Something to Watch Closely – Puerto Rico Demands Federal Taxpayer Bailout…

If you have ever looked deeply into what created the financial pension crisis in Puerto Rico you’d have to admit the potential for a federal bailout is beyond absurd.  But that won’t stop the insufferable liberals from proposing such a possibility – and watch closely as House Speaker Paul Ryan begins to discuss the “outcome for the bond-holders”.

Former presidential candidate Marco Rubio already stated he was in favor of a bailout, albeit with conditions; and we know the Democrats will always look to gain political leverage through the advocacy of the fiscally stupid…. 

puerto rico bailout

NEW YORK — Over a dozen activists descended on a building where Federal Reserve chair Janet Yellen and her three living predecessors were speaking on Thursday to demand that the Fed bail out Puerto Rico’s cash-strapped government.

The demonstrators, who are affiliated with the progressive Fed Up coalition, distributed Puerto Rican flags and empanadas as Puerto Rican music played outside Manhattan’s International House, a student residence. Yellen was there for an extremely rare panel discussion alongside past Fed chairs Ben Bernanke, Paul Volcker and Alan Greenspan, who participated via videostream.

The activists were joined by Puerto Rican lawmaker Manuel Natal, who was in town to participate in a panel discussion hosted by City Council Speaker Melissa Mark-Viverito on Friday.

“They have two mechanisms under their authority to help Puerto Rico: one is to provide a bailout to Puerto Rico similar to the one they did to banks, the same banks that are now in Puerto Rico making a fortune out of our fiscal situation,” Natal said. “And the second would be to buy our debt” and charge Puerto Rico interest rates that are lower than the market would offer.

The activists claim that since the Fed had the authority to buy trillions of dollars of bad debt from Wall Street banks after the 2008 financial crisis, it can do the same for the debt of Puerto Rico.  (read more)

[…] Today, TRS and the other main pension fund, the Employees Retirement System (ERS), together covering about 330,000 workers and retirees, are virtually penniless. Their combined unfunded liability totals $43.2 billion. With about $1.8 billion in assets to pay $45 billion in liabilities, the 96 percent combined shortfall is among the biggest of any U.S. state pension this century, and probably the biggest ever for pensions “of this size and scale,” said Keith Brainard, research director at the National Association of State Retirement Administrators.

[…]  Last December, creditors griped privately when Puerto Rico doled out about $120 million of the bonuses even as it missed some minor bond payments.

Christmas and medication bonuses, ad hoc cost-of-living adjustments, death benefits and other perks were expanded periodically throughout the 1980s, ’90s and 2000s. These now account for nearly $3 billion in liabilities, according to Milliman’s latest actuarial report, even after reductions under the 2013 reforms.

Rafael Hernandez Colon, president of the Puerto Rico Senate during Ferre’s administration, said his party went along with the Christmas bonuses “for political reasons” to avoid being labeled obstructionist, but did not consider it good governance. “We looked at it as giving candy to children,” Hernandez Colon said in an interview at his foundation in Ponce, a city on Puerto Rico’s southern coast.

Here’s a generally good outline detailing the historic problems that are systemic within the Puerto Rican financial problem. – SEE HERE –  

Bailout Soup

Beware of “Omnibus” Ryan !

Advertisements
This entry was posted in Bailouts, Big Government, Big Stupid Government, Election 2016, Legislation, media bias, Occupy Type Moonbats, Professional Idiots, propaganda, Tea Party, Uncategorized. Bookmark the permalink.

128 Responses to Something to Watch Closely – Puerto Rico Demands Federal Taxpayer Bailout…

  1. Bull Durham says:

    Lease the entire island to the Chinese. They will swarm all over it for tourism if there are gambling casinos and six-star hotels. In thirty years it will be a paradise of riches. New ports, new airports and a modern infrastructure will be built. They will have Puerto Rico soaring in a few years.

    Liked by 6 people

  2. mickie says:

    I’m seriously ready to blow a gasket.

    Liked by 9 people

  3. Joe Collins says:

    What does Puerto Rico have to sell? There might be bidders. Sale of assets would raise money to pay bondholders. No bailout needed. Problem solved. Oh, and quit spending so darn much money.

    Liked by 3 people

    • hocuspocus13 says:

      TOURISM

      Liked by 1 person

      • WSB says:

        As my better half always says, Puerto Rico is great…as long as the Puerto Ricans are not there. So, with 600 landing in Florida every day, maybe our government should just invest in formal stationary, inviting all US citizens to their own Revolution.

        I saw this on a morning show and almost threw a coffee cup at the TV.

        #DARKCOLDANGER

        Liked by 1 person

    • starfcker says:

      No different than Greece, or Miami. Send all jobs to Asia, everyone gets a nice government job, or disability, or foodstamps, whatever, and lives high on the hog until the bill comes due. If the PTB want it to continue, they will bail them out. It’s only counterfeit money anyway. Or we could go Trump, and focus on earning again.

      Liked by 1 person

    • lou Ann Watson says:

      i’m not sure, but i do know that asa whole, puerto rico is the largest group of people collecting permanent disability benefits from the u s government

      Like

  4. Here in Utah we have been swarmed with radio ads against the bail out.

    Liked by 3 people

  5. xctrekker says:

    forbes article on how puerto rico has been spending money, knowing it can’t pay it back, and having been planning to declare bankruptcy and expecting a bailout of their debt

    Bankruptcy Is Wrong For Puerto Rico
    The island of three million inhabitants has wracked up over $70 billion in debt! Over half the population works for the government. Economic policies have kept wages artificially high and corporate interests have been driven out of the island to find friendlier government policies. According to new data shared by Governor Alejandro Garcia Padilla’s administration this past Monday, the commonwealth won’t be able to make $23.9 billion in debt payments throughout the next decade.

    The solution that is being pushed by the left is to bailout the island without forcing radical reforms that will shrink government and provide a friendlier business atmosphere.

    http://www.forbes.com/sites/chrisversace/2016/01/20/bankruptcy-is-wrong-for-puerto-rico/#311f0a336a23

    Liked by 5 people

    • Sentient says:

      Bankruptcy is exactly RIGHT for Puerto Rico – as it would be for Greece. PR should totally repudiate its debts. Bond holders would get the due penalty for their error of lending to a government that wasn’t good for it. No one would lend to PR again for a long time (if ever) and they would have to live within their means. If that means curtailment of pensions (and it does), tough crap. Problem solved. No “bailout” needed. A bailout just transfers the loss from the current bond holders to the US taxpayer. There should be no bailout of PR…or CA or IL or anywhere.

      Liked by 8 people

      • Linden says:

        Amen. PR has ALWAYS been a basket case, this is just the death rattle. Fresh statrt. I guess the solution qill depend on how politically connected the bondholders are.

        Like

    • SeekerOfTruth says:

      Now this is a topic near and dear to my monetary heart as I am a huge bond trader and now hold municipal bond funds or bonds for income. But nothing from Puerto Rice and nothing from Detroit.

      PR is the US’s little Greece. socialist, 55-60% public workers, spend way more than they take in so they issue municipal bonds all the time to get money, everything is falling apart and tourism their only money maker is slowing.

      PR has huge bond payments due in May and July of this year. They cannot make them at all now without bailout. So the pot is boiling and something will boil over by mid summer.

      Bailouts never fix anything but merely teach them that making the correct hard decisions can be avoided. This is true in the US where the US FED has essentially bailout the US gov for so long now they never face making the correct hard decisions. That way then cna get re-elected.

      PR and the US are both stealing from their futures and the time is almost up, Central banks in the world who are all economic socialists have propped up bad government policies for too long.

      –immigration and PR
      Where do you think the PR people are moving? In to the US in masses. I have several running buddies here in the US from Puerto Rico. A few years back saw them at a race and they said they were moving back home (PR). So I did not expect to see them again and said good-bye. Well in another year they were back in US. Saw how bad it was there.

      By the time PR gets really stressed I expect the island to be 40-50% drained of its people legally moving into the US while they can.

      Like

      • Sandra says:

        I know there are some PR residents who receive US welfare but live in PR because it’s cheap there. I guess welfare pays the same regardless of where you live? They come to the US for medical care, then go back.

        Like

        • SeekerOfTruth says:

          tx. I did not know all that. I knew they came to US for serious medicine but the welfare checks being sent to PR I did not know.

          So bottom line: PR will become a tent city of US welfare recipients.

          The only real long term solution is to cut them from ties to US. Force them into independence.

          Like

          • Linden says:

            I am SO SICK of all these people who think that they can borrow and spandex and live off the productive labors and thrift of others!! I have a prepaid cell to save money, and yet I know that I am ppayin for 10 other people’s Obamaphones through my taxes. I pay for other people’s food stamps, and rent, and God knows what else. I DON’T WANT TO PAY FOR ANYONE ELSE, ANYMORE! MAKE YOUR OWN WAY. PAY YOUR OWN RENT. SAVE YOUR OWN MM9NE!NSTOP LEECHING OFF OF ME! BE REPONSIBLE! And SPEAK ENGLISH!

            Liked by 1 person

        • not2worryluv says:

          90% of folks in the USVI are on the welfare rolls as well. St. Thomas, St. Croix and St John received millions of $$$ from the Obama stimulus program to improve their roads. Meanwhile the US Taxpayer is footing the bill and driving over potholes and structurally unsound bridges.

          Liked by 2 people

      • SeekerOfTruth says:

        PS. PR muni bonds are currently running at about 40% of original value. So if they had to be sold you only get 40% value now. But for now they are marked at full value on the books. The only solution is to restructure bonds to 25% value now across the board as their new book value and then restructure government fiscal policies to require less deficit spending. So then they do not have to keep issuing debt to make government payments. And then break-up public worker contracts and do other things to reduce government obligations.

        The value of the PR bonds will move down to 25-30% by mid summer with failed payments coming unless they get a bailout.

        Without someone like Trump the above scenario plays out in the US sometime in the not too distant future. It is coming to Europe sooner than US.

        Like

      • Angry Dumbo says:

        PR will get a bailout, same as Greece. There will be no more bankruptcies as they have been formally understood. Central banks do not go bankrupt. Hence there is no legal or political downside to giving debtors all the paper they need to keep the farce going.

        Like

  6. bertdilbert says:

    All pension systems are basically bankrupt, some just more than others. So what happens to PR may be key to what happens everywhere else.

    Big picture: The Western nations are bankrupt and printing money so they can keep the appearance of “growth”. The Eastern nations are dependent on the Western nations to be able to continue to buy their exports. You cannot diversify yourself out of this situation. Pension funds are invested in stocks and bonds in some 60/40 ratio. Interest rates are held low so the bond portion does not earn projected return rates that solvency of the funds need. The stock portion is overvalued based on the low interest rates.

    This is all going to go “KABOOM” at some future point when reality comes to the table.

    Liked by 8 people

    • WSB says:

      Trump says this and everyone laughs at him.

      Liked by 3 people

      • bertdilbert says:

        So pretty much we are going to need a president that understands bankruptcy and the only candidate with that kind of experience under his belt is Trump! The next time someone brings up Trump and BK, Trump should turn it around and turn his knowledge into an asset, not the perceived liability people like to label it with.

        Like

    • lou Ann Watson says:

      wait until the smoke and mirrors in california disappear

      Like

    • Bruce Fauth says:

      Will be interesting to see bond rating after the full implementation of the new accounting standard for state and local governmental units. They will have to report the full actuarial liability of their pensions and other post-employment benefits they’ve been offering. When that was done on the corporate world a few decades back, GM wiped out billions of their equity. Most governmental entities don’t have any excess of assets over liabilities even now.

      Like

  7. Chance says:

    “…most residents do not have to pay the federal personal income tax.” So why would we bail them out? NO to statehood, NO to any and all bailouts!!!

    Liked by 14 people

    • bertdilbert says:

      If Wall Street can make billions on a bailout then by all means there will be a bailout. Washington dances to the tune of the money, not the tune of the voters.

      Liked by 6 people

      • Sentient says:

        It’s not so much that Wall Street will make billions as that they won’t be forced to take the billions in losses that they so richly deserve. Your larger point about dancing is, of course, correct.

        Liked by 2 people

  8. alliwantissometruth says:

    I agree with the bail out. America should bail out & give them their independence. Absolute idiocy making PR an American territory. Nothing but a money sucking bastard child

    Liked by 10 people

  9. JeremyR says:

    We would be smart to grant them independence. Limited autonomy for a few years, then totally free in ten or so.

    Liked by 2 people

  10. Sentient says:

    Most of the “bad debt” the Feds bought after the housing crash was not – contrary to Bernie Sanders – that of banks. It’s was the debt of Fannie and Freddie. Fannie Mae mortgage-backed securities said right on page one “NOT guaranteed by the full faith and credit of the United States government”. Investors in those MBS’s (whether foreign or domestic) should have taken the full hit back then. Hank Paulson is to blame. Investors in Puerto Rican bonds should take the full hit. No bailout.

    Liked by 12 people

  11. David says:

    The trouble with socialism is you eventually run out of other people’s money

    Liked by 13 people

  12. georgiafl says:

    Puerto Rico needs to look elsewhere for a bail out – the USA be slap broke and in debt up to our eyebrows.

    The USA needs to quit giving foreign aid to every sleazy 3rd world dictatorship whether by employing their masses (legally or illegally) or by shipping boatloads of US dollars to them.

    We need to practice good fiscal policies and teach the other nations to do the same.

    Let them bail themselves out by getting businesses to show them how to promote industry, businesses, etc….of their own, not tempting our businesses to move there.

    Liked by 5 people

    • yakmaster2 says:

      America no longer teaches and/or inspires other countries, WE ENABLE THEM TO CONTINUE BAD FISCAL POLICY AND CORRUPTION.
      The globalist goal is to bring all to the lowest common denominator, then institute Socialism in the name of “social justice.” (True Communism would be a horror for the individual Billionaires and huge corporations).

      Liked by 2 people

      • georgiafl says:

        Responsible fiscal policy, stopping fraud and corruption, decreasing welfare, increasing work ethic and GDP would restore our country and Puerto Rico to fiscal health.

        US also suffers from bad trade deals. We are being abused, used, victimized by other countries.

        Like

        • rmnewt says:

          Recall Roosevelt Roads Naval base and gunnery range in PR and was pushed out by the locals. It was a great source of income and jobs for the island. Its now a “ghost town” and they just want a hand-out. Like Detroit and so many other examples we fail to learn that the prog agenda is poison to fair markets, any work ethics, and healthy growth.

          Liked by 1 person

  13. Apfelcobbler says:

    Even FALN now wants a bailout!

    Like

  14. Sundance we’ve been bailing out Puerto Rico bond holders for a while it never ends I guess.

    The Obama Administration’s Backdoor Bailout of Puerto Rico
    http://www.taxanalysts.com/taxcom/taxblog.nsf/Permalink/MSUN-9FRGEN?OpenDocument

    ‘Backdoor bailout’ boosts Puerto Rico’s revenues
    http://www.reuters.com/article/usa-puertorico-tax-idUSL2N0LF1BE20140210

    The investors with a stake in the outcome are some of the wealthiest people in America. Many of them have also taken on an outsize role in financing political campaigns in the aftermath of the Supreme Court’s 2010 Citizens United decision. They have put millions of dollars behind candidates of both parties, including Hillary Clinton and Jeb Bush. Some belong to a small circle of 158 families that provided half of the early money for the 2016 presidential race.

    http://www.nytimes.com/2015/12/20/us/politics/puerto-rico-money-debt.html

    Liked by 8 people

  15. David says:

    Puerto Rico should negotiate with the bond holders and get them to take haircuts problem solved.

    Of course the debt is held by wall street banks and they don’t wont to take haircuts so instead they use lobbyists in DC to have the federal government bailout them out.

    See our this wonderful system works.

    Also remember that Paul Ryan is a hardcore “True” Conservative it’s why he wants to bailout Puerto Rico.

    Liked by 1 person

    • bertdilbert says:

      Most likely they will find ways to string it out until after the election for the big bailout but not before a “crisis” has been created in order to enrich large campaign doners. Nothing new here.

      Liked by 2 people

    • Sentient says:

      Here’s how PR should negotiate: “hey creditors – we’re not giving you any of your F’ing money back … ever”. What are the creditors going to do – foreclose on the whole island? Sovereign debt is basically unsecured. Lenders need to be made to understand that.

      Liked by 3 people

      • adoubledot says:

        We’re not giving you any of your F’ing money back…ever.
        We’re not going to pay for your F’ing wall…ever.

        I’m sensing a pattern here.

        Like

        • Linden says:

          One of the reasons that the old European banking houses almost went bankrupt a few centuries back was that they lent to governments, which ALWAYS overspent and created unsustainable wars, then would impoverish its people with taxes, and then not pay back their debts. The modern twin is the central bank and its incestuous relationship with politicos, which enables deficit spending, unwise wars, and impoverishes the people when the government can’t pay its debts. Nothing changes, because human nature, and human foibles, never change.

          Like

  16. Burnt Toast says:

    PR is a child of the Federal Government.
    There is no “bailout” it is just part of the Federal Debt.

    Like

    • Sentient says:

      No it isn’t. PR’s debt is its own. No claim on US “full faith & credit”. Don’t make the same mistake we did with Fannie and Freddie debts – taking them on when we didn’t have to and shouldn’t have.

      Liked by 3 people

      • rashamon says:

        Please stress this at every opportunity, Sentient. Many are not aware that, for instance Fannie/Freddies, the Fed, etc. are private companies used by the public, but not necessary acting in the best interests of the taxpayer. Same goes for PR’s finances, which have been horrible for as long as I can remember and are now being sucked in a part of the hedge fund churning-for-dollars scams. Check your mutual funds for danger zones.

        Puerto Rico can razzle-dazzle visitors with its casinos and beachfront hotels, the tropical rainforest, the charm of Old San Juan and the music, but behind the curtain is a population lacking education, job opportunities and a future. The natives get restless; remember the FALN attacking the House of Representatives in 1954 and multiple bomb attacks during the 1970s and 80s. Bill Clinton, of course, pardoned those responsible before in left office in 1999.

        The U.S. mainland beckons. West Side Story continues as, in my experience, there is no love affair among Puerto Ricans, Cubans, Mexicans and other Latinos which have truly different origins and cultures.

        http://www.findingdulcinea.com/news/on-this-day/March/Puerto-Rican-Nationalists-Launch-Assault-on-U-S–Congress.html

        Liked by 1 person

  17. whodoneit says:

    Puerto Rico has no more right (even less so) to ask for a taxpayer bailout than do any of the liberal run states that have committed economic and social suicide. They screwed themselves. Lack of responsible government has it’s price and the rest of the country should not be expected to pay the ticket.

    Liked by 6 people

  18. emet says:

    In other news (unrelated) the Bureau of Printing and Engraving is hiring more forklift drivers

    Liked by 7 people

  19. yohio says:

    Pay Puerti Rico to take ALL the Syrian Refugees. We people are such pushovers in this country. People act like mad about Boehner, Ryan and Elite during first bail outs, then fail to stand up when these pompous azzes pass the Omnibus. Now Ted backs the establishment and Ryan and so called Conservative idiots back him. It’s a bunch of people whining, nothing more. Now they will bailout Puerto Rico, these same idiots will whine and moan, then vote back in everyone of these politicians. Nothing changes and won’t until people decide to stand-up! Hopefully through supporting Trump and peaceful pushback we can fix things, but if Trump gets screwed and we can’t do it peaceful, WE need to do whatever it takes to fix this country, and use all means to accomplish that, all of them need to be gone from Washington

    Like

  20. John Galt says:

    This looks like yet another opportunity to funnel taxpayer money to banksters.

    Liked by 1 person

  21. rinokiller says:

    I didn’t know Puerto Rico was officially part of the United States!

    Like

    • emet says:

      yep, its a commonwealth. And the big problem, from a security standpoint, is that it, along with the 50 states, is within the Customs territory of our nation.

      Like

      • yohio says:

        The last part about Customs didnt know, so not a good idea to seen refugees there but then again we’re being made to take them here anyway.

        Like

    • Sandra says:

      Puerto Rican citizens are US citizens and eligible for welfare and social security disability payments, isn’t that great? 😦 We can change that though. Their citizenship was granted through a law, and it can be reversed.

      Liked by 1 person

  22. skifflegirl says:

    I wrote an article at Detonite on vulture hedge funds and how they have ruined cities and countries like Detroit, Argentina and now Puerto Rico. Puerto Rico was once considered the jewel of the Caribbean, it had a GDP rivaled only by Hong Kong and Australia. Now, with the anti bankruptcy laws, it has become a haven for the rich. They make money off of the backs of the starving people whose government has instituted severe austerity measures BECAUSE OF THEIR OWN GREED AND MISMANAGEMENT! Since the government cannot use bankruptcy like we can, they HAVE to pay the vultures by whatever means necessary. A half a million people – on an island with a population of only a few million – have moved to Florida to escape the poverty. A doctor a day has left the island, meaning that hospital waiting rooms are so overcrowded they close down before the sick and injured are even seen. Sure, bailout Puerto Rico so they can do it all over again. I’m sure Paul Singer and George Soros are tired of waiting for THEIR money and would love to do it all over again.

    Sorry if I covered other people’s points upthread, but this is so disgusting I had to speak my mind!

    Like

  23. wheatietoo says:

    The Fed Govt wants to be able to keep borrowing money.
    They’re afraid if they allow Puerto Rico to default, then lenders will worry that buying Govt Debt is too risky…and stop lending.

    Same reason they’re bailing out the profligate blue states that are deep in debt and failing.
    They don’t want to spook lenders.

    So the bubble just keeps getting bigger.

    Liberal policies don’t work.
    Punishing businesses kills jobs…and governments who do this go broke.
    It’s just…that…simple.
    They borrow money to hide the fact that their policies have failed.

    Liked by 1 person

  24. Beenthere says:

    Puerto Rico Is not the only government having problems with funding the state pensions. Many of the 50 states have the same problem. I can tell you that in the state of CT & our next door neighbor NY, politicians are looking for ways as in more taxes to prop up these very expensive & generous pension funds esp those funds for the teachers.

    Like

    • Pensions so far have remained a State Issue. Puerto Rico is not even a State.
      States have tried already to get or hint at bailouts.
      Bankrupt the states and they will be totally dependent on Fed Money, game set match

      Puerto Rico look at Greece you’re fate is there.

      Like

      • Beenthere says:

        NYC successfully got a bailout from the feds in the 1970s. Feds can bailout anyone it wants.

        Like

        • NYC is not a state.
          They also bailed out a few private companies. they are not states.
          I said STATES.
          They didn’t bailout Detroit.
          This is a different Time than the few they have done that were small.
          The people in the funds in Puerto Rico were chasing high risk. Go look and see how much interest they said they would pay. LOL, my father had a salesman from a brokerage house put him into some Puerto Rico bonds without him knowing.
          Hint its about 8 percent for many, thats right 8 percent. High risk Junk.

          And the amount of the “bailouts” then was nothing compared to the funds we are looking at.

          Like

    • bertdilbert says:

      The $15 minimum wage is basically a tax increase. The fun starts when the $15 minimum wage states need a bailout from the rest of the US.

      Like

  25. Joe's Dad says:

    Paul Ryan would say: “OK! What’s another trillion or so of money that we don’t have!”

    Like

  26. They voted for Rubio little. Let him give them his super pac millions!

    Liked by 1 person

  27. PaulyWalnuts says:

    Paul Ryan must go. ElectNehlen.com to donate. Thank you.

    Like

  28. georgiafl says:

    So, let the Clinton Foundation bail them out….all that money is ill-gotten gains anyway, bribes from foreign governments, billions from the State Department that went ‘poof’ and the money donated to the Haiti Relief Fund entrusted to the Clintons, that was meant to help Haiti after the earthquake.
    Seize Bill and Hillary’s assets and send them to prison.

    Still wondering what happened to Ghaddafi’s gold when Libya was invaded.

    Never mind the elusive WMD; did Sadaam Hussein have a similar huge stash of gold? Who got the wealth of these potentates?

    What kind of assets does Assad have that our corrupt leaders want?

    A year or so ago, Putin bought over 500 tons of gold to stabilize the Russian economy because US leaders with the help of S0r0s are destroying the US Dollar and economy.

    Is that why the Panama Papers came to light? To remove Putin, destabilize Russia and get their blood-stained hands on that gold?

    Is there still any gold in Ft. Knox?

    Much greed and evil amongst our leadership for generations, for well over a century.

    Like

    • georgiafl says:

      Comment went into moderation…. Was it the mention of gold….or Saddaam Hussein and WMD?

      Like

    • Linden says:

      Not to mention Ukraine’s gold. Lots of uncovered short contracts on the Comex/CFTC. Gold cleaned out from the GLD. Somebody has to cover, so it just gets stolen when countries get upended.

      Liked by 1 person

  29. Centinel2012 says:

    Reblogged this on Centinel2012 and commented:

    This could be why the FED is having a special meeting on Monday April 11th.

    Like

  30. Sandra says:

    If we want to keep PR, and it’s probably a good idea so that nobody else takes it, then maybe a better solution is to help their economy. There’s no good reason why that beautiful tropical island cannot be an economic success. It could be a tropical Las Vegas, a top tourist destination. You can travel there without a passport, so easy. Maybe we should offer incentives to resorts, hotels, golf courses, etc to built top notch properties down there. It’s just an idea, I haven’t thought it fully through, so don’t flame me too badly if you disagree. 🙂

    Like

    • Linden says:

      Gotta get rid of the politicians first, they are so corrupt. Look, everywhere the Spanish colonized have very corrupt political all systems. Need some Swiss-style politicians to bring it back to something sane.

      Like

  31. rmnewt says:

    We may be witnessing the natural dissolution of democracies. Helped by a corrupt media, banks driving for fiscal control, and politicians preying for total power the lazy and stupid majority elects to subjugate and destroy liberty and happiness for all.

    Liked by 1 person

  32. The Heritic says:

    No bailouts. No more too big to fail.

    Liked by 1 person

  33. TheLastDemocrat says:

    Here is one way to look at it. Tell me how things are not quite aligned to make this work.

    A bunch of investors known to heavily support re-election campaigns and their buddy elected officials come up with this idea:

    Let’s have a bunch of spending go through PR. Mostly bonds, food stamps, sweetheart deals for the pharmaceutical industry. etc.

    Keep each deal separate so no one sees the big picture.

    Cut in the local officials here and there.

    Pump up-front money into PR on losing propositions, all the while with side streams coming back to us down various avenues.

    –There will be no return on investment. Understood.

    When the bonds eventually yield nothing, have those same politicians support a bail-out – we all get our investments back.

    Everybody in on the deal makes money. No one in PR objects because they are either getting a cut of the money, or they are getting the tax break, or the construction project, or the food stamps.

    The individual American about to file his taxes this month has no idea he just financed all of this. What is the difference between him paying $6,000 in fed taxes and $6,100? What is the difference between his kids being saddled with a trillion versus a trillion plus a billion in debt? He will never know, and never object.

    Liked by 1 person

  34. TheLastDemocrat says:

    I have posted this view about PR before, maybe a year ago.

    PR should have absolutely no problem being on the up-side. They have so many things going for them.

    They have natural resources. You can farm and graze. The mountains and regular storms bring water that can readily be made potable. If water ever became an issue, you could install a desalinazation plant.

    They produce high-mark-up products that are easily exported: starting with rum and cigars – these industries require land, modest production facilities, and labor. They have high mark-up and there are endless marketing and new-product development opportunities as time goes by, so your industry never dies.

    They have natural ports all over the place, including the impressive port in San Juan. Whatever they don’t have locally can easily be shipped in from continental U.S. or Mexico.

    They have smashing tourism. Cruises can stop by for the afternoon, allowing tours of Old San Juan or El Morro, or PR can be a cruise destination. You can fly in easily. You can tour the entire island without much trouble. Fishing and sailing are superb, with numerous smaller ports all over the place. You can tour the rainforest, El Junque, easily.

    So, beyond just sustaining local population and industry, you have the formula for a steady influx of money.

    On top of all of that, you have great people. They are largely Catholic, family-oriented people. The older generations know how bad Castro’s revolution was in neighboring Cuba, and many of the older generation fled Cuba. (Unfortunately, that generation is passing away, but their children are there.) So, they should all be wise enough to avoid Communism. They are amiable, clever, and hard-working. I don’t understand where the “Manana” culture comes from (put a tilde over that first n in manana), but they seem to accomplish stuff despite their astoundingly lax regard for timeliness or punctuality.

    What more would you need for a place to be prosperous?

    Folks, this is the answer every time: Good Government.

    PR has no excuse for being massively in the red, except corruption. I know second-hand on pretty good authority that side-deals are endemic to most anything getting done via government contracting.

    Also, we from the U.S. have really practiced our feel-good but debilitating paternalistic welfare there. We had a huge sterilization movement there – the argument is that having fewer kids will bring El Pobre up from poverty. Where did the get El Gente? Frankly, it got them nowhere, overall.

    They have a poverty culture that fosters petty crime and makes it a chore to navigate around PR – even an attempt to enjoy the best beaches can be disturbed by petty “chain-snatchers” whose tool of the trade is a simple knife. It is difficult to “carry” while in swimming trunks, so you are at their mercy. They also embraced the idea of “mainstreaming” the poor by mixing public housing into regular residential areas, bringing everyone down together. At least this fostered the economy by giving business to those installing the gates for gated communities, and giving good doormen some employment prospects.

    All of this tragic story resulted either from unintended consequences, or was the plan of the power brokers all along. You decide.

    Liked by 1 person

  35. Gary says:

    My first thought was…”Disney”. Let them purchase it as a destination for their cruise ships and an island theme park.

    Like

  36. jrobinson says:

    I don’t understand why no one knows this…Puerto Rico is going to be a state in 2020. Soros successfully split the ballot in 2012. It’s a done deal. They’re already selecting reps and have a target of 2020 for statehood.

    Like

  37. seventhndr says:

    Scott Ott is no friend of Trump, but he nailed Puerto Rico in this satire bit:

    Like

    • Concerned says:

      37% of Puerto Rican households receive federal food stamps. Wow. And I’m sure there are many who are receiving other benefits too.

      Like

  38. Brother John says:

    Radio Derb had the right idea last July:
    “If I were runing the CIA, in fact, I’d stage a Castro-style coup in Puerto Rico and install a fiercely anti-American dictator, to give us the excuse to sever ties and blockade the place for fifty years.”

    Like

  39. redlegleader68 says:

    A bit off topic in a minor way, but “earlybird” is back posting; he put this article up on Lucianne.com. And, that’s very good news!

    Like

  40. flawesttexas says:

    The GOP will cave on Puerto Rico bailout

    Florida’s “I-4 Corridor” from Tampa to Daytona has a large number of Puerto Ricans. Florida is a Presidential toss up…and the GOP will do anything to sway a group of FL voters…get ready for GOP to back a PR bailout

    Like

  41. Gunnhild says:

    What does Puerto Rico actually do for the United States? It is a territory, not a state, that has repeatedly refused to become a state since 1901 with the induction of Teddy Roosevelt into the Presidency.

    Like

  42. Jill says:

    Cate Long has the most up to date info on PR.
    You can find her twitter feed here: https://twitter.com/cate_long

    Like

  43. shipley130 says:

    The Puerto Ricans threw a hissy fit over the island the Navy used for training and got it shut down so Puerto Rico can stuff it.

    Like

  44. Ernest Weber says:

    A very long time ago I bought Puerto Rico bonds as part of my retirement savings. Since it’s a territory of the US one would have to believe they were a safe investment. These imbecilic politicians must do what is right to protect us small investors.

    Like

  45. Antathiyah Adan says:

    I think this is the best time to give Puerto Rico what they’ve wanted since the U.S. took hold of them. ……GIVE THEM THEIR SOVEREIGNTY AND LET THEM FIND THEIR OWN WAY OUT OF THEIR FINANCIAL CRISIS. SINK OR SWIM!!!!!!!

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s