Bermuda after 11 years of PLP We're Bankrupt : Merry Christmas
Do you believe everything the government tells you? Economist and statistician John Williams sure doesn't. Williams, who has consulted for individuals and Fortune 500 companies, now uncovers the truth behind the U.S. government's economic numbers on his Web site at ShadowStats.com. Williams says, over the last several decades, the feds have been infusing their data with optimistic biases to make the economy seem far rosier than it really is. His site reruns the numbers using the original methodology. What he found was not good.
Maymin: So we are technically bankrupt?
Williams: Yes, and when countries are in that state, what they usually do is rev up the printing presses and print the money they need to meet their obligations. And that creates inflation, hyperinflation, and makes the currency worthless.
Future Of Bermuda, Systemic Fraud, Corruption And Financial Instability
Clueless plp have Failed Miserably to manage Bda.Inc.
the plp champagne party is over,they gave themselves credit cards with unlimited spending,but what happens when the debtors /govt cannot service the debt?
they borrow/print more money,and raise taxes,which creates more bankruptcy,and stagflation.
Rioting in the streets hyperinflation. and devolution to a bartering system.
How long till rigid exchange controls will trap your money & assets in Bermuda,frozen just as a caribbean Banana Republic?
As govt borrowing and costs explode, your assets in Bermuda dollar currency will devalue like Jamaican and Zimbabwe and become worthless.
Money is not being spent here, except for rents,bank credit debts and plp taxes.
Money is not being spent on the 1000's of unsold condos for sale
Money is not being spent on retail,sales that drop every month
Money is not being spent on restaurants or hotels, that remain empty.
To see where your Bermuda dollars are disappearing, drop by money exchange line ups at banks,and western union offices ,you will see foreign workers sending every dime , after they deduct rent,back home.
What banks will loan millions to a country run by a leader who smuggled in Gitmo terrorists without the knowledge of his cabinet, arresting the Auditor General for exposing discrepancies in Government expenditures, and calling for Police control ?.
the plp were warned years ago
This is what happens when we have more people riding the wagon than pulling it
: OPINION By E.T. (Bob) Richards
"You would think it would be clear by now: The Government using its considerable resources to minimise the impact of the economic downturn on working families.
One of the best ways to do this is to create jobs through public projects such as building construction, road maintenance and municipal infrastructure upgrades. The idea here is that government projects hire workers laid off by the private sector as construction projects wind down and recession-hit businesses shed workers....
But it's not.
This week the people of Bermuda got a peek at Government plans to spend more than $24.5 million to buy an office building in Hamilton and further untold millions to buy a second building on Par-la-Ville Road. It appears the idea, which was put forward by Works Minister Derrick Burgess with the support of Premier Brown, was to save the Government money it now spends on office rents....
Here's why I say that:
■ The Bermuda economy needs the Government to focus public spending on projects that create jobs for people displaced by recession.
■ Creating jobs will help the people who get the jobs, with their wages used to meet the day-to-day needs of their families and, in the process, helping the overall economy. The money spent will circulate through stores from pharmacies to coffee shops; and some even returning to benefit the Government in the form of tax revenues.
■ Buying office buildings will not create jobs. It will not stimulate spending. It will only transfer a capital asset – a building – from a private enterprise to the public sector. It will increase the public's debt – already at historically unheard of levels – and the interest the public pays on that enormous debt, now near $1 billion, or approximately $15,000 for every man, woman and child on this island.
For nearly two years we have urged the Government to prepare for the downturn and the counter-cyclical plans needed to protect working families and shore up the economy.
In February, 2008 our warning was plain enough: The US, I said, was headed toward a period of "slow growth, no growth or contraction" that would drag the global growth rate down. Bermuda did not operate in a vacuum and therefore it was critical that the Government "adjust its plans, its strategies and its spending habits based not only upon local needs but also on the imperatives of the global economy".
The Government did not heed the warning and its careless spending continued as the recession swept ashore. A few weeks ago, the Government, in questioning by my Senate colleagues, revealed that it faced a $100 million cash shortfall this year – a result of underestimating how much it would spend and overestimating how much it would earn.
Now, in the wake of that shocking news, and the management failure underscoring it, the Government wants to spend tens of millions more on buildings that will do absolutely nothing for the economy and the people suffering in this ongoing downturn.
There is one more aspect to the Government's building purchase plan that we find extraordinary and concerning. It is the fact the plan was put before the Cabinet "for decision" without the support of the Finance Minister.
This is extraordinary given that virtually no spending decisions go before Cabinet without the Finance Minister's support, at least in normally functioning governments.
In my opinion, the only way that could happen is through the power of the Premier who controls the Cabinet agenda. In allowing Minister Burgess to bypass the Finance Minister, the Premier is sidelining the one voice at the table with an explicit responsibility to manage the public purse.
Everyone should be concerned about this power play and the Finance Minister's difficulty in standing up to the Premier. We have had nearly a decade of loose, imprudent and careless spending by this government. Clearly, no one responsible has really been in charge and the chickens are coming home to roost – Bermuda is now creaking under the weight of public debt five times greater than it was a decade ago, with no sense of direction, no sense that anyone is looking at the bottom line.
E.T. (Bob) Richards is Shadow Minister of Finance