Fi Wi Concerns - Michael Spence

These Celebrations

Cabinet has approved a special budgetary allocation of $200 million to support the execution of Jamaica 55 celebrations. What are we celebrating 1300 murders in 2016 or the 63 in 1962 55years ago or the ruination of the Jamaican economy? Abandon these costly celebrations until we get the country back on a decent civilized path. A waste of money/expenditure   that benefits only a few.

22/02/17

Scotia The Best

For me Scotia is still among the best Bank for safe local and international business and I have been getting great service for years. I ask myself which sane person is going to join long bank lines to change Ja$5000 dollars and pay a fee of $385.You just go buy something for 385 or buy 2 jelly for 260 or two patties for $300. All scotia is doing is to discourage idiocy. If you have an account, lodge it to your account and withdraw $4615 so you earn that $385. You could even charge yourself less by withdrawing $4950.

High Interest Rates

My problem is the high interest rates and the dependence on collateral now that we have the credit bureau. You can avoid some fees but when you borrow money for business, you can’t escape the enslaving high interest rates and our politicians are not talking about that. They are using FEES as a SCAPEGOAT and the banks are just laughing to prosperity while the customers are in misery, poverty and fear.

Check out which bank charge the most disincentive on lodgements of $500,000 and over in cash of the big two banks. Our banks however need to behave like banks in the civilized world that do not become and stay profitable from interest rates but by way of service fees and low or no interest on either savings or loans. What we have is low interest on savings and high interest on loans. Bring a Japanese bank into the mix and then you may see civilized competition who presently have interest rates.

I heard Michael Lee Chin once say "The only way you keep lots of money in the bank is if you plan to buy the bank". He should say it again with a clear explanation. If interest rates are consistently high there is little incentive to invest. What I gathered from his utterance was that money must be invested and not remain idle.  The Bank of Japan left their interest rate unchanged at 0.1 percent as at January 2017. Our Central bank is planning to raise interest rates and I consider that a backward move.

Interest Rate in Japan averaged 2.93 percent from 1972 until 2017. Jamaica needs loan programs aimed at boosting lending to industries with growth potential, deepen the economic processes creating, investments, employment,  wealth for its people and at the same time reducing crime . Not the sopping up of liquidity with high interest rate foolishness that has consistently destroyed the people and the economy of Jamaica. Civilized/lowered interest rates is my call to the Bank Of Jamaica, Bankers Association and the commercial banks that operate here. We need to hear our leaders in the business sector and the political directors push for that constantly so we can make Jamaica and its people proud and great. 

Michael Spence 04/03/17