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Is Puerto Rico’s Economic Collapse A Ploy By Liberals To Permanently Shift The Balance Of Power In Congress? May 16, 2017

Next month, citizens of Puerto Rico are going to vote on statehood, and the absolutely devastating economic collapse that is gripping the island could be enough to push pro-statehood forces over the edge to victory.  Of course Congress has the final say on whether Puerto Rico becomes a state or not, but it is going to be very difficult to deny Puerto Rico’s 3.4 million residents statehood if they strongly insist that they want it.  Needless to say, if Puerto Rico becomes the 51st U.S. state that would greatly benefit the Democrats, because the population of Puerto Rico is very liberal.

Puerto Rico does not get to vote in presidential elections, but they do help select the nominees for both parties.  In 2016, 58,764 votes were cast in the Democratic caucuses held in Puerto Rico, and only 36,660 votes were cast in the Republican primary.  As a state, it is doubtful whether Puerto Rico would send any Republican lawmakers to Washington for decades to come.

So if Puerto Rico becomes a state, the Democrats would add two new senators and probably four or five representatives.

Puerto Rico would be the 30th largest state in the entire country, and so it would instantly have more political power than 21 other U.S. states.

This upcoming vote on June 11th is going to be extremely important, and pro-statehood forces are working very hard to get a positive result.  The following info about the referendum in June comes from Wikipedia

The fifth referendum will be held on June 11, 2017 and will offer two options: “Statehood” and “Independence/Free Association.” It will be the first referendum not to offer the choice of “Commonwealth.” Newly-elected Governor Ricardo Rosselló is strongly in favor of statehood for Puerto Rico to help develop the economy and help to “solve our 500-year-old colonial dilemma … Colonialism is not an option …. It’s a civil rights issue … 3.5 million citizens seeking an absolute democracy,” he told the news media.[30] Benefits of statehood include an additional $10 billion per year in federal funds, the right to vote in presidential elections, higher Social Security and Medicare benefits, and a right for its government agencies and municipalities to file for bankruptcy. The latter is currently prohibited.[31]

At approximately the same time as the referendum, Puerto Rico’s legislators are also expected to vote on a bill that would allow the Governor to draft a state constitution and hold elections to choose senators and representatives to the federal Congress.[31]

Over the past decade, Puerto Rico has been suffering through a nightmarish economic recession that never seems to end.  The island was recently forced to declare the equivalent of bankruptcy because it is facing $123 billion in debt and pension obligations.  At this moment 46 percent of the residents of Puerto Rico are living below the poverty line, the unemployment rate is 11 percent, and authorities just announced that another 179 public schools will be closing down.

It has been argued that the Obama administration could have done much more to alleviate the economic problems in Puerto Rico but that it purposely chose not to do so.

Why?

Well, the worse economic conditions get in Puerto Rico, the better it is for pro-statehood forces.  Puerto Ricans are being told that becoming a state is the key to Puerto Rico’s long-term economic future, and at this point many are willing to do just about anything to get the economic suffering to end.  The following is a short excerpt from a New York Times article entitled “Amid Puerto Rico’s Fiscal Ruins, a New Push for Statehood“…

A vigorous push for statehood was a central campaign promise of Gov. Ricardo Rosselló, 38, who was inaugurated in January. Next month, he will ask residents to vote, in a nonbinding referendum, for statehood as part of a long-term fix for a commonwealth facing a period of severe austerity that is likely to include shuttered public schools, frozen salaries, slashed pensions and crimped investments in public health. The island remains in the grip of a recession that has lingered for much of the past decade.

Could it be possible that this is what liberals have wanted all along?

Could it be possible that Obama and his minions saw Puerto Rico as a chess piece that could be used to permanently shift the balance of power in Congress?

Of course if Puerto Rico becomes a state that would have implications for presidential elections as well.

In the end, it will be Congress that decides what the fate of Puerto Rico will be, but if the people of Puerto Rico truly want to become the 51st U.S. state it is going to be really hard to deny them that opportunity indefinitely.

Last year at their national conventions, the Democrats and the Republicans both took the position that the citizens of Puerto Rico should be able to make this decision for themselves.  But once faced with a final decision, it is inevitable that many Republican members of Congress would be opposed to statehood.

Personally, I believe that either independence or “free association” would be much better for Puerto Rico, and let us hope that the people of Puerto Rico choose that direction.

But when people are really hurting, they will often grasp any sort of olive branch that is being offered to them, and right now the progressives are really pushing statehood.

Of course for strategists on the left, the goal is not to help the suffering people of Puerto Rico.

Rather, the endgame is complete domination of the U.S. political system by any means necessary.

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The ’51st U.S. State’ Declares Bankruptcy As Corporate Insiders Sell Stocks At The Fastest Rate Since The Last Financial Crisis May 3, 2017

Puerto Rico has collapsed financially and has “filed for the equivalent of bankruptcy protection”.  When this was announced on Wednesday, it quickly made front page news all over the planet.  For decades, Puerto Rico has been considered to be the territory most likely to become “the 51st U.S. state”, and there have even been rumblings that we could soon see a renewed push for statehood.  But that is on the back burner for now, because at the moment Puerto Rico is dealing with a nightmarish financial crisis that is the result of an accelerating economic collapse.  Unfortunately, many Americans still don’t believe that what has happened to Puerto Rico could happen to us, even though signs of major economic trouble are emerging all around us.

Almost two years ago I issued a major warning about the debt crisis in Puerto Rico, and now the day of reckoning for “America’s Greece” has finally arrived

Saddled by mountainous debts and undermined by rapid population loss, Puerto Rico filed for the equivalent of bankruptcy protection Wednesday in a historic move that will trigger a fierce legal battle, with the fate of the island’s citizens, creditors and workers at stake.

The oversight board appointed to lead the U.S. territory back to fiscal sustainability declared in a court filing that it is “unable to provide its citizens effective services,” crushed by $74 billion in debts and $49 billion in pension liabilities.

Like Greece, Zimbabwe, Venezuela and so many others, what has happened in Puerto Rico shows us that it is simply not possible to live way above your means indefinitely.  If your debt grows much faster than your economy, eventually you reach a point where financial disaster is inevitable.  This is a lesson that our leaders in Washington D.C. desperately need to learn before it is too late for the United States.

Since 2007, the population of Puerto Rico has declined by 10 percent and the number of jobs in that nation has declined by 20 percent.  It is a long-term economic collapse that just continues to get even worse with each passing month.

Unfortunately for Wall Street, many large U.S. financial institutions have invested very heavily in Puerto Rico’s bonds.  In fact, it has been estimated that 180 mutual funds have “at least 5% of their portfolios in Puerto Rican bonds”.

At this point, U.S. firms stand poised to lose billions of dollars as their investments become worthless, and many of these firms were totally blindsided because they were assured that this could not happen…

The financial collapse promises to impose deep losses on bondholders who for years snapped up Puerto Rico’s securities, which are tax-free throughout the U.S. U.S. states can’t file for bankruptcy, and investors bought the bonds assured that it wasn’t a legal option for Puerto Rico either.

The scale of the restructuring is far larger than Detroit’s record-setting $18 billion bankruptcy, and it’s unclear how long a court proceeding would last or how deep would be the cuts that are imposed on bondholders.

So how far will the financial collapse of Puerto Rico ultimately ripple through our financial system?

It is hard to say, but without a doubt this is a major concern.

Meanwhile, corporate insiders are selling stocks at the fastest pace that we have seen in seven years.  The following comes from Business Insider

As the investing public has continued to devour stocks, sending all three major indexes to record highs in the last few months, corporate insiders have been offloading shares to an extent not seen in seven years. Selling totaled $10 billion in March, according to data compiled by Trim Tabs.

It’s a troubling trend facing an equity market that’s already grappling with its loftiest valuations since the 2000 tech bubble. If the people with the deepest knowledge of a company are cashing out, why should investors keep buying at current prices?

What do those corporate insiders know that the rest of us do not?

Perhaps they are just being rational.  If I was a top corporate insider at one of these “unicorns” that have market caps in the tens of billions of dollars even though they are consistently losing hundreds of millions of dollars a year I would be selling too.

You make money in the stock market by selling at the right time.  Those that sold their Pets.com stock at the peak of the dotcom bubble got quite wealthy, but those that held on all the way through the stock market crash got completely wiped out.

There have been some analysts that have suggested that one way to make money in the stock market is to simply do what the insiders are doing.  If they are buying, then that is supposedly a time to buy, and if they are selling that is supposedly a time to sell.

Personally, I would rather use my limited resources to get prepared for the horrific crisis that is inevitably coming, but not everyone agrees with that outlook.

The crisis in Puerto Rico developed over an extended period of time, and there were plenty of warning signs.

So anyone that is still holding Puerto Rican bonds at this point is quite foolish.

Similarly, the warning signs here in the U.S. have been mounting for quite a while.  Just yesterday, we got more exceedingly bad news for the U.S. auto industry, and we are on pace to absolutely smash the all-time record for most retail store closings in a single year.

Just because a crisis does not arrive on the exact month or year that you were anticipating does not mean that it has been canceled.

I warned about a looming financial cataclysm in Puerto Rico nearly two years ago, but they somehow managed to hang on until now.  And even though the U.S. financial system is still afloat for the moment, everyone should be able to see that we are definitely living on borrowed time.

So don’t look down on Puerto Rico, because what is happening to them is eventually coming here too.

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Why There Will NEVER Be A Political Solution To America’s Problems May 1, 2017

Why do things never seem to change no matter who we send to Washington?  It seems like for decades many of us have been trying to change the direction of this country by engaging in the political process.  But no matter how hard we try, the downward spiral of our nation just continues to accelerate.  Just look at this latest spending deal.  Even though the American people gave the Republicans control of the White House, the Senate and the House of Representatives, this deal very closely resembles “an Obama administration-era budget”.  It increases spending even though we have already been adding more than a trillion dollars a year to the national debt, it specifically forbids the building of a border wall, it fully funds Planned Parenthood, and there are dozens of other concessions to the Democrats in it.  As I previously warned, these “negotiations” were a political rout of epic proportions.

Perhaps many of us were being highly unrealistic when we expected that Donald Trump could change things.  Because fixing America is going to take a lot more than getting the right number of “red” or “blue” politicians to Washington.  Rather, the truth is that the real problem lies in our hearts, and the corrupt politicians that currently represent us are simply a reflection of who we have become as a nation.

The generations of people that founded this nation and established it as the greatest republic that the world had ever seen had far different values than most Americans do today.

So until there is a dramatic shift in how most of us see the world, it is quite likely that not much in Washington will change.

Throughout the campaign, Donald Trump spoke boldly about “draining the swamp”, but this spending deal very much reflects the swamp’s priorities.  The Washington Post has published a list of eight ways that “Trump got rolled in his first budget negotiation”, and in this case the Post is quite correct…

1. There are explicit restrictions to block the border wall.

2. Non-defense domestic spending will go up, despite the Trump team’s insistence he wouldn’t let that happen.

3. Barack Obama’s cancer moonshot is generously funded.

4. Trump fought to cut the Environmental Protection Agency by a third. The final deal trims its budget by just 1 percent, with no staff cuts.

5. He didn’t defund Planned Parenthood.

6. The president got less than half as much for the military as he said was necessary.

7. Democrats say they forced Republicans to withdraw more than 160 riders.

8. To keep negotiations moving, the White House already agreed last week to continue paying Obamacare subsidies.

In essence, the Democrats got virtually everything that they wanted, and the Republicans got next to nothing.

Trump and the Republicans are promising that they will fight harder “next time”, but we have already heard that empty promise from Republicans year after year going all the way back to 2011.

Among many other conservative pundits, author Daniel Horowitz is absolutely blasting these “weak-kneed Republicans”

Now, with control of all three branches and a president who sold himself in the primaries as the antithesis of weak-kneed Republicans who don’t know the first thing about tough negotiations, we are in the exact same position. Last night, President Trump signaled that, after not even fighting on refugee resettlement and Planned Parenthood, he would cave on the final budget issue – the funding of the border fence. But fear not, he’ll resume his demand … the next time!

This degree of capitulation, with control of all three branches, is impressing even me … and I had low expectations of this president and this party. They have managed to get run over by a parked car. It’s truly breathtaking to contrast the performance of Democrats in the spring of 2009 with what Republicans have done today with all three branches. At this time in 2009, Democrats passed the bailouts, the stimulus, the first round of financial regulations, an equal pay bill, SCHIP expansion, and laid the groundwork for other, bigger proposals, such as cap and trade and Obamacare. Then they got everything they wanted in the March 2009 omnibus bill, and a number of GOP senators voted for it. We, on the other hand, are left with nothing.

And even the mainstream media is admitting that the Democrats made out like bandits in this deal.

Just check out the following quotes

  • “Overall, the compromise resembles more of an Obama administration-era budget than a Trump one,” Bloomberg reports.
  • The Associated Press calls it “a lowest-common-denominator measure that won’t look too much different than the deal that could have been struck on Obama’s watch last year.”
  • Reuters: “While Republicans control the House, Senate and White House, Democrats scored … significant victories in the deal.”
  • The Los Angeles Times describes the agreement as “something of an embarrassment to the White House”: “Trump engineered the fiscal standoff shortly after he was elected, insisting late last year that Congress should fund the government for only a few months so he could put his stamp on federal spending as the new president.”

If Trump can’t get his priorities funded now, do you think that the Democrats will somehow become more agreeable after he has spent a year or two in the White House?

Of course not.

If there ever was going to be a border wall, it was going to happen now.

If Planned Parenthood was ever going to be defunded, it was going to happen now.  From this moment forward, the blood of every child that Planned Parenthood kills will be on the hands of every Republican that voted for this bill or that signed this bill.

The next “big battle” is going to be over a bill to repeal and replace Obamacare, but the truth is that “Trumpcare” is going to end up looking very much like Obamacare.

Instead of repealing it, the Republicans are trying to “fix” Obamacare, and that is kind of like going to the dump and trying to “fix” a big, steaming pile of garbage.

But like I explained earlier, we should not expect things to move in a positive direction in Washington D.C. until the values of those representing us change.

At this point, there are only a few dozen members of the House and a handful of members of the Senate that even give lip service to the values of our founders.

And until our values change, we are not going to send representatives to Washington that share the values of our founders.

Sadly, most Americans know very little about the history of early America.  I would encourage everyone to look into why our founders came to this country in the first place, what they believed was most important in life, and how they viewed the world.

If we ever want to “make America great again”, we need to return to those values.  Otherwise, we are just blowing a lot of hot air.

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