Puerto Rico is teetering on declaring what would be the largest public-sector bankruptcy in American history.
Why? Creditors hold approximately $69 billion in Puerto Rican debt, and unless the “free associated state” pays off its debt by a May 1 deadline, the creditors will sue, according to The Financial Times. According to sources, more than a dozen lawsuits were ready to be filed the moment May 2 arrived.
Who Set The May 1 Deadline? Last year the U.S. Congress passed legislation (dubbed PROMESA) providing the Puerto Rican government with approximately one year of respite from potential legislation.
As reported by Breitbart, this legislation “turned over the island’s finances to a federally appointed committee and created a ‘Title III’ bankruptcy process … PROMESA gave the control board defacto authority to sell government assets, consolidate agencies, and fire government workers to restructure the island’s balance sheet. It also put a retroactive stay on bondholder lawsuits to grab assets liens.”
What Happens Now? With the deadline having been reached and Puerto Rico’s financial situation still a hot mess, the state has no other choice but to declare bankruptcy like other Democrat-controlled localities, including Detroit, which declared bankruptcy in 2013.
Not surprisingly, much of the its current financial problems tie back to its long history of embracing Democrat politicians and ideas, according to Breitbart:
One key reason Puerto Rico’s economy has imploded was that the Popular Democratic Party-controlled legislature made Spanish the official language in 1991 for all schools and government use. Partly as a result, 86 percent of the island does not speak English in the home and almost a third of the residents are on welfare.
Democrats pretty much destroyed Puerto Rico, just like they destroy anything else they touch.
The Hill: Congress should not bail out liberal governance in Puerto Rico
The Daily Signal: Puerto Rico’s Liberal Mismanagement Should Not Be Rewarded by Congress
American Thinker: The Problem with Puerto Rico
How Are The Puerto Rican People Handling This? On Monday hundreds of protesters reportedly blocked roads to protest “against looming austerity measures,” according to ABC News. They also demanded that an audit be conducted to determine how it acquired so much debt in the first place.
Here’s a hint, sunshines: WELFARE.
Much like Greece, your territory believes in handing out freebies like candy. And well, decades of doing exactly this — courtesy of your Democrat legislators, of course — has bankrupted you and made “austerity measures” a necessity.
Yeah, sorry, but money doesn’t grow on trees, which is why when you start giving out stuff for free, things like this often happen. Live and learn.