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Here Comes Puerto Rico Monday – Next Greece-
All governments follow the same model and this is BIG BANG, where government debt at every level will begin a death spiral
BIG BANG is being furthered by the worst collapse in liquidity I have ever witnessed in my entire career.
Posted on June 29, 2015 by Martin Armstrong
Puerto-Rico
The smart money smells a rat. Capital has rushing out of long bonds since May and pouring into the very short-term federal paper pushing rates back negative to the crisis level of 2009. BIG BANG is being furthered by the worst collapse in liquidity I have ever witnessed in my entire career.
Puerto Rico is set to release a key report on its financial stability Monday, and its Governor, Gov. Alejandro Garcia Padilla told The New York Times that the island would probably seek significant concessions from as many as all of its creditors because “the debt is not payable.”
Puerto Rico is the next Greece where the “vulture” investors bought their bonds back in 2013 when its roughly $70 billion in outstanding debt suffered a huge plunge in bond prices over the summer.
All governments follow the same model and this is BIG BANG, where government debt at every level will begin a death spiral. Governments since World War II have borrowed continuously never managing anything properly. They have just assumed that the great herd of taxpayers had deep pockets that were endless. This attitude is causing the collapse in Socialism whereas all the promises of pensions cannot be maintained. The majority of people assumed that working for government was the safest. They are now starting to see that it is the worst of all for you cannot even prosecute them for mismanagement and fraud as you would if a private employer pulled the same nonsense.
Puerto Rico is set to release a key report on its financial stability Monday, and its Governor, Gov. Alejandro Garcia Padilla told The New York Times that the island would probably seek significant concessions from as many as all of its creditors because “the debt is not payable.”
Puerto Rico is the next Greece where the “vulture” investors bought their bonds back in 2013 when its roughly $70 billion in outstanding debt suffered a huge plunge in bond prices over the summer.
All governments follow the same model and this is BIG BANG, where government debt at every level will begin a death spiral. Governments since World War II have borrowed continuously never managing anything properly. They have just assumed that the great herd of taxpayers had deep pockets that were endless. This attitude is causing the collapse in Socialism whereas all the promises of pensions cannot be maintained. The majority of people assumed that working for government was the safest. They are now starting to see that it is the worst of all for you cannot even prosecute them for mismanagement and fraud as you would if a private employer pulled the same nonsense.