Collapse of the VI government?

good question. i have been wondering this also

It certainly appears that it is heading in that direction.

Most likely will collapse under the sheer enormous weight of KING MAPP, the black Humpty Dumpty.

Humpty Dumpty sat on a wall
Humpty Dumpty had a great fall
All the king's horses and all the king's men
Couldn't put Humpty Dumpty back together again!

So fitting.

Does anyone with knowledge or insight have any predictions about what will happen? How will we all be affected?

Well, since the hopsital, power, water, trash, police, fire department and electricity are all run by the government (did I miss any?) I'd say the impact could be significant.

Maybe there will be a chance for the private sector to take over some of these functions and bill people directly. Bypass the government.

Government is always irresponsible.

The VI government owes $2B and there are 100,000 of us. $20,000 per person.

The US government owes $20T and there are 320M citizens. $62,500 per person. The US credit rating was downgraded in 2011.

Repeat after me. cut spending. cut spending. cut spending......

You get what you settle for. Moving is still an option these days.

REPEAT AFTER ME: I must fill my pockets, I must fill my pockets, I must fill my pockets.

Maybe there will be a chance for the private sector to take over some of these functions and bill people directly. Bypass the government.

Government is always irresponsible.

The VI government owes $2B and there are 100,000 of us. $20,000 per person.

The US government owes $20T and there are 320M citizens. $62,500 per person. The US credit rating was downgraded in 2011.

Repeat after me. cut spending. cut spending. cut spending......

"As the Government of the Virgin Islands comes face to face with a financial crisis that threatens to interrupt a vast amount of its operations, Governor Kenneth Mapp has signed an executive order that Government House says limits the use of government-owned vehicles, puts a freeze on non-essential hiring, suspends wage negotiations, and freezes non-essential travel paid for by the GVI."

http://viconsortium.com/business/financial-crisis-mapp-executive-order-suspends-hiring-travel-wage-negotiations-and-limits-use-of-govt-vehicles/

about time. Took him long enough.

I always thought the Bond market was for big infrastructure projects. It seems like a very bad risk when the money is used for daily expenditures. What could come out of that behavior that is positive? it's like living on credit cards. It will have a day of reckoning.

Now they are down to two days cash on hand. Next week we will see what's in the cards. I am kind of impatient and full of anticipation.
Normally the gov would just print more money like many South American countries do. This one can't. They will be forced to redo the budget.

Did everyone get paid today??

Even if the sin tax passes and I hope some of those Senators wake up and vote no, Will they try to float a bond against it to stay liquid? It will cost money to implement a new tax and time before they collect. It's just a drop in the bucket compared to what they need to continue to operate.
That new tax will drive a nail in the tourism coffin. The BVI is extending the runway on Beef island to handle the big planes. St. Martin is beating us in most ways. Really a bad time to ask residents and tourists for more.

I expect the sin tax revenue would be used to appease the bond market that there is revenue to repay more bonds. However as noted only a drop in the bucket of the entire shortfall so may not facilitate more bonds in the short term nor provide any immediate revenue.

Senator Jean Forde Says He Would Not Accept A Pay Cut

http://viconsortium.com/politics/senator-jean-forde-says-he-would-not-accept-a-pay-cut/

“I will tell you straight up, that if this job was paying $20,000 less, I would not run for it,” Mr. Forde said. “Because 1), I was making more than that — as a matter of fact, it is a lateral move for me. 2), It’s because that my efforts, my energy of what I have put in, that I am giving the money’s worth.”

“We have got to be very careful as we send our children off to become educated, and we tell our children that 1), Your parents are not even worth the salary that they’re making, therefore you simply can’t even make that kind of salary,”

Surely there must be plenty of capable young people in the VI that would love to serve in the Senate capacity for a salary of $65K. This guy is just pathetic.

So does anyone think these tax increases are going to bail out the VI government before it goes broke? Long time residents I've talked with think this is just the end of something like 40 years of mismanagement and the feds are going to have to take over same as in PR. And then we'll see some big black slightly used luxury Suburban's on Craig's list.

When you add in the budget cutting bills going through Congress, we're going to be hurting even more. Just a matter of time before the Feds have to take over. And it can't come soon enough for me.

I doubt very seriously that trumplethinskin and his republican congress will
jumping in to bail anyone out, much less the VI.
Don't hold your breath.

Until the VI Government stops borrowing (and now they can't) and starts trimming their wasteful spending, this band aid to a limb that requires amputation will not help. We can expect more taxes and increases but not
a reduction in the size of the legislature, a reduction of 15 senators nor any reductions to theirs and top official's salaries.

Remember, they're spending $12 MILLION, ANNUALLY, just to run the legislature and not a single senator is outraged and speaks out against Mapp's wasteful spending.

I doubt very seriously that trumplethinskin and his republican congress will
jumping in to bail anyone out, much less the VI.
Don't hold your breath.

Until the VI Government stops borrowing (and now they can't) and starts trimming their wasteful spending, this band aid to a limb that requires amputation will not help. We can expect more taxes and increases but not
a reduction in the size of the legislature, a reduction of 15 senators nor any reductions to theirs and top official's salaries.

Remember, they're spending $12 MILLION, ANNUALLY, just to run the legislature and not a single senator is outraged and speaks out against Mapp's wasteful spending.

Lead sponsor of the PROMESA bill was Republican and it was passed by a Republican Congress. As soon as we get close to defaulting (and we will), bond holders will start screaming again and they'll step in again.

Now see what can be done with a little persuasion.

Police Commissioner Reviewing Plan To Consolidate Command Centers In Move To Save Money, Be More Effective