Unexpectedly, the global financial markets are reeling from a series of shocks prompted by the US Silicon Valley Bank’s (SVB) collapse about two weeks ago. Worried that the SVB could be the first domino to fall, I urged the Central Bank of Curaçao and Sint Maarten (CBCS), on 13 March 2023, on my social media account to say something. Inconceivably, CBCS has so far preferred to stay in its cocoon.
A few days ago, the Minister of Finance sent a letter to the CBCS for more information. It’s beyond me why a letter was sent, and why this was published instead of a face-to-face meeting with the CBCS. If the CBCS had reacted quickly, it could have controlled the narrative instead of a political actor.
I digress. My fear became a reality. SVB was the first domino to fall, followed by Signature Bank, and the First Republic Bank. Crédit Suisse (CS) was forced to accept US$ billions to stay afloat in Europe. Some, including me, fear it could be a repeat of the collapse of Lehman Brothers in 2008, which led to a sharp contraction of the world economy in 2009.
The clear indicator of unrest is a sharp decline in oil prices despite strong efforts from US Fed and the Swiss National Bank to calm the situation. Just two days before the fall of SVB, the West Texas Intermediate (WTI) price, one of the leading global oil benchmarks, was over US $80 per barrel. After the shocks caused by SVB and CS, the WTI price fell by nearly US $15 per barrel.
The critical question is whether the situation was now better or worse than in 2008, which led to a sharp contraction of the world economy in 2009. This time bank failures are happening on both sides of the Atlantic. Also, the combined size of SVB and CS is US $750 billion, more significant than Lehman Brothers’ US $620 billion. Will the Federal Reserve contain this possible meltdown with a change in its monetary policies? In that case, what are the consequences for our country?
There are two causes of bank failure – inadequate capital and inadequate liquidity. Inadequate capital arises from bad loans or bad investments as was the case with CS and Lehman Brothers (2008). Inadequate liquidity is caused by rapid withdrawals of deposits.
SVB belongs to the inadequate liquidity category. SVB had approximately $200 billion in deposits and was overexposed to interest rate risks. This bank was not cautious, but greedy, and the greed overruled sound banking practice. To be fair, there were specific problems at SVB and Credit Suisse before the meltdown, as banks tried to balance inflation with financial stability. According to the Social Science Research Network, 186 US banks are vulnerable to a rapid liquidity drain like the SVB.
How vulnerable is our financial network? Why is the CBCS allowing its silence on this critical issue to potentially become a political sideshow? I hope the people at the CBCS realize that the genie is out of the bottle and that they have to say something.
Alex D. Rosaria was Minister of Economic Affairs, State Secretary of Finance and Member of Parliament. He is currently a member of the US think tanks Global Americans and Caribbean Policy Concern, as well as a freelancer in Asia and the Pacific.
Dear Editor,
Please allow me a section in your paper to stand up for progress, equality and prosperity!
The entrance of the PEP (Party for Progress, Equality and Prosperity) into the Island Council of Saba certainly is a sign of change with Mr. Hemmie Van Xanten.
The addition of change within the WIPM established party embodied by Ms. Elsa Peterson who ran a very professional and outstanding campaign is also a great and dynamic change for Saba, jewel most precious in the Caribbean Sea! She studied international law and human rights, a great asset and enrichment to the Saba Island Council! I admired the way in which Ms. Elsa Peterson gave a speech during her campaign of the historical facts of the pof the Netherlands in the trans-Atlantic slave trade and the role that the Netherlands needs to play to redeem itself from this great evil and injustice towards people of African descent in the Dutch Kingdom!
The Dutch Government and Prime Minister Mark Rutte need to also pass laws to protect cultural diversity in the Netherlands and in the Dutch Kingdom. Respect towards race and culture, rich or poor, Black or White, Indian or Asian, Latino or Filipino, immigrant or not, foreign or native, we all are one people and we all deserve equal treatment!
Saba also needs to grow, tourism needs to be expanded! Enough of keeping Saba small and stagnant!
Island Council Member Ms. Elsa Peterson also was dynamic in stressing on the importance of leadership! “The leader is not only the one who manages a human group, but the one who knows how to lead it and straighten its crooked cells” (Dr. Jose Francisco Peña Gomez).
I encourage all the five Island Council Members of Saba and the two commissioners, Eviton Heyliger and Bruce Zagers, to please stand up for progress, equality and prosperity on small Saba like the PEP Party! I, on the other hand, will always be a commissioner of truth, justice, peace and righteousness!
I close in the words of Dr. Martin Luther King Jr.: Darkness cannot drive out darkness, only light can do that!”
Cristian Hassell Feliciano
Dear Editor,
There are some things that one shrugs his shoulder at, but then there are other things that should not be permitted. On Friday March 24th, while driving down Back Street I noticed a man who was speaking Spanish to a female who was standing on the sidewalk, doing body work on a car which was parked on the sidewalk in the area of Tamarindesteeg.
Initially I thought the person was washing the car there so I did not worry about it. But as I drove on it hit me that it was sandpaper and not a sponge or a cloth that man was using. I decided that the patrol will pass by there sooner or later and attend to that person for using the sidewalk to do bodywork on his car. I was in town again on Saturday and intentionally drove by where that person was working on that car and, lo and behold , he was there diligently doing body work on the car.
Today is Tuesday and that car is still parked on the left-hand side of the road, well primed and it
seems ready to be sprayed.
I need not mention the harm that spraying of cars can cause people especially when done in the open. I am not directing this criticism to the police alone because I am sure from Friday to today people from all layers of this community have seen that operation and I dare say no one has done anything about it. That leaves the question with me: “Who is conscientious in this country?”
Now this. I read the letter to you from John A. Richardson and again I say “Eureka” It reminded me of a saying that I have heard from time to time here in St. Maarten, “But d’ain gon’ happen here.” So my question is, “Are we not noticing the growing tension in the land? Dont we compare statistics from one year to the other’? Don’t those people in government realize that words like “scale back” and “being subtle” are there for a reason?
For years I have been hearing that a hungry man is an angry man. There are 24 times in the bible where reverence is given to the word “crave” and I believe craving does not give a good result. Not everything the old people say was interpreted correctly but I believe in “All crave all lost.”
My thanks, John Richardson.
Russell A. Simmons
Dear Editor,
The entire population agreed with MP Christophe Emmanuel concerning the small numbers of the vehicle number plates for 2023.
These numbers are very invisible night times. This will make things harder for the police, especially as some people have their plate covered.
For the hit and run individuals the numbers need to be visible at all times.
Government must stop ordering these kind of number plates for safety.
Cuthbert Bannis
Dear Editor,
Please allow me some space in your well read newspaper to share my observations with the general public, your readers.
One of the first things I remember from school was when it comes to math, there is an order of operations. Just like everything there is a sequence to doing and implementing things. We can choose to deviate from the order, we will always get results but those results will never be as good as when the proper sequence is followed. In other words consistency matters. Consistency is like discipline, it leads to destiny. Hercules did not become Hercules because he was naturally gifted but rather he chose virtue above vice. Where is the consistency in our government when good governance is at stake? The proper sequence is not adhered to, which has led to many of us feeling left behind. One such group is the seniors.
Abraham Maslov was an American psychologist. He blessed mankind with a pyramid model, categorizing the various needs that humans have in life. The sequence of needs are: Physiological needs, Safety needs, Social needs, the need for Self Esteem and the need for Self-Actualization.
Once a man twice a child is a popular saying and in this instance it is very true. Seniors are faced once again in their later years with more challenges than in their years of becoming of age, due predominantly to age, fear, loss of good friends, being lied to, not knowing who to trust and accepting being placed out of your own home that you built, which induces a reality that they will never be returning to that space ever again.
Having indicated that there are new challenges, different challenges than when they were young, means that there is no previous experience to still their unrest. The physiological challenges become more challenging especially if due to illness certain foods are forbidden. Security needs, the need for housing lead to questions, are the living quarters suitable, are the entire house accessible and functional? Are alarms installed especially for those living alone? Is there a neighbourhood watch? What role does dexterity play? The social aspect of their life is all but turned upside down through the loss of friends, not being technologically savvy, diminishing mobility, bad eyesight, etc. all lead to seniors, oftentime than not, being very pessimistic.
We can’t always tell what is going on in their head but the following points are a clear indication of the severity being experienced by seniors.
1. Health care cost. The older we become the more care we need. Health care cost increases and so does the other cost associated with getting old like dental, medical, etc.
2. Diseases like dementia, cataract, macular degeneration, rheumatisms, and Alzheimer’s, heart issues, diabetes, etc., are common occurrences among seniors. These diseases impact our ability to function as we once could. We can add to this stress brought on by thinking of our impending death.
3. Physical aging, the inability to move as quickly as we need to. Our eyes, our depth perception, is no longer what they were. Our bones are brittle, they break faster. Fractures don’t mend like before. There is a constant fear of falling or misjudging distances. This fear is particularly so for those seniors living alone.
4. Physical assistance. Going to the supermarket, paying GEBE bills, going to the doctor, a notary if need be, seeking advice, etc., becomes a thing of the past. The cleaning of your living quarters becomes more difficult with age and daily assistance is needed. I once heard an old man said he was once down and out but none of his so-called loved ones visited him because they did not want to be confronted with finding him in a mess and having to clean him. This is an important aspect that makes seniors vulnerable. They are preyed on. Loneliness, immobility, desertion by family members, forces them to seek unhealthy relationships to which they normally wouldn’t have aspired in their good days.
5. Financial security. Inflation while living on a fixed income poses additional challenges and restrictions. One day a box of eggs costs 10 guilders. A few days later it costs 12 guilders. This leads to a steady decline in purchasing power and hence the standard of living. In this context the importance of maximum prices for the food basket, is in order.
How do these challenges affect people and seniors in particular, psychologically, mentally and physically? It is often said that a society is known by the way it treats the weakest in its society. Yes, it is true, many seniors did not prepare or plan for their old age. The present then was important. The present today is of a different reality and severity. In this regard what about the principle of due care that government is responsible for? As a signatory to the charter on Human Rights, can government escape blame and thus renege on her moral, ethical and constitutional responsibility to take care of us?
A great part of the suffering that comes with old age are a given for all of us, but the man-made suffering, lack of facilities, taxing of the seniors, generic medications, etc., is directly related to the way society in St. Maarten is organized.
The focus of our society is to make as much money as possible for the investors. In that strategy being social diminishes the returns. How many companies and brand name hotels operate here based on tax holidays?
Is it then strange that the poor and seniors are the ones that fall by the wayside? After all, they are not contributing anymore, their fuel is spent. The investor’s only aim is to maximize their return. All mortgages and loans provided locally represent imported money which is here to make more money. Locally we don’t have a saving culture. Where government went wrong was when investors were invited, government neglected to put guardrails to safeguard and protect citizens against social injustice. The mentality that was created through this neglect was one in which dog is eating dog.
The politicians appear to be so insensitive to this meltdown. Added to this the wheeling and dealing, the greed of our politicians, is an affront. Answer this question to yourself: How many politicians have been investigated, sentenced or are currently being investigated since 10-10-10?
The money stolen in whatever form or fashion is money that could have made the cost of living in St. Maarten much lower and could have been used to make country St. Maarten a better place for all, even the investors. Corruption has led to life being unnecessarily harder for people through the design of the politicians. Of course not all politicians were investigated but they are equally guilty because they knew what was going on and did nothing to halt it.
Another aspect that worsens the situation locally is the immigration issues. This means that social services, etc., are constantly being overrun so the rights and entitlements of the legal residents are watered down.
Telling a senior he does not qualify for social aid because he or she might have a small apartment rented is ultimately disrespectful. Call a cow a cow and a bull a bull, but be honest and tell the people that government is not willing to take care of the people. In this regard CFT [Committee for Financial Supervision – Ed.] brings nothing of substance to the table. Their loyalties lie in the Netherlands.
In St. Maarten society is organized in a way that the rich get richer and the poor get poorer. The intention is to get rid of the poor and the marginalized so that St. Maarten in time to come can be promoted as a playground for the rich. Senior abuse and poverty is by design in St. Maarten.
John A. Richardson
