When Merely Securing A Loan Becomes A Major Accomplishment , You Know The Country Is In Trouble.


 

 

I find it instructive that when Transparency International labels Jamaica 84% corrupt no one gets angry. When the Chicago Tribune bears out the stark fact that Jamaica’s debt burden is worse that of Greece no one gets angry. You know what ?We should all be angry, not at the messengers who show these truths, we should be pissed at the people who got us there.

 

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The same people who have been in elected office(elected used liberally)have been in politics since I was a child , they still hold political power today, not because the people are stupid, but because they have borrowed tremendous sums of money from overseas lenders,and have through the decades created  zones of political exclusions.

What that means is that both political parties have cemented their power in certain geographical areas of the country, making it impossible for them to be voted out of office. One party has been exponentially better at it than the other, national election results have  borne this out .

It is called gerrymandering here in the US. It isn’t illegal but it’s immoral and dishonest. What we end up with is over one trillion Dollars US dollar of debt, well over half of the country’s gross domestic product is spent on debt servicing. Meaning paying on interest on these loans , not on the principal.

Jamaica-waterfront-properties

 

The down-side to doing this is that in order to fill budgetary shortfall they have to borrow more money to run the country which sends the amount needed for interest payments skyrocketing through the roof .

At that rate pretty soon the entire  gross domestic product will be required and then some,  to service interest payments. And did I mention that the principal loans will still be there?

That will leave nothing to run the country. That my dear friends is called economic collapse. As we have seen lenders like the IMF are very reluctant to board a sinking ship, this last time around they were very reluctant to free up any more loans to Jamaica.

When lender Agencies do free up loans , they come with multiple strings attached. Those measures further complicates the problem by adding pain to an already over-burdened people and constricts the economy through layoffs and spending cuts.

When the economy gets smaller the government raises taxes to fill short-falls which in turn gives them a temporary quick-fix of cash but that is like cotton-candy it invariably leads to much less cash in the economy as people have less money to spend , thereby tightening the economy even further. The problem is synonymous to a snow-ball careening down-hill, getting bigger with each revolution, it will crash and when it does it will be cataclysmic.

The Jamaican people must stop berating each other while those they elected to lead them build mammoth mansions as soon as they enter office and drive around in imported luxury vehicles.

The time has come to hold their feet to the fire and demand to know where the money comes  from to furnish the lifestyle they are living. We must stop giving them a pass while Rome burns.