A fake Promesa for Puerto Rico: the “new” Financial Control Board bill

Book - 12-10

 

A new Caribbean dictatorship will soon take charge of Puerto Rico. The final PROMESA bill finally arrived…and it is the WORST one of all.

After five months of “hearings” and “analysis,” the US Congress announced HR 5278…the law which will officially kill the economy of Puerto Rico. Here is the bill, all 148 pages of it:

http://naturalresources.house.gov/uploadedfiles/promesa_hr_5278.pdf
 

What happened to Puerto Rico?

 
The economy of Puerto Rico will soon be handed over to a “Financial Oversight and Management Board,” and the billionaires behind them.

AUTHORITY TO RECEIVE GIFTS

One of the more astounding “good government” powers of the Board will be its right to “accept, use, and dispose of gifts, bequests, or devises of services and real and personal property.” There is no explanation of how these gifts will “aid or facilitate” the work of the Board.

This incredible invitation to bribery, influence peddling, and money laundering appears on pages 24-25 of the PROMESA bill.

ABSOLUTE BUDGET POWERS AND POLITICAL CONTROL

The Board will “re-structure the workforce of the Commonwealth government,” ensure “the payment of debt obligations,” and reduce or freeze public pensions.

It will also supervise the budget and finances of the entire Commonwealth government, its pension system, courts, legislature, public authorities, and all leases, union contracts, and collective bargaining agreements.

Anyone (public official or otherwise) who defies or obstructs the Board, will be found guilty of “criminal misdemeanor” and will be subject to suspension without pay, and removal from office.

NO MINIMUM WAGE

Section 403 of the bill contains an extreme wage cut, from $7.25 to $4.25 an hour. It will apply to everyone aged 20-24 in Puerto Rico, whenever they start a new job.

If this bill is passed then over 200,000 young people, many of them paying student loans, will soon be working for $4.25 an hour in Puerto Rico…because that will be their new “minimum wage.”

The supply side argument that this will “create more jobs and economic development on the island” is woefully myopic. At $4.25 an hour, $170 a week, $8,840 a year, a young worker will make 25 percent of the per capita income of a resident of Mississippi, the poorest state in the US. Someone needs to explain to the House Committee on Natural Resources that this is not “economic development.” It is indentured servitude that smells of racism.

No tortured logic, no trickle-down theorist or hedge fund hustler can credibly argue that a minimum wage reduction to $4.25 will help the island — especially when the rest of the US is pushing for $15 an hour in all 50 states.
 

The Board is asked to raise the minimum wage, a bit higher than $4.25 an hour

 
CREATION OF DEBT, WITH NO ACCOUNTABILITY

The government of Puerto Rico must appeal to the Board for any possibility of bankruptcy. Through a “certification procedure” controlled by the Board itself (see Sections 206 (a) and 206 (b) of the bill), the Board decides if and when any bankruptcy re-structuring will be allowed. The Board will also decide which part of the Puerto Rico physical infrastructure (electrical grid, water supply, roads, bridges, highways, schools, prisons, airports, beaches) will serve as collateral for the debt re-structuring.

The Board can also directly encumber the physical infrastructure of Puerto Rico…because any and all debt issuances of the Puerto Rican government must receive the prior approval of the Board. In other words, the Board will be the debt issuing authority of Puerto Rico.

The physical infrastructure of Puerto Rico (highways, bridges, schools, prisons, electrical grid, water supply, public housing, prime coastal real estate) will all be available as “collateral” for the debt decisions of this Board.

Despite all of this power, neither the chairperson nor any of the seven Board members, will be accountable or liable to the government of Puerto Rico.

The PROMESA bill is careful to mention that “the United States is not responsible for any principal or interest on any bond, note, or other obligation issued by the Board.” This means that Puerto Rico – its taxpayers and its physical infrastructure – will be solely and exclusively responsible for repayment of the Board’s debt decisions.

PUBLIC PROSECUTOR

The Board will also have prosecutorial powers.

It is authorized to “conduct necessary investigations” into the government of Puerto Rico. It is empowered to hold hearings, secure government records, demand evidence, take testimony, subpoena witnesses, and administer oaths (under penalty of perjury) to all witnesses.

Anyone who fails to appear, refuses to testify, or withholds evidence, can be held in contempt of court. The result of any Board investigation can lead to criminal and civil penalties – including, but not limited to, getting fired from your job.

AN EMPTY PROMESA

This Financial Control Board will be the governor, banker, judge, jury, and prosecutor of Puerto Rico.

It will manage the entire Puerto Rican economy, and be accountable to no one on the island. It will tell the entire Puerto Rican government what to do, when to jump, and how high. It will issue debt, spend the money in any manner it sees fit, and leave Puerto Rico to pay the bill.

It will do nothing about Jones Act reform, the privatization of the island’s public schools, or the hedge funds that will own the physical infrastructure of Puerto Rico – its schools, prisons, highways, electrical grid, and water supply.

This is where our “Commonwealth” relationship to the US has gotten us: a dictatorship in the Caribbean, owned and operated from Wall Street, all disguised as a “management assistance board.”

The branding is very catchy, though.

With a wink and a nod to George Orwell, the US Congress took five months of hedge fund bribe money, slapped some lipstick and high heels on Senate Bill 2381, and called it PROMESA for Puerto Rico.

There is no “promesa” in this bill. It simply creates a collection agency in the Caribbean.

It is one great big lie.
 

For a history of the War Against All Puerto Ricans, read the book…

War Against All Puerto Ricans: Revolution and Terror in America’s ColonyBuy it Now

Si prefiere ver la página web en español por favor visite: http://www.guerracontratodoslospuertorriquenos.com
 

27 Comments on “A fake Promesa for Puerto Rico: the “new” Financial Control Board bill

  1. Pingback: Federal Judge Juan R. Torruella: “Puerto Rico is in a political apartheid…we need to organize a civil resistance” | WAR AGAINST ALL PUERTO RICANS

  2. I have never seen so many self loathing people in one space in my life. Progress comes from within and self repect. The US is not interested in helping your people – if it were, believe me, it would have happened a long time ago. We love, admire those who love their own and are willing to stand-up against us; that shows gumption! This is why the US is more willing to assist Cuba and Israel way before ever assisting whining self-loathing masses. For God’s sake people, have some self respect!

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  3. Pingback: Puerto Rico gets a Financial Control Board | WAR AGAINST ALL PUERTO RICANS

  4. It wasn’t the “colonial status” but our own greedy and corrupt politicians. They all too willingly took Wall Street and hedge funds money to not worry about whether free electricity and their lush jobs (just how many mayors are there – 78?) might ever end. As usual the loudest ones saying they have our backs – especially that faker Nydia Velazquez – now profess shock but then totally cave into what others propose, ie PROMESA. Clean house! Fire all the corrupt or useless politicians.

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  5. I feel so disappointed with the politicians……let us get together

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  6. Pingback: A Fake Promesa for Puerto Rico: The “New” Financial Control Board Bill | Resumen LatinoAmericano English

  7. So again I ask whats the use of free elections on the Island. A government that is of no use . An elected government that is twirling thumbs waiting to be called to the copy room and make copies for the real government ( The Control Board). Yes I will put blame on to two political parties that contributed “Again Contributed”!!! Because without them and the EEUU Puerto Rico would not be on its current economic crisis..
    So what to do? It’s time to take matters into the people’s hands. After all Don Pedro y Donia Elisa did not create this massive LETRINA the politicians did.
    It’s time to take our Island back from Big government, Big Spending and live within our means without paying the hedge funders first and leaving Pedro & Elisa’s family last. It’s time to get OUR AFFAIRS IN ORDER without Big Bullies coming down to straighten us out.
    It’s time to take our Island back with honor and Real Solidarity with the United States. Is not time to ask for what it’s rightfully our. It seems to me that PIP is our only way to bring Puerto Rico back from the broken to the brightness

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  8. This is what happens when there is greed amongst those who run their own government. If you want to start cutting wages, begin it with those who run the government and lead by example. There are too many people accepting the entitlement mentality and settling for it. As long as it is being provided why not sit back and take it easy. Well I’m for the ruffling of their feathers because someone has to take control of the chaos. What’s happening in Puerto Rico is no different in the US. It’s called “GHETTO”. Entitlement breeds GHETTO. The difference between GHETTO vs Street GHETTO is nothing. It’s entitlement that causes poverty which leads to creating a GHETTO. So if the government continues to do the same thing they will get the same results. If you provide them funding have them do something for it. Earn your benefits.

    Liked by 1 person

  9. Well, I think that this will will help our people. That the minimum wage is going to be 4.25 per hour is ludicrous and bullshit at best. What needs to happen is for people to educate themselves for this bill and to stop running off at the moiuth so that they can actually get ready for the upcoming changes that in the end will benefit the island.

    Liked by 1 person

  10. It is sad what has been said about Puerto Rico.my firm and I have been to Puerto rico many times.we have had the best time ever. The people are wonderful; the weather; the beach; the food; culture;forests etc. The problem is the corrupt government of the island. Puerto Rico is probably the most beautiful of all the islands in the carribean. Lately false rumors of zika. I don’t know what the united States goes to Brazil n he next Olympics where there is certainly zika.

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  11. Is this what the US government had in mind when they created “Operation bootstrap” back in the late fifties?

    This is no easy way out for an island nation depending on tourism and investments from the mainland US.

    History wil repeat again. Cuba is a constant reminder. The Spanish American War left carnage in it’s aftermath. Lets not forget Haiti, Dominican Republic, Granada in the mosaic of the Monroe Doctrine.

    Miami get ready for a migration of US citizens who come with equal rights and many do not assimilate in the cultural norms of statehood living! Yes, we are in for more than “Remember the Maine” slogans of the past can become the fuel for political action against our own adopted citizens.

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  12. Las historias varian por el escitor y por el lector . EL ESCRITOR ENFOCA SUS DESEOS Y LO QUE LO COMPLACE. EL LECTOR SI RECONOCE LA MALDAD DEL LECTOR PASA lA PAGINA O BOTA EL LIBRO.

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  13. It is a shame that Puerto Rican political leaders put us in this debt situation.

    We have lots of economists and professionals that can work things out…but our politicians are playing a game to make themselves rich, and they don’t care for the people or the economy.

    Liked by 1 person

  14. PROMESA sounds more like a fascist regime. The Jews also gave many “gifts” to the Fuhrer during the NAZI Regime. Millions of Jews were also deported and enslaved. Is this the new “Puerto Rican Extermination Solution” following what US Congress has learned from Germany and Hitler during Second World War? PROMESA is a true totalitarian regime!!!

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  15. Pingback: This is where our (Puerto Rico) “Commonwealth” relationship to the US has gotten us: a dictatorship in the Caribbean, owned and operated from Wall Street, all disguised as a “management assistance board” | In The Mix

  16. This needs to be exposed asap. People need to protest in the us for puerto rico. Mist of the debt was obtained under illegal and undemocratic grounds anyway. This is abominable.

    Liked by 1 person

  17. Mexico’s solution has been to send a million or two of illegals that will send millions of dollars back home every year.
    Puerto Rico can do like Ireland where the population decreases instead of increases. And if you can keep people from moving to the Island unless they have at least one parent born there.

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  18. If the Congress assigned 602 billions dollars to the DOD just recently why is it that they cannot allow Puerto RIco to invoke Chapter 9 to re-structure its debt of 73 billions dollars that is a 12.12% of the 602 billions assigned to War and destruction. Besides, the environmental impact effects that the wars generate has never been quantifies (to the best of my knowledge). This environmental impact are additional costs to the DOD budget that are hidden. In other words, don’t tell Puerto Rico that there is not a viable solution. The issue is that Congress wants the money for other purposes…

    Liked by 1 person

  19. I feel this bill is intended to punish the people of Puerto Rico, rather than the crooked politicians that squandered, and embezzled billions of dollars throughout the years. This bill needs to go back to Congress, and congress needs to allow Puerto Rico to file for bankruptcy. They need to investigate the corruption within the government of Puerto Rico, and arrest those individuals who robbed the people of Puerto Rico of their funds and benefits.

    Liked by 1 person

  20. All the King’s Men are ready, the die has been cast and the devil has found work for idle hands. Let the slaughter begin. Estado Libre Associado, where are you now?

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  21. Profesor you are absolutely wright we met a few time ago at the ateneo of Puerto Rico and you was absolutely write know and then thank you for warning use

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  22. Pingback: The Migrant Madonna | [un]Common Sense

  23. Did we do this to ourselves. the problem is us, we keep doing what we are told, and not what best for us, Are we too scare to do it on our own, The Puerto Rican government stole from the people of Puerto Rico, that’s were the anger should be focus. The demeanor of Puerto Rico against its people is unacceptable, And the people should say no, to this proposition,

    Liked by 1 person

  24. There will be many puertorricans blaming ourselves for this atrocity because Uncle Sam loves us and never makes mistakes, that’s the best of a colonized mind.

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  25. Reblogged this on It Is What It Is and commented:
    “A new Caribbean dictatorship will soon take charge of Puerto Rico. The final PROMESA bill finally arrived … and it is the WORST one of all.” ….. get ready, it’s going to be a bumpy ride!! The dictatorship is straight from the USA!!

    Like

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