Rahm Emmanuel once said never let a crisis go to waste. The Democratic
Party has fully embraced that concept. They now see a possible solution
for gross fiscal mismanagement and political corruption.
Cities like Chicago or Compton, and states like California, have been buying
votes for decades by promising health benefits, pay raises and pension increa-
ses that could not be supported by the current tax structures. The thinking was
simple: give our supporters what they want and let the next guy figure out how
to deliver on our promises.
Well, the future is now. Chicago is ready to collapse as are over a dozen other
Democratic strongholds. The voters will not tolerate higher taxes, the states ca-
nnot or will not bail them out. This house of cards is about to fall down. A so-
lution is needed if the Democrats are to retain power.
Just when all seems lost, a few smart but shifty Democratic power brokers
found their possible salvation, Puerto Rico!
Puerto Rico is in the midst of a financial crisis. he same old story, mis-
management and corruption. This time however, Puerto Rico might solve
all the Democrats' problems. The Democratic Power Elite came up with a
plan. Let’s use Puerto Rico to win the legal right to default on the City and
States municipal bonds. It’s a great idea. By declaring bankruptcy, we
can shed 40%-50% of the current debt. It is like raising money without
raising taxes! Brilliant...
Let’s call it the Puerto Rico Debt Restructure Plan. It will not only incor-
porate Chapter 9 bankruptcy for the municipal corporations, it will also
include special bankruptcy provisions for the general obligation debt. Once
it is granted to Puerto Rico, we can use it for Chicago and California. The
stupid Republicans will not see it coming. Even if the Press figure it out,
they will be supportive in their silence.
If anyone contests our demands, we will call them racists! We can also play
off the fact that Puerto Rico may not have been treated fairly. Yes, Puerto
Rico is the answer. Let’s get the press to demonize the bond holders and hed-
ge funds as vultures and run stories about how hospitals and schools will close
and the children will starve. We own the Press, that will be easy.
We understand that over 50% of these bonds are owned by retired Americans
but someone has to pay for our promises. Let’s make sure the Press ignores
the real impact of this strategy.
Puerto Rico today and a dozen other cities tomorrow. This doesn’t have to
stop! We could go one for decades with our fiscal mismanagement utilizing
this new bankruptcy strategy. Keep the money flowing, baby...
Richard Lawless is CEO of Commercial Solar Power, Inc. in Temecula, CA. The opinions expressed in the
preceding commentary are exclusively his own and do not represent the opinions of The Puerto Rico Monitor,
its editors or advertisers.