Like a great sea captain…now that Gov. Alejandro García Padilla has sunk the entire ship, he is the first one to abandon it.
As Puerto Rico sinks quietly into the Caribbean Sea, García Padilla will not run for re-election as its governor.
Not one person in Puerto Rico is surprised by this. Here is why:
The Government is BROKE
Within a few weeks the Banco Gubernamental de Fomento (BGF) will run out of cash reserves. In other words, by December 2015, Puerto Rico will be broke.
The Government owes BILLIONS
The government of Puerto Rico owes $73.6 Billion, and has no access to the credit markets. In fact, just one month after it goes broke, Puerto Rico will be hit with a $945 million bond re-payment demand.
The Government will no longer EXIST
Thanks to García Padilla, a five-member Financial Control Board will now rule over Puerto Rico, its economy, and its government. This Board will have authority over the entire Commonwealth government, and all of its 78 municipalities.
The Board will have subpoena powers, and will be accountable to no one in Puerto Rico. In other words, this Board will be the government of Puerto Rico.
It was García Padilla who created this “Financial Control Board” and urged his legislature to adopt it. Thanks to García Padilla, the office of “Governor of Puerto Rico” will now become an international joke.
The Governor is in NEW JERSEY
As Puerto Rico sinks into the sea, Gov. García Padilla is currently in Jersey City, New Jersey.
What is he doing in New Jersey?
There were no scheduled press conferences, no public hearings or events, no announced conferences. The governor went to New Jersey in a highly private manner.
Perhaps the governor is cutting his personal deal with the hedge funds, before sticking the last dagger in Puerto Rico’s back.
For this purpose, New Jersey is a perfect setting. Puerto Rico has a gangster government. A government of thieves. No wonder they sneak into New Jersey.
No wonder they don’t run for re-election.