BASSETERRE, ST. KITTS, SEPTEMBER 8TH 2014 (CUOPM) – A prominent Nevisian lawyer in the United States, Mr. Carl B. Nisbett, is crediting St. Kitts and Nevis’ Prime Minister and Minister of Finance, the Rt. Hon. Dr. Denzil L. Douglas for dealing with the Federation’s finances.
In a posting on skn@yahoogroups.com on Monday, the Manhattan-based attorney wrote that he has always maintained that Prime Minister Douglas was more responsible with debt and deficits and finances and stands heads and shoulders over former United States President, the Hon. George W. Bush Jr.
“The only difference is that Bush Jr. had large countries such as China to bail the US out and Bush Jr had a Federal Reserve that the Treasury Department can issue orders for the Federal Reserve to print money and have its member banks distribute the same throughout the financial system. Bush Jr also had an accommodating Federal Reserve. And remember the US have a hefty gold reserve on which it could have relied. Bush Jr. had eight (8) years and but for the resources available to the US he could have bankrupted the US. Even with all the resources, look at the mess Bush Jr. got the US and the rest of the world in,” said Attorney Nisbett.
“Mr. Douglas stands head and shoulders above Bush Jr . when it comes to the fiscal responsibilities of the country,” said Mr. Nisbett.
In his posting, Mr. Nisbett noted that Bush Jr. handed out a hefty tax cut then turned around to borrow to pay for that tax cut.
“Started two wars then borrowed to pay for those two wars. Increased other spending and because he had not enough money to meet those obligations and to meet the servicing of the US debt – he and subsequently Obama had to borrow to service that debt. So tax cuts and two wars led to more borrowing to meet those obligations and borrowing to meet the obligations of servicing the debt. In other words, and it may sound a bit peculiar, Bush jr. was borrowing to borrow more. Then came the “Great Recession” and they had less revenues to meet the above I’ve already mentioned ….and then had to borrow to fund the bailouts and the attempt to arrest that “Great Recession.”
The deficits and debt grew mightily under Bush Jr., which Obama has to deal with. Obama had to borrow mightily to service Bush Jr.’s debt and to fund the growing deficits Bush Jr. had created. He’s got the deficits down but the debt remains high,” wrote Mr. Nisbett.
Recently Acting Federal Financial Secretary, Mrs. Hilary Hazel announced that the Public Debt which stood at 190 percent of GDP in 2009, was 95 percent of GDP as at June 2014 and that the finances of the Federal Government of St. Kitts and Nevis is strong and Public Debt is firmly on a downward trajectory.