Tuesday, September 16, 2014

Governor Contradicts President, Self on Economics of Statehood - 9/15/2014 - Contributing Editor | Let Us Help You, Hedge Funds Tell Puerto Rico New York Times

The President’s Task Force on Puerto Rico’s Status noted that “many” people it had consulted “argued that uncertainty about status is holding Puerto Rico back in economic areas.”
In a report embraced by Obama, the Task Force itself concluded that “identifying the most effective means of assisting the Puerto Rican economy depends on resolving the ultimate question of status … In short, the long-term economic well-being of Puerto Rico would be dramatically improved by an early decision on the status question.”
The Task Force identified two basic options for resolving the status issue: statehood and nationhood, the latter of which it noted could be in an association with the U.S. that either nation could end or fully separate from the U.S.
It pointed out that Puerto Rico would remain in its current territory statusunder any possible “Commonwealth” proposal and the status would not be permanent.
Similarly, U.S. Senate Finance Committee Chairman Ron Wyden (D-Oregon) while chairman of the committee that handles territory status matters, including statehood, last year began a hearing of the Committee on Energy and Natural Resources, by saying that “Puerto Rico faces huge economic … challenges. Per capita income is stuck at about half that of the poorest U.S. State … The lack of resolution of Puerto Rico’s status … contributes to” this. 

New York Times

The hedge funds, including Perry Capital, Fir Tree Partners and other members of the self-styled Ad Hoc Group of investors, have bought $4.5 billion of Puerto Rico government guaranteed and tax-supported bonds — or roughly 10 percent of the total ...

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