Puerto Rico…who are they trying to kid?

We are reading this morning that Puerto Rico was bailed out in a bi-partisan fashion. Both Republicans and Democrats were for it. Who are they trying to kid? Many years ago, we read that Puerto Rico had debt problems…all of $20 billion. At that time, we thought there was no way Puerto Rico could ever pay the money back. What was the answer? They were bailed out and then amazingly, was loaned even more money. Fast forward through more loans and of course, Puerto Rico’s acceptance of those loans and what do we have? We now have $70 billion of debt. If they could not pay back the $20 billion, how the hell are they going to pay back the $70 billion? The answer is THEY WON’T! Because THEY CAN’T! Everyone knows it but everyone does nothing about it. Puerto Rico will never be out of debt. It will only grow larger…unless someone gets hurt and gets hurt badly…and that is the lenders. That’s how it is supposed to work but in this day and age, the people that created the debt are the ones that get to work out the debt…and typically in the end, why do we think it will be the taxpayer that gets screwed?

Just remember, we are the ones trying to help Puerto Rico out but we have news for you. Do you see our almost $20 trillion of debt? That’s the next 6+ years of taxpayer dollars already spent…yet we are the sane ones in the room? We can never pay back that much debt yet our debt continues to grow…and that same debt is expected to grow quicker in the next few years. Feel better now?