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US Commonwealth of Puerto Rico Prepares to Default (in Spanish)
Big Peace ^ | 7/13/2014 | Chriss W. Street

Posted on 07/13/2014 6:10:27 PM PDT by markomalley

Municipal bond mutual fund investors are panicking this weekend after the U.S. Commonwealth of Puerto Rico’s Legislature passed a new law allowing public agencies to default on their debt.  

Although part of the United States, Puerto Rico in the 1990s made Spanish the official language and now about 86% of the island does not speak English in the home.  Democrat Governor Alejandro Garcia Padilla, who has difficulty speaking English, told Bloomberg News last year that Puerto Rico had a constitutional and moral obligation to not default on the island’s $73 billion of debt.  But he just passed a law giving local court proceedings the power to cancel much all of the island’s bond debt.  

Puerto Rico is the poster-child for multiculturalism with both Spanish and English as the official languages.  US officials pushed for many years to make English the dominant language, but in 1991 the Puerto Rican legislature issued a bill making Spanish the official language in school and government use.  The decision was reversed by a federal court in 1993, but the Democrat Party that has dominated politics for 100 years demanded that schools continue to shun English.  Today only 1 in 8 families speak English as the primary language in the home. 

Puerto Rico economy is now shrinking at a 6% annual pace and only 1.2 million, or 32%, of the island’s 3.7 million of the inhabitants employed.  Among Puerto Ricans working full time, surveys reveal that 96.6% say Spanish is their first language, and 98.5% indicated that they are fluent in Spanish. 

Because of its horrible economic fundamentals, the island’s high yield bonds have been a magnet for mutual fund investors, which hold at least $12 billion of the island’s debt.

Some politicians have argued that Puerto Rico needs to more fully adopt English…

(Excerpt) Read more at breitbart.com ...


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: pr; puertorico

1 posted on 07/13/2014 6:10:27 PM PDT by markomalley
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To: markomalley
Not a problem.

Uncle Sam will do what it always does: THROW more money at them. It will do them SO much good, won't it?

2 posted on 07/13/2014 6:13:54 PM PDT by cloudmountain
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To: markomalley

Get ready, here comes the request for statehood!


3 posted on 07/13/2014 6:15:25 PM PDT by I cannot think of a name (\w)
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To: markomalley

What they need is a massive influx of immigrants from Central and South America to help them solve their financial and cultural problems.


4 posted on 07/13/2014 6:15:30 PM PDT by clearcarbon
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To: I cannot think of a name

“Get ready, here comes the request for statehood!”

Nash. Doesn’t benefit them. As a Commonwealth, they can do pretty much whatever they please. They have to obey the US Constitution every now and then, but that’s about it.


5 posted on 07/13/2014 6:19:28 PM PDT by RKBA Democrat (Be a part of the American freedom migration: freestateproject.org)
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To: RKBA Democrat

As I understand it, Puerto Ricans are American citizens, can travel or move to the mainland without restriction, get public assistance benefits if qualified, but do not pay federal income taxes, because they are not a state.

Someone correct me if I’m wrong. Sounds like they have benefits of association with America without downsides, such as paying federal income tax.


6 posted on 07/13/2014 6:22:43 PM PDT by Dilbert San Diego (s)
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To: clearcarbon

What they need is a massive influx of immigrants from Central and South America to help them solve their financial and cultural problems


The resulting war from doing this may stimulate the economy

Most Spanish folks do not like other ethnic Spanish-language folks. In fact, the term “Hispanic” is a White Guilt Liberal term to make it look like all Spanish people are the same.


7 posted on 07/13/2014 6:24:52 PM PDT by DisorderOnBorder (They are Illegal Aliens...not immigrants)
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To: Dilbert San Diego

In other words its an island of welfare sucking at the teat of US taxpayers.


8 posted on 07/13/2014 6:26:25 PM PDT by headstamp 2
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To: markomalley

Great, just what we need - more ILLEGALS coming north.

(at least that’s what I would post on liberal forums, just to tweak them)


9 posted on 07/13/2014 6:40:01 PM PDT by BobL
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To: markomalley

Hey! I know a great place to send all illegals from Texas!


10 posted on 07/13/2014 6:41:00 PM PDT by Born to Conserve
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To: markomalley

No Worries, the Fed will guarantee those bonds.


11 posted on 07/13/2014 6:59:26 PM PDT by Revel
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To: Dilbert San Diego
As I understand it, Puerto Ricans are American citizens, can travel or move to the mainland without restriction, get public assistance benefits if qualified, but do not pay federal income taxes, because they are not a state. Someone correct me if I’m wrong. Sounds like they have benefits of association with America without downsides, such as paying federal income tax.

They have been trying a different strategy lately which leverages their commonwealth status. They have drastically reduced some taxes, trying to get businesses and wealthy to relocate there. And they are trying to become a bridge between the US and Spanish speaking markets. If it works, they could become the US version of Hong Kong.

Puerto Rico's big 20/22 bet

12 posted on 07/13/2014 7:15:07 PM PDT by Vince Ferrer
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To: markomalley

Who in the world loans money to these places?


13 posted on 07/13/2014 7:19:22 PM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: cloudmountain

Actually Putin and the ChiComs might come to the rescue.


14 posted on 07/13/2014 7:20:08 PM PDT by dfwgator
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To: Dilbert San Diego

http://en.wikipedia.org/wiki/Taxation_in_Puerto_Rico


15 posted on 07/13/2014 7:31:46 PM PDT by rolling_stone
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To: rolling_stone

At least they pay some taxes.

” In 2009, Puerto Rico paid $3.742 billion into the US Treasury.”


16 posted on 07/13/2014 7:34:36 PM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: dfwgator

I wouldn’t be surprised.


17 posted on 07/13/2014 7:35:10 PM PDT by cloudmountain
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To: DisorderOnBorder

Hispanic also makes them a larger group than counting each separately, to make whites a minority, and when that happens, no more care for minorities we will be majority rules. /sarc


18 posted on 07/13/2014 8:25:21 PM PDT by PghBaldy (12/14 - 930am -rampage begins... 12/15 - 1030am - Obama's advance team scouts photo-op locations.)
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To: Vince Ferrer

They have been trying a different strategy lately which leverages their commonwealth status. They have drastically reduced some taxes, trying to get businesses and wealthy to relocate there. And they are trying to become a bridge between the US and Spanish speaking markets. If it works, they could become the US version of Hong Kong.

I’ve been reading about all kinds of jump-start ideas for PR in business publications for ages and obviously nothing has worked.

And maybe why this latest endeavor also won’t pan out is because PR is full of Latinos and not Chinese people.

I mean, something’s got to explain why nothing works there.


19 posted on 07/13/2014 8:45:29 PM PDT by bluedogpdx
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To: markomalley

The American Quebec.

Oh wait - we already are a bilingual country.


20 posted on 07/13/2014 8:52:37 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: blueunicorn6

Easy, big banks will loan to anyone because they know the taxpayers will be forced to bail them out to “save the economy”.

Puerto Rico had a great governor recently, but the voters kicked him out in favor of a politician who promised them more free stuff.


21 posted on 07/13/2014 8:53:10 PM PDT by Pining_4_TX (All those who were appointed to eternal life believed. Acts 13:48)
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To: bluedogpdx
I mean, something’s got to explain why nothing works there.

Smaller Islands are notorious for having low resources and high costs, including energy, travel times, travel costs, etc, which ten to make them poor. Puerto Rico is better than a lot of islands, but some issues could not be worked around until recently. Air travel, container ships, and fiber internet connections all bring the island much closer to the mainland than it has ever been. It is now a four hour flight to New York.

The US federal government also gave them a boost, when they unfortunately passed FATCA. This prevents ordinary Americans from being able to move money offshore. But we can move it to Puerto Rico, and enjoy some of the same benefits.

I think they are committed to the right strategy, and hope they succeed at it.

22 posted on 07/13/2014 9:00:16 PM PDT by Vince Ferrer
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To: Vince Ferrer

Hope springs eternal!


23 posted on 07/13/2014 9:10:29 PM PDT by bluedogpdx
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To: markomalley

sooo, still interested in making this basket case our next state???
Can you say wworthless pathetic welfare drain??


24 posted on 07/14/2014 3:46:10 AM PDT by Joe Boucher ((FUBO) obammy lied and lied and lied)
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To: markomalley

Democrats first Balkanize a place and then eat it from the inside out.


25 posted on 07/14/2014 7:17:20 PM PDT by 1010RD (First, Do No Harm)
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