The Fall of Puerto Rico

By Douglas V. Gibbs

It's official.  Puerto Rico is in default, though the island claims their missed payment shouldn't be listed as a default (because it wasn't because they "could" not make the payment, but because they "would" not).  Panic is in the streets.  The American territory's economy is going all to hell.

The alleged default is over a $58 million debt payment.  Puerto Rico made a partial payment of $628,000 in interest but could not afford to make the remainder, which was due Saturday, because the legislature did not appropriate the funds.

The partial payment, according to experts, will be the first in a long line of defaults.  The governor has warned that it is true, Puerto Rico cannot repay their $72 billion in public debt.

Leadership in the U.S. Territory are saying that Puerto Rico should be able to file for bankruptcy under Chapter 9.  Such a move would allow an orderly restructuring of the debt.  The U.S. Congress, however, is not as convinced as Puerto Rico that a bankruptcy is the best idea.

Obama's minions say that no federal bailout is planned.

Puerto Rico, it seems, is poised to join Greece, Detroit, and California on the long list of locations driven into the ground by leftist policies.

-- Political Pistachio Conservative News and Commentary

Puerto Rico defaults... - Associated Press

'Death spiral'... - CNN Money

Misery deepens for those who can't leave... - My Way News