I also know that the PLP will be re-elected.

More heads in the sand.

The issue on debt is not whether we could issue some. We know the government is going to issue more debt, because spending has not been reigned in, and the tax base is dwindling. The real question is: what will be the interest rate?

Bear in mind that Italy has been issuing debt at about 7%, about the absolute limit that is sustainable by that country. Paying 5-7% for government issued debt is equivalent of using your Mastercard to buy a house.

In other words they stuck their heads in the sand.

And S&P’s downgrade is because of that exact issue; it is that Bermuda has little financial flexibility. In other words, the government has few options in how it can raise money or control debt.

There is no doubt that it would had been useful if the PLP had conserved resources rather than spending like drunken sailors. In fact our position now would have been completely different.

And now we’ve got an armed gang robbing daily, to go with our gang problem which is apparently the fault of the British according to our idiot, hang on IDIOT, security minister or whatever Perinchief is.

We’re in a mess people, and the only thing left is the Reinsurance Industry, which is apparently our biggest enemy.

But we will take us down won’t we, because as Kim Swan says people vote on racial lines, meaning we only elect the PLP, who have as Paula said balanced things – now we are all miderable with no prospects.

If you defend the PLP on this forum, hang your head in shame, you are not Bermudian, you are blind and stupid. God I’m angry, what has become of us?

Nice one! Here are a few suggested continuations of the meaningless statements in their response:

1 – ‘The Governemnt remains committed to fiscal consolidation’… but currently finds itself short of available funds to pursue this commitment as thoroughly as it probably should.

2 – ‘There are also a number of initiatives in progress’… just as there is an initiative to find the cure for cancer, but it is still many, many, many decades off.

3 – ‘the Government plans to begin releasing quarterly GDP statistics next year’… just as most of us plan to lose some weight and start exercising next year. Even if it happens, I think we all know how obfuscating statistics can be. Each quarter the tourism statistics are spun into a glowing report supporting how this is the continuing ‘Platinum Era’ of Bermuda tourism.

LMFAO

view this link to you can educate yourselves on ratings and what they mean.

· The stable outlook reflects the balance of risks between Bermuda’s fiscal
flexibility and its external vulnerabilities–most notably to potential
changes in U.S. law affecting the offshore reinsurance industry–and the
health of Bermuda’s primarily locally operating banks.

I guess its still the PLP’s fault Right!

You can’t have it both ways either, by the way. If Fitch was unquestionably right is saying all was well, then S&P must unquestionably have it right when it says things are getting worse.

He got the ferries that are now falling to pieces. The “fast” ferries who’s speed we now limit in order to save fuel costs.

He got Beyonce. We spent $3m that year on the music festival that attracted about 50 tourists. That $3m could have paid for a few policemen or teachers now.

He spent – what – $100m? – on overseas consultants that did nothing at all. Certainly didn’t bring a single tourist here or create a single job, other than for certain “privileged” contractors…

He got a nice retirement, a boat in the Caribbean, a nice savings account.

Oh yeah, he’s also a stellar reputation for honesty and openness. I nearly forgot that.

He got the Debt from its historical norm to over $1bn. And here we are with the resulting action from S&P. Do you think for a minute S&P would have downgraded the debt if it had still been $150m?

By the way. Don’t be fooled by the “revised rating methodology”. That isn’t an excuse. It’s a REASON. In other words, S&P is now recognizing that Bermuda’s economy is significantly riskier than it previously recognized. Things are much worse than we have previously been told, folks, and this proves it.

Also, don’t be fooled by the “stable” outlook. That doesn’t mean the economy is “stable”; it just means they aren’t thinking about ANOTHER downgrade in the immediate future. It doesn’t mean anything else.

We asked the Finance Ministry to comment on the “gaps in official data” statement from S&P and they said, “The Government remains committed to fiscal consolidation to bolster business confidence and support economic growth.

“There are also a number of initiatives in progress as outlined in the Pre-Budget Report to increase budget transparency to ensure Bermuda meets international standards in this area.

“Additionally, the Government plans to begin releasing quarterly GDP statistics next year; this will bring us into line with other similarly rated jurisdictions.”

is very telling about some of the people who blog on this site.

that is all

Yes, in bad times it is good for governments to spend money to stimulate the economy. The reality is that gov’t was spending far too much money in the good times and didn’t save any money for the bad times, and somehow in that time they were still acquiring debt even though our revenues were actually increasing. Hard to understand, but it’s true. Now the gov’t is in a situation where they have no ‘savings’ and their credit card is probably just about maxed out so they have no money to stimulate the economy. Why do you think they’re talking about rolling back some of their policies such as free day car or free car licensing for seniors? I don’t know about you, but my parents always told me to save for a rainy day. Well the rainy day is here but obviously the PLP gov’t didn’t listen very well, did they?

Would you have preferred for the governement not to borrow and seen our economy collapse? Not even Bob Richards would have advocated that, and yes Bob Richards would have borrowed money too, so get your facts correct… mate!

What is important for readers is to note that ratings agencies play a critical financial role since their ratings are considered by potential lenders when they decide whether or not to lend to countries or institutions. I note one of the earlier posts in terms of what would happen if Bermuda wanted to issue debt in the near future. Based on the significant over subscription of our recent borrowing, the reality is that borrowers would again be happy to lend to Bermuda since our credit rating and financial standing remains strong.

To add a political slant, it will be interesting to see how the OBA / Bob Richards comments because they previously indicated that the ratings agencies ‘had it wrong originally’. How many guesses that they will now miraculously state that the ratings agencies have had an epiphany and are now completely correct.

On a more serious note, we need to stop the political rhetoric and get Bermuda on a firm financial footing in the midst of world econmic challenges. Why?? Because we are in the same economic boat and unless you have a mortgage free house and substantial cash in the bank, we will all sink or rise together. Selling a house in the current market is a no starter. Let us not cut off our collective noses to spite our collective faces.

I say bring on the election, let us see who wins and then buckle down together for the good of the country.

The next budget should be interesting. Will Paula decide to balance the budget, or borrow more money and kick the problem down the road again only to be revisited at a later time? Let me know what you think when you’re paying higher taxes and taking home less money this time next year, mate!

We all know that other jurisdictions are are becoming more competitive and we are already experiencing jobs being exported from Bermuda to other jurisdictions. What’s your point?

We also view Bermuda’s economy, with one of the highest per capita income levels in the world and with a leading position in the global reinsurance sector, as very strong.”

Again, jobs in IB are shrinking so how long will this last for? Remember, if Bermuda’s population was only two people and one person made $100k a year and the other made $10k a year our average per capita income would be $55k. Just saying…

“Our “very strong” political and economic profile appraisal rests on our view of Bermuda’s effective and predictable policymaking and its stable political institutions. Together, they have helped this the largest British Overseas Territory to deliver solid economic growth in the past (real GDP growth averaged 3.4% per year during 1997-2007) and to manage the recent recession (with timely, targeted, and temporary stimulus and deft intervention to support Bank of N.T. Butterfield & Son, Ltd. (BNTB), Bermuda’s second-largest bank, at minimal direct cost to itself).”

S&P is talking about the PAST in which a UBP blueprint afforded that growth. What is the PLP doing NOW to ensure growth and prosperity for all Bermudians in the FUTURE?