Junk status here we come

This was set in motion way before this FNM government.

And your point? I only see and hear this government. They are responsible for the decisions they make. Is it too much to ask a government to come up with a different response to fiscal crisis than to borrow, borrow, borrow, in a corrupt land with no checks and balances? It doesn't work for individuals and it certainly cant work for a nation.

they will use it to pay mps salary.

What nonsense. Any salary increase is a drop in the proverbial bucket.

Can you just imagine two bozos like K P Turnquest and Marlon Johnson (yes, Marlon of all people!) meeting with international bankers to beg for money?! Neither of these two twits have any real stature, standing or respect of any kind in the global financial community. They may as well stick their butts up in the air and say, "Give us the royal shafting we deserve, but good!" Gone are the days when international bankers would call Sir William Allen and beg for good lending opportunities. Now we must travel all over the world with cup in hand looking for international bankers who are only willing to lend at exorbitant (almost extortionist) rates of interest. This is what incompetent governments do when they are **un**willing to force much needed politically harmful austerity measures on the electorate......they borrow willy nilly like drunken sailors until finally they are forced to let the IMF step in and take control of the country's finances, the country's currency and the way of life and standard of living of the country's citizenry. No, no, no......pleeeezzz say it ain't so!!!!

while I disagree with this initiative entirely at the moment, you're categorically wrong about the two gentlemen.

Wrong about what? That they are about to get royally shafted? Okay, I will concede they are not gay, if that's what's troubling you. But I will concede nothing more!

What the FUCK!?!?!?!?!?

Where's the explanation for why we are borrowing so much. I need a detailed itemized list of where this money is going.

Bahamian voters who voted FNM in the last general election got swung by Minnis! This latest borrowing is proof positive that the Minnis-led administration is no different than the last PLP government when it comes to being unwilling to implement the painful austerity measures so desperately needed as a result of our country's dismal financial mess. This latest anticipated foreign currency denominated borrowing will put our already unsustainable national debt at the suicide level, no ifs, ands or buts!!

this all sounds very scary indeed.. hopefully we will get some clarity on this in due course.. no matter your view, as usual we the citizens can do nothing about this runaway borrowing other than express frustration and concern...

OK!

I have a three year old son.
The odds of him having the slightest chance of a decent adulthood in The Bahamas is practically nil.
We have dug our own graves here.
Don't look outside.
We are entirely responsible for our own demise.
I don't think god herself could help us now.

Well the bill has come due now what ya ga do.That money ha already been spent. Maybe yall need to donate some money to the treasury

Comrades! Minnis and KP, are doing their damnedest best to put all the tax and government fees paying citizens in debtors prison.
The reds KP, is a confused money man’s with beggar’s cup in hand is definably not pursuing it’s time to cut the borrowing strings election promise, Furthermore, the natives are becoming restless over how deeply Minnis and KP, are hell bent recklessly spending and borrowing…. having so far in just six-months either borrowed or committed to borrowing $2 billion… plus spending all the VAT and Numbers Houses Taxes and licensing fees and every last single dollar revenue the public purse has collected since assuming office on May 10, 2017.

http://tribune242.com/users/photos/2017…

....Marlon Johnson?? They can't be serious sending this guy out to borrow close to a billion.

Oh Comrade Regardless, $800 million is no jokin matter. They is inexpiable serious about Marlon and the peoples Billion that has be repaid.{Why bother trying make Marlon and the Billion, up?} And, that's a Billion, with a capital B, and a Marlon, with capital M. This puts them on course to complete the borrowing of a whooping $2 Billion - and all within a six-months time frame.We all goin end up sleepin in cells - up at debtor's' prison.

Shouldnt the accountants first try to find the missing 42 million first before trying to borrow more money and add to the existing debt..?..

Comrade Bogart, wait for 'ACE' step front media podium to 'clarify' that that KP's $800 is not really borrowing - they is just 'floating bond's and that makes the $800 million revenue neutral? I thinks KP is acting likes he runnin finance ministry out he house as some kinds 'home-based' business?

800,000,000/400,000=$2,000 per man, woman and child in the Bahamas. Or around 10k per family. Man, are we gonna have to do some dope smuggling to pay this back!! Last boat in Miami is a slow coach!

Comrade TalRrussell you lost me on the..wait for ACE step front media podium to 'clarify' that KPs ....please explain..normally your language is easy to understand on the articles we all read.

The B Dollar is now so weak........................................
That the future's looking bleak.........................................
The crisis that must be faced..................................................
When our currency's debased...............................................
Is that hungry man is never meek............................................

These fellows do not know what they are doing.

Unlike the treasonous PLP politicians who knew EXACTLY what they were doing.

Dumb birdie,this money is to pay off bills left by the plp

Dream on!

Proof positive that these guys are jokers. The country is doomed for dumbness from the top down.

These clowns want to BORROW $800M for GOD knows what, and simultaneously turn up their noses to the proven financial benefits of marijuana legalization??????????????????????

NO. NO. NO. NO. NO. NO. NO. NO. NO. NO. NO. NO. NO. NO, HELL NO!!!!!!!!!!!!!!

WHY aren't we using what we have to get what we need? Just how ignorant are we going to get?

Of course we should legalise weed. We could take it to new heights. Medical marijuana. New baked goods. Land speculation. Andros would be green from top to bottom. But the powers that be - who don't have one good idea to grow the economy - like to hide behind false morality, or maybe they are afraid that it would change the status quo too much. too many weed connoisseurs who don't look like them, getting rich and threatening their power.

What Bills left by the PLP?????? .......... The least KPT can do is give us an itemized list of the PLP Bills ......... then place them in three heaps ...... Must pay, May Pay, Don't Pay ....... But we just have these nebulous $800 Millions with NO evidence of what it is really for ...... BULLSHIT.

As was explained today: the $800 million is not all new loans. Some of it will be to replace older loans in the form of bonds that have expired. So the net result will NOT be an increase in the national debt by $800 million. It will be LESS! If that adds any comfort. There will be a netting out effect. But it may also mean that some of the older loans will be replaced with ones at higher coupon (interest) rates, since our financial ratings have been downgraded several times since the money was borrowed.

BTW, if you have loans at RBC or any other bank for that matter, check the interest rate! Ask your loan officer to give you a printout of the current interest rate your loan is drawing. Despite the drop in the prime rate, many banks have not dropped the interest rates on loans. Some will tell you they only have to do it when you request it. And worse than that, some banks like RBC, has increased their interest rates on overdraft facilities and other loans to its customers. When you make inquiries they will give you some off the wall excuse and if you don't stand your ground they will charge you up to 10% on a loan that should be around 6%.

"By Kimberly Amadeo
Updated November 13, 2017
On November 9, 2017, the Senate Finance Committee released its version of the Tax Cuts and Jobs Act. The House Ways and Means Committee released its version on November 2, 2017. Both are based on the Trump administration plan presented on September 27, 2017.

The Senate plan cuts the corporate tax rate from 35 percent to 20 percent, but not until 2019. The House plan does so in 2018. By delaying the tax cut for a year, the Senate version saves $100 billion in revenue loss.

Both plans cut income tax rates. They double the standard deduction but eliminate personal exemptions.

Here's a summary of how both tax plans change income taxes, deductions for child and elder care, and business taxes. The Trump administration believes the final bill will look more like the Senate plan.

Income Tax Brackets
The Senate plan keeps the current seven income tax brackets, but lowers some tax rates. It maintains two rates: 10 percent and 35 percent. It lowers rates in five brackets from current levels. Instead of 15 percent, 25 percent, 28 percent, 33 percent, and 39.6 percent, it has 12 percent, 22.5 percent, 25 percent, 32.5 percent, and 38.5 percent. The Senate plan does not have income levels assigned to its brackets yet.

The House plan reduces the number of tax brackets to four and lowers rates. The lowest tax bracket would be 12 percent, down from 15 percent. The middle rate would be 25 percent, down from 28 percent.

The third bracket would be taxed 35 percent, down from 39.6 percent. The top bracket retains the 39.6 percent tax rate. The House plan creates the following tax chart.

Income Tax Rate Income Levels for Those Filing As:
Current Tax Act Single Married-Joint
10 - 15% 12% $0-$44,999 $0 - $89,999
25 - 28% 25% $45,000 - $199,999 $90,000 - $259,999
28 - 39.6% 35% $200,000 - $499,999 $260,000 - $999,999
39.6% 39.6% $500,000+ $1M+

Both tax plans eliminate itemized deductions except for those on charitable contributions, mortgage interest, property taxes, and retirement savings. Current mortgage-holders aren't affected in either plan. But for new mortgages, the House plan only allows the deduction up to $500,000. That will affect home buyers in large cities, where most houses cost more than $500,000. The Senate plan allows the deduction to remain up to $1 million.

The Senate plan keeps the deductions for medical expenses. Currently, people can deduct medical expenses that are 10 percent or more of income. The House plan eliminates that deduction. It was used by 8.8 million people in 2015.

The Senate plan allows students to deduct interest payments on school loans. The House plan eliminates that deduction.

The deduction for Married and Joint Filers increases from $12,700 to $24,000. A single filer's deduction increases from $6,350 to $12,000.

You really need to get a job. Anyone having an interest in the U.S. tax code is quite capable of doing their own monitoring of these developments, usually with their tax advisor(s).

Both plans eliminate the deduction for state and local taxes. That would hurt 44 million people, primarily residents in high-tax states like California and New York. It would add $1.3 trillion to federal revenues. The House plan allows taxpayers to deduct state property tax deductions up to $10,000. The Senate plan allows businesses to deduct state and local taxes.

Both plans double the standard deduction for everyone.

"The deduction for Married and Joint Filers increases from $12,700 to $24,000. A single filer's deduction increases from $6,350 to $12,000.

Both plans eliminate personal exemptions. The exemption currently allows taxpayers to subtract $4,050 from income for each person claimed on the tax return. Families with many children would pay higher taxes despite the increased standard deductions. For example, a married couple with two children making $56,000 a year would pay $68 a year more. The increased deduction doesn't outweigh the loss of their exemption.

Both plans double the estate tax exemption. Current tax law for 2018 exempts the first $5.6 million for singles and $11.2 million for couples. The House plan repeals the estate tax and the generation-skipping transfer tax as of January 1, 2024.That would help the top 1 percent of the population who pay it.

That's 4,918 tax returns, but they contribute $17 billion in taxes.

Both plans eliminate the Alternative Minimum Tax. That helps those who make enough to be subject to it. In 2017, the AMT could affect those with incomes above $54,300 (single) or $84,500 (married filing jointly).

Child and Elder Care Deductions
The Senate plan increases the Child Tax Credit from $1,000 to $1,650. The House plan increases it to $1,600. It also increases the income level so more middle-income families can take advantage of the credit. Both plans preserve the adoption tax credit. The Senate plan allow parents to set aside money for their unborn child in a tax-advantaged account.

The House plan eliminates the marriage penalty as it relates to the Child Tax Credit. Under the current tax system, two single parents receive the full credit up to a combined income of $150,000. But the credit shrinks for a married couple after they earn $110,000. Research shows that subsidizing child care encourages people to work. That boosts income and economic growth.

The House plan allows a $300 credit for each non-child dependent that sunsets in five years. Trump's 2016 plan gave a permanent $5,000 deduction for elder care.

Business Taxes
Both plans lower the maximum corporate tax rate from 35 percent to 20 percent. The House plan kept it for just 10 years to keep costs down. The Senate plan delays the change until 2019. but then it becomes permanent. The United States has one of the highest corporate tax rates in the world. But that doesn't hurt large corporations. Most of them don't pay more than 15 percent. That's because they can afford tax attorneys who help them avoid paying more.

The House plan lowers the maximum tax rate for small businesses to 25 percent. That includes sole proprietorships, partnerships, and S corporations. Many of those are real estate companies, hedge funds, and private equity funds. As a result, 85 percent of this tax cut benefits the top 1 percent of earners. Most mom-and-pop small businesses don't earn enough income to be taxed more than 25 percent. The reduced rate doesn't apply to labor-intensive firms like lawyers and financial services.

Both plans allow businesses to expense the cost of depreciable assets instead of writing them off over the years. It does not apply to structures. This feature expires in five years. The Senate version also allows them to expense all capital investments in 2018. Trump promised U.S.-based manufacturers they could deduct all expenses for new plants and equipment. The write-off would encourage mo"

Why didn't they borrow locally... Anyone someone needs to wake up soon and figure out that both these guys are way out of their depth. I understand it's a running joke among the technical people. Not too funny though cuz they seem to love big money, usually to our detriment.

Thanks John. Very informative.

At the end the f the day the richest people is those who till the soil or fish the ocean. Because at the end of the day if you gat millions and billions but ain’t gat nothing to eat you still a poor you know what. And if Bahamians could only come together for the next five years. Protect what is ours, share what is ours market our resources and share the common wealth this will be the richest and happiest lil country in the world.

Devaluation next !

In other news. FNM have asked for a revolver to shoot themselves in the head before all hell breaks loose. Next topic please.

I have never seen something so beautiful (the Bahamas) screwed so royally. Even black people must admit, the black people that have run this country into the ground since majority rule are a disgrace to black people the world over. Bahamians, you make the African race look bad. Do us a favor and stop seeking public office.

If you don't have industry, you don't borrow period. Otherwise, all borrowing simply goes to maintaining socialism, which is a "no win" governmental model. No industry (manufacturing etc.), no borrowing. Get it through your thick heads already.

Since you want to pull the race card and blame Blacks first r poor management: Up until 1992 the Bahamas had a debt to GDP of 26%. This means that under the Pindling era the country owed $26.00 for every $100.00 it was earning. Today the Bahamas owes $76’pp for every $100.00 it earns and. While it hype debt to earnings has tripled post Pindling is is still less than the debt to GDP of The USA, China, Canada , Singapore and Jamaica that has a debt to gdp of 106%. Yes Jamaica is earning less than it owes and in a dangerous financial state. Remember Greece was in a similar situation and Puerto Rico was declared bankrupt just prior to being hit be hurricanes. The biggest problem in the Bahamas is not really it’s appet for borrowing, but it’s abi to manage its funds properly and to get value for money. Then there are millions due to the country that are not being collected.

That's a very rosy picture of the period up to 1992. It bypasses all the people strung out on cocaine while some people got suitcases full of $100 dollar bills

There is no race card to be played in the Bahamas. It is a matter of simple maths and probabilities. With of a total population of only about 400,000 and a D- average education level, the odds of producing a decent leader or leading political class are close to ZERO. It does not matter whether white, black or green with blue stripes: 400k ignorants stuck on a rock are going to produce the same quality of average leadership: rubbish. That is why I can see no long term hope. Just shades of bad (FNM) and worse (PLP).

So now the rednecks are climbing out of the closet. With all of its resources and over 2 centuries of independence look what America has for president. A country that still wants to hold its black population in slavery and deny their basic human rights, despite that country going around they world and claiming to fight for those same rights. And the drugs that passed through the Bahamas and left suitcases full of hundred dollar bills went where? And exactly what is the D average? It is your ignorance that causes you to not understand it. Two completely different grading systems, one comprehensive and the other objective. Oldfart: If Black Bahamians were dumb and ignorant as your racist ignorance would have you believe why do more than 50% of Black Bahamians going off to colleges around the world excel in the Top quadrant of their graduation class? This is exactly what’s wrong with the Bahamas. Rednecks like you live and dream of Bahamians failing only because those that run the country are black and you and your kind cannot get your grubby hands on the reins of power. Secondly this is why I don’t agree with Minnis changing the requirements for citizenship. For hate filled people like you to ‘create ‘ Bahamians in Old Fort and elsewhere and steal the birthrights of the real Bahamian people. That’s why you are deposed from your own country in any event.

Yo, re-read the post, my friend. Then you will see that I argue that there is no race element to this. This inability to read and comprehend the written word is precisely why we have a D- average.

Minnis needs to station Customs, Immigration and boarder patrol in those water entrances to Lyford Cay and Old Fort Bay and see what is uncovered. Not only contraband and illegals,but the government revenue will definitely increase

Waste of time. Complete waste of time. Your solutions foundation is based 100% on having enough boats to cover every inch of the coast. It's brute force, a waste of money, time and manpower

And don’t forget to check the luggage coming in at Odessy Airport. Persons bring 5 and 6 suitcases for a weekend visit?

**@ OldFort2012** - Enlighten us rock dwellers how the great United States Of America, independent from 1776, having a population of 350 million and university education from 1636 ended up with Hillary Rodham Clinton and Donald John Trump as the best presidential candidates in the entire country.

People like you are not welcome in the Bahamas. I hope and pray I am the next Bahamian you meet!

And I am a what? A Martian?
But let me enlighten you, because my point is exactly the one you made: if even the US, with 350m population produces morons as elements of its political class (4-5 decent Presidents in 150 years), what chance to produce a good leader out of 400k? Almost zero. Simple probabilities, which you study in 5th Grade.

I disagree, we had a great leader in Pindling, he was brilliant, but he got greedy. I know we CAN produce leaders, what I'm not sure of, cause I haven't witnessed it yet, if we can get good leaders who can't be corrupted by money or power

Great idea! In fact everyone could get solid gold shackles.

I disagree about the US politicians being morons Old Fort. Trump has been great for the US economy. I would be thrilled to have Trump as PM in the Bahamas to get our economy moving.

I disagree, Trump has not been good for the US economy, what the US is experiencing now is an upward swing that started from the Obama administration. He's enjoying the benefits. The dangerous thing about Trump is he can remove so much regulations that he could turn the US back into the derivative Cowboy town it was right before the 2008 crash. Everything was booming up to 2007.

I would be fine with Obama for PM of the Bahamas also. We need a savy global player to completely restructure our economy from bottom to top, not these chicken in the bag leaders.

For All you Commenters ......... Minnis is the PM, KPT is the MOF and the FNM is the party in power in The Bahamas.......... No need to whine and pine for Obama or Trump ..... Deal with reality.

So this in addition to Turnquest' first one? So they borrowed nearly $2B and the first year isn't even up?