Puerto Rico is strategically significant given real regional issues in Haiti, Cuba and Venezuela. There's no way U.S. interests would drop this hot potato. But it's only cheaper to keep PR if we fix the problems.
The territory does need structural financial reform. Puerto Rico bonds provide tax free interest to owners, and the debt is constitutionally guaranteed by the government, allowing massive growth towards this un-payable amount today.
The investors that continued to fund the debt faced real default risk and it has come true. I estimate the noise for statehood being generated by monied NY interests that have the most institutional cash to lose on PR default.
Let's change the tax status on PR bonds and start finding fresh sources capital for investment in the island. There's a better way than this old bond program spawned out of the last century's demands.
The territory does need structural financial reform. Puerto Rico bonds provide tax free interest to owners, and the debt is constitutionally guaranteed by the government, allowing massive growth towards this un-payable amount today.
The investors that continued to fund the debt faced real default risk and it has come true. I estimate the noise for statehood being generated by monied NY interests that have the most institutional cash to lose on PR default.
Let's change the tax status on PR bonds and start finding fresh sources capital for investment in the island. There's a better way than this old bond program spawned out of the last century's demands.