Very good point John. I've attached a graph of a representative Puerto Rico Government Bond which shows that the prices declined from 100 cents on the dollar to 60 cents on the dollar and they have stopped paying on the debt.
I would suggest that the Bahamian government devalue the currency while they still have time. All of the B$ debt is owed to Bahamians so it would not impact foreigners, which seems to be all we care about these days.
Moving into election mode the government will now need to inject a lot of debt spending into the economy to secure another 5 year term. They have a good chance of winning as the opposition is in disarray.
VAT has caused a spike in Bahamian inflation which Bahamian are cutting expenditures where they can to balance their personal budgets.
The tens of millions of dollars will be spent by Cable Bahamas, NewCo and the Bahamian government building out Cable Bahamas cell infrastructure, This is a terrible mis-allocation of the Bahamian peoples capital caused by a misunderstanding of the rapid rate of change in technology.
In 3 years, once the cell phone infrastructure is built out cell phones will certainly be obsolete. See link to article:
Cable is a private company so if they want to invest in obsolete technology then its their business and the business of its shareholders and directors.
Unfortunately, like Cuba, the Bahamas government has taken the position that it must own 51% of all last century utility/infrastructure companies such as water, sewerage, electricity, telephone, cell, carbon fuel, aviation and waste disposal. If we add up the losses of all of these public companies over the decades it would probably be well over a billion dollars. The damage to our environment and the health of our citizens is incalculable.
Why is it going to be different with the government's ownership of 51% of Cable Bahamas' cell phone venture.
"Power tends to corrupt, and absolute power corrupts absolutely." Sir John Dalberg-Action.
The recent consolidation of power, control and taxation by the current Bahamian government is truly shocking. Eg: 51% ownership of BTC, proposed 51% ownership of the Cable Cellular service, 51% control of the monopolistic shipping port in Nassau, perennial loss making BahamasAir competing against private aircraft services, legalization of gambling against the wishes of the Bahamian people, pervasive implementation of VAT on almost every business transaction and the proposed implementation of NHI to the detriment of private health insurance providers.
Perhaps the most troubling development is the edict that new government employees must bank at the Bank of the Bahamas. A bank which is in breach of Central Bank reserve requirements and which NI has invested over $100m with no forensic audit of what went wrong. We should not wonder why the deficit continues to grow above dangerously high levels.
We should not therefore be surprised that the administration sees nothing troubling with the disclosure private information in Parliament.
Read the signs and prepare accordingly. Don't be surprised by what comes next.
observer2 says...
http://tribune242.com/users/photos/2016…
On Gov’t adds $1.6bn to national debt over three years
Posted 25 May 2016, 11:36 a.m. Suggest removal
observer2 says...
Very good point John. I've attached a graph of a representative Puerto Rico Government Bond which shows that the prices declined from 100 cents on the dollar to 60 cents on the dollar and they have stopped paying on the debt.
I would suggest that the Bahamian government devalue the currency while they still have time. All of the B$ debt is owed to Bahamians so it would not impact foreigners, which seems to be all we care about these days.
Moving into election mode the government will now need to inject a lot of debt spending into the economy to secure another 5 year term. They have a good chance of winning as the opposition is in disarray.
VAT has caused a spike in Bahamian inflation which Bahamian are cutting expenditures where they can to balance their personal budgets.
On Gov’t adds $1.6bn to national debt over three years
Posted 25 May 2016, 11:35 a.m. Suggest removal
observer2 says...
Not sure the government can afford or has credit to buy gas for the new boats.
On Crooked Island residents see no end to fire turmoil
Posted 19 April 2016, 1:56 p.m. Suggest removal
observer2 says...
fred ga say dey mess'in wit we sovereignty and he parliamentary privilege, as da law don't apply to plp
On US warning over govt corruption
Posted 14 April 2016, 3:35 p.m. Suggest removal
observer2 says...
even da chinesse dem slow'in down dey investments
On US warning over govt corruption
Posted 14 April 2016, 3:31 p.m. Suggest removal
observer2 says...
...how boring, any word from Toggie and Bobo?
On Panama Papers ‘have undermined country’
Posted 11 April 2016, 11:48 p.m. Suggest removal
observer2 says...
....how boring, anything new from Toggie and Bobo?
On Moody’s: Bahamas in ‘low growth trap’
Posted 11 April 2016, 11:44 p.m. Suggest removal
observer2 says...
The tens of millions of dollars will be spent by Cable Bahamas, NewCo and the Bahamian government building out Cable Bahamas cell infrastructure, This is a terrible mis-allocation of the Bahamian peoples capital caused by a misunderstanding of the rapid rate of change in technology.
In 3 years, once the cell phone infrastructure is built out cell phones will certainly be obsolete. See link to article:
http://fortune.com/2016/01/08/facebook-…
Cable is a private company so if they want to invest in obsolete technology then its their business and the business of its shareholders and directors.
Unfortunately, like Cuba, the Bahamas government has taken the position that it must own 51% of all last century utility/infrastructure companies such as water, sewerage, electricity, telephone, cell, carbon fuel, aviation and waste disposal. If we add up the losses of all of these public companies over the decades it would probably be well over a billion dollars. The damage to our environment and the health of our citizens is incalculable.
Why is it going to be different with the government's ownership of 51% of Cable Bahamas' cell phone venture.
On Mobile rival can ‘roam’ BTC for first three years
Posted 4 April 2016, 11:45 a.m. Suggest removal
observer2 says...
This is very positive news. Gilead is a world leader in biotech.
On Ground is broken on $120 million production facility on PharmaChem site
Posted 1 April 2016, 12:11 p.m. Suggest removal
observer2 says...
"Power tends to corrupt, and absolute power corrupts absolutely." Sir John Dalberg-Action.
The recent consolidation of power, control and taxation by the current Bahamian government is truly shocking. Eg: 51% ownership of BTC, proposed 51% ownership of the Cable Cellular service, 51% control of the monopolistic shipping port in Nassau, perennial loss making BahamasAir competing against private aircraft services, legalization of gambling against the wishes of the Bahamian people, pervasive implementation of VAT on almost every business transaction and the proposed implementation of NHI to the detriment of private health insurance providers.
Perhaps the most troubling development is the edict that new government employees must bank at the Bank of the Bahamas. A bank which is in breach of Central Bank reserve requirements and which NI has invested over $100m with no forensic audit of what went wrong. We should not wonder why the deficit continues to grow above dangerously high levels.
We should not therefore be surprised that the administration sees nothing troubling with the disclosure private information in Parliament.
Read the signs and prepare accordingly. Don't be surprised by what comes next.
On Alarm at MP’s use of emails
Posted 29 March 2016, 3:21 p.m. Suggest removal