"They may be fighting over who will be first in line to be paid, but they all agree that workers, pensioners and the poor will have to sacrifice their jobs and living standards."
Such states, particularly Illinois, are teetering on the edge of default for many of the same reasons as Puerto Rico; these include accelerating pension costs, crumbling infrastructure, deindustrialization and the migration of younger workers.
Vulture capitalists fight over pickings from bankrupt Puerto Rico
Such states, particularly Illinois, are teetering on the edge of default for many of the same reasons as Puerto Rico; these include accelerating pension costs, crumbling infrastructure, deindustrialization and the migration of younger workers.
Vulture capitalists fight over pickings from bankrupt Puerto Rico
By Rafael Azul
22 May 2017
22 May 2017
Federal US court proceedings began May 17 in San Juan on
Puerto Rico’s $123 billion bankruptcy. New York District Court is handling the
bankruptcy. As with the Detroit bankruptcy of 2013-2014, the island faces
privatization and cutbacks that will exacerbate a mass wave of emigration and
further sink its economy into depression.
The court hearing took place two weeks after Puerto Rico’s
federal oversight board filed for Title III bankruptcy protection, on May 3, to
tackle the mountain of debt and a public pension crisis.
The opening of the bankruptcy
negotiations began with a dispute over which of two groups of creditors will
have priority over sales tax revenue and other assets. According to the New
York Times, the courtroom was packed with lawyers, signaling “intractable
battles” ahead.
They may be fighting over who will be first in line to be
paid, but they all agree that workers, pensioners and the poor will have to
sacrifice their jobs and living standards. In fact Title III, a provision in
the Puerto Rico relief law (Promesa) that the US Federal Legislature passed
last year, was specifically designed to make possible an attack on public
employee pensions.
AMERICAN DEMOCRACY.... A NATION RULED AND PLUNDERED BY WALL STREET!
AMERICAN DEMOCRACY.... A NATION RULED AND PLUNDERED BY WALL STREET!
Barred from the opening meeting, however, were the hundreds
of thousands of Puerto Rican workers, retirees, and residents who have already
suffered savage cuts in wages, health and educational benefits, pensions and
government services; and are being told to brace for even more.
The lawyers, according to the Times “told
Judge Swain about looming deadlines and said that certain fundamental disputes
had to be resolved almost immediately or else nothing could happen.” Among the
bondholders are so-called “vulture” speculative hedge funds, which, having
acquired bonds at fire-sale prices, now are demanding a return of one hundred
cents on the dollar.
Puerto Rico’s $123 billion debt is the result of over a
decade of recession and mass emigration. Since 2007, the economy has shrunk 17
percent. It is expected to fall by another two percent this year. Its debts in
default now exceed those of any municipal bankruptcy in US history. In addition
to defaulting on tax-exempt bonds held by Wall Street financial institutions,
Puerto Rico confronts $50 billion in unfunded pension obligations to its
retired public employees. In all, the per capita debt burden on this island of
3.4 million inhabitants, amounts to $34,000 for every man, woman and child.
BLOG: HALF THE POPULATION OF CA LIVES BELOW THE POVERTY LINE!
BLOG: HALF THE POPULATION OF CA LIVES BELOW THE POVERTY LINE!
Puerto Rico is one of the most socially unequal US
territories. Half the population is under the dismal poverty line, and the current
official rate of unemployment is 11.5 percent. Average annual pension benefits
are $14,000. One-third of workers are ineligible for Social Security benefits.
The median household income of $19,350 compares very unfavorably with $53,889
for the US. These conditions are driving the migration of tens of thousands to
Miami and other US cities. A record 400,000 Puerto Ricans have left since 2007,
another 240,000 are expected to leave by 2025.
Given its status as a commonwealth, or associated state—a
self-governing US colony with no representation in the US legislature—Puerto
Rico’s bankruptcy is being handled under special federal legislation, known as
the Promise Act.
The bankruptcy is at the same time a warning to US rust belt
states that may be considering asking for bankruptcy protection from their
creditors. Such states, particularly Illinois, are teetering on the edge of
default for many of the same reasons as Puerto Rico; these include accelerating
pension costs, crumbling infrastructure, deindustrialization and the migration
of younger workers. They will also face a Puerto Rican-style “solution” of
draconian attacks on jobs and living standards.
Under the terms of the Promise Act, the debt burden can only
be resolved through savage austerity measures that involve the dismantling of
public budgets and social services. As in Detroit, Greece and elsewhere, the
intention of Wall Street banks and hedge funds is that the poor and working
class make good on their bonds. Most importantly, Wall Street continues to
insist that there are enough resources to pay off the bondholders in full,
providing that the government of Governor Ricardo Roselló becomes more
efficient at collecting taxes, that it sack thousands more public employees,
including education and health workers, and that pensions be sharply reduced.
Retirees are among the most vulnerable. Three years ago, the
Puerto Rican government changed the retirement system that guaranteed public
sector workers a full pension after 30 years of employment to a system that
forces workers to work up to 15 additional years for full benefits. Driving
discussions in bankruptcy court over public pension cuts is that the system is
scheduled to run out of money this July. It is anticipated that ten percent or
more may by slashed from existing pensions.
Chicago and the State of Illinois are lurching toward insolvency, burdened by enormous pension liabilities, political payoffs from past generations that kept the Democrat Machine in power for generations. Rahm Emanuel knows this, and is doing h...
http://mexicanoccupation.blogspot.com/2016/10/the-racist-mexican-fascist-party-of-la.html
OPEN BORDERS: The Democrat Party’s Weapon of Mass Destruction on the American Worker
http://mexicanoccupation.blogspot.com/2016/09/the-la-raza-mexican-crime-tidal-wave.html
"Los Angeles saw all crime rise in 2015: violent crime up 19.9 percent, homicides up 10.2 percent, shooting victims up 12.6 percent, rapes up 8.6 percent, robberies up 12.3 percent, and aggravated assault up 27.5 percent," Landry said.”
By Arthur Schaper
MEXICO ANNOUNCES CONTROL OF CALIFORNIA ACCOMPLISHED.
California State Senate President Pro Tem Kevin De Léon (D-Los Angeles) said last Tuesday that “half his family” was in the country illegally, using false documents, and eligible for deportation under President Trump’s new executive order against “sanctuary” jurisdictions.
“Our entire crony capitalist system, Democrat and Republican alike, has become a kleptocracy approaching par with third-world hell-holes. This is the way a great country is raided by its elite.”
Karen McQuillan THEAMERICAN THINKER.com
May 20, 2017
Rahm’s latest plan to stave off Chicago financial collapse under fire – from Dems
Chicago and the State of Illinois are lurching toward insolvency, burdened by enormous pension liabilities, political payoffs from past generations that kept the Democrat Machine in power for generations. Rahm Emanuel knows this, and is doing his best to come up with financial schemes to keep paying bills. His latest effort at borrowing to keep the Chicago Public Schools (already almost a billion dollars behind in paying its expenses – particularly pension fund contributions) afloat is being called a “payday loan” even by Democrats, as the Dems scramble to blame Republican Governor Bruce Rauner for the collapse of the Blue Model. Fran Spielman reports for the Chicago Sun-Times:
Under fire for authorizing a “payday loan,” Mayor Rahm Emanuel on Friday defended his plan to let the Chicago Public Schools borrow $389 million secured by late block grants owed by the state.“You have a situation…created by the state of Illinois to create a maximum amount of pressure on the public schools, specifically Chicago,” Emanuel said.“It’s a short-term solution to a short-term problem created consciously, woefully by the governor to create political pressure. That’s how we’re handling it. That’s the most appropriate way to deal with it.”Aldermen don’t see it that way. They likened it to the skipped pension payments that got CPS into this mess and Emanuel vowed to end.“Daley didn’t pay pensions. This is borrowing instead of not paying. You’re still robbing Peter to pay Paul and putting a Band-Aid on it,” said South Side Ald. Anthony Beale (9th).“We’re borrowing money hoping that, eventually, the state comes through. If the state doesn’t come through, we’re gonna be in worse shape tomorrow than we are today. It’s gonna cost to borrow money. Taxpayers are still losing.”
Illinois is as broke as Chicago. If this were a business, Rahm would be borrowing against his “accounts receivable” – also known as “factoring.” That is a common practice among financially-troubled businesses to keep the doors open. Rahm is trying to find a factor that will lend almost $400 mill against the promise of a broke state to come up with the cash.
The source of the borrowing has not yet been determined, nor has the interest rate. That must wait until the borrowing goes out to bid. The maximum interest rate allowed by state law is nine percent.
Chief Financial Officer Carole Brown said the short-term loan will be limited to $389 million because the school system’s “lending partners” were willing to finance only about “85 percent of the outstanding receivable” of state grants. The rest will come from savings generated by mid-year budget cuts, Brown said, with a hazy explanation that raised more questions than it answered.
Nine percent is a handsome return in a low interest environment. If Rahm is unable to borrow at that price, it would be a sign that the financial crisis is getting closer. But I suspect that he already has sources of funds, and that the bet would be that the feds would come up with a loan if the effort fails.
Chicago has already sold off major assets, including the right to collect money from parking meters. There are fewer and fewer sources of funds available.
The crash is coming. The Dems are just looking for opportunities to blame Republicans for the consequences of their bribes to unionized public employees.
BARACK OBAMA:
BUILDING HIS RETURN TO POWER PARTY WITH ILLEGALS!
FUNDER AND LEADER OF THE MEXICAN FASCIST PARTY of LA RAZA “The Race”
http://mexicanoccupation.blogspot.com/2016/10/the-racist-mexican-fascist-party-of-la.html
During Obama’s 8 year bankster regime, he openly operated and funded the Mexican fascist racist party of LA RAZA “The Race” from the White House under La Raza VP Cecilia Munoz…. Google Obama and LA RAZA!
California: Will the Mexican Welfare State Fall Into Bankruptcy and Cut State Pensions?
The sick man of the United States…. A STATE UNDER MEX OCCUPATION!
PUS-SPEWING XAVIER BECERRA…. Is what happens when illegals vote LA RAZA FASCISM.
“As one attorney general, Kamala Harris, steps down to replace Barbara Boxer, another attorney general is secreted out of the glands of selfsame power in the form of pus-spewing Xavier Becerra.”
It didn’t stop Becerra, a prominent Latino rights advocate who has served in Congress since 1993, from pushing for the dealer’s release at the request of his father, Horacio. The elder Vignali, a rich Los Angeles businessman, contributed thousands of dollars to Becerra’s various campaigns and a favor was in order.
CALIFORNIA UNDER LA RAZA SIEGE:
Mexico’s looting and ethnic cleansing of a once American state.
OPEN BORDERS: The Democrat Party’s Weapon of Mass Destruction on the American Worker
http://mexicanoccupation.blogspot.com/2016/09/the-la-raza-mexican-crime-tidal-wave.html
"Los Angeles saw all crime rise in 2015: violent crime up 19.9 percent, homicides up 10.2 percent, shooting victims up 12.6 percent, rapes up 8.6 percent, robberies up 12.3 percent, and aggravated assault up 27.5 percent," Landry said.”
IMAGES of LA RAZA CRIMINALS IN LOS
ANGELES ALONE:
200 MOST WANTED (MURDER) CRIMINALS IN LA RAZA-OCCUPIED LOS ANGELES:
“Mexican drug cartels are the “other” terrorist threat to America. Militant Islamists have the goal of destroying the United States. Mexican drug cartels are now accomplishing that mission – from within, every day, in virtually every community across this country.” JUDICIAL WATCH
ROBERT RECTOR:
Importing poverty….
WE ALSO IMPORT ALL THEIR CRIMINALS
“The lifetime costs of Social Security and Medicare benefits of illegal immigrant beneficiaries of President Obama’s executive amnesty would be well over a trillion dollars, according to Heritage Foundation expert Robert Rector’s prepared testimony for a House panel obtained in advance by Breitbart News.”
MEXICO’S BIGGEST EXPORTS TO U.S.: poverty, anchor baby breeders for welfare, criminals, unregistered dems and HEROIN!
ILLEGALS VOTING …. (for more)!
ATTORNEY GENERAL JEFF SESSIONS ORDERS CALIFORNIA TERMINATED.
MEXICO IMMEDIATELY DENOUNCED THE DECREE AND FIRED SESSIONS.
Attorney General Jeff Sessions: Emergency Intervention Needed in California NOW!
MEXICO’S BIGGEST EXPORTS TO U.S.: poverty, anchor baby breeders for welfare, criminals, unregistered dems and HEROIN!
By Arthur Schaper
Townhall.com
In California, illegals can vote: it’s possible and very likely. California’s automatic motor-voter law all but assures that illegals seeking driver’s licenses will get a ballot along with their license.
Miscreants from any corner of the world can register to vote in California online, too. No vetting, no assurance, no integrity.
Voter fraud in broken inner city hellholes like Detroit and New York City cannot compare with the ballot stuffing throughout the once Golden State.
MEXICO ANNOUNCES CONTROL OF CALIFORNIA ACCOMPLISHED.
De Léon, who introduced the bill, made his remarks at a hearing in Sacramento on SB54, the bill to make California a “Sanctuary State.”
California State Senate President Pro Tem Kevin De Léon (D-Los Angeles) said last Tuesday that “half his family” was in the country illegally, using false documents, and eligible for deportation under President Trump’s new executive order against “sanctuary” jurisdictions.
"The American Southwest seems to be slowly returning to the jurisdiction of Mexico without firing a single shot." --- EXCELSIOR --- national newspaper of Mexico
BELOW LINK IS TO THE LA RAZA “THE RACE” MEXICAN FASCIST SEPARATIST MOVEMENT (WARNING! GRAPHIC!)
They claim all of North America for Mexico!
SENATOR DIANNE FEINSTEIN, HUBBY LOOTER RICHARD BLUM AND LAP B ITCH, BARBARA “BRIBES” BOXER…. Along with Nancy Pelosi, four of the most corrupt and self-serving plunderers of America… These Cretans redefine the term CRONY CAPITALIST PIGS!
FOR YEARS THEY HAVE SUCKED THE BLOOD OUT OF A DYING NATION!
“Our entire crony capitalist system, Democrat and Republican alike, has become a kleptocracy approaching par with third-world hell-holes. This is the way a great country is raided by its elite.”
Karen McQuillan THEAMERICAN THINKER.com