22 de Feb de 2020

Nacional

Inheritance is vanishing

PANAMA. One of Panama’s most outspoken developers, Sam Taliafero, has come out strongly on his web site about the continuation of the P...

PANAMA. One of Panama’s most outspoken developers, Sam Taliafero, has come out strongly on his web site about the continuation of the Panama Canal expansion, following news that a $2. 5 billion loan is on the way.

Writing on Panama Investor Blog, he says:

I have to admit that this (the loan) has come as a bit of a surprise, but when you consider the source, various multinational banks, it shouldn't. Helping small countries to get into debt beyond their ability to repay is a regular theme for them all.

These loans are for less than half the cost of the project and although there is a 10 year moratorium on the start of payment, the balance of the construction project is supposed to come from increased tolls.

Now the ACP is not sure they will increase the tolls. So, how will they pay for that? Well, by the time that part of the project has to be paid for this administration will be long gone and it will be someone else's problem.

The canal expansion proponents continue to ignore the reality of the economy and in fact cling to their belief that things will work out fine if they continue to the course and build the white elephant.

They fail to realize that America is tapped out as a consumption nation and the containers full of plastic toys, automobiles and home furnishings from China are the last things Americans will be buying for many years to come.

Even if we were to buy into the false belief that the future will be bright by the time the canal is completed, we still have to find a way to pay for the expansion through increased tolls at a time when shipping is falling off a cliff and those in the industry see no relief for years to come.

So why would responsible individuals who care about their country and its people continue to sink her further and further into debt?

Just like the U.S. it is all about politics and money. Right now there is a lot of money flowing in Panama due to the canal expansion. All the buildings, the infrastructure and job creation is a result to a great degree of the world’s perception that the canal expansion is needed and will be built.

If the current administration were to put the project on hold it would spell disaster for their chances of winning the upcoming election. After all, they got a referendum voted on by the people which is a mandate to make it happen, right?

Well, I don't see any information getting out to the population about the reality of the canal now with higher construction costs and diminishing revenues.

If the people knew that they are giving away their inheritance for the false promise of future greater prosperity they would certainly demand it be halted.