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Post Reply puerto rico votes sunday on whether or not they become a state
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35 / Pacific North West
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Posted 6/11/17

rawratl wrote:

It was a perfect storm setup by the American government no matter how you look at it. History may tell you that tax breaks get reworked or removed but when your entire economy is built on industry and manufacturing and then the government gives you the big "fuck you" all at once you can't do anything about it. Especially when it was combined with the recession of the US economy.

In regards to the bonds they literally had no other choice but to issue the bonds to cover their debt. I think the video touches on the fact that due to legislation in 1984 (I think) Puerto Rico can not file for chapter 9 bankruptcy. If you'll recall, Chapter 9 saved Detroit, whose debt was much smaller at 18 billion, but alas Puerto Rico has no such ability. So they have no choice but to try to find ways to cover the debt via the bonds, which predatory hedge funds are purchasing and suing for payouts when they can't be made (which they fully knew going in, but they get them cheap so there is virtually no risk and everything to gain.) Admittedly it was really dumb to state that bond holders would be paid before they would even pay for government services, that there genuinely is no excuse for.


GREEN: I can sympathize with what your saying. But the changes in the law regarding taxes(other then chapter 9) were not directed towards Puerto Rico they were triggered to stop tax evasion from personal accts as well as corporations. Its unfortunate that in "PR's" situation it became a perfect storm but to say the US govt. specially targeted Puerto Rico... Well I would be suspicious of such statements

BLUE: I don't think it was so much as a no choice. Why I say this is because the prime minister of the commonwealth said in the interview they went on a selling spree instead of making hard choices. Now the commonwealth has MUCH harder choices because it sold bonds it (IMO) knew it couldn't keep up on hoping for some miracle cash flow or bail out. The 1984 exemption form Chapter 9 does seem a bit odd. Though I would ask why hasn't anyone noticed it until now? Also if someone in the Puerto Rican govt. did notice it.. wouldn't that raise some red flags for you? I will give some credit as the video states it got buried in some huge bill. though I would wonder who noticed it when this issue arose.

RED: The issue as i stated previously is the govt. chose to not make hard decisions and instead sell bonds and try to lure wealthy people instead of working on tourism or infrastructure for industrial/commercial use. This is not subjective when the PR govt itself admits to it. I am not saying PR should be blamed for all of their problems. However after what I have seen and read for now anyways I get the impression the bulk of the blame lies with the PR govt. IF they are granted statehood I would be all for a federal investigation into financial mismanagement, and all members of the previous/current regime to be removed from any political office.
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Posted 6/11/17

DevinKuska wrote:



GREEN: I can sympathize with what your saying. But the changes in the law regarding taxes(other then chapter 9) were not directed towards Puerto Rico they were triggered to stop tax evasion from personal accts as well as corporations. Its unfortunate that in "PR's" situation it became a perfect storm but to say the US govt. specially targeted Puerto Rico... Well I would be suspicious of such statements

BLUE: I don't think it was so much as a no choice. Why I say this is because the prime minister of the commonwealth said in the interview they went on a selling spree instead of making hard choices. Now the commonwealth has MUCH harder choices because it sold bonds it (IMO) knew it couldn't keep up on hoping for some miracle cash flow or bail out. The 1984 exemption form Chapter 9 does seem a bit odd. Though I would ask why hasn't anyone noticed it until now? Also if someone in the Puerto Rican govt. did notice it.. wouldn't that raise some red flags for you? I will give some credit as the video states it got buried in some huge bill. though I would wonder who noticed it when this issue arose.

RED: The issue as i stated previously is the govt. chose to not make hard decisions and instead sell bonds and try to lure wealthy people instead of working on tourism or infrastructure for industrial/commercial use. This is not subjective when the PR govt itself admits to it. I am not saying PR should be blamed for all of their problems. However after what I have seen and read for now anyways I get the impression the bulk of the blame lies with the PR govt. IF they are granted statehood I would be all for a federal investigation into financial mismanagement, and all members of the previous/current regime to be removed from any political office.


I see your point and I do agree that there was a HUGE amount of mismanagement in terms of what the PR government did. However, you have to look at the triple-tax-free status congress gave to the Puerto Rican bonds. In essence that was congress saying that they thought the bonds would be Puerto Ricos ticket to solvency. Now Puerto Rico certainly should have not put all their eggs in that basket and then doubled down with the whole paying the bonds before simple government functions, but with the tax free status making the bonds so appealing to all the investors I think most would have considered it the best option. Blame should be equally shared in this scenario.

That 1984 exemption is just a classic example of American government really. Sneak some random ass clause into a bill that is so huge no one will ever read the whole damn thing and it passes anyway. I guess even if someone had noticed it at the time they probably didn't consider how much that would come back to bite Puerto Rico in the ass 20+ years later.
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14 / F / California
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Posted 6/12/17
5th time is a charm eh PR?
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27 / M / Leanbox, Gameindu...
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Posted 6/12/17 , edited 6/12/17
Vote is entirely irrelevant. It's not like Congress and State legislatures with their current makeups would vote to let them join as a state anyway.
(Republicans would lose 6-7 house seats which really isn't that big of a deal, but 2 seats in the Senate not happening) not to mention a super majority of states are controlled by Republicans at the moment.
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