What to do about Puerto Rico's Debt?

[Musburger1]

That's the question in front of Congress.
http://www.foxnews.com/politics/201...s-brakes-on-puerto-rico-debt-crisis-bill.html

Basically this sounds much like Greece. There is no way the debt will ever be paid.

One side wants to treat this like bankruptcy, restructure the debt, and have bond holders take a loss. Those opposing state this say it will set a precedence for States such as Illinois, New Jersey, and California down the road. The democrats and Speaker Ryan want to go this way.

Another side wants to drastically slash government (services) so that the bond holders continue to be paid. Those opposing see the further impoverishment of the people as essential services and entitlements are cut. (Greece path). Conservative Republicans and Wall Street want to go this way.

Don't know that there is a good answer.

 

[huisache]

if the pr government is allowed to collapse under the debt then the social services stop and the public sector gets no pay for the many jobs and the economy there collapses. And because some idiots agreed to give citizenship to the US to all the people of PR then they all come here. Most of them live here now already.

No solution to this mess.

 

[Larry T Spider]

That's the question in front of Congress.
http://www.foxnews.com/politics/201...s-brakes-on-puerto-rico-debt-crisis-bill.html

Basically this sounds much like Greece. There is no way the debt will ever be paid.

One side wants to treat this like bankruptcy, restructure the debt, and have bond holders take a loss. Those opposing state this say it will set a precedence for States such as Illinois, New Jersey, and California down the road. The democrats and Speaker Ryan want to go this way.

Another side wants to drastically slash government (services) so that the bond holders continue to be paid. Those opposing see the further impoverishment of the people as essential services and entitlements are cut. (Greece path). Conservative Republicans and Wall Street want to go this way.

Don't know that there is a good answer.

I think its time to split the difference. The bond holders need to realize that they made a bad investment and are going to lose some money. The people using government services are going to have to realize that revenue and expenditures have to fall in line and cuts are necessary.

 

[NJlonghorn]

One side wants to treat this like bankruptcy, restructure the debt, and have bond holders take a loss. Those opposing state this say it will set a precedence for States such as Illinois, New Jersey, and California down the road. The democrats and Speaker Ryan want to go this way.

Another side wants to drastically slash government (services) so that the bond holders continue to be paid. Those opposing see the further impoverishment of the people as essential services and entitlements are cut. (Greece path). Conservative Republicans and Wall Street want to go this way.

You only mention two of the three options. The third is for the Federal government to bail Puerto Rico out.

I think its time to split the difference. The bond holders need to realize that they made a bad investment and are going to lose some money. The people using government services are going to have to realize that revenue and expenditures have to fall in line and cuts are necessary.

I agree that it is time to split the difference, but it has to be 3 ways, not 2. To make it work, the Feds will have to chip something in. There is no reason they (we, really) should have to do that, except that the alternative is worse.

 

[Phil Elliott]

We could put a stop to this right now by making it illegal for government to take on debt.

I guess one way to make that happen would be to let them default and the bond holders take it in the wallet. After that, the PR bonds would be worthless going forward so they will not be able to borrow any new money.

 

[NJlonghorn]

I guess one way to make that happen would be to let them default and the bond holders take it in the wallet. After that, the PR bonds would be worthless going forward so they will not be able to borrow any new money.

Good idea. PR would have to reduce its budget drastically, its economy would go into a tailspin, and its inhabitants would all move to the mainland looking for work.

 

[Phil Elliott]

Good idea. PR would have to reduce its budget drastically, its economy would go into a tailspin, and its inhabitants would all move to the mainland looking for work.

Sounds to me like you are anti-immigration to the extent you would like to pay PR to keep them there.

 

[NJlonghorn]

Sounds to me like you are anti-immigration to the extent you would like to pay PR to keep them there.

We provide aid to foreign countries for various reasons, one of which is to address poverty. One of the advantages of addressing foreign poverty is that it reduces the number of people who choose to immigrate to the US illegally. This is not the same question as how to handle those people who have already immigrated here illegally, which is what the phrase "anti-immigration" usually relates to.

Puerto Rico is a special case because its residents can move to the mainland legally. We aren't talking about illegal immigration, but rather legal migration. This makes it all the more important, and beneficial, to prevent economic meltdown there.

 

[Sangre Naranjada]

We are 19 trillion in debt and counting. Where do you think the money to bail out the Ricans should come from?

 

[NJlonghorn]

We are 19 trillion in debt and counting. Where do you think the money to bail out the Ricans should come from?

Another good point. We'd better draw the line at $19 trillion, even if that means we get flooded with millions of impoverished migrants. It's not worth contributing towards the solution because that could push our debt up to, say, $19.02 trillion.

 

[Sangre Naranjada]

At some point, the government tit has to run dry.

 

[nashhorn]

At some point, the government tit has to run dry.

Heck no, they just print more milk coupons.