Description: Puerto Rico Declares Bankruptcy (image: @lgbtpr/Twitter) Colonized and exploited by America since 1898 its people governor and other officials are powerless ruled by US administrations and Congress. Islanders have no control over their lives welfare and destiny no say over foreign relations commerce trade air space land and offshore waters immigration and emigration nationality and citizenship currency maritime laws military service US bases on its territory constitutionality of its laws jurisdictions and legal procedures treaties radio and television communications agriculture natural resources and more. For nearly 120 years its been victimized by US imperial rapaciousness. Things finally came to head financially. Puerto Rico is bankrupt though cant declare it under US law. Its a wasteland of high unemployment poverty and deprivation. Force-fed austerity exacerbates dire economic conditions. Islanders are US citizens without enfranchisement on the mainland. They pay federal taxes getting back pathetically little in return. They suffer from mismanagement political greed widespread corruption deplorable social services and monied interests exploiting them enforced by police state harshness. Debt-entrapped its been forced to pay bankers and other large creditors at the expense of responsibly serving its residents. Its debt is crushing unrepayable at around $123 billion $74 billion owed creditors another $49 billion in unfunded pension obligations. Historically Puerto Rico was barred from declaring bankruptcy. Legislation enacted last year allows bankruptcy-like proceedings. Creditors were unwilling to grant concessions. Now theyll be forced to take big haircuts. Government pensioners and workers nearing retirement may lose out altogether. Mass exodus to the mainland including the islands best and brightest complicated things further. Puerto Rico is a zombie economy unable to function without help not forthcoming after Congress refused bailout help. So did Trump saying no bailout for Puerto Rico just generous handouts he wants for Wall Street war-profiteers other corporate predators and Americas super-rich. An 11th hour effort to avoid bankruptcy failed. Creditors refused a restructuring deal to take a 23% haircut on their general obligation bonds and a 42% loss on their Cofina sales tax-backed debt according to the Municipal Securities Rulemaking Board web site. Now theyll incur bigger hits. Last summer Congress passed the Puerto Rico Oversight Management and Economic Stability Act (PROMESA) giving a federally appointed committee control over the islands finances along with creating a Title III bankruptcy process. PROMESA gives the federal committee authority to consolidate island agencies privatize government assets fire public workers restructure Puerto Ricos balance sheet and retroactively stay bondholder lawsuits. A Supreme Court-appointed judge will handle proceedings bankruptcy without formally declaring it. Unlike US counties cities and other municipalities states and US territories cant declare Chapter 9 bankruptcy allowing them to restructure debt. Puerto Rico faces a long painful struggle ahead debt-entrapped by creditors ill-served by uncaring Washington mismanaged by corrupt officials a deplorable situation affecting its poor and most vulnerable hardest. Save The post Puerto Rico Declares Bankruptcy appeared first on The Sleuth Journal.
By Frankie Cordeira Jr.
Pinned to Domestic and Global News on Pinterest
Found on: http://ift.tt/2pDwb9d
By Frankie Cordeira Jr.
Pinned to Domestic and Global News on Pinterest
Found on: http://ift.tt/2pDwb9d