My mantra used to be "Dollarize The Economy". Unfortunately that won't work any longer. That means that all of the government debt will have to be paid in American dollars, and the unfunded NIB contributions of $2 billion, give-or-take, will be in hard currency as well, and we do not have the economic output to thrive if we dollarized the economy.
Quite frankly, I do not see how we can economically survive. There will be a devaluation. There will be a bond default. There will be much more unemployment. The shrinking middle class will shrink to even a fraction of what it is now..
The only way to fix this (if time hasn't run out) is to diversify the economy quickly, drastically cut government spending, create non-tourism jobs, and hope to hold on until the new economic measures take effect.
This is second way -- a faster way to economic salvation, and that is to vote PLP, and let Crisco Butt and his merry band of sphincter-boring kleptocrats take the country to a below-zero collapse, default on everything, and rebuild from the ashes. Unfortunately, this path will cause the most harm to the most economically vulnerable.
The third way, is to ask for a bailout from our Chinese overlords, and learn to eat their sum dung.
The SPV or Special Purpose Vehicle of which the government is very fond of using are used to hide outflows from the treasury as well.
An SPV is an entity that issues shares of itself. For all intents and purposes, it is a company (it usually is, or may be incorporated as a limited corporation), So, it needs to be capitalised. For example James Smith needs to collect his six figure income from Resolve. And the toxic loans need to be taken off the books. So the government capitalises Resolve. The big question here, and since there is no Freedom of Information Act, is "Did the government pay any monies to BoB through Resolve when they took the loans off the books?". It is a slick way of siphoning funds from the Treasury to BoB using Resolve as a smokescreen to hide the origin of the money.
The other question is for the $40 million SPV to take up the share issue for BoB to bring it closer to Basel III requirements. We know that the government capitalised the SPV and bought the BoB issue, but I am wondering if they also transferred the shares of the SPV to BoB as well, allowing it to use the $40 million twice -- first as the cash from the SPV and then adding the shares of the SPV to its balance sheet as assets that can be converted to capital. I am not an accountant, but since they are playing footsie with the numbers, anything is possible. It's sad when you are the principal, the tranferee, the owner, and the regulator all in one. Tell me that there is no room for corruption. John Rolle should hang his head in shame and resign.
Sigh ... my biggest dream in life was to work for a Chinese overlord. I even wanted my country to have a leader as a Chinese puppet. Dreams do come true.
The Central Bank has inspectors, and it has allowed BoB to become this way. It is a paper tiger regulator. The Central Bank doesn't have the moral, ethical or fiduciary compass necessary to do its job.
banker says...
I don't drink tea. Pray, tell me your theory.
On Bahamas squandering ‘Caribbean’s best VAT’
Posted 2 February 2017, 10:51 a.m. Suggest removal
banker says...
My mantra used to be "Dollarize The Economy". Unfortunately that won't work any longer. That means that all of the government debt will have to be paid in American dollars, and the unfunded NIB contributions of $2 billion, give-or-take, will be in hard currency as well, and we do not have the economic output to thrive if we dollarized the economy.
Quite frankly, I do not see how we can economically survive. There will be a devaluation. There will be a bond default. There will be much more unemployment. The shrinking middle class will shrink to even a fraction of what it is now..
The only way to fix this (if time hasn't run out) is to diversify the economy quickly, drastically cut government spending, create non-tourism jobs, and hope to hold on until the new economic measures take effect.
This is second way -- a faster way to economic salvation, and that is to vote PLP, and let Crisco Butt and his merry band of sphincter-boring kleptocrats take the country to a below-zero collapse, default on everything, and rebuild from the ashes. Unfortunately, this path will cause the most harm to the most economically vulnerable.
The third way, is to ask for a bailout from our Chinese overlords, and learn to eat their sum dung.
On Exchange control changes to Govt during February
Posted 2 February 2017, 10:35 a.m. Suggest removal
banker says...
I don't. I think that he has a forward looking team.
On BOB warns preference investors: No dividend
Posted 1 February 2017, 1:30 p.m. Suggest removal
banker says...
The SPV or Special Purpose Vehicle of which the government is very fond of using are used to hide outflows from the treasury as well.
An SPV is an entity that issues shares of itself. For all intents and purposes, it is a company (it usually is, or may be incorporated as a limited corporation), So, it needs to be capitalised. For example James Smith needs to collect his six figure income from Resolve. And the toxic loans need to be taken off the books. So the government capitalises Resolve. The big question here, and since there is no Freedom of Information Act, is "Did the government pay any monies to BoB through Resolve when they took the loans off the books?". It is a slick way of siphoning funds from the Treasury to BoB using Resolve as a smokescreen to hide the origin of the money.
The other question is for the $40 million SPV to take up the share issue for BoB to bring it closer to Basel III requirements. We know that the government capitalised the SPV and bought the BoB issue, but I am wondering if they also transferred the shares of the SPV to BoB as well, allowing it to use the $40 million twice -- first as the cash from the SPV and then adding the shares of the SPV to its balance sheet as assets that can be converted to capital. I am not an accountant, but since they are playing footsie with the numbers, anything is possible. It's sad when you are the principal, the tranferee, the owner, and the regulator all in one. Tell me that there is no room for corruption. John Rolle should hang his head in shame and resign.
On BOB warns preference investors: No dividend
Posted 31 January 2017, 6:28 p.m. Suggest removal
banker says...
Sigh ... my biggest dream in life was to work for a Chinese overlord. I even wanted my country to have a leader as a Chinese puppet. Dreams do come true.
http://tribune242.com/users/photos/2017…
On Second Baha Mar SPV asset transfer
Posted 31 January 2017, 4:38 p.m. Suggest removal
banker says...
LOL !
On Bahamas ‘put on map for birding tourism’
Posted 31 January 2017, 12:54 p.m. Suggest removal
banker says...
More accurate if you put an "H" in it.
On Butler-Turner's grassroots bid a shock to Rebel Seven MP
Posted 31 January 2017, 12:50 p.m. Suggest removal
banker says...
The Central Bank has inspectors, and it has allowed BoB to become this way. It is a paper tiger regulator. The Central Bank doesn't have the moral, ethical or fiduciary compass necessary to do its job.
On BOB warns preference investors: No dividend
Posted 31 January 2017, 11:04 a.m. Suggest removal
banker says...
Swing low, sweet chariot. Coming fer to swing me home.
LBT is making it up as she goes along, and these Stupid Seven thought that she had a plan. These guys are so dumb, that potcakes teach them tricks.
On Butler-Turner's grassroots bid a shock to Rebel Seven MP
Posted 31 January 2017, 10:37 a.m. Suggest removal
banker says...
Jumping Jehoshaphat, there is more intelligence in my farts than in anything that Crisco Butt says.
On PM: Minnis is a minor player
Posted 31 January 2017, 10:34 a.m. Suggest removal