Mid-Term Election Endorsements

The Puerto Rico Monitor endorses the following candidates in today's election:

Andrew Gillum for FL Governor
Bill Nelson for FL US Senate
Stacey Abrams for GA Governor
Beto O' Rourke for TX US Senate
Janna Lynn Sanchez for TX US House
Alexandra Ocasio Cortez for NY US House
Julia Salazar for NY State Senate

Is Independence Imminent For Puerto Rico?

Commentary

Rosa Bravo

Originally published January 12, 2016


I am proud of my United States citizenship and I have long supported
the idea of statehood for Puerto Rico. But at this point, even I have to
admit that my home island becoming the 51st state seems like an in-
creasingly remote possibility. I'm not pessimistic about statehood be-
cause of the language difference, or the possibility of losing our "na-
tional" Olympic team, or because of Puerto Rican voters' long runn-
ing indecisiveness regarding the future of their island. I'm pessimis-
tic about statehood because the one entity that could grant such a thing,
the US Congress, will not let it happen. And with every day that passes,
Congress feels less and less willing to admit Puerto Rico as a state.

And who can blame them? Puerto Rico's financial woes have made
headlines regularly over the last several years. Holders of Puerto Rico
bonds are bracing themselves for the worst, will billions of dollars yet
to be lost. During the island's budget and debt debacles, some of Puerto
Rico's seemingly intractable institutional corruption has been brought to
light for the whole world to see. Puerto Ricans continue to leave the is-
land for the mainland in droves. Puerto Rico is still much poorer than the
poorest state in the union. Besides all of this, the US's incentives for hol-
ding on to this Caribbean territory have largely disappeared.

During the 20th century, Puerto Rico's location made it a key to protec-
ting the then US owned Panama Canal. After World War II, its strategic
value appreciated further, as Cuba went communist and the US needed to
pay close attention to the Caribbean and Central America. Puerto Rico was
also a hub for manufacturing, as tax incentives and cheap labor yielded bi-
llions in profits for American corporations. But those incentives are gone.
The Cold War is long over, and whatever geopolitical challenges the US
faces -- or expects to face in the near future -- are not present in the Ame-
ricas, but rather in the Middle East and Asia. American businesses found
labor cheaper than Puerto Rico's long ago, in Mexico, China, India...even
right next door in the Dominican Republic. Plus, Congress took away
many of the tax incentives.

The United States has taken plenty from Puerto Rico over the decades,
including scores of lives lost by Puerto Rican soldiers in American wars.
But now that they find they can't squeeze any more juice from their main
Caribbean possession, they are probably asking themselves what the point
is any longer. Sure, Puerto Ricans still pay plenty of taxes to Uncle Sam,
even if we don't pay Federal Income Tax (although many of us do have to
pay). American businesses still make billions in the island. But the old re-
turn on investment is no longer there. Many a right-wing blowhard in DC
will think "Why do we keep sending billions in federal funds into a black
hole? Why do we even still have this island of latino freeloaders any lon-
ger?". They look at Puerto Rico's super-corrupt elites and increasingly poor
population and wonder whether it might not be time to cut their losses. Ne-
vermind that that same corrupt elite grew initially under US auspices (Puer-
to Rico had no self-rule at all until 1952, and even then it was severely li-
mited) and that the US-favored colonial status is largely responsible for
keeping Puerto Ricans trapped in poverty. Historical memories are short
in Washington.

Will Congress suddenly be afflicted with an attack of conscience, and
grant Puerto Rico statehood (provided a majority of us finally and with-
out reservation ask for it)? Will they consider America's decades-long ill
treatment and neglect of Puerto Rico and do the morally right thing, and
say yes to admitting millions of US citizens into the union as equals? I
wouldn't bet any money on it. While the statehood conversation would be
taken a lot more seriously if at least 75% of Puerto Rican voters said yes
to statehood (nope, 51% doesn't cut it and never will), it would still be a
battle. Congress looks at the Puerto Rico of today and see millions of poor,
Spanish-speaking welfare recipients. With Cuba opening, Puerto Rico is
no longer the business-friendly Caribbean lab of the mid-century; it is a
washed-up has-been, in their eyes. But they are beginning to acknowledge
that the current colonial situation is no longer tenable. So what options are
left? A sovereign, "associated republic", a la Marshall Islands or Palau.
Or, of course, full independence. Either one would be seen in Washing-
ton as cheaper and easier than maintaining the current status, or burdening
itself with a "beggar" 51st state.

Congress may soon have the excuse that it wants to get rid of Puerto Ri-
co. Independence may be coming sooner than any of us expect, whether
we ask for it or not. The colonial master is getting anxious and is feeling
increasingly eager to get rid of what it helped create. If you don't want to
see that happen, it's time to start making some real noise for statehood.
And not in  Puerto Rico, where it won't matter what you say or who hears
you. It is people and politicians in the mainland who need to hear our voi-
ces. And do you have family or friends in the mainland  US? Of course you
do. Tell them to speak up and to always VOTE, and to let  everyone know
that they vote. We also need an organization that can promote statehood
other than the New Progressive Party, which for decades has accomplished
less than nothing in convincing Congress to seriously consider decoloniza-
tion.

If we don't take the fight for statehood to another level, get ready to make
some room for that Puerto Rico passport in your wallet. Because we're
going to be on our own.


The opinions expressed in the preceding commentary do no  necessarily reflect those 
of The Puerto Rico Monitor.

The Puerto Rico Monitor Endorses Rafael Bernabe For Governor

Puerto Rico has long been under the stranglehold of two large, corrupt political
parties, which are both in large part directly responsible for the social and econo-
mic dire straits that Puerto Rico finds itself in. The Puerto Rico Indepedence Par-
ty can no longer be seen as a viable alternative to these two parties...we need par-
ties and candidates who do not make the relationship between Puerto Rico and the
US Federal government their main reason for being. Independent "man (or woman)
on a white horse" candidates can't and won't tackle the real issues affecting middle
and working class Puerto Ricans. This is why the Puerto Rico Monitor endorses the
Working People's Party candidate Rafael Bernabe for Governor of Puerto Rico in
the 2016 election.

Dr. Bernabe's priority is to make Puerto Rico a place that works primarily for the
people who keep it running, not millionaires, industrialists, so-called investors or
corrupt machine politicians. He is the only candidate advocating for much needed
ideas like single-payer health care, a taxation system that demands fair contributi-
ons from our upper classes and economic reforms that will promote local business
over big-box-style retail and capital flight. He is also a friend of the LGBT comm-
unity and an advocate of preserving our valuable natural resources. Mr. Bernabe is
also in favor of an electoral system based on proportional representation, which
would open up our democracy to greater and more meaningful representation.

It is time to walk away from the corrupt party hacks, the hustlers, thieves and liars,
and cast a vote for the Puerto Rico that the majority sorely needs. Bernabe is not be-
holden to political party machines, donors or corporations. Regardless of your views
on Puerto Rico's political status, we encourage you take that first step by voting for
Rafael Bernabe on November 8th.

For more information, visit: http://ppt2016.org/candidaturas/nacionales



-The Editor

Puerto Rico News Digest For October 4, 2016

WEATHER SYSTEM COULD BECOME STORM

F
















From The National Hurricane Center:

"Showers and thunderstorms continue in association with a low pressure area 
located about 500 miles northeast of Puerto Rico. Satellite wind data indicate 
that the low is producing winds to gale force, and the system could become su-
fficiently well organized to result in the formation of a tropical storm later today.  
The low is expected to move generally northwestward at 10 to 15 mph over the 
next few days, and upper-level winds are forecast to become less conducive for 
development. Formation chance through 48 hours...high...80 percent. Formation 
chance through 5 days...high...80 percent..."

BOARD SETS DEADLINE FOR TURNAROUND PLAN

From The San Juan Daily Star:

"Puerto Rico’s newly created federal oversight board on Friday set an Oct.14
deadline for the island’s governor to draft a fiscal turnaround plan, as protesters
at its first public meeting compared the board to “slavery” and said it was “pilla-
ging Puerto Rico.” The board asked Gov. Alejandro García Padilla to present a
plan laying out his vision for stabilizing Puerto Rico, which is grappling with $70
billion in debt, a 45 percent poverty rate and a decade-long recession..."

DONAHUE TO TESTIFY ABOUT BLACKOUT

From Caribbean Business:

"The Senate Committee on Energy and Water Resources has summoned the ch-
ief restructuring officer of the Puerto Rico Electric Power Authority (Prepa), Li-
sa Donahue, to appear Tuesday as part of the hearings that began last week to in-
vestigate the possible reasons that led to the collapse the electrical system on Sep-
tember 21 and the delay in the restoration of electrical service. The president of the
committee, Popular Democratic Party Sen. Ramón Luis Nieves, said that Donahue
should give details before the Senate panel about the work done by her firm, Alix
Partners, since it was hired by Prepa in September 2014 to restructure the utility’s
debt and transform the operations of the public corporation..."

CUSTOMS SEIZES $1.5M IN COUNTERFEIT GOODS

From News Is My Business:


"U.S. Customs and Border Protection San Juan Field Operations announced today
that 206 seizures where made of counterfeit products, valued at $1.5 million, wh-
ich were illegally imported into Puerto Rico via international mail. A wide range
of counterfeited products was seized during the enforcement effort, called “Oper-
ation Silver Snake 2,” to include: consumer products, apparel, footwear, textiles,
pharmaceuticals, and more, the agency said. Various international mail packages
inspected by CBP officers at the San Juan International Mail Branch revealed pro-
ducts that infringedintellectual property rights. The majority of the seized products
originated in China, the agency said..."

Puerto Rico News Digest For September 19, 2016

CONGRESS COULD MAKE PROGRESS ON ZIKA

From The San Juan Daily Star:

"A long impasse that has delayed money to combat Zika for months neared an
end Thursday as congressional aides said Republicans would relent and let Pla-
nned Parenthood affiliated clinics share in new funding to fi ght the virus. The
potential deal would ease the way for Congress to quit work until after the Nov.
8 election. Democrats welcomed the move, which would address their chief
complaint to a GOP plan intended to fight the virus..."

PR WAR VETERANS VISIT SOUTH KOREA

From Yonhap:

" South Korea has invited Puerto Rican soldiers who fought during the Korean
War (1950-53) to visit the country 66 years after hostilities ended, military offi-
cials said Monday. Sixteen Puerto Rican war veterans are scheduled to make a
six-day trip to South Korea from Tuesday to Sunday as part of the 131 veterans
and their families from the United States and Puerto Rico. This marks the first
time that the veterans from the Caribbean island will be visiting the country, the
Ministry of Patriots & Veterans Affairs said. While here, they will visit the truce
village of Panmunjom, the Joint Security Area (JSA), the Seoul National Ceme-
tery and historic palaces, the ministry said in a statement..."

LUGARO ENCOURAGES VOTER REGISTRATION ON FB

From Caribbean Business:

"n a Facebook video that she appeared to have recorded in her residence, indep-
endent gubernatorial candidate Alexandra Lúgaro urged people to register to vote
before the deadline Monday, Sept. 19. In her Sunday evening video, Lúgaro em-
phasizes the importance of voting with, among other examples, speaking about
the massive electoral campaigns that focus on voting as a priority in some coun-
tries...In her message, which she also recorded in sign language, Lúgaro urged
voters to record a video or post anything, “even art,” that expresses the importa-
nce of voting, adding she would share these and that some 300,000 people would
be seeing them..."

MESON SANDWICHES TO EXPAND IN CENTRAL FL

From News Is My Business:

"Mesón Sandwiches, a Puerto Rico-based fast casual restaurant that marries
the flavors of the Caribbean with an American staple, will open this week its
third Central Florida location at the Premium Outlets Vineland in Orlando. Two
other Mesón restaurants are scheduled to open next year in Lee Vista Promenade
and the Gardens on Millennia, also in the Metro Orlando area, for a total of five
locations by the fall of 2017..."

Puerto Rico News Digest For August 11, 2016

GOV'T TO HAVE FISCAL PLAN READY FOR BOARD

From News Is My Business:

"Puerto Rico Gov. Alejandro García-Padilla confirmed Tuesday that his admi-
nistration will have a new fiscal plan ready shortly after the federal fiscal over-
sight board is “appointed and operational.” The seven-member board, which is
a component of the Puerto Rico Oversight, Management and Economic Stabil-
ity Act (PROMESA), should be appointed by Sept. 15, when the García-Padilla
administration expects to “hit the ground running in complying with PROME-
SA’s requirements,” he said speaking to reporters and experts who took part in
a special one-day seminar entitled “What’s next for Puerto Rico?” hosted by the
Ravitch Fiscal Reporting Program at the CUNY Graduate School of Journalism
in Manhattan..."

MAN MURDERED IN CANOVANAS

Police are investigating the murder of a man whose bullet-riddled body was
found Wednesday morning in the San Isidro district of  Canóvanas. Police fo-
und the deceased man on Calle #1 at around 5:09 AM yesterday. He has been
described as dark-skinned and approximately 30 to 35 years of age. At the time
of this writing, he was yet to be identified.

NPP BLASTS BERNIER OVER PERFORMANCE

From The San Juan Daily Star:

"For the second consecutive day, the leadership of the New Progressive Party
(NPP) has fi red its canons against the Popular Democratic Party (PDP) candi-
date David Bernier considering him unqualified “for his lack of capacity as se-
cond in command.” “The poor performance and the lack of ability to achieve
results characterize the record of David Bernier in his governmental work and
it is the best example of the negligence with which Puerto Rico has been gov-
erned,” said Miguel Romero, NPP Senate candidate for the district of San Juan..."

COLISEUM OF PR ANNOUNCES RECORD YEAR

From Caribbean Business:

"SMG, manager of the Coliseo of Puerto Rico Jose Miguel Agrelot, announ-
ced fiscal 2015-2016 as one of the most successful years in the 12 years of its
existence. In the fiscal year ending June 30, 2016, Coliseo de Puerto Rico hos-
ted 103 events, which accounted for a total attendance of more than 700,000
guests and more than $35 million in gross ticket sales. The Coliseo de Puerto
Rico is ranked #13th in the world in Pollstar’s mid-year 2016 rankings of Top
100 arenas worldwide..."

Puerto Rico News Digest For July 11, 2016

ATHEISTS SUE EDUCATION DEPT OVER RELIGION

From Patheos:

"Ateístas de Puerto Rico has just filed a federal lawsuit against the island’s
Department of Education and several government individuals, claiming that
several schools held Christian religious ceremonies this past March in which
converting students was part of the goal...In one case, non-religious students
were “required to assist [at] the basketball court where the religious service
was being held.” When they didn’t want to participate, their teacher told them
they had to..."

PUERTO RICAN COP INJURED IN DALLAS ATTACK

From AP:

"Ivan Saldana was among the Dallas police officers directing traffic down-
town during the protest when the shots rang out. By Saturday, Saldana was
up walking around his home, recovering from a shrapnel wound to his right
leg. "Everything happened so quickly, but at the same time, everything was
so slow," Saldana, 44, told The Dallas Morning News...Saldana began his po-
lice career with the Guaynabo Police Department in Puerto Rico, where he is
from..."

UPR FIRES WALKER AS PRESIDENT

From The San Juan Daily Star:

"The University of Puerto Rico (UPR) Board of Governors fired President
Uroyoán Walker on Thursday, naming Dr. Celeste Freytes as interim presi-
dent of the institution. Walker was fi red after the board accepted the reco-
mmendations of an investigative subcommittee, which issued a vote of no-
confidence for Walker’s alleged favoritism in the irregular awarding of pre-
sidential scholarships last academic year..."

BERNABE CALLS FOR UNITY TO COMBAT CRISIS

From Caribbean Business:

"The gubernatorial candidate for the Working People’s Party (PPT by its Spa-
nish initials), Rafael Bernabe, on Sunday called for unity between workers and
community pharmacies in order to fight the crisis Puerto Rico is facing. Berna-
be said privatization policies “not only affect workers, but also small-business
people, including community pharmacies"...“Workers’ struggle  for better em-
ployment conditions in [both] the public and private sectors is the  same fight
and has the same enemy as small-business people do,” the candidate said dur-
ing his participation in a forum at the convention of the Puerto Rico Communi-
ty Pharmacies Association at the Ritz-Carlton, San Juan..."

Dodd-Frank Is About To Be Thoroughly Hillaried

Commentary

Richard Lawless

I can no longer sit quietly and watch this country implode from all of the Wa-
shington corruption.

Today I watched Hillary Clinton's speech, and I was appalled. I watched her 
tell the audience how she would bring Wall Street to heel and hold them acc-
ountable. I listen to her say how she would use Dodd Frank legislation to ma-
nage that process. It is all complete BS.

Hillary is fully aware of the large scale bond fraud uncovered in Puerto Rico.   
A criminal conspiracy so large that it calls into question all $70 billion dollars
of Puerto Rico debt.  Hillary is calling for a complete bailout and supports cu-
rrent legislation to do just that. She does not support prosecution.

The Puerto Rico Senate held investigative hearings in early 2015 to explore the 
financial failure of one of its largest municipal agencies. One government exe-
cutive after another testified under oath that they knew they were technically ba-
nkrupt when they issued these bonds and could not pay they back.  The witness-
es then went on to say that although the credit agencies (Moody’s, Fitch and S&
P) knew they were insolvent, they could secure good credit ratings for the bonds 
for the “right fee”. According to the same testimony, Wall Street’s biggest banks 
knew all this but for the “right sales fees” they would sell these junk bonds as sa-
fe retirement income to their retired investors.

The SEC has already performed four full audits on four bond issues and found 
the audits to be consistent with the Senate testimony.  These agencies were insol-
vent and it could not have been accidently overlooked by the Rating Agencies and 
the Banks.

We have seen this before with the 2007-2008 CMBS (mortgage bonds) crisis. The 
Rating Agencies and the Banks almost prefer to support these failing agencies be-
cause it forces them to refinance debt they can’t pay off as agreed before they have 
to admit it to their bond holders.  This “Ponzi Scheme” forces frequent and costly 
refinancing on a regular basis, generating huge fees for the Rating Agencies and 
Banks. All good, if you can continue to refinance fast enough and bring in new in-
vestors quick enough to pay off the old investors.  As in the case with Puerto Rico 
and other States and Cities, even a small hiccup causes the hold house of cards to 
collapse.

It is pretty clear that the Agencies issuing the bonds, the Rating Agencies issuing 
fraudulent ratings and the Banks selling junk bonds all broke the law and violated 
almost all of the provisions of Dodd-Frank.

All Congressman and Senators were issued this information.  Most did nothing 
but those that did, quickly stepped up to protect their Wall Street contributors. You
see, if this got out, the Rating Agencies and Banks would be held accountable for 
the tens of billions in bond losses.  Politian’s and government employees may be 
charged criminally. 

To date, there has been over $30 billion dollars in bond losses from this scam. The 
average bond holder owns less than $10,000 in bonds and that represents over 20% 
of their total savings. Not hedge funds as the Press and our Political leaders would 
have you believe.  When these bonds collapsed, after the senior citizens lost half 
their money, then the hedge funds came in to buy these bonds at 33-50 cents on the 
dollar with the hope of making money in the future.  The hedge funds are being us-
ed as a distraction to take the discussion away from the original crimes. Most Pu-
erto Rico Bonds are still held by individuals like you and I.

New York residences owned the single biggest piece of this debt at about $4 billion 
dollars, followed closely by Florida, New Jersey, Pennsylvania and Illinois. I don’t 
think any State has loss less than a few hundred million dollars. It is not a Puerto 
Rico Fraud. it is a National Fraud.

This entire thing sickens me and makes me glad that I am no longer part of the Wa-
shington two step.  The two step is a Political Dance that requires most politicians 
to add a political calculation to every vote they make.  There are three simple ques-
tions, how will this vote increase my power base, will it add to my reelection war 
chest and will it improve my personal financial statement.  There is no considerati-
on given to the masses they represent.  It is all about trading American Treasure 
and Tax Payer money for personal gain.

In this case it gets even better.  The Politicians were not happy stealing tens of bi-
llions from America’s middle class senior citizens when there is more to be taken. 
Enter the PROMESA legislation. Legislation that removes all existing legal rights 
from the innocent bond holders.  The legislation actually prevents the bond holders 
from suing. All supported by politicians that know all about this. 

Being around Washington for so long I know what most of these government offi-
cials did before securing their government jobs.

Treasury Secretary Lew and his legal counsels Weiss and Campbell worked for 
Citibank and Lazard, respectfully.  In the period that this fraud started Citibank 
and Lazard were among the first firms to sell these fraudulent bonds.  Now, using 
their position in government, all three of these gentlemen marketed congress for 
a full  bailout of Puerto Rico with Tax Payer Dollars and the innocent bond hold-
er’s money. Not once in all the committee meetings they participated in did they
site this conflict of interest while purposing solutions that benefit all their former 
employers.

Paul Ryan a professed conservative, was not supportive of any bailout or the PRO
MESA legislation.  That is until he met with Secretary Lew.  After the meeting, 
Ryan supported the legislation that violates every core principal that the Republi-
can party stands for.  What happened?  I suspect two things.  Lew reminded him
that he had a bright career and Wall Street would not forget this (contributions for 
his continued career advancement) and immediate funds for his current reelection 
campaign.  I as guessing about the former, but if you look at the contributions that 
flowed into him from Wall Street firms after the meeting, well it was impressive.  
Not surprisingly, most of the contributions came from firms directly involved with 
Puerto Rico.

It is clear that the Democrats has a strategy in place to redirect what’s left of the 
bond holders money to fund the unfunded government (union pensions).  How 
will they do this?  It is simple and the Press is going along with it.  Claim that the 
bonds were issued fraudulently and claim they shouldn’t be paid back to the bond 
holders. Float stories that the bond holders are just greedy hedge funds and not peo-
ple like you and I.  Who likes hedge funds?  Float stories that Puerto Rico is cance-
lling services from lack of money.  Kids are dying in the streets.  You have heard 
all this before.

As a debt expert, I should point out that when a family does not make its mortgage 
payment (bond payment example) that family has more cash at the end of the mon-
th, not less.  Puerto Rico has withheld hundreds of millions in payments and has mo-
re cash than you would imagine. Any cancelling of services is just another strategy 
being employed by less than honorable people.

I should mention in closing that Elizabeth Warren (claims to be anti-Wall Street) 
knew all about this but was the first to propose an amendment to an energy bill 
preventing innocent bond holders from suing.  Just follow the money for Elizabeth.

This is not just a $70 billion-dollar scam (Puerto Rico). It includes Chicago, Conn-
ecticut and many other States.  This is a Political Strategy to make up for years of 
over spending.  When legal taxes are no longer enough, steal the bond holder’s mo-
ney.  Individually the bond holders are not very powerful and they will not underst-
and what their leaders are doing to them.



Richard Lawless is a former senior banker who has specialized in evaluating and granting debt for 
over 25 years. He has a Master’s Degree in Finance from the University of San Diego and Bachelor’s
Degree from Pepperdine University. He sits on a number of Corporate Boards and actively writes for 
a number of finance publications. The opinions expressed in the preceding article are solely those of
Mr. Lawless and do not necessarily reflect those of The Puerto Rico Monitor, its editors, contributors
or advertisers.

Puerto Rico News Digest For June 22, 2016

MAN ARRESTED FOR MOLOTOV COCKTAILS

From US Attorney's Office:

"United States Magistrate Judge Silvia Carreño-Coll authorized a criminal
complaint charging Noel D. Cruz-Torres (“Cruz-Torres”) with malicious use
of explosives...According to the information contained in the criminal com-
plaint and affidavit, on June 18, 2016, at approximately 3:30 am, someone
called 911 to report an explosion near DuPont Pioneer. When police and fire
fighters arrived, they saw a vehicle burning nearby. A security guard reported
that an individual was throwing Molotov cocktails at the building. The offic-
ers walked around the building and saw Cruz-Torres wearing a black t-shirt
wrapped around his face and carrying a black backpack. While police purs-
ued Cruz-Torres, he threw various Molotov cocktails at the officers. He also
threw another lit Molotov at the fire truck..."

BHATIA: UN RESOLUTION TO HAVE LITTLE EFFECT

From Caribbean Business:

"Puerto Rico Senate President Eduardo Bhatia said the resolution passed by
the United Nations, which reaffirms the island’s right to self-determination
and independence will have little or no effect. “Sadly, it is very little what the
UN can do to change the internal politics of the U.S.,” Bhatia, a leader within
the Popular Democratic Party, told reporters during an interview in the San Ju-
an Capitol. After expressing his respect for the international body, he said the
UN “hasn’t been very effective,” adding, “We have to be realistic. That forum
has not managed to move the U.S. in any way in the past 30 years..."

700K+ PR YOUTH LIVE IN HIGH-POVERTY AREAS

From News Is My Business:

"Children and youth in Puerto Rico continue to live in families facing enorm-
ous economic challenges, with some 84 percent residing in areas of extreme
poverty and the parents of more than half lacking full-time, year-round emp-
loyment. These and 14 other indicators of child well being are revealed in the
2016 Kids Count Data Book from the Annie E. Casey Foundation, which is
represented in Puerto Rico by the Youth Development Institute (YDI), a Kids
Count network partner. “Traditionally we talk about the percentage of our ch-
ildren and youth who are living below the poverty line. In Puerto Rico, that is
58 percent of our kids,” said Gloriann Sacha Antonetty, communications dir-
ector of the YDI..."

PATAKI COULD SERVE ON FINANCIAL BOARD

From The San Juan Daily Star:

"The seven-member Financial Oversight and Management Board that will be
appointed by the U.S. president as part of the Puerto Rico Oversight, Manage-
ment, and Economic Stability Act (PROMESA), could include former New
York governor George Pataki, the Bond Buyer reported Monday. Pataki has a
residence on the island, according to the daily municipal finance news outlet..."

The District of Columbia Statehood Issue: Why The National Capital Cannot Be a State Nor a Territory

Washington Post

Commentary

Tiberiu Dianu

Recently, there have been several attempts to assimilate the District of Co-

lumbia status to the one of a US territory. In the midst of a presidential elec-

tion year, the DC Mayor Muriel Bowser, a Democrat, intends to prepare a 

statehood package for the District of Columbia when the new administrati-

on takes office, irrespective of who wins in November. Supposedly, this is 

“a new front in the District’s long-running fight for equal rights.” [1]

When asked about this, the former Republican presidential hopeful John Ka-

sich opined that this would be “just more votes in the Democratic Party.” [2]

 This approach was seen by some as precarious vis-à-vis the almighty “Taxa-

tion without Representation” slogan. On the contrary, Hillary Clinton grabbed 

the opportunity, and promised to be "a vocal champion" for DC statehood just 

weeks before the city's presidential primary. [3]

Let’s try to figure out if there is any elephant in the room. On the face value, 

sure, why would the DC residents not have their own representatives in the 

Congress, since they – don’t we all know? – pay (federal) taxes, go to war 

and fulfill other citizenship duties. As a twenty-plus-year resident in the Dis-

trict, I say: it’s not going to happen. Not anytime soon.

Here are several reasons.

-The absence of political will at the top: Washington, DC has been a city 

dominated by Democrats and a Republican-dominated Congress will never 

allow several Democratic congress people showing out of the blue. In addi-

tion, Maryland and Virginia Democrat representatives (let alone their Repu-

blican colleagues) do not want a DC commuter tax imposed on their own re-

sidents;

-The lack of viability as a state: DC does not have the means nor resources 

to sustain a viable territory or economy in order to protect its residents within 

its borders; that aside, if the new state would exclude a small federal enclave 

(as proposed, in an attempt to avoid a constitutional amendment), this would 

reduce its territory to a new minimum;

-The inexistence of an independent budget: according to the Article I of the 

Constitution, the Congress has the power to Exercise exclusive Legislation in

all Cases whatsoever” over the District. Although the DC representatives (in-

cluding the current mayor) have threatened to pass budget autonomy laws, fe-

deral judges have constantly stricken down such initiatives over the years (see

 in 2014, for that matter), ruling that only Congress can act;

-The absence of such an express provision in the US Constitution: according to 

the Article IV, Section 3, Clause 1, the Constitution empowers the Congress to 

grant statehood, while Clause 2 stipulates that “The Congress shall have Power

to dispose of and make all needful Rules and Regulations respecting the Terri-

tory or other Property belonging to the United States; and nothing in this Cons-

titution shall be so construed as to Prejudice any Claims of the United States, 

or of any particular State.” (our emphasis, TD).

First, the legislator uses the word “territory” but not the word “district.” Seco-

nd, even if one claims that DC is “other Property belonging to the United States” 

no state can be prejudiced. Originally, the DC land was part of Virginia and Ma-

ryland. Virginia land has been already returned to this state, and Maryland can 

soon have the same claim if DC pushes for statehood.

Historically, the US Congress has followed a standard procedure for granting 

statehood to territories. The territory holds a referendum to determine the local

population’s desire for or against statehood. If the majority vote is for statehood, 

the territory addresses a statehood petition to the Congress. Then, the two Congr-

ess chambers, House and Senate, pass a joint resolution, by a simple majority vo-

te, accepting the territory as a state. Finally, the US President signs the joint reso-

lution, and the territory is acknowledged as a US state.

For this reason, the five US territories – American Samoa, Guam, Northern Ma-

riana Islands, Puerto Rico, and US Virgin Islands – have all a clear constitutio-

nal path toward statehood, provided by the aforementioned Article IV, Section 3. 

The Federal District of Columbia does not have one.

In turn, what the DC mayor tries to do is to organize a “DC referendum”  in No-

vember – not supported by the US Constitution – and to force the Congress to

acknowledge it. If this attempt succeeds, it will be quickly challenged in court.

The DC administration has tried in the past to promote lawsuits seeking to gr-

ant DC residents congressional voting rights (in 1998) or seeking permission to 

levy a commuter tax on non-District residents (in 2003), but they were all equa-

lly unsuccessful.

More recently, the DC authorities’ enthusiasm has been curbed on May 26,

2016, when the US Congress House of Representatives voted 240 to 179 to nu-

llify a DC ballot measure that allowed the city to spend local tax dollars without 

congressional approval. It is worth mentioning that several Democrat representa-

tives sided with their Republican colleagues to pass the bill. [4]

There is a good reason the District is not a state. The US Constitution provided 

for a federal district under the exclusive jurisdiction of the Congress, and the Dis-

trict is therefore not a part of any US state. Which means that DC should remain

a politically neutral entity. And, since it’s not, being forever dominated by Demo-

crats, there is no ground to become a state.

The future DC (state) Constitution that the Democrats envision in the future will 

certainly be a biased organic law, with provisions overtly against the current US 

Constitution (like, banning The Second Amendment legal gun carrying or ban-

ning discrimination over employees’ reproductive decision and targeting the an-

tiabortion groups[5], and other standard progressive issues regarding legalization

of drugs and “equal marriage act,” to name just a few). [6]

Now the elephant  (not the Republican, but the Democrat one!) is more visible in 

the room. What reason might some Democrats have to reignite the discussion ab-

out the DC statehood now? That is, to press the issue of DC having 2 senators and 

1 representative for the new administration, no matter who wins in November?! 

Or maybe because of that. Or maybe because there is a perceived danger that the

Republicans (as disunited as they seem to be right now) may actually have a cha-

nce to conquer back the White House. In such a context, 2 senators and 1 represen-

tative, all (perpetual) Democrats, will be a major victory for the progressive Don-

key fans.

However, for those residents who still feel disenfranchised (myself included),

there are several alternative solutions.

-Territory relocation: to reincorporate the DC territory (except a small federal 

enclave) to Maryland and/or Virginia (as it was before), and increase to 1 (one) 

the number of U.S. representatives for these states; people would be represented 

in the Congress House of the Representatives, but not in the Senate. Demographi-

cally, this is a fair solution.

-Federal tax exemption: to declare the DC territory federal-tax free, like the U.S.

territories; this will give satisfaction for the residents non-represented in Congress, 

plus it will create a boom in the number of new residents and businesses. Some may 

object that since Washington is a “federal district”, it should continue to pay fede-

ral tax, but in arguing so, we are back to square number one “taxation without re-

presentation” dilemma; and for those still interested to recover retroactively the 

back federal taxes imposed “unconstitutionally,”  they can challenge the issue in 

court. Fiscally, this is a fair solution.

-Granting more electoral votes: according to the 23rd Amendment to the US Con-

stitution (ratified in 1961), the District receives three electoral votes in presidential 

election, which makes the District having an intermediate position (by having elec-

toral votes both for party primaries and general elections, and a non-voting Congr-

ess member), between the US territories (with electoral votes in party primaries,

but not in general elections, and no voting Congress members) and US states (with 

both electoral votes in primary and general elections, and voting Congress mem-

bers). Congress could grant DC three more electoral votes in presidential elections 

(corresponding, so to speak, to the required voting 1 representative and 2 senators), 

doubling the current number, from three to six. Electorally, this may be considered 

by many as a fair solution.

Links:

[1]   https://www.washingtonpost.com/opinions/fair-is-fair/2016/05/04/3d62892e-0b29-11e6

-8ab8-9ad050f76d7d_story.html

[2]   https://www.washingtonpost.com/news/local/wp/2016/04/21/kasich-on-d-c-voting-rights

-thats-just-more-votes-in-the-democratic-party/

[3]   https://www.washingtonpost.com/local/dc-politics/clinton-calls-for-making-dc-the-51st-

state-blasts-trump-for-no-position-on-issue-of-voting-rights/2016/05/11/daa63d16-1781-11e6-

aa55-670cabef46e0_story.html

[4] http://www.pressreader.com/usa/the-washington-post/20160526/282046211341307

[5] https://www.washingtonpost.com/local/dc-politics/house-targets-dc-law-banning-repro

ductive-discrimination/2015/04/30/77f48dde-ef29-11e4-a55f-38924fca94f9_story.html

[6]   https://www.washingtonpost.com/local/dc-politics/draft-constitution-for-51st-american

-state-would-let-almost-anyone-be-governor-of-dc/2016/05/06/97cf0422-1395-11e6-81b4-

581a5c4c42df_story.html?tid=a_in

 

Tiberiu Dianu is a legal scholar, book author, graduate of the American University Washington 

College of Law in Washington, DC, the University of Manchester Faculty of Law in Manchester, 

UK, and an exchange scholar of the Oxford University in Oxford, UK. He currently lives in Wa-

shington, DC and works for various government and private agencies. The opinions expressed

in the preceding article are those of those of the author alone and do not necessarilly represent

 the views of The Puerto Rico Monitor, its editors or advertisers.

The May Edition of The 2016 Elections Puerto Rico Poll

Pasquines

As we promised after our initial poll, today we launch the May round
of our 2016 Elections Puerto Rico Poll. Our March edition proved to
be a success, in terms of gathering insight of the Puerto Rico electorate
looking to the June 5 primary of the New Progressive, Popular Democ-
ratic and Democratic parties. Due to the closeness of the primary, this
time we will be collecting responses in a shortened period, until May
30, after which we will release the results...[CONTINUE READING]

Finalist Donald Trump vs Semifinalist Hillary Clinton: There is Something Missing Here

Feature

TIBERIU DIANU


After the Indiana primaries, on May 3, 2016,  the Republican contender,
Donald Trump, has secured his “presumptive” party nomination for No-
vember general elections. However, not the same thing can be said about
Hillary Clinton. She, in spite of her ardent desire to compete with Trump
on the same national arena, could have not secured a similar position in
her Democratic party yet.

In other words, the Donald is already a general election finalist (from an
initial group of seventeen candidates), but Hillary is – still – a primary el-
ection semifinalist (from an initial group of… three). Trump has managed
to defeat 16 other Republicans, some of them with pedigree, and some of
them respected party rank-and-file members, like popular governors and
senators. While Hillary, in spite of her “inevitability” aura created by the
press, has managed to defeat only Martin O’Malley, who constantly sco-
red below 5% in all Democratic primaries. She, in her own words, could
not “close the deal” with Bernie Sanders. And still all we keep hearing is
about Trump vs. Clinton in the general elections. Is it just my reasoning or
am I missing something here?

Let us clarify some points. Hillary is not going to secure her party nomin-
ation anytime soon. First, Sanders keeps winning states (the last ones, West
Virginia on May 10, and Oregon on May 17), or breaks even (like in Ken-
tucky on the same May 17). He has already created a movement and, for su-
re, he wants to stick around for the July 25 Democratic Convention in Phila-
delphia. It will be interesting to see if this trend holds in the following – pre-
California (June 7) -- weeks, at the party elections in Washington (May 24),
Virgin Islands and Puerto Rico (June 4 and 5). Second, the ongoing FBI in-
vestigation of Clinton’s e-mails is still a powerful factor (some call it “a wild
card”). FBI recent interviews include Clinton’s long-time aide Huma Abedin,
and the Romanian notorious hacker Marcel Lazar, aka Guccifer, extradited in
April from Romania to the U.S.

Therefore, until there is a clear Democratic Party challenger, Trump’s disco-
urse should focus on his policies for the country and restrain from personal
attacks against Hillary. She is not even worth of such attention. She is just a
semifinalist. When she earns the honor of being a finalist, then she is entitled
to ‘personal attacks” against her challenger. I just cannot envision, like in any
sports or competition of any kind, why a loud-mouthed semifinalist like Hill-
ary is given the right to skip stages and, at least on the discourse level, offe-
red the free ride of “competing” for a tournament which she has not qualified
herself in yet.


Tiberiu Dianu is a legal scholar, book author, graduate of the American  University Washington 
College of Law in Washington, DC, the University of Manchester Faculty of Law in Manchester, 
UK, and an exchange scholar of the Oxford University in Oxford, UK. He currently lives in Wa-
shington, DC and works for various government and private agencies. The opinions expressed in 
the preceding article do not necessarily reflect those of The Puerto Rico Monitor, its editors or 
advertisers.

Statehood for U.S. Territories: A Historical Chance to Make America Great(er) Again. Literally.

Feature

TIBERIU DIANU


The current political discourse in the heated 2016 electoral year gravita-
tes around some simple, common-sense, yet grandiose ideas like making
America great again through reviving trade, by recapturing overseas jobs
(lost in favor of other nations beneficiaries of globalization), and streng-
thening the military (weakened by the political demagogues’ lack of visi-
on). As a result, many American manufactured products are not being com-
petitive anymore on international markets, the same as American military
which, it is said, is not being capable to fight anymore on two fronts at the
same time. [1]

In the meantime, on the international arena, America’s traditional foes ha-
ve been already coagulated their territorial expansion policies. Russia is
extending its sphere of influence in both the Arctic and the Pacific Rim.
China is pushing its boundaries in the disputed South China Sea. While
North Korea does not make any secret of the fact that is ready to attack the
coast of Alaska. In addition to those aggressive actors, a series of lower le-
vel rogue nations (among them: Iran, Venezuela) already have been displa-
ying bombastic discourses about regional dominance. To all that, interna-
tional terrorism is added.

Given the circumstances, it is imperiously necessary for the United States
to solidify their narrative about a new era of American greatness and excep-
tionalism. We are not talking about “the world’s policeman”, nor about “na-
tion building”. Instead, we are talking about a new period when America
should recapture its greatness again for itself, and not so much for the
others.

But before that, we need to remind ourselves the past periods when Ameri-
ca used to be great(er). Let us briefly recap some revealing moments in  re-
cent U.S. history:

1. The Spanish-American War of 1898: the U.S. win sovereignty over
Cuba, Puerto Rico (in the Atlantic/the Caribbean Sea), Guam and the
Philippines (in the Pacific), and soon after that over the Panama
Canal (in 1903).

2. During the years of the World War 1 (U.S. entered the war in 1917):
U.S. administration of Haiti (1915), Dominican Republic (1916), Virgin
Islands (purchased from Denmark in 1917), and Rhineland/Germany
(1918).

3. During and after the World War 2: U.S. occupation of Iceland and Gr-
eenland (1941), parts of Austria and Germany, including West Berlin
(1945), Japan and South Korea (1945), Trieste/Italy (1947), and the ad-
ministration of the Trust Territory of the Pacific Islands/West Pacific
Micronesia (1947). [2]

On the other hand, the United States have a long lasting tradition of turning
its territories and possessions into states when imperatives of the times have
required them to do so. To begin with, most U.S. states, except the original
thirteen, were territories before they became states. The last U.S. statehood-
granted territories were: Oklahoma (in 1907), New Mexico and Arizona
(both in 1912), Hawaii and Alaska (both in 1959).

Currently, there are sixteen U.S. territories, five of which are permanently in-
habited: American Samoa (AS), Guam (GU), Northern Mariana Islands (MP),
Puerto Rico (PR), and U.S. Virgin Islands (VI). The rest of the eleven territo-
ries are small islands, atolls, and reefs spread across the Pacific Ocean and the
Caribbean Sea, with no permanent population. Also, there are certain constitu-
tional and administrative differences between these territories. Some territories
are or are not incorporated (as part of the United States proper), and do or do
not have an organizedgovernment (that is, through an organic act passed by the
U.S. Congress).

Thus, there were incorporated organized territories of the U.S. (such as Alaska
and Hawaii until 1959). Currently, there are only U.S. territories that are incor-
porated unorganized (Palmyra Atoll), unincorporated organized (Guam and U.S.
Virgin Islands), unincorporated unorganized (American Samoa and other islands,
atolls and reefs in the Pacific Ocean and the Caribbean Sea), and commonweal-
ths (Northern Mariana Islands and Puerto Rico). Other former U.S. territories
have become independent countries (such as: the Philippines, Micronesia, Mar-
shall Islands and Palau). It should be mentioned the fact that, with the excepti-
on of the Philippines, the other three former U.S. territories gained their inde-
pendence under the Compact of Free Association (COFA), which allows the
United States to have full authority over aid, defense, health care, and other go-
vernment services (such as federal communications and postal service), plus
the right to work in the U.S. and vice versa. [3]

In spite of the various local organizational differences among these entities,
the common denominator is that they all are (or, in case of few others, used
to be) U.S. territories and, for the obvious aforementioned strategic, military,
and economic reasons, there should start a serious and uninhibited approach
toward granting - at least for five of them: AS, GU, MP, PR, and VI – the U.S.
statehood. A step forward would be to attract the current COFA entities into
the new federal construction. An inspiring movement, which we call STATE-
HOOD FOR U.S. TERRITORIES, coming from the top executive level (the
 President), in conjunction with its top legislative counterpart (the Congress),
is expected in order to gather and channel the grassroots energies and resour-
ces toward this noble and visionary ideal. If properly implemented and accom-
plished, this country project or national plan is able to assure a perennial place
in history for its initiators. And, indeed, Statehood For U.S. Territories can
find its natural inception within the already popular trend of “making Ameri-
ca great(er) again”. Literally. [4]

[1]

https://upload.wikimedia.org/wikipedia/commons/0/0a/US.EEZ_Pacific_centered_NOAA_map.png

[2]

http://www.lib.utexas.edu/maps/united_states/us_terr_1970.jpg

[3]

http://www.tmealf.com/4x6/Territories+.jpg

[4]

http://hilo.hawaii.edu/studentaffairs/admissions/images/USMAP_001.jpg

------------------------------------------------------------------------------------------------

Tiberiu Dianu is a legal scholar, book author, graduate of the American  University Washington 
College of Law in Washington, DC, the University of Manchester Faculty of Law in Manchester, 
UK, and an exchange scholar of the Oxford University in Oxford, UK. He currently lives in Wa-
shington, DC and works for various government and private agencies. The opinions expressed in 
the preceding article do not necessarily reflect those of The Puerto Rico Monitor, its editors or 
advertisers.