Thursday, July 6, 2017

The Puerto Rican vote

Recently there was a vote for the future of Puerto Rico and it was not the first one to decide whether Puerto Rico will become a state, keep the status quo of being a territory of the United States or just gain independence. And the vote was in favor of seeking Statehood but since only twenty percent (according to some estimates) voted in the non binding election, the result could be called dubious and not reliable at best. This voting was done I believe out of sheer desperate situation that Puerto Rican is now in. And I have also read that there may be another voting on coming on this choice again. Puerto Rico is in a huge debt trap to the tune of more than 50 billion dollars and can’t raise money to retire it since they are mostly lost access to the capital markets. Apart from this, the citizens of that territory have lost faith in their state and since they are citizens of the United States, more and more Puerto Ricans are choosing to leave the state to move to the mainland. And as such, the tax base to fund the budget of Puerto Rico is shrinking. And unless the U.S. Congress agrees to the non binding resolution of at least consider the process of starting the Statehood process, which I don’t see it happening in the current U.S. administration, no amount of votes and election to make it a state, which most people are not in favor of, will change the fortune of Puerto Rico. The only way is to create enough revenue so that Puerto Rico can refinance its debt and buy some time to raise funds from the capital markets while it sorts out its mess with the help of the U.S. government

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