Obama Holdovers Are Making Puerto Rico’s Recovery Much Less Possible
We Must Improve the Ground for Recovery |
Holdovers from the Barack Obama Administration especially – and residual creatures generally. Leftist ideological hacks – and permanent DC denizens. All of whom have very comfortable nests – feathered by DC’s Swampy foulness.
Defenders all of the awful status quo.
Trump has made some serious mistakes. None of them is more serious than allowing so many of these people to remain in DC after he arrived.
A quintessential example hereof – is the Obama-staffed Puerto Rico (PR) Control Board. Created by United States Congressional law – to deal with the PR government’s $72 billion debt.
The Obama Holdover Board is breaking the laws pertaining to how PR is supposed to manage the debt – and egregiously abusing many of the people who have lent Puerto Rico so much coin. All while feathering further their own nests. Obama-DC Cronyism – gone Caribbean.
Is the Obama Board as incredibly terrible as we say? We may have undersold it:
“The board was created…to get the U.S. territory’s financial house in order and to keep it from getting sued, along with setting up plans for paying off creditors down the road.”
If the Obama Board’s charge is “keep (PR) from getting sued” – they are doing a seriously lousy job:
“While Puerto Rico’s constitution guarantees payment on general obligation bonds, there is no such explicit guarantee for COFINA bonds. Yet while the commonwealth was forced to default on $780 million in general obligation debt, COFINA bondholders have continued to receive on-time payments, an act which some hedge funds contend is unconstitutional. The financial control board has requested the lawsuit be stayed, in spite of a ruling by Judge Francisco Besosa that it should be allowed to proceed.”
“One point that’s been made is that at least two of the members serving on the financial control board have significant personal interests in COFINA bonds.”
Good, old-fashioned Obama cronyism. Exported to the Caribbean’s Shining Star.
Obama appointed Board members to whom Puerto Rico owes a great deal of money – but not in the format the law mandates be paid first. So they’re simply jumping their own debt over the constitution, the laws and the general obligation debt-holders – and into the head of the line.
What else helps explain why Obama’s Board is doing this?
“It’s also worth noting that the chairman of Puerto Rico’s financial control board, Jose Carrion III, is a major shareholder with Banco Popular, which issues COFINA bonds.”
Get all that? The Chairman of the Obama Board – issues the bonds the Obama Board is illegally paying off first. And two members of said Obama Board – are huge holders of said bonds.
How very Obama of all of them. If this sounds at all familiar – it is because it is almost exactly how Obama illegally handled the debt when he commandeered control of General Motors. Paying off union cronies – ahead of those legally first in line.
Which brings us to the huge PR problem going forward.
Even as we type and read, Puerto Rico is most unfortunately getting crushed by a second consecutive massive hurricane.
After which, they are going to need billions of dollars of investment to recover and rebuild.
The conduct of the Obama-infested Control Board – is rendering this prospect nigh impossible.
Why would anyone invest anything in Puerto Rico – when the Obama Board charged with determining repayment is so utterly corrupt?
The very best thing Trump can do to help Puerto Rico recover from Hurricanes Irma and Marie – is to first help them recover from Hurricane Obama.
Trump desperately needs to fire all seven Obama Board members. And replace them with non-crony, un-conflicted people – who will actually adhere to PR’s constitution and laws.
PR desperately needs this – if they are to have any hope of any economic future.
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Seton Motley is the President of Less Government and he contributes to ARRA News Service. Please feel free to follow him him on Twitter / Facebook.
Tags: Seton Motley, Less Government, Obama Holdovers, Puerto Rico, Making Puerto Rico’s Recovery, Much Less Possible To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service and "Like" Facebook Page - Thanks!
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