June 2012 Archives

Only in the PLP's parallel universe does debt = investment and a credit ratings downgrade equal proof that the other side has it all wrong on the economy.

Message discipline is one thing, but this stuff lately is just plain bonkers.

Given today's news, it's now clear that the next election will be a choice between investment and austerity,

Given the OBA's attacks on the PLP's investment in the Bermudian people, it's clear that they will engage in rapid and radical cuts that will cripple our economy.


If you want to see deep job losses in the public sector, less money for education, fewer healthcare benefits and less investment in the construction sector, the OBA is the party for you.

Um, the job losses are being deferred until after the election by the PLP but the rest is already happening under the PLP. They're just pretending it isn't.

Racking up debt to pay for day to day bills isn't investment. Nor was overpaying for capital projects in the past, assets that the Auditor General has said she cannot match the values to the expenditures on in many cases.

Lenders aren't investors in you. Their shareholders are investors in them at your expense.

The key comments from Fitch wasn't so much the downgrade but these two statements:

"The downgrade of Bermuda's ratings reflects its weak macroeconomic performance relative to peers, deteriorating fiscal and government debt ratios and lack of a credible fiscal consolidation strategy."

and

"More importantly, Bermuda's debt/revenue ratio at 150 percent in 2011 is above the AA median, and is deteriorating faster than its peers. Moreover, recurrent changes to the debt ceiling, withdrawals from the sinking fund to meet interest payments and the inability to implement a multi-year budget programme have undermined the credibility of the fiscal policy anchor and the commitment to fiscal consolidation."

It's all a global recession right? But our position is deteriorating faster than our peers and the Government lacks a credible strategy.

Those aren't global issues. Those are local.

It's concerning that the response is so delusional from the PLP. It really is a deny reality approach to both the spin and public policy.

If you only got your news from their website and media outlets you'd be convinced that the economy is growing, tourism is up and crime is down.

It's that crazy.

If this were Paula Cox's personal finances the statement would have read something like this:

Paula Cox today thanked her credit card company for investing in her by raising her interest rate and credit limit on the card that she uses to buy groceries and pay electricity but can only pay the minimum monthly balances on.

The PLP have always put politics over policy and short term public relations over doing the right thing. But it's very worrying to say the least that as our problems worsen the PLP's response is to become even more un-serious about both addressing them, and acknowledging them. And escalating the prior level of delusional was not easy to do.

Instead they appear to prefer to believe their own hype.

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