By Nathan Barton
According to an Economist story, the “democratically elected” governor of the Commonwealth of Puerto Rico declared bankruptcy on Wednesday.
This is a debt of $74 billion dollars, about 100% of the island’s GNP. The amount is staggering. But so are the rest of the statistics: Puerto Rico’s population has dropped by 8% since 2010. Fifty-seven percent of voters supposedly support requesting annexation from Congress, and an election is scheduled soon. Half the population is on Medicaid.
The fear and violence associated with collapse is already underway. Protests on May Day (apparently, not many folks celebrated Loyalty Day there) were less than peaceful, as road blockages and fighting led to police attacks on protesters. People are worried about medical care, retirement pensions, and the reason for the population dropping is that so many are fleeing to the Fifty States. Meanwhile, DC continues to meddle, and every indication is that this meddling just makes things worse.
Some people say PR has the best of both worlds. It seems to me to be the opposite. The island has many good things, but it has too much government. Too much socialism, to boot. But now, the situation is almost certainly going to get worse.
More and more people are going to flee to the Fifty States.
More and more people are going to lose (or seriously worry about losing) their benefits; medical, welfare, unemployment, retirement, and more. Many will lose their jobs, especially government jobs or jobs serving government.
And in today’s American climate, that will lead to protests, violence, and panic on the part of the Street Senate and the politicians both in San Juan and in DC. The panic is likely to expand, in part because there are many manipulators that see the advantage to a bigger and “better” panic and more reaction and action.
No doubt the police will be joined by National Guard troops. And Federal troops may not be far behind. Not just in Puerto Rico, but in the Fifty States, to which more and more Puerto Ricans will be fleeing conditions at home.
Meanwhile, although it is a “measly” 73 billion, it may trigger all kinds of nasty things economically for the Fifty States and Wall Street. Given all the problems with the economy, this might be a situation in which millions of people in urban areas soon get to enjoy the same “fun” as the people of Puerto Rico. States might follow the Commonwealth into some form of bankruptcy. With the same results as we are already seeing in Puerto Rico. After that, it snowballs.
Such fun! Are you prepared?