Spin doctors in Washington are trying hard to make sure the world know that the failure of Greece, will not affect the United States. Not substantially. The same cannot be said for the failure of Puerto Rico. Although many would like you to believe it is not true.
The commonwealth’s massive +73 billion dollar debt and more that one hundred billion dollars in unfunded liabilities which grow each year (and could double in ten years) may be the begining of a massive Municipal Bond crisis as other states, counties and cities find themselves in the same situation.
Just like in Puerto Rico a major factor in the crisis in the US is public sector unions. One cannot deny their extraordinary impact and their intransigence to changes that are desperately needed. For the U.S. however, it goes further. While the left makes a point almost daily about defense spending, social welfare programs make up 50% of the total government spending of over 3 trillion dollars.
That is 1.5 trillion dollars in social welfare spending, with more than 100 trillion dollars more in unfunded liabilities, mostly in welfare programs which include, social security, medicare, medicaid, Obamacare, and the wealth of other social programs. This spending makes a mockery of any suggestion the USA isn’t doing enough to help the poor and given the most taxes are actually paid by the upper middle class and rich and half the country (just like in Puerto Rico) pay no income taxes at all; it also makes a mockery of any suggestion that the ‘rich don’t pay their fair share.’
I’ve often referred to this situation as the 17 trillion dollar question that statehood cannot answer. The truth is no one in the pro-statehood movement want to discuss it, because it is a tough question. One thing is Puerto Rico begging for help from Uncle Sam and being rejected (so far); it is another all together when Uncle Sam can’t pay its own debts.
The USA is already monetizing its debt, which means in a matter of years; the US economy will go into free fall. (I am honestly surprised it hasn’t happened yet.)
So what does Puerto Rico do then? If it is a state, what happens? Think things are bad now? What happens when Puerto Rico is stuck in permanent union with the US and the US economy goes into free fall collapse?
I have never denied the value and promise of statehood. I used to be a strong statehood supporter myself. But for many years the statehood movement has argued ‘Statehood or Independence NOW.’ Well, ‘now’ has arrived and we still haven’t chosen.
A serious discussion by the New Progressive Party and the Popular Democratic Party regarding independence must occur. It must be given a fair and honest look, before it is too late. Puerto Rico is in crisis right now, but the worst is yet to come.
I do not honestly expect the NPP and PDP to sit down together at the table of liberty, but I must reiterate that there are solutions to the current crisis. Some we have been promoting for years. Ending the minimum wage is one of the suggestions we made more than a year ago and we got a very negative response.
The IMF accountants recent report on Puerto Rico also suggested doing exactly the same thing. IN other word the Republican Independence Movement (MIRE- Movimiento Independentista Republicano) has been ahead of the game for some time.
We must move forward. MIRE has the answers and the plan. All we need is you. Do you really want to follow the political parties off the cliff? Join us to create a free, independent and prosperous Puerto Rico.
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