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Years of fiscal irresponsibility have caught up to Puerto Rico. Its government has long lived beyond its means and today the bills are coming due, but the island’s economy has also been hampered by costly local and federal mandates. Rather than reward Puerto Rico’s spend-happy politicians with a bailout as legislators are currently contemplating, Congress should remove impediments to economic growth so that the island can prosper. As the third-largest issuer of municipal bonds in the United States, Puerto Rico has racked up $73 billion in debt under the mistaken notion that borrowing and spending are the path to prosperity....

By now, many Americans are familiar with the public debt fiasco that plagues Puerto Rico. The issue has steadily risen in prominence as the gravity of Puerto Rico's debt load sets in on the American public. Certainly, the island's economic mismanagement has taken center stage in Washington, as Puerto Rico Governor Alejandro Garcia Padilla has been called to testify numerous times before Congress.

The U.S. Treasury Department on Thursday warned of a potential government shutdown in Puerto Rico and lengthy litigation if Congress doesn't approve a debt restructuring plan for the U.S. territory soon. Antonio Weiss, counselor to the U.S. Treasury secretary, issued the warning as House Republicans held hearings in Washington during a final push to address the island's failing economy. Weiss said he supports a plan that would temporarily suspend litigation to prevent a shutdown of basic government services on the U.S. territory and give time for voluntary negotiations with debt holders. ...

Hoping to spur economic development in financially ailing Puerto Rice, the White House said Thursday it will speed access to almost $400 million for roads and other public works projects on the island. [...] But the White House also said Congress needs to give Puerto Rico the ability to seek bankruptcy protection under a framework reserved for U.S. territories. That proposal has drawn objections in Congress, with some Republican leaders saying Puerto Rico has the tools to restructure a large portion of its debt voluntarily. ...

(English translation) In the wake of scores of [Zika] cases that have been reported in eastern Puerto Rico and due to fears that it will spread to other municipalities, Department of Consumer Affairs (DACO) Secretary Nery Adames announced that the agency added condoms to the list of price freezes related to Zika-virus prevention due to the alleged relationship to sexual transmission. "Because of the causal relationship that has been established between a mosquito bite and the probability of sexual transmission, a price freeze on prophylactics and/or preservatives has been ordered. Therefore, every store, service station, place, or business that sells...

(English translation) The tourism industry in Puerto Rico has begun to feel the impact of [the] Zika [virus]. Hotel & Tourism Association President Clarisa Jimenez told the newspaper El Vocero that some hotels have reported cancellations after the island was included among scores of countries under the World Health Organization alert declaring the disease a global public-health emergency. The cancellations have been mainly for trips related to so-called destination weddings since guests have included pregnant women, a population for whom public-health authorities have recommended special caution. According to Jimenez, it is still too difficult to estimate the economic impact of...

(English translation) During his appearance yesterday [Wednesday] before Judge Jose A. Fuste at Federal Court in Hato Rey, Walmart Vice President for Special Taxes in Puerto Rico Anthony Walker stressed that the company will be unable to continue operations in the island if Law 72, known as the "Walmart tax" which imposes on the multinational [corporation] an estimated 91.5% tax rate, stands. "That is not sustainable for us. We recently closed seven stores in Puerto Rico as part of a strategy that has forced us to close a total of 254 stores around the world. Here in Puerto Rico, Walmart...

A nonprofit group founded by ex-New York SEIU boss Dennis Rivera has received big contributions from corporations that do business with the Puerto Rican government, while employing the governor's brother as its only employee. This arrangement was reported today by Alana Goodman of the Washington Free Beacon, based on information provided by NLPC. The charity, now known as "Sociedad Económica De Amigos del Pais," was founded in New York in 1996 by Rivera and former New Mexico Governor Bill Richardson as the Hispanic Education and Legal Fund (HELF). Its name change, relocation to Puerto Rico and change of mission...

As Wilbur Ross so eloquently noted, for Puerto Rico "it's the end of the beginning... and the beginning of the end," as he explained "Puerto Rico is the US version of Greece." However, as JPMorgan explains, for some states the pain is really just beginning as Municipal bond risk will only become more important over time, as assets of some severely underfunded plans are gradually depleted. But, as JPMorgan details, Muni risk is on the rise for US states, but broad generalizations do not apply (in other words, these five states are 'screwed')... The direct indebtedness of US states (excluding...

(English translation) The GameStop video-game stores in Puerto Rico will close. The United States-based company confirmed the closure as it pointed out that the decision was made due to the government's high taxes which it alleges have affected its operations in the island. It was reported that, unfortunately, over 500 employees will be laid off. According to GameStop's Public Relations Director, they will leave Puerto Rico as early as March.

Puerto Rico is stunningly beautiful. It's a virtual paradise...Caribbean white sand beaches, a close proximity to the U.S., they speak both English and Spanish, if you're an American citizen you don't need for a passport as Puerto Rico is a US Commonwealth. They've got snorkeling, great food, a rainforest, and a stunning historical fort from the imperial days sitting atop a bluff overlooking the sea. With all that natural attraction you'd think Puerto Rico would be knocking it out of the park economically. Tourism alone should be the driving force to keep the economy rocking. Every American should want to...

(English translation) United States Secretary of the Treasury Jacob Lew will visit Puerto Rico next Wednesday to meet with government and civic leaders. It was reported that they will discuss the island's fiscal and public-debt crisis. According to Treasury's spokesman, among the people Lew is scheduled to meet with are Governor Alejandro Garcia Padilla, Resident Commissioner Pedro Pierluisi, and legislative, community, labor, and business leaders.

The argued case relates to the matter of the sovereignty (or lack of) of the several territories of the United States (Puerto Rico, Guam, US Virgin Islands, American Samoa and the Northern Mariana Islands) in a double-jeopardy case. In essence, the Puerto Rico Supreme Court Court ruled that the island is under the total control of the U.S. Congress according to the territorial clause of the U.S. Constitution and that as such, it lacks the sovereignty of a regular U.S. State, and that because of that a defendant already tried in the federal district court cannot be tried for the...

TODAY marks the official end to the Christmas season as Christians across the world celebrate the feast of the Epiphany. The celebration falls on the 12th day of Christmas and marks the baptism of Jesus Christ by John the Baptist. Pope Francis will today hold the annual Holy Mass for the Epiphany in St Peter's Basilica in Rome marking a celebration that was first observed by western Christians in the 4th century. The Epiphany also marks the visit of the three Wise Men to baby Jesus.

The government of Puerto Rico has failed to make $37.3 million in debt repayments, a selective default dictated by lack of liquidity, Public Affairs Secretary Jesus Manuel Ortiz told EFE Tuesday. The island's government signaled last week that it would not make the payments, which were due by midnight Monday. The defaulted debt corresponds to $35.9 million in bonds issued by the Puerto Rico Infrastructure Finance Authority and $1.4 million in Public Finance Corp. bonds. Rating agency Standard & Poor's said Monday that if Puerto Rico didn't pay the $37.3 million by midnight, the bonds would be declared in default....

As President Obama prepares to announce new executive actions on gun control Monday, a newly released Gallup Poll shows that "guns/gun control" ranked near the bottom of Americans' most pressing concerns in 2015. In fact, guns/gun control ranked 19th out of 23 top problems facing the country last year.

<p>As Wilbur Ross so eloquently noted, for Puerto Rico "it's the end of the beginning... and the beginning of the end," as he explained "Puerto Rico is the US version of Greece." However, as JPMorgan explains, for some states the pain is really just beginning as Municipal bond risk will only become more important over time, as assets of some severely underfunded plans are gradually depleted.</p>

(English translation) While the [Puerto Rico] government is bracing for the consequences of partial non-payment of its debt with creditors, the Governor's Mansion is preparing to celebrate an Epiphany festivity on January 5. It was announced in an invitation released to the general public that the activity will begin with visits to the grounds of the Santa Catalina Palace [the Governor's Mansion] from 3:00 PM to 5:00 PM. The Executive Mansion will later present a musical performance by the Puerto Rico State Band under director and composer Angel "Cucco" Pena. According to the provided information, the concert is scheduled to...

The Obama Administration is struggling to find a cost effective way to shift Guantanamo Bay detainees to prisons on the U.S. mainland. Meanwhile, Puerto Rico is struggling through an unprecedented fiscal and economic crisis. These two problems could create a unique policy opportunity: to save federal taxpayer dollars and boost the Puerto Rican economy, move the detainees to the Commonwealth rather than to the mainland U.S. At his year-end press conference, President Obama continued to advance the fiscal case for shutting down the Guantanamo detention camp. In answer to a reporter's question, President Obama said, "I think we can make...

Liberals are trumpeting a looming “humanitarian crisis” that demands a federal bailout: Otherwise, Puerto Rico will have to cut spending on schools and hospitals. Conservatives are emphasizing a governance crisis: Many Puerto Rican politicians have won votes by overspending; and if they get away with it, their counterparts in California, Connecticut, Illinois, Massachusetts, New Jersey, New York, and other states will keep running toward the cliff. One piece of political evidence: New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio flew to Puerto Rico last month and marched with thousands who demanded that Washington send more...