Comments on: Burchall: 3 Facts Underpinning The Economy

By: SMH

SMH — Wed, 29 Oct 2014 18:48:58 +0000

I second Larry Burchall!

By: Ride

Ride — Wed, 29 Oct 2014 15:36:11 +0000

@jonah

You could reduce the wage bill at a restaurant by firing all the chefs but I don’t think that will keep the business alive. You have to look at who you are firing; in particular their value to the business (in this case gov. dept.) that they are in.

I’m not saying that all expatriates in gov. are hard working and all Bermudians are not. However SAGE paints a dreadful picture of inefficiencies in gov. and the unions recently pressured the current administration to forgo implementing these much needed recommendations (by the way, OBA, I’m so unimpressed).

So, fire the chefs if you must. Just don’t expect to receive your order … ever.

Ride

By: Good for Goose and Gander

Good for Goose and Gander — Wed, 29 Oct 2014 14:44:01 +0000

@Mr. Burchall
Seems to me there are some mixed messages here in Bermuda surrounding this debt. Perhaps this why the layman doesn’t really believe that Bermuda is in a financial quandry when the Bermuda Government continues to spend at $1,007.8 when there is only $740.5 available.

When is any government prepared to do the right thing: SPEND ONLY WHAT IS AVAILABLE. The average layman understands that you need to stay within your budget if you are ever going to climb out of debt.

The average layman wants to know how this country can manage with $740.5 and what that means in terms of reduced services and more importantly how long would would this period of austerity last before we are significantly out of debt – 5, 10 years. This is my idea of shared sacrifice.

Or is this more a Political Issue and less of a Financial issue?

By: Delaey

Delaey — Wed, 29 Oct 2014 11:17:56 +0000

What about appointing a financial/economic/guru-come-ombudsman one of who’s tasks would be to drag Bermudians into the new economic age with both a campaign of education and one of supplying information on how to cope with less. I nominate Larry Burchall.

By: SMH

SMH — Wed, 29 Oct 2014 10:35:21 +0000

I was also thinking more along the lines of. Deficit= hole or cash needed, debt service= interest and debt=mortgage. Thanks for understanding that we need to communicate this in terms that everyone can understand

By: SMH

SMH — Wed, 29 Oct 2014 10:32:07 +0000

Now that’s what I’m talking about. People should see and understand these numbers. Thanks Larry, from your biggest fan

By: Bermuda123

Bermuda123 — Tue, 28 Oct 2014 22:37:39 +0000

Great article and analysis as always. Who in the Bermudian community will be “big enough” to put politics aside and find a way to help people understand this position. Those with financial acument get it clearly, but much of the population does not understand it, and until they do, they cannot accept or understand the need for the pain. Who is out there? A pastor, a businessman or whoever. Stand up for your country and help your people to understand.

By: scoob

scoob — Tue, 28 Oct 2014 20:20:59 +0000

Deficit – Earning $3k a month, but having expenses of $4k.
Debt – Money you have borrowed. Eventually you will have to pay this back.
Debt service – Paying a fee to the person you have borrowed from, usually as a percentage of the debt (interest).

By: Larry Burchall

Larry Burchall — Tue, 28 Oct 2014 20:05:05 +0000

Vote for Me,

In the interest of absolute clarity and honesty, I offer this sub-analysis:

HOW GOVERNMENT REALLY SPENDS
Gov Revenue $901.7
Gov priority pays out $-161.2
Leaving this to spend $740.5

But Gov wants to spend $1,007.8

So Gov spends $740.5
Then Gov borrows $161.2 [Seen this number before?]
And Gov borrows $106.1
Now Gov can spend $1,007.8

$161.2 + $106.1 = $267.3 = The Deficit for 2014/15.

Larry Burchall

By: Toodle-oo

Toodle-oo — Tue, 28 Oct 2014 19:46:06 +0000

^ the lack of comments on this particular article is quite telling…and disturbing. ^

Larry explains that here =

*The way out?

The way out? First, ensure that every resident understands the problem. However, the comments and questions during and after that two hour October 8th “Town Hall” at Pier 6 indicate that a lack of understanding could be a fourth driver! *

By: SMH

SMH — Tue, 28 Oct 2014 19:20:48 +0000

Larry,

As usual, I am your biggest fan. PLEASE make your opinion letters understandable to the average reader. A layman (someone not in finance as my intention is not to offend anyone here) might not understand what a deficit is, or what debt is or what debt service is! If your intention is to an write opinion letter for the people that already understand the mess we’re in, then you have succeeded. Bermuda needs for someone of your great understanding to explain our situation in terms everyone can understand.

By: Creamy

Creamy — Tue, 28 Oct 2014 19:06:16 +0000

Oh, it’s you again. Yesterday the village idiot was suggesting there are 1,900 expats in the civil service. Total lie, of course.
But still, if you’re suggesting we fire 1,900 civil servants, I agree. Do it right away. Makes Sage look mild.

By: my roof is leaking and the wind is howling...

my roof is leaking and the wind is howling... — Tue, 28 Oct 2014 19:03:15 +0000

@ wondering: either the average person doesnt understand, doesn’t care or both. Better to nip at the ankles of someone who was entitled to avail themselves of some public assistance in the form of a tarpaulin for a leaking roof brought on by a Hurricane.

By: LiarLiar

LiarLiar — Tue, 28 Oct 2014 18:57:23 +0000

And borrowing to pay basic operating costs is simply unsustainable. No matter if you are a Government or a business.

Borrowing should be to fund large capital projects and developments and not for paying the salaries and benefits of your employees.

By: Vote for Me

Vote for Me — Tue, 28 Oct 2014 18:49:27 +0000

Just a thought..

If Non Negotiable Costs (‘Nanci’) are paid first, it cannot be true that Bermuda is borrowing to pay its debt!

The reality is that Bermuda is paying its debt out of taxes that are collected. Bermuda is borrowing for goods and services that are delivered to the public, including public servant salaries and benefits.

Just a thought but we need to be clear on what the borrowed funds are used for.

By: Wondering...

Wondering... — Tue, 28 Oct 2014 18:27:17 +0000

the lack of comments on this particular article is quite telling…and disturbing.

By: jonah

jonah — Tue, 28 Oct 2014 18:15:53 +0000

Way out #2 – ensure that the Bda Gov shrinks its massive wage bill – starting by reducing the numbers of employees by 19%, which equals the number of Non Bermudians employed by the Bda Gov..

By: Raymond Ray

Raymond Ray — Tue, 28 Oct 2014 15:01:16 +0000

Mr. Burchall I thank you because I don’t believe anyone on this Island could have explained our predicament more clearly than you have.
“All Nanci payments are in foreign exchange – not Bermuda dollars. So those Nanci-paying dollars must first be earned. Who earns those dollars? IB brings in $85 out of every $100. Tourism brings in the remaining $15.
Where do those dollars come from? They come from places north of North Rock; east of Five Fathom Hole; south of Argus; and west of Chub Head Beacon. Those dollars come from ‘foreign’. Nanci is a voracious spider that always gobbles up the first big chunk of our hard-earned foreign dollars.

Nanci is the first and primary driver.