St. Maarten Private Eye

It was just over a year ago that I wrote a blog about the SXM condo market being past it's prime. Less than two weeks afterwards the island's Economic Affairs Dept reported a positive assessment of the real estate market with a nice big bold headline. Remarkable coincidence eh?

Just like in the US, where Dubya and McSame are trying to convince the public that everything is just fine and that really, it's mainly psychological and people whinging, if only people would think positive then things would look better, we have the same here. Only problem is, the facts keep intruding.

SXM economy to be stable next 2 years - 24th May 2008

Maria: Island's economy successful and resilient - 25th March 2008

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First and most importantly, our tourism and construction economy is reliant upon the US market and investors. The facts are, the US is not healthy and the Fed Res. Chairman is coming under increasing scrutiny and criticism.

Citigroup Posts $2.5 Billion Loss, Cuts 6,000 Jobs - 18th July 2008

Merrill Lynch Posts Massive Second Quarter Loss - 18th July 2008

Fannie Mae and Freddie Mac Nationalized - 13th July 2008

Agonist - What an ugly chart - 11th July 2008

Agonist - The Foundation of the Housing Market has Begun to Collapse - 10th July 2008

Megayacht Biz Takes On a Little Water - 23rd May 2008

Do you need or want to know more, read, not watch, the news daily or try this audio interview which does a good job explaining the US economy.

Now, lets add to that our currency the Naf, which is tied to the steadily sliding US Dollar, now trading at $1.58 to the Euro. It continues to amaze me that no one has questioned this and nothing has been mentioned in the press about it. While it probably has a great deal to do with our economy being tied so close to the dollar via imports and products, the truth is, those who earn a Naf salary on the Dutch side are now 1/3 less well off compared to those earning Euros on the French side. Puts a new angle on the problems of the French side doesn't it.

And then there is oil.

Although oil has dropped $16 the last few days, today it seems to be making a recovery, as the report says, prices are still 70% over what they were 1 year ago and there are top level warnings of a coming energy crisis. It's not going down for long or by much more, and it's a good thing, because we desperately need to recognize that we need to break our addiction to it.

Here in St. Maarten, our 'leaders' have no real Energy Policy, at least not one that is available to the public, all they know is oil and generators and our electricity company is headed by a man who has no clue, dismissing alternative energy sources for SXM as unfeasible. Roy promised a report on wind energy over a year ago, actually he said there was one that needed doing, where is it? The islands around us are working together and SXM proudly and stubbornly stands on it's own, making dumb and immoral decisions for it's own supply.

Really, it's at a point where I must either consider Brooks and Roy as complete incompetents cursed upon the island, or that there is something very fishy about these generators, some kick back somewhere. I wonder if Harleys are the only 'donations' Wartsila have made in the past.?

Maybe some reporter will ask Roy how much the Govt and GEBE have invested in the last 14 months in leak reduction and distribution upgrades, since we 'saved' money not buying a water plant. At the same time, they could ask Saba and Statia, as coequal 1/3 shareholders of GEBE how they feel about all the debts the company is building up, on SXM's behalf. According to Roy, as of May last year, GEBE had a debt of 25 million to Pacific Life and over $8 million to the Island Govt, (down from $21 million due to some creative accounting and offsetting unpaid profit taxes away from the island's coffers.)

The funny thing is as you read these old newspaper stories, this last one having Roy saying that the island has a 'fixed water purchase price' and that losses on water were down, is that it was all bullshit really. For most of last year, GEBE had to buy water from the French side at 4 times that 'set price'. Roy, failing to have done anything to plan for the need for more water production (or sewage or waste for that matter) in the years he was responsible for them, caused GEBE to lose over $1, possibly much more.

This is Shock Doctrine, as written about by Naomi Kline, creating an urgent and impending disaster situation and then rushing through the favored a solution or fix. Roy is a natural. For more about Shock Doctrine watch this recent clip of Naomi talking about oil and drilling., or do a search on YouTube. Create an emergency and need for urgency in order to push through the policies and solutions favored by the politician and the businesses behind them.

Considering St. Maarten's position as the biggest energy consumer in this region of islands, it is truly amazing and quite stunning that in 2008, our govt and GEBE is investing solely and completely in oil. St. Kitts, plans to buy Nevis geothermal, the French side wants to attain 50% renewable power, Saba is close to launching it's geothermal project, (Saba owns 1/3 of GEBE?), even Anguilla, on the other side of SXM is planning to buy power from Nevis.

Mr. Brooks has been busy handing out small donations here and there, 4 in the past couple of weeks have been featured in our papers with his vacant grinning face, I'm sorry to be so personal about it, but I see nothing there except public relations gimmickry. When it came to explaining GEBE's position on alternative energy and policy he and Roy sent out the Commercial Manager to explain that they are making it up as they go along. I guess it's well known Roy isn't all that great at long term planning, no surprise there.

SXM Needs to invest in wind and solar energy - 9th June 2008

Now for Development. There are two main reasons given for having to expand our generating capacity and fast, the first is the lead time needed to order the generators, 2-3 years, the second is the forecast growth on the island. Although I can't confirm it 100%, my inquiries point to solar and wind being available much faster, and the geothermal being available at about the same time. Instead of generators, might it not be more sensible to invest in a cable to Nevis, or Saba, perhaps share the cost with Anguilla?

The second excuse, the forecast growth is also now questionable, in light of a recent letter from Mark Erato to Rainbow Beach Owners and Soon to be Owners in which he paints a bleak picture of condo sales and confirming rumors I have been hearing about the Indigo Bay project and the Barbaron Development. Plus, from all reports and observations, Rainbow still isn't finished and Aquarius is on a go slow.

Is the rush to buy new oil generators as urgent as proclaimed? How do the residents of Billy Folly Cole Bay and Simpson Bay feel about more generators and more smoke blowing over them? I can't believe I'm the only one who sees that every time I drive over the hill.

And how is GEBE's campaign to encourage energy saving and conservation going? Have they approached the airport and harbor to perhaps turn off some of the lights 9and in the airport's case, their airco too) at night? Has there been any reduction in consumption and how much of that is due to their campaign or common sense from users. Do our govt buildings and offices have energy saving bulbs? Not from what I have been told.

SXM needs to grow up, as has been said before by Richards, Duncan and others, they need to get some maturity. I can't see it happening myself, for some reason the Eminem song keeps going around in my head "Will the Real Leaders please stand up!" and I can't see any out there.

More on the Economy, Energy and Development can be found in the threads below.

Development and Destruction
Business and Commerce
Tourism Matters
GEBE and Energy
Global Warming / Global Resources

Local Hero

News and Updates

Real estate prices remain stable but sales are low - 23rd July 2008

Daily Herald Editorial - Long overdue - 23rd July 2008

Indigo Bay Estates is “in excellent shape” - 22nd July 2008

Today O & C - The real estate market - 22nd July 2008

Real Estate Collapses in SXM - 21st July 2008

gobeach.com/sxm - Are all developments going belly up? - 20th July 2008

Zebra Bot - St. Maarten Real Estate Market is collapsing - 21st July 2008

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