Posted on 06/30/2015 5:03:18 AM PDT by McGruff
Puerto Rico's governor has said the US territory cannot pay its $72bn (£45bn) debt and is close to defaulting ahead of emergency talks with legislators.
In a TV address on Monday, Alejandro Garcia Padilla said he would seek a moratorium on repayments and form a team to restructure public debts.
White House spokesman Josh Earnest says the US government has ruled out a federal bailout for the US island.
(Excerpt) Read more at bbc.com ...
The US can’t pay 18 trillion in debt, either. They’re in great company.
If they become independent, they can get plenty of unaccountable US foreign aid for their government and their leaders’ pockets. Dont think they arent thinking about that.
Jim Kramer on TV this morning: This is a concern for the US stock market and mutual funds and bond holders. There's a lot of exposure to these bad debts.
Too big to fail?
The Obama mal-Administration has announce they have no intention of giving Puerto Rico a federal bail-out.
I’m pretty sure that means they are getting ready to provide Puerto Rico a federal bail-out.
Puerto Rico has been running a government Ponzi Scheme for quite some time.
They offer unsupportable interest rates on their bonds to draw in the Suckers.
Now, they want to walk away from their crimes.
“You tend to get less of the behavior that you punish.”
“Now, they want to walk away from their crimes.”
Once the federal treasury bail out precedent is set with Puerto Rico, California, New Jersey, Rhode Island, Michigan, Illinois, and Massachusetts will be standing in line for their reboot.
Naw...there was a bunch of new rules made a while back...it is called a ‘bail-in.’
New Rules: Cyprus-style Bail-ins to Take Deposits and Pensions
http://www.huffingtonpost.com/ellen-brown/new-g20-bailin-rules-now-_b_6244394.html
On the weekend of November 16th, the G20 leaders whisked into Brisbane, posed for their photo ops, approved some proposals, made a show of roundly disapproving of Russian President Vladimir Putin, and whisked out again. It was all so fast, they may not have known what they were endorsing when they rubber-stamped the Financial Stability Board’s “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” which completely changes the rules of banking.
Russell Napier, writing in ZeroHedge, called it “the day money died.” In any case, it may have been the day deposits died as money. Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in” or confiscated to save the megabanks from derivative bets gone wrong.
Contagion. This is just the beginning. My guess, Ireland, Portugal, Spain, Venezuela will soon follow.
Rubbing hands together:
A perfect opportunity to assimilate more into the Borg.
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