Wednesday, May 4, 2016

The US Congress proposes a Fiscal Control Board to help solve Puerto Rico's Economic Crisis.

The people of Puerto Rico support a Control board. We are totally aware of the fiscal mismanagement and rampant corruption existing in Puerto Rico, which has created this situation.

Those who are to blame for this economic crisis have the power and money to influence and lobby Washington so as to continue controlling and deciding how the money is spent in our economy. They have controlled the government;s spending and now want to make sure they control the board.

Without a truly independent Board, the PR governing elite class will make sure that the money PR receives from any US bailout will reach the same destination that brought about our economic crisis.

Treasury Sec. Warns Inaction on Puerto Rico Could Cost Taxpayers
by BRIAN LATIMER\May 3, 2016

U.S. Treasury Sec. Jack Lew wrote a letter to Speaker Paul Ryan and warned that a taxpayer bailout for Puerto Rico will end up being the only option if Congress cannot pass legislation allowing Puerto Rico to restructure its debt before July 1.Lew last wrote a letter in January to press Ryan and Congress to pass legislation allowing the island to restructure its $72 billion debt. Now that Puerto Rico has missed the critical May 1 payment deadline, Lew wrote Monday that "a series cascading defaults" could, and would, intensify.

"Going forward, Puerto Rico's $70 billion of debt is unsustainable by any measure," Lew writes. "It simply cannot afford to pay its debt. And, with a shrinking economy because of people leaving Puerto Rico, further reductions in government spending will be difficult to implement." Puerto Rico Gov. Alejandro GarcĂ­a Padilla announced the island would not be able to pay the full $400 million debt payment that was due Monday. 

While the Puerto Rican government attempts to finance the first loans, the island is bracing for the looming $2 billion payment due July 1. A recent bill proposed by House Republicans has stalled and Congress went on recess without a vote on Puerto Rico. Lew warns that a taxpayer bailout may be the only option for Congress if legislation lags on the House floor.

"The people of Puerto Rico will be forced to endure additional suffering," Lew writes. "And, unless Congress passes legislation that includes appropriate restructuring and oversight tools, a taxpayer-funded bailout may become the only legislative course available to address an escalating crisis."