A little less than a year ago I reported several times on Paul Ryan’s efforts to save banking profits by temporarily averting financial disaster in Puerto Rico. Then, I wrote:
May 24, 2016 I posted Paul Ryan Rescues Banksters, Globalists about Paul Ryan’s dastardly plans to force you (all of you) to pay Puerto Rico’s debts – all on behalf of the banksters of the world.
I said then:
The bailout will happen; consider it a done deal. Really $2 Billion or the whole $70 Billion is but a barely noticeable drop in the fed’s ocean of economic woe. Things like this add up though. When the whole system comes crashing down don’t count on the banksters to be found let alone lend a hand. They’re gathering the last of the cash (yours and mine) and preparing to flee. However, come hell or high water, the politicians will be easier to find. They’ll still expect to be re-elected. Remember this story and all the others. Hold them accountable or rinse and repeat with similar results.
U.S. Rep. Dave Brat (R-VA), who actually has a Ph.D. in economics, has caught on to the theft and deception:
“This makes the bill truly Orwellian — it remove[d] the consent of the Puerto Rican people and creates a fiefdom for unelected officials chosen by President Obama.
“As economist Thomas Sowell said, ‘The fatal attraction of government is that it allows busybodies to impose decisions on others without paying any price themselves.’ Congress can’t even get its own fiscal house in order, but [passed] a bill to solve Puerto Rico’s problems.
“This bill should [have been] subject to ratification by the Puerto Rican legislature or a vote from the Puerto Rican people. As it stands, I [opposed] PROMESA because it turns free citizens into subjects.”
He’s only talking about the loss of autonomy of the people of Puerto Rico; the rest of the American people will be losing their money. Pay up, subjects.
Temporary is almost over. The law passed and the wayward territory was given a year to get settlements in order. Like so much else Ryan touches, nothing has happened.
Bankruptcy for Puerto Rico is looking ever more likely as the clock ticks down toward a May 1 deadline to restructure $70 billion in debt, ramping up uncertainty for anyone betting on returns from the island’s widely held U.S. municipal bonds.
When U.S. Congress last year passed the Puerto Rico rescue law dubbed PROMESA, it froze creditor lawsuits against the island so its federally appointed oversight board and creditors could negotiate out of court on the biggest debt restructuring in U.S. municipal history.
The freeze expires on May 1, however, and an extension by Congress is “not going to happen,” said a Republican aide to the House Committee on Natural Resources, which is in charge of territory matters.
A round of mediated talks is scheduled to begin on Thursday. But absent an agreement soon, a growing number of analysts say Puerto Rico will seek protection from creditors under PROMESA’s court-sanctioned restructuring process, akin to U.S. bankruptcy.
Forbearance deals could let negotiations continue past May 1, but a source directly involved in the talks said avoiding an eventual bankruptcy is “impossible.”
Bankruptcy wouldn’t be the worst thing for P.R. In fact, it might be the best thing, here and now. It could give the people of the island room to decide if they want to continue their local fiasco. Hopefully, it will stay local and with them.
I have a funny feeling Congress won’t stand idly-by as the banks lose $70 Billion. Time will tell.
This case may serve as a canary in the economic coalmine. Watch and see what happens when governments default – more will surely follow.
This might be a good time to decide if P.R. should be granted sovereignty.
Might be a good look at the relationship between Congress and Wall Street.
It might be fun or funny, but probably not…