Vexed Bermoothes

Blustery Opinions From Bermuda

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If Hopelessly In Debt, Borrow More

March 8th, 2012 · No Comments · Bermuda Politics

Last night, the House of Spending raised Bermuda’s debt ceiling to $1,450,000,000.  My bet is that we’ll blow through this new cap just as quickly as we did its predecessors. The PLP has a wonderful track record of underestimating its expenses and being overoptimistic on its revenues.

courtesy of Deloitte

Paula Cox likes to say the debt is no big deal when compared to our whopping mysterious GDP.  Does anyone actually buy that story?

Like Bob Richards, I am a more practical lad:

California’s $8 billion debt worked out at $233 per person, Hawaii comes in at $364 per person while Florida’s debt was $105 per person.

Bermuda’s deficit comes in at $3,365 per person [Note:  strange mix of apples and oranges here.  The debt in Bermuda comes to over $20,000 per person and over $50,000 per employed person].

Those are scurry numbers – and they are growing fast!

It gives no great confidence that the PLP’s best comeback to these facts is Mr Richards is “always on his high horse lecturing anybody”.  Oh, wah!  This sulk tells me the PLP have no reasonable justification for their actions.  Their claim that the billion debt went into hard assets is sunk by even a cursory look at the facts.

Friends ask what I think about the Government’s budget.  I don’t think it really is a budget.  It is simply buying time … and the price is way too high.


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