Global Markets Plunge Over Debt Fears

Did you watch the news today? Did the headline "Global Markets Plunge Over Debt Fears" catch your eye?

These are exceptionally volatile times in the world's economy. Entire countries are being overwhelmed by an inability to repay debt. Monstrous fraud schemes seem to surface almost weekly, corporate collapses are not even considered unusual and governments seem to think the way to solve this is to borrow more money.

They have one small problem, OK one large problem. There just isn't enough money to go around. That means it is a lenders market,its that old golden rule thing, the guy with the gold makes the rules. A natural occurrence in a lenders market is the cost of money going up. Thanks to globalization that means interest rates world wide are going to go up. You can bet they are going more than a little bit.

It is against this backdrop the BC Government has made the decision to go ahead with an unneeded project with a 6.6 billion dollar price tag and a yet to be decided interest rate.

There has not been a single sentence in the media that asks the question "at what price does Site C become no longer viable"?

Price doesn't seem to matter, their conventional wisdom appears to be based in the Field Of Dreams theory of economics, Build It and They Will Come.

Lekstrom's California export market seems a little shaky given that state actually has legislation underway that would prevent buying power from producers that use hydro facilities' capable of more than 30 megawatts. They consider large hydro facilities too damaging to the environment. Site C is outside that standard by a multiple of 30 times.

Campbell claims his goal is self sufficiency and he is just trying to overcome a power importing problem.

One of these guys didn't read the script.

Even at todays still relatively low interest rates the cost of borrowing construction money and spreading it over 30 or 40 years
will easily double the cost of the project. With the extreme instability in the lending markets it is not much of a stretch to say they could be tripled. Shouldn't there at least be an indication where they say oooops this is going to cost to much?

They don't seem to care . 4.4 million people are going to wind up paying for the ticket on one guy's $12 billion ego trip.

This Field Of Dreams has all the makings of becoming a Swamp of Nightmares