A bombshell report from the Public Credit Comprehensive Audit Commission (PCCAC) of Puerto Rico was released this week. It documents how $4.4 billion – and possibly up to $30 billion – of Puerto Rico’s “public debt” is illegal.
If the debt is illegal, then Puerto Rico does not have to pay it.
You can read the entire PCCAC report below, via the link that is provided.
The 17 members of the PCCAC commission include securities analysts, banking executives, corporate attorneys, CPAs, university economics professors, and representatives from credit unions and organized labor.
Their report was announced in a press conference by Gov. Alejandro Garcia Padilla. It is written in clear and succinct language, contains dozens of footnotes, and lists over 100 supporting documents and evidentiary exhibits.
Here is the PCCAC report:
It is 44 pages long, but pages 2-3 tell most of the story:
As of 2006, Wall Street bond traders compelled the Commonwealth to issue dozens of questionable bonds. These bonds violated Article VI, Sec. 2 of the Puerto Rico Constitution (debt levels exceeding 15% of GDP), Securities & Exchange Commission Rule 15 c2-12 (public disclosure requirements), and statutory prohibitions on deficit financing and predatory lending.
WHAT REALLY HAPPENED?
To put it bluntly, Wall Street created a Ponzi scheme for Puerto Rico…a multi-billion dollar financing structure, wherein a continuous stream of bonds were issued to cover the debt service and interest payments on preceding bonds.
Meanwhile, the debt continued to skyrocket…even as electrical and water rates went up, sales taxes rose to 11.5%, gasoline taxes doubled, pensions were cut, 30,000 workers were fired, 150 schools closed, and a million Puerto Ricans fled the island.
After studying the PCCAC report, El Nuevo Dia concluded that “half of Puerto Rico’s debt may be unconstitutional.”
INTERNATIONAL LAW MUST BE INVOKED
And now the time has come, for international law to step in.
Over a dozen nations have invalidated billions of dollars of “odious debt,” which international law recognizes as illegal and not to be paid.
Puerto Rico must undertake this same procedure.
An international tribunal must review the “odious debt” of Puerto Rico…
Instead of a Financial Control Board from Washington D.C. that is stacked with GOP appointees, led by lobbyists, controlled by hedge funds, all protecting the profits and Ponzi schemes of Wall Street.
For a history of the War Against All Puerto Ricans, read the book…
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