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Puerto Rico: PROMESA’s Broken Promise – with Cate Long
On the surface, the relationship between Puerto Rico and the United States is one of peace and protection. As a U.S. territory, Puerto Rico enjoys the benefit of having United States military protection along with the freedom of maintaining their independence and governmental operations.
However, all is not what it seems.
Government intervention on part of the United States allowed room for politicians to manipulate numbers regarding required budgets and syphon money from governmental programs into the self-interests of corrupt politicians—all under the guise of debt management and relief.
In this episode of “Undermoney”, Jay Newman sits down with Cate Long, Founder of the Puerto Rican Clearinghouse. They discuss the massive debt procured by Puerto Rico in the 2000s and early 2010s…and how U.S. governmental intervention paved the way for corruption, deceit and downright swindling against the citizens of these nations.
“Undermoney”. It is the theme of the show. Who is getting what, and from whom? Whether in the form of cash, political favors, pensions, benefits or bonuses—where there is a system that has devolved into chaos, you can be sure there is “Undermoney” somewhere.
This is an episode you won’t want to miss.
Main Takeaways
00:00 💸 Puerto Rico is functionally bankrupt and has been corrupted, with stakeholders and bondholders needing consultancy from the Puerto Rico Clearinghouse.
06:48 🤔 The Financial Oversight and Management Board has control over Puerto Rico's finances, with Congress intervening with Promesa and an estimated cost of 2.4 billion dollars.
14:49 🤔 Puerto Rico's bankruptcy process has been corrupted, with bondholders receiving only 4 cents on the dollar while public employees received bonuses totaling $475 million, and the Supreme Court striking down Puerto Rico's restructuring law.
24:09 🤔 Congress has not defined the cause for the board members, and McKinsey's conflicts of interest raise questions of backroom dealing in Puerto Rico's bankruptcy process.
37:58 🔎 A motion for Discovery has been filed to investigate the awarding of a billion two contract to a consortium of Canadian firms and a Houston company, and the restructuring of Puerto Rico's electric utility during bankruptcy.
44:49 🤔 Congress should dissolve the board in Puerto Rico and create a new one to implement best practices for transparency and open systems, while ensuring pensions are paid and investments are made.
54:58 🤔 Puerto Rico has failed to meet Congress' benchmark of treating creditors properly and getting market access, while journalists are using a database to expose rogue corporations and the government is giving out over $21 billion in tax incentives annually.
01:04:23 🤔 Congress is paying attention to the conversation, hoping Senator Grassley will take action
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By UNDERMONEY | Hosted by Jay Newman
5
77 ratings
On the surface, the relationship between Puerto Rico and the United States is one of peace and protection. As a U.S. territory, Puerto Rico enjoys the benefit of having United States military protection along with the freedom of maintaining their independence and governmental operations.
However, all is not what it seems.
Government intervention on part of the United States allowed room for politicians to manipulate numbers regarding required budgets and syphon money from governmental programs into the self-interests of corrupt politicians—all under the guise of debt management and relief.
In this episode of “Undermoney”, Jay Newman sits down with Cate Long, Founder of the Puerto Rican Clearinghouse. They discuss the massive debt procured by Puerto Rico in the 2000s and early 2010s…and how U.S. governmental intervention paved the way for corruption, deceit and downright swindling against the citizens of these nations.
“Undermoney”. It is the theme of the show. Who is getting what, and from whom? Whether in the form of cash, political favors, pensions, benefits or bonuses—where there is a system that has devolved into chaos, you can be sure there is “Undermoney” somewhere.
This is an episode you won’t want to miss.
Main Takeaways
00:00 💸 Puerto Rico is functionally bankrupt and has been corrupted, with stakeholders and bondholders needing consultancy from the Puerto Rico Clearinghouse.
06:48 🤔 The Financial Oversight and Management Board has control over Puerto Rico's finances, with Congress intervening with Promesa and an estimated cost of 2.4 billion dollars.
14:49 🤔 Puerto Rico's bankruptcy process has been corrupted, with bondholders receiving only 4 cents on the dollar while public employees received bonuses totaling $475 million, and the Supreme Court striking down Puerto Rico's restructuring law.
24:09 🤔 Congress has not defined the cause for the board members, and McKinsey's conflicts of interest raise questions of backroom dealing in Puerto Rico's bankruptcy process.
37:58 🔎 A motion for Discovery has been filed to investigate the awarding of a billion two contract to a consortium of Canadian firms and a Houston company, and the restructuring of Puerto Rico's electric utility during bankruptcy.
44:49 🤔 Congress should dissolve the board in Puerto Rico and create a new one to implement best practices for transparency and open systems, while ensuring pensions are paid and investments are made.
54:58 🤔 Puerto Rico has failed to meet Congress' benchmark of treating creditors properly and getting market access, while journalists are using a database to expose rogue corporations and the government is giving out over $21 billion in tax incentives annually.
01:04:23 🤔 Congress is paying attention to the conversation, hoping Senator Grassley will take action
-------------------------------------------
Find out more on Undermoney