Please insert a big fat TOLDYASO right here.
Speaker of the House Paul Ryan is lashing out at opponents to his Puerto Rico bailout bill demanding they stop calling it a “bailout”. Instead Ryan demands his opposition use the gaslighting term “restructuring”.
A bailout by any other name is still a bailout. A taxpayer funded restructuring of debt is still a bailout. Puerto Rico brought this upon themselves. Let them go insolvent and be forced to sell off their assets (ie. land, etc.) to pay back the bondholders.
Ryan’s position contends that if the U.S. government does nothing, then eventually the U.S. government will be forced to purchase all the debt and bail out Puerto Rico (ie. Wall Street bondholders/investors) entirely. More hogwash.
What’s really being done here is Speaker Ryan setting up precedent. Ryan is establishing the very first federal intervention into unsustainable state debt bailout. Effectively if this happens the entire system of U.S. republicanism collapses.
Why should a taxpayer in a more conservative -fiscally prudent- state like Idaho, or Florida, or (__fill in the blank__) be forced pay for the unsustainable liberal spending policies of other states such as Illinois, California or New Jersey? Follow the domino effect and you can see clearly where this train ends.
Here’s the story:
(Via The Hill) Speaker Paul Ryan (R-Wis.) blasted Wall Street investors on Wednesday as he tried to tamp down conservative discontent with a bill to assist Puerto Rico.
The GOP leader charged that “special money interest groups on Wall Street” are trying to sabotage the legislation by billing it as a “bailout.”
Ryan said that the government will be forced to actually bail out the island if Congress fails to act, predicting massive defaults on its bonds.
“Many big-money interest groups on Wall Street know this and have put a lot of money toward sabotaging this legislation in order to force a last-minute bailout upon Puerto Rico, putting U.S. taxpayers on the hook for their bad loans,” his office said in a lengthy statement. “They call this a bailout, because they know it is not. And a bailout is what they want.”
Ryan’s push comes as GOP leaders are trying to pull in enough support from both parties to clear legislation that would impose a fiscal oversight board on Puerto Rico and allow it to restructure some of its debts.
He dismissed “buzzwords and special interest ad campaigns” that describe the package as a bailout, and instead argued the House plan imposes much-needed fiscal rigor on the island while avoiding a messy set of defaults. (read more)
Follow the money…..