What is even more interesting is they are both right.
Mr. Myers is correct in the sense that if the government does not start to reform its fiscal mess we will not be able to pay the foreign debt when it matures.
Mr. Bowe is correct that with foreign reserves where they are, the threat of currency devaluation is not imminent but could happen down the road when the foreign debt starts maturing and paymetns must be made.
While we might have a couple mango seasons before the problem is kicking us in the shins, D Day may arrive sooner than anticipated if fiscal policy is not improved.
Who would have thought Moody's would be considering yet another downgrade at this point.
Something is amiss, and I believe the political directorate knows more than they are letting on and seem to be doing little to counteract the possibility.
At the ed of the day devaluation will be devastating if it occurs and it behooves the government to correct it's fiscal path and start with cutting expenditure since raising taxes at this point would be like getting blood from a stone so soon after the implementation of VAT.
