The Nelson City council must be deeply intoxicated by debt if it is prepared to triple its debt levels based solely on the transparently wrong justification of debt to equity ratio.
Debt to equity ratio is a business model yardstick, that quite simply does not translate to infrastructural government.
That both the council and the Nelson Mail are prepared to justify such indebtedness simply and solely on such flimsy ideology, is an outright condemnation of their economic nous, rather than a defence or justification of it.
Iceland and all the American and European banks and financial institutions and freddie mac, fannie may, Chrysler and General motors, would all have been complying with their debt ratios, when they went down the gurgler.
Banks and financial institutions are required to comply with debt ratios by law, and if they were not, then the boards of those organisations would all be in jail by now.
Economists universally agree that the global finacial crisis has been brought about by that very reliance on such expanding debt, and as a result that debt argument has been comprehensively discredited to such a degree, that globally organisations are scrambling to claw back debt levels to survive.
Council is seriously out of touch with economic reality in attempting to apply that debt ratio justification and in perversely clinging to such badly discredited dogma.
The critics are right to question why council is adopting the very course of action that has brought the rest of the world to its knees.
About Me
- pinocchio
- This blogspot is born out of a deep democratic concern about the continual political spin and the outright manipulation and suppression of information by local government and local media. In my view that rampant disinformation has become so extreme that it can only be considered grossly deceptive. This blogspot attempts to provide some balancing transparency to that situation. Hopefully it might even help keep the "buggers" honest.