Gov. Alejandro Garcia Padilla announced Saturday that he has declared a state of emergency at the Government Development Bank aimed at ensuring that Puerto Ricans continue to receive essential government services.
The governor said he issued an executive order Friday to halt the erosion of the bank’s dwindling liquidity by only allowing withdrawals to fund necessary costs for health, public safety and education services. The order does not call for a moratorium on the bank’s principal or interest payments. Garcia said the government bank is in talks with creditors regarding a nearly $423 million payment due in May.
The order is the first taken under the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act enacted last week, which gives the governor emergency powers to deal with the fiscal crisis, including the ability to declare a moratorium on all bond payments.
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What do you think the next step will be? Puerto Rico may foreshadow our future but the takeaway lesson is to get your fiat dollars out now.
David DeGerolamo
I’d say PR is North America’s Greece. I suspect to stave off the domino effect of a 2008 on crank, it will suck up all the magical blue sky fiat in use in the current check kiting scheme aka the US economy. The sonofabitches are going to have to create an entirely new boatload of fiat out of whole cloth for this to keep the scam going and fill the vacuum left in the wake of default.
I’m just guessing here, because bankster’s don’t tell me how they are rigging the economy. But it is obvious the bill is coming due with a vengeance. This is serious stuff, the narrative is highly controlled, and that in itself is an indication the truth of the extent of how bad it is.
The source of the bailout and covering it up will tell the tale. This isn’t a bankster cartel that is defaulting, it is an island nation state of people and their social order we are talking about. And as we all know if we care to see the truth, the oligarch’s don’t give a rat’s arse about the dirt people.
I think too, it will be allegory to the rest of the 50 states, who almost all are in a similar state to one degree or another riding the ragged edge of total bankruptcy.
Here in WV the statist regime both milked and strip mined the coal industry while enabling the demise and closure of coal mining almost to the last mine. That is, or was probably because of the on order economic effects of all that industry and related support, 70% of the states revenue, never mind the income to tens of thousands of West Virginian’s and the business’s they owned or worked for. Now the regime is whining about making up the short fall in revenue, the same old tripe and lies. All they care about is continuity of their corruption and the illusion of legitimacy. We are going to see here pretty soon, because everyone is broke. The only source where the corruptocrats, free loaders and their idiot ilk can strip mine us of our remaing prosperity is through the instrument of extortion aka property tax increases. There is no other source of extortion money remaining at the level required to make up for them murdering the golden goose of energy extraction. There is no other source of true prosperity except for land and the sustenance derived from it. There are signs every where of nascent growing quiet resistance and revolt. it is very subtle, this is “cold anger”. It is the law of diminishing extortion. The more the state steals the less there is to steal, because the truth of it is they are after our seed corn now. It is a downward spiral that only statist sociopaths and their psychopath organized crime syndicate crony leadership create. For these criminals and their sycophants, it is never about how to make change for the better and the long run, it is always about how much they can get away with stealing other peoples wealth and prosperity.
PR is prologue. The sonofabitches are going to try every possible method of stealing their way out of this. It is who they are, thieves. It is all they do, they have hijacked and rigged the system to steal from it. Every damn one of them, if only by association to this organized crime system.
To me, this is the SHTF, the shit has hit the fan. None of them involved are worth a bucket of warm spit, they ain’t qualified or have the moral compass or wherewithal, or institutional prerogatives, never mind the courage, to make the changes and act to reverse what they created to begin with, because they created this disaster to begin with. Institutionally they are the cancer, cancer can’t cure itself.
Think Genral Motors on steroids, Once Ryan and the GOP change existing laws to legalize theft from investors, er I mean allow for “restructuring”, the bond holders are going to get pennies on the dollar. The worst part is many have been duped into investing in those bonds because the Fed has driven down retrains to zero and so find mangers went looking for higher returns foe people’s retirement accounts,
In the end almost none of this would be necessary or possible without the opportunity for theft that is fiat currency. Without that avenue of fraud consequences would have minimized, realized, and dealt with quote awhile ago. We should follow the example of Iceland, let the currency crash, jail those involved, and issue new currency based upon a fixed point of reference.
mtnforge -- Outstanding post! Read it three times…I agree with every word.
Yes the S has HTF!
Paul Revere is riding around the internet shouting: THE DERIVATIVES ARE COMING! THE DERIVATIVES ARE COMING!