Trump to forgive all of Puerto Rico's debt??? (can he even do that?)

[Blue3]

Amidst all the terrible awful stuff... is Trump finally about to do something good for Puerto Rico, and forgive all their debt?

And can he even do that?

https://finance.yahoo.com/news/trump-suggests-puerto-ricos-debt-023705148.html

[Virginiá]

And can he even do that?

http://money.cnn.com/2017/09/27/investing/puerto-rico-debt-who-owns-trump/index.html

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[TheSaint250]

Wow...

This will be interesting to see what happens going forward.

[Badger]

Ain't going to happen people. Mr. Orange just got excited again and started talking out his ass per usual.

[ProudModerate2]

Ain't going to happen people. Mr. Orange just got excited again and started talking out his ass per usual.

I suspect you are correct.

[Person Man]

It is apparently a great thing he can say and doesn't need to do anything. Like the time he guaranteed universal health care.

[pbrower2a]

All that the federal government can do about the public debt of Puerto Rico is to assume it. That will take an Act of Congress. Federal legislation.

There is a precedent in the assumption of the federal government in the annexation of Texas, until then an independent republic.

[BlueSwan]

Ain't going to happen people. Mr. Orange just got excited again and started talking out his ass per usual.

[Fuzzy Bear]

Resolving this debt is, indeed, critical to a better Puerto Rico

Real Presidential Leadership can lead to action that can resolve this issue.  Trump may well be able to come up with a "Marshall Plan" for Puerto Rico.  Lord knows, Puerto Rico needs one right now.

[SoLongAtlas]

The GOP won't pass this and the FC will do backflips to try to kill any massive PR bailout as "a socialist big gubmint takeover! OMG!"

Not going to happen but something drastic needs to happen to stave off a PR revolution. Debt, intolerable conditions, and economic crises breed revolution.

[Dr. Arch]

The GOP won't pass this and the FC will do backflips to try to kill any massive PR bailout as "a socialist big gubmint takeover! OMG!"

Not going to happen but something drastic needs to happen to stave off a PR revolution. Debt, intolerable conditions, and economic crises breed revolution.

Not to mention an antagonizing head of state who only shows disregard, incompetence, and contempt towards the people. The U.S. has to do something because the status quo situation has been beyond repair for a while now.

[KingSweden]

More nonsense from Trump. Private investors (both institutional and retail) hold the debt and would need to be the ones to forgive it. It may be humanitarian of them to do so (they would certainly earn my praise) but I can't even begin to try to imagine what the mechanism for debt forgiveness for a retail investor would be.

Of course, because he's a moron, Trump probably assumes Puerto Rico is in debt to D.C., like he's in debt to all manner of sketchy assholes and oligarchs. As usual, his weird assumptions based on his rather unique life experiences don't and never will translate to the workings of state

[GeorgiaModerate]

Mulvaney walks it back:

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[Doimper]

Mulvaney walks it back:

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As usual, Trump says things and isn't held to them.

[pbrower2a]

The federal government can offer to buy the debt, offering a premium over the market value. Most bond-holders would rather cut their losses rather than risk a default which the federal government cannot guarantee to prevent. 

[KingSweden]

The federal government can offer to buy the debt, offering a premium over the market value. Most bond-holders would rather cut their losses rather than risk a default which the federal government cannot guarantee to prevent. 

Considering the status of Puerto Rican debt that premium would still likely be below par value, but again if there's a default you don't even get that

[Virginiá]

You know, right now might be a good time to talk about statehood imo. From a Republican perspective, helping settle their debt and rebuilding the island and granting statehood could give them a lot of sway over the new state constitution and the way it will be governed. Obviously as a Democrat that bothers me, but getting PR built back up and made a state would be best for them. Republicans would also get a lot of credit for making that happen. It could change their political fortunes there, at least a little.

Seriously, millions of people, no, Americans live there and the island is in ruins. Not only are they suffering immensely now, but they were before! It's completely insane and flat out insulting that we spend so much money to rebuild foreign countries, but we can't even do the same for a territory of ours with millions of people. If we expect Puerto Rico to fix their problems, we should at least stop tying their hands behind their back and give them the full benefits of a state, which includes representation in the federal government, so they can have a say in how their affairs are treated in Congress.

[Kingpoleon]

The federal government paying off Puerto Rico's debt and making it a state would be a huge win for Republicans if it was them that passed it. Puerto Rico would become a lot more R-leaning, and probably be Safe R for a generation.

[Doimper]

The federal government paying off Puerto Rico's debt and making it a state would be a huge win for Republicans if it was them that passed it. Puerto Rico would become a lot more R-leaning, and probably be Safe R for a generation.

I really hope that some Republicans actually believe this.

[Dr. Arch]

The federal government paying off Puerto Rico's debt and making it a state would be a huge win for Republicans if it was them that passed it. Puerto Rico would become a lot more R-leaning, and probably be Safe R for a generation.

I really hope that some Republicans actually believe this.

lol, never ever happening under Republican control

[HisGrace]

PR's bond prices came crashing down after he said this. Just give them all the aid they need, don't add it to their debt, and deal with the current debt later. Forgiving the current debt wouldn't do anything tangible to help them right this second.

The GOP won't pass this and the FC will do backflips to try to kill any massive PR bailout as "a socialist big gubmint takeover! OMG!"

Not going to happen but something drastic needs to happen to stave off a PR revolution. Debt, intolerable conditions, and economic crises breed revolution.

Don't really think a "revolution" is necessary. If PR wants to be independent, let them be independent, I always assumed that was the policy.

[Dr. Arch]

PR's bond prices came crashing down after he said this. Just give them all the aid they need, don't add it to their debt, and deal with the current debt later. Forgiving the current debt wouldn't do anything tangible to help them right this second.

The GOP won't pass this and the FC will do backflips to try to kill any massive PR bailout as "a socialist big gubmint takeover! OMG!"

Not going to happen but something drastic needs to happen to stave off a PR revolution. Debt, intolerable conditions, and economic crises breed revolution.

Don't really think a "revolution" is necessary. If PR wants to be independent, let them be independent, I always assumed that was the policy.

It isn't. The policy is that Congress does whatever it wants to with Puerto Rico, regardless of what they "decide."

[pbrower2a]

The federal government can offer to buy the debt, offering a premium over the market value. Most bond-holders would rather cut their losses rather than risk a default which the federal government cannot guarantee to prevent. 

Considering the status of Puerto Rican debt that premium would still likely be below par value, but again if there's a default you don't even get that

That's the idea. Lots of people would rather sell their junk bonds (many of which were purchased at bargain-basement prices) than gamble that those bonds return to face value.   

[Southern Senator North Carolina Yankee]

The federal government paying off Puerto Rico's debt and making it a state would be a huge win for Republicans if it was them that passed it. Puerto Rico would become a lot more R-leaning, and probably be Safe R for a generation.

No, but it would be worth a few points in Florida. PR would be a safe Dem state with 8 to 10 EV's though.

[True Federalist (진정한 연방 주의자)]

The federal government paying off Puerto Rico's debt and making it a state would be a huge win for Republicans if it was them that passed it. Puerto Rico would become a lot more R-leaning, and probably be Safe R for a generation.

No, but it would be worth a few points in Florida. PR would be a safe Dem state with 8 to 10 EV's though.

Not that many. If they had been a State, PR would have had 8 EV in the 2000 apportionment but then gone down to 7 EV in 2010. Even without Maria, they were on track to go down to 6 in 2020, and now that looks to be certain.