Congress approved Promesa—a law that will allow a U.S. territory to seek bankruptcy—in 2016. How Puerto Rico's Debt Created A Perfect Storm Before The Storm For years, the nation's largest banks made millions off Puerto Rican debt as the island approached financial … Puerto Rico has been a colony of the US for over a century. Numerous states in Africa and Asia gained formal independence and others, such as Vietnam, fought and won total liberation from the scourge of colonial domination. Any fiscal and economic crisis Puerto Rico is facing is its own fault. The territory’s remote island location, tiny land area, and lack of natural resources precluded it from ever developing a strong manufacturing base. When that began to happen, companies fled the island, eviscerating its economy. The amount of money owed by Puerto Rico’s pensions in 2019. Puerto Rico’s economic challenges predate its current fiscal crisis. The majority of the island’s residents receive Medicare or Medicaid. The median family income is 19,630, with 84 percent of youth growing up in poor neighborhoods. In part V of this series, attention is given to the situation in Puerto-Rico. Some of the biggest stakeholders in Puerto Rico's financial crisis can be found on the U.S. mainland. h޴�َ$Gr�_%/I���p9�4$Q I H�EY�4��k ��e�o�Y��,�,���a���[����CMvk����!Κ���ܭ4�Ԫ�F�R�J�J��J#�L��l���Q�T��7*%��a_�m+u+�h�J��:)Uk��J�Y댇�=�f�4�?���u�Ju�\�R��lV��R?��*�ß�t���~�}���/�������?�����7����ۗ����>������O�������}����!�aS���W������/�;��n���'?ˡ�|���/���7�����?��M�JSw'�~��Ջ��~�ËW�������7������^���!���Q���W�7�׿~�ŷ��W� ������������o߼{����~tK7�|���yy{7��ݾ��a��~}{�G��o�޼���W)C�������/�g���?���g_���7{�o��цn�����!�|����A�����.��x�n3�l�R �r̙-1N��5��8��8�)�>�g�&�#͵�Hw������ɶ���4�#z:�c)�0Sg������S�M�y�fMTeے��1����}�����7ZG�����l��q����ݦhV��|}���-�j���w��D�h���z��hQYSR8}|��ē��C�5>22F�˪�;��/F;q:�I�Yl��m,w���6{'۷lzb ��R[���j�|��=fk7���/�����'���HYm�_�̚/�՜jO��3ý�t���/�����x{=nD7�tx_:������wOq�}���&�ㇾ���l'��d�R��B�?�;�������d'��N��ms��T��X�Ş�?t�E_����&䅭�N��O�5��h� The island’s population is also aging. Compounding the issue is the fact that Puerto Rico receives far fewer federal dollars to assist with social spending than states with comparable populations. One country, Puerto Rico, remained a colony of the US imperial state. Washington has been immune from consequences despite being the greatest purveyor of violence around the world. The crisis is a product of the unequal economic relationship between Puerto Rico and its colonial master. The US viewed Puerto-Rico as an ideal military outpost as well as a convenient nation from which to dump excess productive goods. At the present time the rate is 14%, almost three times the national average (5.5%). Puerto Rico is set to file by May 1 a status report to the court on the effects of the virus on the economy. Puerto Rico’s colonial status must receive special attention, however, as it disallows the people of the nation to join forces with the shift toward integration in Latin America currently being threatened by US war maneuvers against Venezuela or assert any act of independent development generally. %%EOF h�b```�ZV�� ��ea�h8 ��p�y�{�`i�w N�E��޺ Q�b���ZU���ً~�(.��e�+��5R��J9��v~�u��o��� +�� �Ⰰ6��U@��r -�b`[���`�� � ��������������,��@��o�~�j�5����>��0�o���x�ý���~�H3�� �K! The island took a direct hit from the Category 4 storm: knocking out power grids, flooding streets, and flattening entire neighborhoods. Both pro-independence and right-wing parties in the country rejected the notion that Puerto Rico’s economy should be placed in the hands of the very vulture capitalists and banks that underwrite the nation’s debt. US colonialism in Puerto Rico, from the political imprisonment of Oscar Lopez Rivera to the continued corporate plunder of the island, has steeped the Caribbean nation in deep economic crisis. By 2017, bond values had mostly returned to levels seen in 2014-2015 but then fell again in 2019 under the proposal that would allow Puerto Rico to reduce debt under bankruptcy protection. Venezuela has rightfully dominated headlines of late. An economic decline in Puerto Rico led to widening budget deficits over the years. SPANISH CHEF HAS SERVED NEARLY 1.5 MILLION MEALS TO HUNGRY PUERTO RICANS, SURPASSING THE AMERICAN RED CROSS’S EFFORTS, PUERTO RICO’S SOLVENCY: A SERIOUS QUESTION, ACCORDING TO GOV. One of these stipulations involved Puerto Rican municipal bonds and the ways in which they would be treated differently than bonds issued by states. Furthermore, the US utilized the Puerto Rican medical system for experimental sterilization. But perhaps the most striking example of US political control over Puerto Rico is demonstrated by way of the military. h�bbd```b``��5 �� The struggle for Puerto Rican independence continued both on the mainland and inside of the US during the 1960s and ’70s. Compared to other states and territories, spending on social programs is disproportionately high in Puerto Rico. Both organizations faced heavy FBI repression and surveillance. Bond investors from all 50 states took advantage of this benefit by purchasing Puerto Rican bonds. Z�\�����t�F�o7�&�P6�\j%�*k|����>��v��nz��A�kNlNJ+�䲍���ى8v�|o��S� INk�wb�8��$����l�Z�C�e�E6��}d'��q�_Н:qȚtR[3�kcliq�|�u>��7g��c7���2��BK_k�M�w���s,�?���'�'x,�hu(�ִ���FӼ-驳�g0U�h�α�q�V�3�l��"�DQH�|�4���kf�!�5�zj�yX�yvdG1����>s�.ɟ��2���I3�Yi�vzd��MQ1~�M����QC��t�����%�N�Dd��h���S��fZԬ����lt�fk��k�N�V�-Vo�C�Ťn1��� �գ,�b\�`�0c�+�K�Lv�74�lL��E��^�̢�X��䣳�����մ�ZدH��\���yb�z��i�Y��������bQ_�$E�]c�qG�*8�_��f����A�zO|2�Y�rFA��N��E3]��S�5@Ck2�:��3y�ʧ�Vdߗ���h�S�V�y�6�3v��4]w�[�n�����u���q��L��u������[�fh0Z�7'42;��#�,�W�7t�V��8��Nð�;��Y�/3~j[��C�\uv��̚�1�VNJܳh����Ӵ�L䑭�����E��w���x~�F5��^��+��i�׍z����gL;H��Ih����o���y��̉�d3h������y�>�z�p�W{��[��ܣ��?�|L����蟲�1o�W~��m�q�c�� ;m+�`�a���W��݂7ت�6$�L�2}����봾����q���i}t�݆$�f�X?#y?�C]��"�U�=;�ݰ��{Uۋ�v +5m̉M��d�N�cNچ蘶����V�{���V)дK�Џ{��mVp�i��� �7:?r?-�0��`����n|/���L����K\-"'goỹ햎A��b�,�. The U.S. tax code called for these advantages to expire over time. Prompted in large part by this tax advantage, Puerto Rico issued too much bond debt and began relying on borrowed funds from bond issuance to balance its budget. The move was made possible by a 2016 law passed by Congress, called Promesa, that essentially allows a U.S. territory to seek protection in bankruptcy court. He is a member of the Financial Oversight and Management ... proposal filed on Sept. 27 that could help solve Puerto Rico’s debt crisis. FIGURES, has contributed 58 billion to the US capitalist economy, American Exceptionalism and American Innocence: A People’s History of Fake News-From the Revolutionary War to the War on Terror, 12/02/20: Press Secretary Kayleigh McEnany Holds a Press Briefing, Israel behind assassination of Iranian scientist: US official, EU Gives AstraZeneca Unprecedented Exemption From Liability For COVID-19 Vaccine, Catholic Priest Dies After Receiving Moderna’s COVID Vaccine That Utilizes Aborted Fetal Tissue, Israel threatens to shut down new TV channel for preaching ‘gospel of Jesus’, Trump’s Landslide Meets the Politics of Electoral Fraud in America. Colonialism is an outdated mode of development. 273 0 obj <>/Filter/FlateDecode/ID[<9B007E2360486F46AE67D4F4E5E73011>]/Index[253 47]/Info 252 0 R/Length 99/Prev 512380/Root 254 0 R/Size 300/Type/XRef/W[1 3 1]>>stream More than 60% of Puerto Ricans receive Medicare or Medicaid. Hurricane Maria in 2017 delivered another blow to Puerto Rico. The oversight board certified a fiscal plan that states that the commonwealth unemployment insurance fund could run out by December as jobless claims remain higher than before the crisis. Bond values plummeted amid concerns Puerto Rico will never be able to repay its debt. The US maintained direct military control of the island until 1900. The government borrowed from investors and U.S. banks through the sale of bonds until they racked up an enormous debt, which in 2015 surpassed the island’s GDP. Gib deine E-Mail-Adresse ein, um diesem Blog zu folgen und per E-Mail Benachrichtigungen über neue Beiträge zu erhalten. However, compared to other states with high percentages of poor residents, such as Mississippi, Puerto Rico receives a tiny fraction of federal funds to assist with social spending. The release of Rivera in 2017 is a testament to the ongoing struggle for Puerto Rican independence. 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