to do business. Do you remember the FNM third pillar plan from pre-2002? This was their plan to diversify from tourism. And removing currency restrictions is a good start.

There is no reason why Bahamians cannot compete on the international stage using technology like the internet. I am so sick of us begging for crumbs that fall off the table of tourism and financial services.


Can you ever not smatter in partisanism?

Yes it is. My notebook is full.


My breen a bit full. Lurker is putting what I have been doing, into the Bahamian context. This is why he looks over my papers, and is about to do my dissertation; have not asked him yet, but I am sure he would say yeayahhhhh.
:voodoo: :shhh:

My breen a bit full. Lurker is putting what I have been doing, into the Bahamian context. This is why he looks over my papers, and is about to do my dissertation; have not asked him yet, but I am sure he would say yeayahhhhh.
:voodoo: :shhh:



He can't do the dissertation for you. Dat would not be right! LOL! :p

He should just be your advisor and reviewer!

Lurker, make sure you are tough on him. Don't let him turn in no political nonsense to dem UNISA prof's..... Hehehe....

~~

He can't do the dissertation for you. Dat would not be right! LOL! :p

He should just be your advisor and reviewer!

Lurker, make sure you are tough on him. Don't let him turn in no political nonsense to dem UNISA prof's..... Hehehe....

~~


LOL...
Man aye, he cud do da review on it. Da final cut ga be me anyways...he just there to make sure my T's and I's are crossed and dotted, as well as making sure my facks are backed up.
:o

I een no plagiarist...and I hope Lurker een none eedah!
:voodoo:

Omnibus however, cuts payments for business owners, as service charges just went up last year for everyone, but it puts the burden back the population depending on the other regular service charges.

I am a bit ambivalent, because on the one hand, we can not operate the state without tax, and cutting tax to a great extent gives us less and less rent to work with. Borrowing money, from international organizations, just does not seem to be prudent fiscal policy because as we have seen, as tourism is our main product, it can change at any time, which makes paying rents a risky business. I would prefer to owe ourselves, and up domestic service charges, instead of defaulting on international loans; or being delinquent with them, because, in reality, we have to pay it back no matter what; borrowing international capital, just makes us owe at a higher stake.

I would prefer to owe ourselves, and up domestic service charges, instead of defaulting on international loans; or being delinquent with them, because, in reality, we have to pay it back no matter what; borrowing international capital, just makes us owe at a higher stake.


:hammer: Go to the head of the Class!

If the Bay Street and Abaco lackey and his Sears Roebuck and Co. credit application taker had your perspective and preference our little Nation would be indebted to no one but the Bahamian people only. Moreover, we would have the same level of economic development without the international indebtedness. Knowing these masters of economic mismanagement, I predict these FNM losers and consultants will be presenting a request for authorisation to borrow some US$300 million in short order!

:hammer: Go to the head of the Class!
If the Bay Street and Abaco lackey and his Sears Roebuck and Co. credit application taker had your perspective and preference our little Nation would be indebted to no one but the Bahamian people only. Moreover, we would have the same level of economic development without the international indebtedness. Knowing these masters of economic mismanagement, I predict these FNM losers and consultants will be presenting a request for authorisation to borrow some US$300 million in short order!


Don't worry -- they will just write a cheque to themselves, and it will automagically turn into new money supply -- according to your economic theories that you stipulated earlier in this thread. We will just write cheques on our way to prosperity -- it was the PLP way. :bouncy:

The definite integral from May 2, 2007 to June 19, 2007, of Kareem Lumumba + The Alein </= Yk2bad.....

I don't see the difference between domestic and international debt. One provides a diversified investment opportunity, the other does not. Saying that international debt is more expensive than domestic debt is untrue. Even borrowing in the short term at LIBOR is cheaper than the rates I've seen in the Bahamas. And I'm not saying that sovereignties borrow and lend at LIBOR rates but the real rate is a part of LIBOR and the Bahamas' bank rate. I'd assume that the credit risk premium is about the same which means international debt is lower than domestic.