Tuesday, June 30, 2015
Because the IMF is really run by the US and we hold an 84% stake meaning 84 cents out of every IMF lent dollar comes ultimately from US taxpayers..
It means we the people are owed $20.16B which is why you should care even a smidge about what goes on in that yogurt-loving nation
Of course we'll never get it back.. That's the 'Best' case scenario
Speaking of worthless deadbeats the US taxpayers will ultimately be on the hook for:
From NY Times:
Puerto Rico’s Governor Says Island’s Debts Are ‘Not Payable’ -- "Puerto Rico’s governor, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions...
“The debt is not payable,” Mr. García Padilla said... It is a startling admission from the governor of an island of 3.6 million people, which has piled on more municipal bond debt per capita than any American state.
A broad restructuring by Puerto Rico sets the stage for an unprecedented test of the United States municipal bond market, which cities and states rely on to pay for their most basic needs, like road construction and public hospitals.
That market has already been shaken by municipal bankruptcies in Detroit; Stockton, Calif.; and elsewhere, which undercut assumptions that local governments in the United States would always pay back their debt.
Puerto Rico, as a commonwealth, does not have the option of bankruptcy. A default on its debts would most likely leave the island, its creditors and its residents in a legal and financial limbo that, like the debt crisis in Greece, could take years to sort out.
The central government must set aside about $93 million each month to pay its general obligation bonds — a crucial action in Puerto Rico because its constitution requires such bonds to be paid before any other expense.
No American state has restructured its general obligation debt in living memory."
Maybe they should change the name of the island to Puerto Pobre (Poor)
Its leadership rocked the EU and the banks by establishing a public referendum to decide what was in their best interests (unlike the US that allows nine morons in black robes to alter the laws that governed the nation since its inception)
And the reason the financial elite are freaking out?
The last time a referendum was issued asking the public if they would accept the harsh repayment conditions of its creditors was Iceland a few years ago which voted overwhelmingly against repayment..
So people are wondering.. who is the good guy in all this mess? Who should be wearing the white cowboy hat?
Answer is really no one..
Greece entered the EU by economic trickery and deceit but they entered a 'club' that prides itself on it.. Banks are banks and Investors are Investors so no one can rightfully root for them..
So the whole mess is 50 shades of black (hat)
So what will happen tomorrow?
Will Greece get another temporary financial reprieve from their economic captors?
Or will the default take place?
And if it does, will those evil global markets react with a Bang! or a whimper?
Certainly makes for a more interesting than usual Wednesday doesn't it?
Posted by Susquehanna at Tuesday, June 30, 2015