When you need to raise cash, no matter what government it is; no matter what politician proposes it, the fastest way to lose a popularity contest is to be the architect of tax increases. Trust me, no one, but no one likes to pay taxes.

But, present that same need in another format, however, and you can look and sound like a visionary.

It is all in the packaging!

Regardless of how (our) government money was spent, the reality is that we have a real need locally to raise additional revenue to run the infrastructure of this country.

Currently, we are, it appears (but unconfirmed) that we are borrowing from foreign banks in several private placement instruments. We would like more information about these structures, we do know that these loans (more than $400 million) listed on the Auditor General's report need to be paid back in foreign currency at various rates of interest at various maturity dates. Additional borrowings will need to be made to cover other current liabilities.

The oldsters among us cannot intellectually accept owing money. They, in a much more honorable, gentlemen's handshake quality of life, would never consider carrying a debt of that magnitude. If they couldn't pay for anything in a reasonable length of time, they didn't buy it.

Credit (and its overuse) today has become a way of life; so have the consequences of spending beyond one's means.

Why don't we, borrow from us? That's right, since no one wants to be beholden to another, we can borrow from ourselves by lending to our government.

What could be a simpler alternate strategy, more satisfactory, and more collaborative than to float a bond issue in Bermuda dollars, say $400 million with a maturity of five years, paying five percent interest and another offering of $400 million, maturing in ten years, paying six percent?

Why pay interest to foreign banks in hard currency (if this is true) and have that debt dominate our country's balance sheet. Why shouldn't it be us, owning our own debt?

Why shouldn't it be us, earning interest on our contributions?

Could it work?

The City of Hamilton issued capital project bonds from time to time and paid them back in full. Bermudians loved them.

They understood that they were helping progress and being paid a nice rate of interest for their participation.

We have the means.

If every family was allowed to purchase between a minimum of $5,000 and $10,000 bond paying five to six percent, don't you think it would be affordable?

As has been pointed out in several previous articles, we Bermuda residents don't even blink when it comes to spending $5,000 on a trip-trip-trip, a hand tailored suit, or a new Designer Bag.

We have the method.

Our Bermuda Stock Exchange, under the very able direction of BSX CEO, Greg Wojciechowski, has the capability and the local presence. Our internationally acclaimed exchange is uniquely qualified to list debt securities - per the BSX website.

Positioned right in the heart of the city, it has a sophisticated involvement in both domestic and international businesses that most people are not aware of.

The BSX has the networking expertise (and technical resources). My bet is on them for their ability to produce a uniquely Bermudian securities bond offering.

We have the incentive.

Interest rates are still low, and may possibly be so for some time. Certainly, the enthusiasm for local securities is still apparent for the small investor in spite of the last market recession.

When a local preference share offering is over subscribed by more than twice what was allowed ($400 million) that is an indication that small investors are still willing to invest in companies and domiciles that they know.

We will have more accountability and transparency. As credit holders of our own government, we can ask for current information on the management of our budget and the financial state of our economy. We can feel part of the process instead of watching the process. We will have a common goal, that of maintaining the high credit quality rating of our international finance centre.

This is a literal Buy Bermuda, Buy Beautifiul Bermuda bonds - keep Bermuda dollars circulating. The less reliance we have on foreign dollar loans, the more confident we will feel in building our country's future. At the very least, we'll receive some return on our investment rather than no return on taxes.

Both solutions will generate cash but in an entirely different format. So, what should the revenue barn raiser look like: more taxes, or Bermuda residents buying Bermuda bonds? You decide.

Martha Harris Myron, CPA, CFP(US) TEP(UK) JP- Bermuda is an international Certified Financial Planner™ practitioner. She specializes in independent fee-only cross-border tax, estate, investment, and strategic retirement planning services for Bermuda residents with cross-border and multi-national connections, internationally mobile people and US citizens living abroad. For more information, contact martha.myron@gmail.com or 735-4720.