{"id":10712,"date":"2015-08-04T08:30:19","date_gmt":"2015-08-04T13:30:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10712"},"modified":"2015-08-04T08:30:19","modified_gmt":"2015-08-04T13:30:19","slug":"is-puerto-rico-the-new-greece","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10712","title":{"rendered":"Is Puerto Rico the New Greece?"},"content":{"rendered":"<h3 class=\"article-title\"><a href=\"http:\/\/www.geopoliticalmonitor.com\/is-puerto-rico-the-new-greece\/\" target=\"_blank\">Is Puerto Rico the New Greece?<\/a><\/h3>\n<p><img decoding=\"async\" class=\"img-thumbnail alignright\" title=\"Puerto Rico cc Flickr  Juan Cristobal Zulueta\" src=\"http:\/\/cdn4.geopoliticalmonitor.com\/wp-content\/uploads\/2015\/08\/puertorico.jpg\" alt=\"Puerto Rico cc Flickr Juan Cristobal Zulueta\" \/><\/p>\n<p>While the world\u2019s attention has been firmly fixed on Greece\u2019s debt crisis and the \u201cGrexit\u201d threat, there is trouble brewing much closer to home. Staying largely in the Greek shadow, Puerto Rico is on the brink of defaulting on its debts. The parallels with Greece are unavoidable, and not just on account of the timing, so it is worth taking a deeper look into whether Puerto Rico is the United States\u2019 own Greece and if its looming debt default could potentially have similar repercussions.<\/p>\n<p><strong>Background<\/strong><\/p>\n<p>What has been going on with Puerto Rico? In short, once a prosperous Caribbean nation, in the past decade Puerto Rico has seen its economy shrink considerably. This trend, the growing migration of citizens to the mainland, as well as the island\u2019s labor policy, have all conspired to create the perfect storm for Puerto Rico.<\/p>\n<p>Jumping to present day, Governor Alejandro Garcia Padilla recently told the New York Times that the nation\u2019s $72 billion debt was \u2018not payable,\u2019 while Reuters quoted Moody\u2019s as warning that the probability of Puerto Rico defaulting on its securities was approaching 100 percent.<\/p>\n<p>Much like Greece, Puerto Rico has been asking its creditors for debt relief, and much like Greece, it relies on a much wealthier economy to the north. The island\u2019s debt, owed to a combination of creditors, is higher per capita than any US state.<\/p>\n<p><strong>Default Repercussions<\/strong><\/p>\n<p>With Puerto Rico\u2019s default almost certain, one cannot help but wonder about the potential impact on the US economy, especially given the parallels with Greece and the chaos which the Grexit could unleash not only on the Eurozone but on the world.<\/p>\n<p>In addition to disrupting the life of Puerto Rico\u2019s citizens, the repercussions of a default would ripple through the traditionally low-risk bond market, impacting investors such as retirement funds.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is Puerto Rico the New Greece? While the world\u2019s attention has been firmly fixed on Greece\u2019s debt crisis and the \u201cGrexit\u201d threat, there is trouble brewing much closer to home. Staying largely in the Greek shadow, Puerto Rico is on the brink of defaulting on its debts. The parallels with Greece are unavoidable, and not [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7826,195,200,5674,1167,2598,3824,834],"class_list":["post-10712","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alejandro-garcia-padilla","tag-debt","tag-default","tag-geopolitical-monitor","tag-greece","tag-grexit","tag-puerto-rico","tag-us"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10712"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10712\/revisions"}],"predecessor-version":[{"id":10713,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10712\/revisions\/10713"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}