Will Ontario's Credit Rating Survive the Wynne/Horwath Deadly Duo?

[Keepitsimple]

With McGuinty's last budget, Ontario's credit rating took a hit - adding tens, if not hundreds of millions to its borrowing costs to service the Provincial debt. Wynne and Horwath have again failed to come to terms with cutting spending. The Drummond Report is gathering dust and once again, no serious attempt is being made to downsize the bloated government. Are we in danger of another credit downgrade? This is a very serious matter that seems to be of no concern to the MSM.

Here's what happened last year:

Moody’s Investors Service has downgraded its credit rating for Ontario.

The credit rating agency announced Thursday that it downgraded the rating to AA2 with stable outlook, down from AA1 with negative outlook.

Moody’s said the government's targets for reining in spending appear "particularly ambitious" and there is a risk the province will not get rid of its $15-billion deficit as scheduled, five years from now.

“The downgrade of Ontario's rating reflects the growing debt burden and the risks surrounding the province achieving its medium-term fiscal plan given the subdued growth outlook, extended timeframe back to balance and ambitious expenditure targets,” said Jennifer Wong, the lead analyst for Ontario and an assistant vice-president at Moody’s.

It also said that there was little chance of the rating improving any time soon, though Moody's did say that if the Ontario government can meet its targets and reduce the provincial deficit that “could put upward pressure on the rating.”

Last years Budget: http://www.cbc.ca/news/canada/toronto/story/2012/04/26/toronto-ontario-deficit.html

[silver72]

Okay, I think most Ontarians would agree with you about the debt , the problem is how to go about it without hurting people who are down and out now, so how do we do it?

[DFCaper]

The problem is that we need to get our credit rating back to where it was, otherwise we are just wasting our tax dollars on Interest, that if we had a responsible government, that we could use to help the down and out.

If we don't cut soon, and we allow the issue to snowball, then the cuts to the down and out will be drastic!!

[gullyfourmyle]

One thing for sure, we won't keep our credit rating unless Ontarians show they deserve it and are prepared to hold reckless politicians accountable. Why would any credit company believe we should have a good credit rating if we are not prepared to hold the money managers and spenders to account for what they do? That is exactly why McGuinty has to be indicted! Whew! Heeellllooooo!

All three of you have failed to grasp an essential point. It is not about the ability of taxpayers to pay it back. It's about making sure the money is used to create wealth and not misspent. The debt doesn't matter if the money is being used to generate new income streams rather than outflow streams. If you create income streams properly, they pay for themselves. McGuinty created outflow streams. His idea of an economy was one that feeds on itself. Your body cannot be well if you are chewing off your own arm. No one is going to give you a pay raise for doing that.

Real estate development is a cannibalistic industry. It destroys land futures and future sources of food. It does not attract new revenue from outside the country. It makes our natural heritage and farmlands smaller inch by inch acre by acre. That is backwards. We have to find a way to compete on the world market or become a slave of it instead of a master. Chewing up land is not sound economic thinking.

If England did that there wouldn't be room for a single blade of grass or a sidewalk anywhere in the country.

Because we aren't producing and exporting anything we are adding debt. You can't service debt if everyone is in debt and the industrial climate is designed to prevent free enterprise. Reducing industrial and business taxes and fuel taxes would get the country's entrepreneur's rolling again. Start-ups don't make a lot of money at first and high fuel costs for instance are a massive road block to start ups. Small business is what this country runs on, yet all levels of government are bloodsuckers sucking small business dry. And then people wonder why the debt load is so high.

You guys must all be students with no work experience not to understand this instantly.