Vulture Funds versus humanity

Officially Puerto Rico's death toll from Maria stands at 64.
Unofficially, the morgue in Puerto Rico is renting multiple refrigerated trailers while gravediggers are putting in extra hours.
More than 4,600 people died because of the botched aftermath from hurricane Maria, and because of that there is a renewed push for statehood.

"My colleagues saw firsthand the effects of this unequal treatment due solely to our territorial situation. Statehood is nothing else than Equality; and this Admission Act provides the means to put into effect the values of Democracy and Respect upon which our Nation is built."
Ricardo Rosselló, Puerto Rico's governor, echoed her.
"The fight for Puerto Rico's Equality is one of civil rights," he said in the release.
So far the bill has bipartisan support and currently 37 co-sponsors -- a majority of which are Republicans.

However, Puerto Rico's troubles and unequal treatment didn't start with Maria. They started with a financial crisis, and it's important to recognize who is calling the shots in Puerto Rico.

A public list of Puerto Rico’s debtholders does not exist. Since 2014, the Government Development Bank of Puerto Rico, which issued the bonds, has denied requests for their identities—including one from a governor-appointed oversight commission—citing trade secrets and privacy.

For five months, In These Times and Centro de Periodismo Investigativo (CPI) have been working together to track down those identities.

Our first set of findings was released October 17. Of the more than 30 known financial firms vying for Puerto Rico’s debt, at least 24 are hedge funds known as vulture firms, which specialize in risky assets and cater to wealthy investors.

The vast majority of Puerto Rico's "creditors" never actually loaned Puerto Rico a dime, nor did they buy the debt at face value. They are simply vultures picking over a carcass.
They are practitioners of disaster capitalism. Their objectives are immoral. Their methods, unsustainable.

Puerto Rico is forecast to run a primary surplus of around 2 percent of GNP in 2023 ($1.4 billion) and sustain that kind of surplus for several years

It may seem unbelievable, but Puerto Rico got off easy compared to Greece.

"This is it, we have managed to deliver a soft landing of this long and difficult adjustment," Eurogroup President Mario Centeno, who chairs the meetings of the euro zone finance ministers, told reporters Friday.

European Commissioner Pierre Moscovici described the moment as "historic" and "exceptional," while International Monetary Fund chief Christine Lagarde mentioned an "emotional" moment for those who, like her, have been around the Greek debt crisis from the very beginning.

What are they talking about!?! "Soft landing"????
Greece's economy has shrunk by 30%. More than the U.S. during the Great Depression.
But the worst part of this "celebration" is that it implies Greece's troubles are over, when it fact they've barely even begun.

“Even if Greece through a heroic effort could temporarily reach a surplus close to 3½ percent of GDP, few countries have managed to reach and sustain such high levels of primary balances for a decade or more”
(IMF Debt Sustainability Analysis, May 2016).

On the contrary: The creditors' rejection of a formal debt write-down means that Greece's total debt load remains stuck at a staggering 180 percent of GDP, with the agreed extension of loan maturities merely pushing the problem further down the road.
... In fact, the terms of the latest agreement require the Greek government to continue running a primary budget surplus of 3.5 percent until 2022, followed by an average of 2.2 percent until 2060, effectively committing the country to 42 more years of austerity. To be clear, no sovereign state has ever managed to run uninterrupted primary surpluses for that long.
...What is worse - the deal stipulates that eurozone officials will only revisit the issue in 2032, meaning that Greece is likely to remain stuck in a debt trap for the next decade and a half at the very least.

No debt deal will ever survive 42 year, and Greece will never achieve a primary budget surplus of even 2% for 10 years, much less what is required.
We are in a global standoff between predatory creditors against humanity.

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thanatokephaloides's picture

.... will have to face the facts it faces -- that she is actually bankrupt -- and leave the Euro once and for all. Then she will have to formally and permanently default on all parts of her debt owed to foreigners (national bankruptcy).

There is no way in [term rhyming with "clucking bell"] that Greece, or the Greek people, can or will live with the austerity pain for more decades on end. They will accept a declaration of war against Germany first.

Bad

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"US govt/military = bad. Russian govt/military = bad. Any politician wanting power = bad. Anyone wielding power = bad." --Shahryar

"All power corrupts absolutely!" -- thanatokephaloides

Song of the lark's picture

This fiat currency regime will not break until the status quo breaks. The central banks have it well in hand. They have already figured out that they will need an immediate 4 trillion for the US market should another 2008-9 event take place...which it will shortly. Our Fed induced Ponzi last gasp of peak consumer bull market is long in the tooth. Ain't it grand. Love it while it's here. It's been a grand ride of staus quo, easy credit. As for Greece ...has been dead man walking perhaps before it joined the Euro Zone on a trumped up Goldman Sachs fiddle Dee Dee recommendation. Not ever getting better, unless they somehow find some oil or natural gas off shore. Think I heard they found Nat Gas of shore recently. Still they are likely to be either in a low level war with Turkey or overrun by mass migration off the collapsing Sahel. Still life goes on just at a step down. That is how global extraction and collapse with manifest. Step down. Thermodynamic Collapse (energy getting more expensive) not in money but in energy.
Follow step down live ... See Venezuela, Argentina ( again) maybe Brazil, some areas of Central America, Italy (the big one). Italy and Greece will likely become fortress Mediterranean soon barring migrants similar to Hungary, Austria etc. It's unclear what Grexit and Brexit might do but seems likely to allow some autonomy and refuge from Eurozone oppression but may tank economies. The debt monster is coming and will collide with Climate change, resource depletion, to stomp on more than a few countries. Fortress America get used to it. Hard to believe that Trump will be seen as a visionary ( for all the wrong reasons of course ,idiot climate change denier, blow hard grifter business fuckard.)

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@Song of the lark @Song of the lark one off Cyprus, with Turkey and Israel(w/US-istan Collusion!) screwing them out of it?
Detroit, Puerto Rico-the public won't wake up until a State goes under their kni-oh wait! Kansas and Oklahoma and. . . never mind.

Edit; Or am I thinking of Crete?

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Ya got to be a Spirit, cain't be no Ghost. . .

Explain Bldg #7. . . still waiting. . .

If you’ve ever wondered whether you would have complied in 1930’s Germany,
Now you know. . .
sign at protest march

It's always been disaster capitalism, for someone.

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@Snode this crap has got to be made illegal.

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dfarrah

@dfarrah If you keep stepping back you see peoples existences depend on it, then a nations government spends its resources in support of, and a world gets consumed by it. Of course if you keep stepping back far enough your back ends up against the wall. Are we there yet?

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Cant Stop the Macedonian Signal's picture

@Snode People's existences only depend on it because that's the way the world has been organized. The world can, obviously, be organized in any number of ways. Unfortunately, you have to have the power to do so, and we don't. But that doesn't mean we should accept capitalism's dictum that it is inevitable, nor its penchant for hiding behind vulnerable and hurt people, rather like this:

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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

Cant Stop the Macedonian Signal's picture

@Snode Now it's the dominant economic mode. In fact, the capitalists who don't practice it are looked at somewhat askance by their brothers; at least it seems so to me.

Bezos and the others will show them the error of their ways.

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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