{"id":13685,"date":"2015-10-22T06:26:39","date_gmt":"2015-10-22T11:26:39","guid":{"rendered":"http:\/\/olduvai.ca\/?p=13685"},"modified":"2015-10-22T06:26:39","modified_gmt":"2015-10-22T11:26:39","slug":"obama-unveils-roadmap-to-bailout-puerto-rico-new-bankruptcy-rules-federal-fiscal-oversight","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=13685","title":{"rendered":"Obama Unveils Roadmap To ‘Bailout’ Puerto Rico: “New” Bankruptcy Rules & Federal Fiscal Oversight"},"content":{"rendered":"

Obama Unveils Roadmap To ‘Bailout’ Puerto Rico: “New” Bankruptcy Rules & Federal Fiscal Oversight<\/a><\/h3>\n

America is not Greece, but judging from the Obama administration’s just-unveiled plans to bailout Puerto Rico’s disastrous debt situation, the American territory may have to sacrifice a little more sovereignty to get some relief. Obama is pressing for Congress to give Puerto Rico (PR) sweeping powers to\u00a0reduce its $73 billion debt burden through a form of bankruptcy protection not now available to American territories<\/strong>and will also ask lawmakers to\u00a0establish an independent body to monitor the island\u2019s fiscal affairs<\/strong>\u00a0(a la Troika). While the proposals likely face an uphill battle in Congress,\u00a0as NYTimes reports,<\/em><\/a>\u00a0both Democrats and Republicans are under pressure to respond because\u00a0Puerto Ricans are flooding the US, particularly in central Florida, and are becoming an increasingly important voting block in the 2016 presidential race<\/strong>.<\/p>\n

Puerto Rico is teetering under debt amassed from years of borrowing as the economy failed to grow and residents left for the U.S. mainland.\u00a0<\/strong>Governor Alejandro Garcia Padilla is seeking to persuade investors to accept less than they\u2019re owed, saying tax increases and spending cuts alone won\u2019t be sufficient to eliminate the government\u2019s budget shortfalls.<\/p>\n

\"\"<\/a><\/p>\n

Creditors say that the island\u2019s government has been seeking to portray the fiscal situation in Puerto Rico as beyond repair, hoping to force the administration and Congress to act.\u00a0<\/strong>As The NY Times reports,\u00a0<\/a>on Wednesday, Puerto Rico took the unusual step of announcing that talks over restructuring about $750 milllion of the island\u2019s debt had broken off,\u00a0a move that some creditors saw as posturing to Washington for help.<\/strong><\/p>\n

It appears to have worked… (as Bloomberg details)<\/p>\n

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President Barack Obama is pressing for Congress to give Puerto Rico sweeping powers to reduce its $73 billion debt burden through bankruptcy, escalating administration involvement\u00a0<\/strong>as the Caribbean island\u2019s access to cash dries up.<\/div>\n<\/blockquote>\n
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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Obama Unveils Roadmap To ‘Bailout’ Puerto Rico: “New” Bankruptcy Rules & Federal Fiscal Oversight America is not Greece, but judging from the Obama administration’s just-unveiled plans to bailout Puerto Rico’s disastrous debt situation, the American territory may have to sacrifice a little more sovereignty to get some relief. Obama is pressing for Congress to give […]<\/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":[2,6],"tags":[195,3107,200,584,3824,1510,827,834,1796,9435],"class_list":["post-13685","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-debt","tag-debt-restructuring","tag-default","tag-obama","tag-puerto-rico","tag-sovereignty","tag-united-states","tag-us","tag-us-congress","tag-zero-hedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13685","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=13685"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13685\/revisions"}],"predecessor-version":[{"id":13686,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13685\/revisions\/13686"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}