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David Francis, The Cable/Foreign Policy: Puerto Rico’s Financial Pain Is Only Getting Worse From Here
Puerto Rico officially went into default on $422 million in loans Monday. But financial hardship there is just getting started.
The cash-strapped U.S. commonwealth owes $2 billion on July 1. This includes an $805 million payment on its general-obligation bonds, guaranteed under the island’s constitution to be paid before anything else. In total, Puerto Rico Gov. Alejandro Garcia Padilla had admitted that his government is not able to pay some $70 billion it has borrowed to cover up years of irresponsible government spending and a shrinking population: According to a Pew Research Center report released in March, Puerto Rico’s population is 3.47 million in 2015, down 334,000 from 2000, or a 9 percent drop. Seventy-five percent of this loss has occurred since 2010. This continues the largest emigration in more than 50 years, Pew found.
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WNU Editor: Greece, Detroit, Venezuela .... a new poster child to use on what happens when governments borrow money to finance their debts, services, pensions, and programs .... and lose complete control (and common sense) while doing it.
More News On Puerto Rico's Debt Crisis
Puerto Rico’s Debt Crisis Deepens as Government Misses Payment -- WSJ
Treasury urges Congress to act to avoid "cascading defaults" in Puerto Rico -- FOX News/EFE
Default at hand, Congress faces new pressure to act on Puerto Rico -- Washington Post
Obama administration urges Congress to act on Puerto Rico crisis -- Reuters
Lew Urges Congress to Act on Puerto Rico to Avoid Bailout -- Bloomberg
'Forced Exile,' Say Puerto Ricans Leaving Island Amid Financial Crisis -- FOX news
Just wait until the bell tolls on that $13 trillion (and counting) spent on the global police for...ummm military, corporate bailouts and tax breaks.
ReplyDeleteOh, but that's capitalism. Nothing ever goes wrong there. It's like living every day in Disney's Magic Kingdom.
The low hanging fruit is long gone which is why they are trying to convince everyone that for health reasons, in order to get support, they want to tax soda pop.
ReplyDeleteI think we can add the United States to this list that includes Venezuela, Detroit, and Greece.
ReplyDeleteDon't forget Canada.
ReplyDeleteOh, Canada,
DeleteNothing ever goes wrong there either.