Skip to main content

Puerto Rico is Our Greece

We, here in the U.S., have our very own Greece. There is the destruction of the city of Detroit, which has been raped and pillaged by hedge fund vultures who are major donors to both political parties, which means the politicians then pass laws to protect hedge funders’ money, that is usually invested in bonds. On a bigger scale there is Puerto Rico, which has labored under colonial rule since Christopher Columbus landed on its shores in 1493 and claimed it for Spain. After the Spanish American War in 1898 the U.S. acquired Puerto Rico in the treaty of Paris and ruled it as a territory since. Puerto Ricans are considered natural born citizens, but like all stepchildren they must abide by U.S. laws without a voting member in Congress. For decades the island was a jewel of the Caribbean with the highest per capita income in Latin America, but in 1996 when a Republican Congress and the Clinton administration agreed to a 10-year phase out of section 936, a tax exemption for U.S. manufacturing on the island and did not replace section 936 with an economic development plan to offset the impact. The island went into a recession as manufacturing fled Puerto Rico. The Puerto Ricans pay the same payroll taxes as mainland workers, but received much lower rate for Medicare and Medicaid. Then came the triple tax-exempt Puerto Rican bonds. The Wall Street people loved the bonds for they are free from federal, state and local taxes and anyone can buy them. With a law that Puerto Rico could not access Chapter 9 bankruptcy protection plus under the Territorial Constitutional, general obligation debt gets a senior position above all other items in the budget so investors receive all the upside benefits of tax-free bonds with little downside risk so, here all the hedge fund vultures come. Some people who have connections to these vulture capitalists are Obama/Clinton economist Larry Summers, who work for D.E. Shaw, Chelsea Clinton who worked at Avenue Capital, Chris Christie’s wife who worked for Angelo Gordon & Co., and Ted Cruz’s wife who works for Goldman Sachs. There is a way to fix this. Puerto Rico can vote if they live on the main land and 850,000 Puerto Ricans have moved to Florida and they are mad as hell at what has happened to their homeland. We will see what happens at the ballot box. Also, Senator Bernie Sanders supports their efforts. In fact, Sanders says that the debt should not be repaid because the debt was unconstitutional. A November 6 government financial report could nullify some of the debt. If not Puerto Rico could go by the way of Argentina, which also lost to the vulture hedge funders.

Comments

Popular posts from this blog

Time for an Offense

There are three phases of a general strike and unions must plan for one. Those three phases are: 1. general strike in an industry 2. general strike in a community 3. general national strike We need to move away from being on the defensive and move toward a good offensive. The American Federal of Labor (AFL) could not have held a general strike if it wanted to because they had thousands of different contracts that expired at different times of the year. This was done deliberately so that there is no consolidation of power for a general strike. Also, nowadays, there is no law agency that will support labor, except the National Labor Relations Board (NLBR), which has been under attack and in decline for years. This leaves the burden of change up to unions, and unless unions work together, little will change. We essentially have a combination of job trusts, which are not as strong as contracts, and the courts can break easily because the NLBR will be further weakened and essentially elim...

If Gompers Could Do It, We Can Do It

Labor must vote for the person who will support and vote for labor’s best interests. And in turn, labor members have to support those who are running for office who support labor unions and vote down ballots. Voting down ballot gives the person at the top more power to do what’s best for us. This includes elections for city, county and state positions, as well. If you think a four day work week is wishful thinking, remember workers had to fight for an eight-hour work day and a five-day work week. We, labor members and supporters, need to find people who can fight and win. We need to clean the Congress and Senate of the old Democratic guard who have voted repeatedly to hold the working class back while enriching themselves. This would rebuild solidarity in a magnitude greater than anything either party has seen or offered in the last fifty years. If we can bring about the change in the ruling class we can improve all of our lives. This would be the start of the end of the tyranny of the...

Shock Troops

Gerrymandering is the only legal form of voter theft. Workers, our long range plans should involve 1. crushing Citizens United; and 2. getting rid of the Electoral College. We have been trying to get rid of the electoral college since 1876, and we are still waiting for the revolt. Our unions need to start training some members to be our shock troops and if all unions would do this and work with our local Labor Councils, it would be a good start. Our members need to know our labor laws, local laws, and learn how to protest in the streets if necessary. The antiunion people like Trump, Musk and his billionaire friends work together to crush the working people and convince workers they’re doing them a favor and then use them as shock troops against unions and their workers. All union and nonunion working people must come together and work together to protect what we have now. Labor Councils have retired union members and they could work together to prepare to bring the movement forward....