The US public debt is enormously greater than the debt of Puerto Rico. For this reason Puerto Rico must send a Financial Control Board to Washington, to manage the disastrous US economy.
Here are the numbers to prove it…
DEBT TO CHINA AND JAPAN
As of 2015, the US owes $1,254,800,000,000 ($1.25 trillion) to China and $1,149,200,000,000 ($1.15 trillion) to Japan.
This US debt, to just these two countries, is 30 times greater (3,000%) than the $72 billion which Puerto Rico allegedly owes to the US.
Numbers do not lie.
DEBT PER CAPITA
But the total US federal debt is much higher than this. It currently stands at $19,262,107,539,784 ($19.3 trillion).
With a population of 320 million, this US federal debt of 19.3 trillion translates into more than $60,000 for every person in America.
With its population of 3.6 million people, Puerto Rico’s debt of $72 billion translates into $20,000 for every person in Puerto Rico.
In other words, the US federal debt is over three times higher per person, than the Puerto Rico public debt. Every man, woman and child in the US has over three times more debt service and interest payments on their head, than the people of Puerto Rico.
The political leaders of the US, have indebted their people three times worse than in Puerto Rico.
Numbers do not lie.
DEBT / GDP RATIO
In addition, we must consider public debt as a percentage of Gross Domestic Product (GDP). The Debt-to-GDP ratio is considered a key index of a nation’s economic health.
With a Puerto Rico GDP of $104 billion and a debt of $72 billion, the public debt of Puerto Rico is 70% of GDP.
With a US GDP of $17.95 trillion and a debt of $19.3 trillion, the public debt of the US is 107% of GDP.
In other words, the Debt-to-GDP ratio of the US is 37% higher than that of Puerto Rico.
Remember…numbers do not lie.
PUBLIC DEBT AROUND THE WORLD
Not only compared to the United States…but compared to the entire world, Puerto Rico’s public debt is nothing to be ashamed of.
Two years ago in 2015, according to Harvard Magazine, “The debt levels in many advanced economies exceeded 100 percent of gross domestic product (GDP). In the United States, for example, government debt is currently 105 percent of GDP.”
Harvard Magazine then provided a helpful graph, which shows this rapidly mounting debt, all around the planet:
The sloppy horizontal line on the right shows where Puerto Rico’s “External debt as a percentage of GDP” falls, in relation to the other 22 “advanced” economies.
As you can see, Puerto Rico’s 2015 debt level is less than one-third of the debt levels in the 22 other “advanced” economies. These economies include the US, Japan, Germany, United Kingdom, Australia, France, and Canada.
Guess what…numbers do not lie.
OOPS! WE FORGOT THE STATE AND LOCAL DEBT!
The state and local debt, for all 50 states combined, is currently $3,001,000,000,000 ($3 trillion).
If we factor these into our earlier calculations, we get the following:
The total US governmental debt is $22.3 trillion…which is 2,860 times greater (286,000 % greater) than the debt of Puerto Rico.
The total US per capita debt is $70,000…which is 350% higher than the Puerto Rico per capita debt of $20,000.
The total US Debt-to-GDP ratio is 125%…which is 55% higher than the Puerto Rico Debt-to-GDP ratio of 70%.
OOPS! WE ALSO FORGOT THE SUBPRIME MORTGAGE CRISIS !
In 2007, the entire US economy became so infected with poisonous debt, that the federal government stepped in and saved Wall Street with a $2,000,000,000,000 ($2 trillion) bailout. The Wall Street debt hustlers kept all the money, while millions of people lost their homes.
Many of those debt ustlers – such as John Paulson, Nicholas Prouty, Salomon Brothers, Stone Lion Capital Partners – are now devouring the beaches, bridges, highways, hotels, marinas, office buildings…and soon the electrical grid and water supply of Puerto Rico.
WE MUST SEND A FINANCIAL CONTROL BOARD IMMEDIATELY
This is clearly a dangerous state of affairs. The US is choking with debt and addicted to it: both at the same time.
The municipal bond industry is the drug dealer of debt, pumping out $3.7 trillion of muni bond debt instruments every year.
Every year, 22% of the US economy is converted into municipal bond debt, and these bonds create a nation of debt junkies. Pension funds buy this debt and inject it straight into their veins, every year and in all fifty states. Investment banks, hedge funds, law firms, bond traders and placement agents all become addicted, as well…because transaction fees and million dollar bonuses are the opium of Wall Street.
Puerto Rico must send a Financial Control Board to Washington, D.C. immediately…before these debt addicts attack our island with a zombie appetite.
A zombie has no conscience.
A debt-addicted society has no morals…it only has an insatiable thirst, for the virgin blood of other republics.
If we don’t send this Financial Control Board immediately, these debt zombies will devalue our currency by 40%, take 80% of our land, cut wages by 50%, close 200 schools and 9 hospitals, raise electricity rates by 300%, hike water rates by 60%, raise gasoline taxes twice in one year, impose an 11.5% sales tax, raise the tolls on PR-5, PR-22, and the Teodoro Moscoso Bridge, demand a $4.25 minimum wage, privatize our airports, steal our pensions, buy our beaches, imprison our leaders, and pass a Jones Act.
Wait a minute…they already did that.
For a history of the War Against All Puerto Ricans, read the book…
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