Puerto Rico $70 billion in debt

A

anatta

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how did this happen? We are going to have to suck it up and rebuild the power grid/ etc
but man how did they get into such a crappy economy?
 
anatta said:
how did this happen? We are going to have to suck it up and rebuild the power grid/ etc
but man how did they get into such a crappy economy?
Click to expand...

Spending more than they take in for tax revenues and because of of U.S. Congress. They do not have to have a balanced budget because they are not a state. Congress made all sorts of F'd up tax loophole laws for investors in P.R.

It is a mess down here. They are going to need help rebuilding.
 
The Puerto Rican government-debt crisis is a financial crisis affecting the government of Puerto Rico.

After decades of mismanagement by DEMOCRATS, the government accrued more than $70 billion in outstanding debt and an additional $50 billion in pension obligations.

These debts increased the government's debt-to-GDP ratio to 68%, which forced it to drastically increase taxes, . Projections are bleak since the Puerto Rican economy is precarious and fragile.

In June 2016, President Barack Obama signed PROMESA into law, which appointed an oversight board with ultimate control over the commonwealth's budget and debt restructuring. The board extended a moratorium on debt collection lawsuits by creditors until May 1, 2017.

Creditors sued as soon as the stay expired, and on May 3, 2017, the Commonwealth sought the quasi-bankruptcy protections provided by the aforementioned law.

https://en.wikipedia.org/wiki/Puerto_Rican_government-debt_crisis
 
Sailor said:
Spending more than they take in for tax revenues and because of of U.S. Congress. They do not have to have a balanced budget because they are not a state. Congress made all sorts of F'd up tax loophole laws for investors in P.R.

It is a mess down here. They are going to need help rebuilding.
Click to expand...
balanced budgets are for fiscal realists.
Do you think this is what the USA will face? so far in debt they can never re-structure effectively?
 
How years of DEMOCRAT misrule failed the people of Puerto Rico:


The island has more than $72 billion of debt — nearly 100 percent of its total annual economic output — and an estimated $30 billion shortfall in its state pension fund. Two government agencies have already defaulted on debts, and a $2 billion payment was due on July 1, 2016. (It was defaulted).

Unemployment is over 12 percent and would be twice as high if so many Puerto Ricans hadn't taken advantage of their U.S. citizenship and moved to the mainland to find work.

The poverty rate is 45 percent, compared with 15 percent stateside.

Half of P.R. residents are on Medicaid.

"We have no cash left," Gov. Alejandro Padilla said in a December appeal for help to the U.S. Senate. "This is a distress call from 3.5 million Americans who have been lost at sea."

It's not just Puerto Ricans at risk of suffering: Two-thirds of U.S. pension and retirement funds hold Puerto Rico government and municipal bonds, and could lose billions of dollars if the island can't service its debts.




http://theweek.com/articles/614667/puerto-rico-crisis-explained
 
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