Honduras, Haiti, Argentina, Brazil, and now Puerto Rico. Hedge Funds Run Amok

A Colonial Takeover: Proposed Puerto Rican Debt Bill to Give Dictatorial Powers to Unelected Board.

Today, Sanders is supposed to be having a conference call with Puerto Rican leaders to discuss possibly presenting an alternative bill in the Senate. Sanders criticized setting up a fiscal board, saying “vulture funds” should take “a massive discount.” He proposed “an orderly restructuring” under the supervision of a U.S. bankruptcy court. Hillary Clinton released a statement backing the control board bill.

WASHINGTON.- El Partido Demócrata de Estados Unidos redujo de 1,510 a 455 el total de colegios de votación que estarán disponibles para las primarias presidenciales demócratas del 5 de junio. The Democratic Party is reducing the number of polling places from 1510 to 455.

Sin dinero para una emergencia en la Isla. Hurricane season begins June 1st and Puerto Rico has no funds to attend to any natural disaster. http://www.elnuevodia.com/noticias/locales/nota/sindineroparaunaemergenc...

http://www.elnuevodia.com/noticias/politica/nota/reducena455colegiosdevo...

The law for restructuring Puerto Ric's debt would, "require a new oversight board of seven people, four of whom will be chosen basically by the Republicans; even though they will be appointed by the president, the president has to take them from lists provided by Speaker Ryan and by the Senate majority leader. So it’s basically going to be a Republican-dominated board. And most importantly—this is what rankles most people on the island—is that only one of the seven actually has to be a resident or have a primary business in Puerto Rico. So you’re in essence creating a board, an oversight—a control board that will be of nonresidents of the island running the financial affairs of Puerto Rico for the next five, possibly 10 years."

http://www.democracynow.org/2016/5/27/a_colonial_takeover_proposed_puert...

A New Caribbean Dictatorship: Puerto Rico’s Financial Control Authority

It will unilaterally “re-structure the workforce of the Commonwealth government,” freeze public pensions, and ensure “the payment of debt obligations.”

It will supervise the finances of the entire commonwealth government, legislature and courts, public authorities, pension system, and all leases, union contracts and collective bargaining agreements.

It will also make “recommendations” on all the financial affairs of Puerto Rico, including all personnel salaries, firing of workers, reduction of pensions, elimination of services, and the use of “alternative service delivery mechanisms, including privatization and commercialization.”

If the governor or legislature resists any of these “recommendations,” the Authority can “take such action as it determines to be appropriate.” In other words, it can ignore the insular government, and implement any “recommendation” it wants.

The Authority will “grant a security interest in revenues to individuals or entities purchasing bonds, notes, or other obligations.” In other words, the physical infrastructure of Puerto Rico (highways, bridges, schools, prisons, electrical grid, water supply, public housing, prime coastal real estate) will be held as “collateral” for the debt decisions of this Authority. - See more at: http://www.latinorebels.com/2016/02/04/a-new-caribbean-dictatorship-puer...

Anyone — public official or otherwise — who defies or obstructs the Authority, will be guilty of “criminal misdemeanor” and subject to suspension without pay and removal from office.

U.S. federal courts in Puerto Rico conduct their affairs in English.

- See more at: http://www.latinorebels.com/2016/02/04/a-new-caribbean-dictatorship-puer...

Puerto Rico debt crisis: product of US capitalism’s colonial rule

Like a bankruptcy court, the board would decide which debts get paid first and negotiate the size of any haircut.

Among the board’s powers:

■ authority to force the sale of Puerto Rican government assets and to lay off government workers.

■ authority to overturn any law or regulation that the board decides is “inconsistent” with its mission.

■ enforcing laws that prohibit government employees from going on strike.

■ imposing criminal penalties on anyone who fails to carry out the board’s decisions.

In addition, the bill allows the governor of Puerto Rico to lower the minimum wage for new hires for anyone under 25 years old.

http://www.themilitant.com/2016/8022/802204.html

My comment: If you have read my previous essays or diaries, you will already know what banks and vulture funds are attempting to pillage Puerto Rico and how they are financially connected to the Clintons. You will also know how the Clintons, their foundation and other billionaires took control of Haiti with a Bill Clinto controlled "Relief Board" and proceeded to mismanged unaccounted for billions of dollars of funds that were donated to the Haitian people.

What you may not know is that these vultures are attacking the pension funds of old people, closing hundreds of schools, destroying public health, and buying up real estate at fire sale prices to build condos and hotels for the extremely wealthy.

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Dhyerwolf's picture

Why not just put a sign in the port of Puerto Rico reading "Plunderers welcome"? I think we can all guess how these plans would go down if they were enacted and it certainly wouldn't be a benefit to the Puerto Ricans. If states can take advantage of bankruptcy court, then Puerto Rico should be able to as well.

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Ravensword's picture

Vulture capitalists are trying to package up whatever they can move and sell it.

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Ravensword's picture

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Power is in banking. That's why real power lies in either a takeover of the current or establishment of a parallel banking system. Determined people can do wonderful things, but it's not enough. Progressives need a bank.

How to get there .... I'm open to ideas.

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North Dakota has a state bank that invests in the state, but the states can't be trusted these days.

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Mosquito Pilot's picture

...operated until 1967. Time to bring it back.

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Dig within. There lies the wellspring of all good. Ever dig and it will ever flow
Marcus Aurelius

It's the F---ing EFM system all over again.

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-G

What can we, mere humble, lowly
"citizens" of these United States
possibly do to prevent this from
happening?

Do we have any leverage at all?

What is the time frame in which
this proposed to occur?

In short - who do we call, who do
we write, on what streets do we
meet to protest this unholy raping,
pillaging, and, yes, killing of our
brothers and sisters in Puerto Rico?

These gangsters are coming after
all of us, and those of us who can
had damn well better stand up
and fight these criminals now,
because, trust me - they are not
going to stop until we do.

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Only connect. - E.M. Forster

Wink's picture

Detroit.

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the little things you can do are more valuable than the giant things you can't! - @thanatokephaloides. On Twitter @wink1radio. (-2.1) All about building progressive media.

Alex Ocana's picture

That is the methodolgy of internal colonization. Institutionalized racism however one cuts it. I do wonder where the profit is in treating Flint like a colony run by a dictator. Sounds like an interesting topic for research.

In Puerto Rico we are talking about a beautiful, resource rich country that was invaded over a hundred years ago and "possessed".

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From the Light House.

Alex Ocana's picture

I'm a Bolivian and try to inform people wherever I can. I post commentary on Puerto Rican (corporate I admit) news, tweeted until my acct. was suspended. I post o facebook to Puerto Rican and Hispanic groups. Not very effective, I am afraid. I don't understand the sinkhole of American politics but it seems like the most effective manner is joining marches and protests with Hispanic and POC groups. I warn you though, our protests can be far from politically correct. You might write your Senator, your local paper if that sounds like it might be effective.

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From the Light House.

featheredsprite's picture

is Bernie's. He has a "bully pulpit" and has spoken often about the mess in Puerto Rico. Running for president does offer a platform from which to speak.

He says there are ways of handling the problem so that the people don't have to suffer but the "vulture bankers" won't allow that to happen.

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Life is strong. I'm weak, but Life is strong.

Cant Stop the Macedonian Signal's picture

I'm not signing off on this shit.

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"More for Gore or the son of a drug lord--None of the above, fuck it, cut the cord."
--Zack de la Rocha

"I tell you I'll have nothing to do with the place...The roof of that hall is made of bones."
-- Fiver

Thanks for clarifying the process being undertaken to re-direct the wealth and control of Puerto Rico!
Welcome to Michigan!! Appointed by Gov. Snyder, and enabled by an ultra-conservative State Legislature, "Emergency Managers" in control of Benton Harbor, Flint, Detroit, etc., have done all you speak of, and more...as we are all aware of, undermining the public health and well being of the citizens of Flint, closing schools, destroying pension funds, busting unions, over-riding duly elected local boards. This is an ALEC driven process, and Governor Walker has used the ALEC mentality to run the State of Wisconsin, it's schools and universities, business climate, environment, jobs, etc., into the 3rd World.

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I spent a lot of time in Puerto Rico when I was a consultant for AT&T. We set up cellular telephone systems for Puerto Rico and the Caribbean Islands. I love the Puerto Rican people! They are friendly and eager to share their culture.

I loved to walk from the Hilton to the local Bodega, buy a bottle of rum and share it with the store's regulars. Older guys with lots of stories and as long as I shared my bottle, they shared their lives with me. They were a hoot!

On my last visit there I stopped at the bar at the airport. I bought a shot of their best Puerto Rican rum with Coca Cola (their national drink), raised my glass and stated loudly, "El Cuba Libre!" (Free Cuba!) All the patrons turned, surprised, to see this very white American leading a toast. They all raised their drinks and repeated my refrain, loudly! A half dozen free Cuba Libre's later I managed to stumble my way onto my plane for home.

That was then, this is now. Since Puerto Ricans are full-on American citizens, they can move anywhere they wish. They are heading where the jobs are: here on the mainland.

There is no income tax in Puerto Rico. Rich people see an opportunity to once again avoid paying income taxes by seizing control of the local government and the tax benefits that were originally intended for people in need.

"The incentives include an income tax in Puerto Rico of only 4%. Compare that to your combined federal and state income tax burden you may pay now! Legally avoid the 39.6% federal rate and the 13.3% California (or other state) rate? That sounds pretty good."

"What’s more, there is no tax on dividends. If you are receiving distributions of company profits or have investments yielding dividends, they are tax-free. There’s also no capital gain tax in Puerto Rico. If you sell your company, sell real estate, sell shares in public companies, you name it, no capital gain tax."

To gain these benefits, Puerto Rico must become your new home. In other words, the rich want a country-sized gated community!

Seems to me a good community organizer could seek out native Puerto Ricans and recruit them into an organized effort to defeat the rich barbarians and save their island country.

The only solution the super-rich will understand is a rail, tar, feathers and a free ride out of our country.

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If you can't dazzle them with brilliance, baffle them with bull.

Aardvark's picture

is that the United States government does not work for the citizens.

It works for pseudo-citizens: corporations, and those who wield super-civitative power, rendering them more or less immune to any political pressure.

I cannot see too many options in changing this, at least not in the short-term. It will require a massive, prolonged resistance. Even then, I am quite sure that it will come to violence.

There is no guarantee that such change is attainable. I do not believe that the United States can solve its internal problems alone. The elites are really no longer citizens of a country, their power is determined by their wealth, which now moves effortlessly across borders.

I recommend that the only way to make concerted changes is for international alliances, which coordinate policy, just as the oligarchs are able to do.

An idea that has been part of certain political ideologies since their inception.

Peace and love be with you, reader.

Peace and love be with you, reader.

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Doesn't give me confidence in their voting system.

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Beware the bullshit factories.

Pariah Dog's picture

Can they actually DO this?

Even though I knew a lot of Puerto Ricans in my hometown, I've never been sure as to exactly what Puerto Rico's status is with us. They vote in our elections. They're citizens, but pay no taxes. And they're not a state. I've always wondered why we don't just admit them to the union and be done with it instead of having them like a political No Man's Land.

I think now I'm beginning to understand.

To quote Buford Pusser - You let them do this to me and get away with it, then you're giving them the eternal right to do the same damned thing to any one of you.

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Meddle not in the affairs of Dragons - For thou art crunchy and good with ketchup

It seems to me that the best way for the good people of Puerto Rico to respond to this hostile takeover of their government is to engage in civil disobedience and make it too much effort for these carpet baggers to profit off of the situation.

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Not Sure I Can Take Much More

Same bullshit that happened in Michigan -so called emergency financial managers Basically the right to liquidate any asset for pennies on the dollar to big business and steal anything they can get their hands on. Basically they poisoned the city of flint over a few thousand dollars. Now their doing it in other countries-- watch out and beware!!!

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