Tuesday, February 12, 2008

957- SENTENCED FOR LIFE

CNMI TO BORROW IT'S WAY OUT OF DEBT
The legislature to place a life sentence on the next generation even before they get their say.
Read it here....
April 19 special election proposed for 3 initiatives
A SPECIAL
election may be held on April 19 to allow voters to decide on three House legislative initiatives that aim to solve the island’s power crisis and stimulate the CNMI’s ailing economy.
Rep. Heinz S. Hofschneider, R-Saipan, yesterday introduced House Legislative Initiatives 16-3, 16-4 and
16-5.
They have to
be passed by the affirmative vote of three-fourths of the members of each house present and voting. The governor cannot veto legislative initiatives, which are proposals to amend the Constitution.
It is House Initiative 16-5 That I want to talk about....
Public debt
H.L.I. 16-5 will
allow the cash-strapped government to borrow money from legitimate financial institutions for its operating expenses during “extreme situations and upon approval of the people through an initiative.”
He cited the case of frequent blackouts, the government’s inability to finance some basic services as among the critical situations to justify the passage of his proposal.
The power crisis at the Commonwealth Utilities Corp. is an existing calamity that warrants the commonwealth government borrowing money to rehabilitate the power plant engines,” he said.
So they will try to borrow money they don't have. I have just 3 questions...
1- Who will lend money to this broke government?
Any 'legitimate' lending institution should laugh them out of town.
2- How do they plan to pay it back, even if they did get a loan?
3- Where will the money come from if not the next generation? This present group surely doesn't have the the money to pay for anything.... So therefore the sentence is placed on the backs of the children... The next generation...
And all they will get is a second rate education in overcrowded schools, a college going down the tubes, a health care system on the ropes, not to mention rolling blackouts and a debt to repay, a bright future indeed.... Did you hear me laughing while I was reading this? The wheels are coming off!
.....GED.....

7 comments:

lil_hammerhead said...

Hey, you've gotta spend money to make money right? And if you don't have any money.. :}

Seriously though, their plan is to borrow the funds and invest their totality into tourist infrastructure. Yeah right.

If that was the plan, I wouldn't be so uneasy with it.. but it's not. They're going to use the funds to facilitate current operations.

glend558 said...

Lil, this money is to catch up, not get ahead, or 'make money'.
I can't see anyone loaning this govmt. money. If they can get a loan I need to go to that bank too!

lil_hammerhead said...

:} My families finances are square and I probably couldn't get a loan either. There are always lenders out there though, who are willing and ready to put a government under their thumb.

Maybe this is a good method of reducing the size of government. When the loans go unpaid in four years, the lender will come in and have gov't assets like the cars, office furniture, computers, etc. sold

What would the government use as collateral?

glend558 said...

I think the recourse is to have a very high intrest rate on a unsecured loan. It's a wonder they don't rob CDA or the retirement fund further and later pass legislation to forgive the debts.. Maybe I've just gave them an idea?

Anonymous said...

"There are always lenders out there though, who are willing and ready to put a government under their thumb."

well said lil.

"What would the government use as collateral?"

hmmmm, how bout land?

lil_hammerhead said...

Can't use public land as collateral for any number of reasons.

Dominic said...

What are the CNMI bond ratings like today anyway??? Who in there right mind in today's world with the credit crunch and subprime mess would want to loan money to the CNMI? I know who, a fool or someone with criminal intentions.

Perhaps the World Bank would lend money if they could plunder the polozzan or other natural resource.