New Brunswick’s Credit Rating Downgraded – Spin Doctors Called To Action
September 9, 2009 by Ed A. Tor
Filed under Editorial, Featured, NWO Exposed, Provincial News
The Government of New Brunswick has had it’s credit rating downgraded. For all of you that are economically-challenged this DOES hurt you as a citizen of New Brunswick. The lower rating means that the government has to pay a higher interest rate. A higher interest rate means either a cut in services or a tax increase to satisfy the debt.
Moody’s Downgrades New Brunswick’s Debt Rating to Aa2 (Update1)
Aug. 24 (Bloomberg) — New Brunswick had its debt rating cut by one level to Aa2 by Moody’s Investors Service Ltd. because the Canadian province will record a “sizable” increase in its borrowing over four years, the rating company said.
The downgrade will affect about C$11.2 billion ($10.4 billion) of the province’s debt, Moody’s said in a statement today. The rating company also said the province’s rating outlook is stable.
The province’s financing requirements will rise to C$1.2 billion in the 2010 fiscal year and C$1.4 billion in 2011, Moody’s said. This will increase its debt-to-revenue ratio to 150 percent after a four-year fiscal plan is implemented, compared with 106 percent in 2009. The province, home to about 747,000 residents, will record deficits equivalent to 10 percent of its revenue over the next four years.
The credit downgrade was the first action by Moody’s since it boosted New Brunswick’s grade to the second-highest rating of Aa1 in November 2006, up two levels from the previous Aa3.
A phone call to the province’s Finance Department requesting comment was not immediately returned.
To contact the reporter on this story: Alexandre Deslongchamps in Ottawa at adeslongcham@bloomberg.net.
Of course you know that the government will not stand for this. They will fix this problem…right? Ummm…well…queue the Spin Doctors:
Moody’s Investors Service issues rating for New Brunswick (09/08/28)
NB 1234
Aug. 28, 2009
FREDERICTON (CNB) – New Brunswick maintains its leadership spot in having the highest overall credit rating of any province east of Ontario, despite a Moody’s Investors Service revised credit rating from Aa1 to Aa2 issued on Monday, Aug. 24, acting Finance Minister Jack Keir said today.
The province’s rating has a stable outlook, according to Moody’s. Both Dominion Bond Rating Service and Standard & Poor’s recently maintained the province’s ratings at A (high) and AA-, respectively, with stable outlooks from both.
“We are certainly the first to recognize that there are challenges ahead,” said Keir. “We remain committed to the plan we set out in the budget – a plan that is stimulating the economy today, and stimulating medium- and long-term growth by reducing taxes for New Brunswickers, while realizing efficiencies in service delivery. It is a plan that will bring the books into balance and subsequently reduce net debt.”
The main components of the plan tabled on March 17 are:
* a four-year plan to return to balanced budgets;
* $1.2 billion for infrastructure and support for businesses;
* the Plan for Lower Taxes in New Brunswick;
* investing in priorities, including health care and education; and
* responsible management of government expenditures.Moody’s also noted that, “New Brunswick’s credit profile remains firmly in the high investment-grade category,” and that it expects the province’s “tax reform will support long-term economic growth.”
09/08/28
MEDIA CONTACT: Marc Belliveau, communications, Department of Finance, 506-453-4138.
Well it seems that this setback is nothing to worry about. It is business as usual, but really what choice do we have?
All levels of Canadian Government borrow money from banks, at interest, to do their business of governing. All told across Canada, this equates to in excess of one hundred and sixty million dollars per day in interest payments. Here is a little factoid for you. All levels of government, if they so desired, could borrow money interest-free from the Bank of Canada. So the question is why don’t they? It is simple…politicians are in the back pocket of big business.
We could, by law, pay off our debts to these banks with money from the BOC and save ourselves a ton of cash. Money that could be used to eliminate income tax, or pay for university education, help the needy. Get the picture? The current system of governance that we have holds us hostage to Banksters that, at the drop of a hat, can milk us.
So why do we accept this?
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