Trump on Puerto Rico debt: 'We’re going to have to wipe that out'
President Donald Trump said Tuesday that Puerto Rico’s debt would need to be wiped out in the wake of Hurricane Maria’s devastation to the island.
The president, who has repeatedly criticized local officials in Puerto Rico for their response to the storm and for their role in the U.S. territory’s ongoing fiscal crisis, told Fox News that to address the debt, “we’re going to have to wipe that out.”
“We have to look at their whole debt structure,” Trump told Fox News’ Geraldo Rivera during an exclusive interview Tuesday in San Juan. “They owe a lot of money to your friends on Wall Street and we’re going to have to wipe that out.”
The president added that “you can say goodbye” to the island’s existing debt, regardless of how it may affect companies on Wall Street like Goldman Sachs. Puerto Rico filed for bankruptcy in May.
Trump said last week in a series of critical posts that the territory’s financial woes “must be dealt with,” but Tuesday’s comments served as the strongest yet from the White House on a policy matter that has struggled to gain traction among lawmakers on Capitol Hill.
Puerto Rico was ravaged by the powerful storm, which killed at least 36 people and left millions without power and tens of thousands without access to drinkable water. Maria has compounded a volatile economic situation in the territory, which is roughly $70 billion in debt.
The president’s interview on Fox came on the heels of an uneven Tuesday trip to visit first responders and victims of the storm. At one point Trump said Puerto Rico had “thrown our budget a little out of whack.”
Trump in the past week has boasted about the federal government’s response to the disaster, despite criticism from some on the ground. The most stinging rebuke came from San Juan Mayor Carmen Yulín Cruz, whom the president has since criticized on Twitter.
http://www.politico.com/story/2017/10/03/trump-puerto-rico-debt-geraldo-243430
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The “thrown our budget a little out of whack.” comments were part of a joke he told.
The complete comment :
“I hate to tell you, Puerto Rico, but you’ve thrown our budget a little out of whack, because we have spent a lot of money on Puerto Rico, and that’s fine.”
I know some will want to pretend that was a serious comment or only use the first part or take it out of context, but some have made a living doing it.
He also went on to say:
"the island should be “very proud” only 16 people had lost their lives, compared to the “hundreds and hundreds and hundreds” who were killed by Hurricane Katrina that struck Louisiana in 2005."
I think newer estimates have come in since.
Ok righties, what do you think of President Trump forgiving PRs debt?
A lot of them probably don't know that PR is part of the US...so they'll think he is just giving money away to illegals!
Even the ones who know PR is American territory would be against this in theory, not collecting a debt owed to the American taxpayer? If a Democratic White House did this the righties would lose their ever-lovin' MINDS. I just want to see if any of them have the integrity to strongly berate Trump for this.
Most Puerto Rican’s don’t pay income tax. They got themselves into debt let them go bankrupt like Detroit.
“Though the Commonwealth government has its own tax laws, Puerto Ricans are also required to pay most US federal taxes, with the major exception being that most residents do not have to pay the federal personal income tax.”
They are....so thanks for confirming another fallacy from the right!
Really? So they pay import/export tax, Social Security, FICA, Medicare and payroll taxes as well...interesting
You bet they did. Corruption + promises that cant be kept. What's the difference they were never gonna be able to pay it back. They get in trouble again and Chuck Schumer will be telling us that another loan is the Christian, decent thing to do, Obama would say "It's who we are".
Let's be clear
Are you saying you want the debt paid pack?
Me? No Vic, not at all, I think President Trump is doing the right thing here. I'm a 'bleeding heart' liberal, don't you know, and I think PR needs a break. I applaud President Trump for this action.
Your turn Vic, what do YOU think of Trump forgiving PRs debt?
So Trump leaves immigration at the foot of Congress claiming it's there job, but actually thinks he can wipe out a tax debt!.....and his base actually believes it!
Forgive their debt.
Get the needed billions to rebuild Puerto Rico and the other American Virgin Islands devastated by this years storms in a kind of "Marshall Plan" for Americans.
Then make Puerto Rico the 51st State!
Do all that and, "bada boom, bada bang - Bob's your Uncle"!
You'll have a prosperous State that 's helping to pay for their Red State neighbors needs with all the Taxes that will be generated thanks to their booming renewed economy and, even better, they wont hate Republicans so much because of all the help they'll have gotten from the R's in the Islands time of need!
Ha!, who am I kidding? Forgive their debt!? With the R's in charge!?
Puerto Rico will be lucky if this current administration doesn't charge them for the cost of the Presidents visit.
What do you mean by forgive their debt? Are you saying take taxpayers money and bailout Wall Street that owns their debt?
More than 850 bond mutual funds own Puerto Rican debt, according to data compiled by Morningstar. Some of the biggest holders include mutual funds run by household names like OppenheimerFunds, Franklin Templeton, Goldman Sachs ( GS ) , BlackRock ( BLK ) and T. Rowe Price.
Hi Dean.
I was just riffing on the Presidents comment .
On Tuesday, during his visit to the hurricane-struck island, President Trump raised a prospect that could cheer the island’s residents but send shudders through Wall Street: Maybe the debt can simply go away.
In an interview with Fox News, Mr. Trump said his administration would help Puerto Rico wipe out the debt to help it recover from the extensive damage left by Hurricane Maria two weeks ago. He did not offer specifics.
“We’re going to do something. We’re going to get it back on its feet,” the president said.
“We have to look at their whole debt structure,” he told Geraldo Rivera, a Fox News correspondent, on “Hannity.” “ You know, they owe a lot of money to your friends on Wall Street, and we’re going to have to wipe that out. You can say goodbye to that. I don’t know if it’s Goldman Sachs, but whoever it is, you can wave goodbye to that.”
It was Trump who brought debt forgiveness up.
I haven't done the research and I'm to disinterested in the subject to do it now but it's my understanding that because Puerto Rica is a Territory and not a State they can't use our Bankruptcy laws to get out from under their debt, (like Trump likes to do), so they have to go with a forgiveness plan if they get anything at all.
And only Congress can do that....not the President, because they would need to be able to file Chapter 9 bankruptcy
Funny. I was told yesterday on another forum after letting everyone know that PR gets $21.1billion annually from the US that they "pay" $3.5billion in taxes. So, I asked what happens to the $17.5billion that remains? Further into the nasty assed response to my post, the "person" also commented that at present they were running a $2billion surplus. Of course after asking for a source...........POOF they never came back.
I think they've already begun the bankruptcy process.
Someone really should make trump aware that congress will not automatically write checks to make good on grandiose promises he makes. But, My guess is, he already knows it and doesn't care.
many times a promise will get you what you want almost as much as delivering on it. It's like monopoly money looks good but try to do anything with it and surprise it's not real.
That really doesn't seem matter to trump any way to gain that works is acceptable to him it seems.
That's why he has a room of lawyers to tell him where the final line not to cross is and drag his ass back safely when he crosses it.
I saw long ago that mr trump and now president trump's main tools are insults, grandiose promises, intimidation and threats. He won the office using those tools and has said he intends on governing the same way. I see he is.
A truly childlike classless authoritarian style multi-billionaire megalomaniac is now the most powerful human on the planet. Sleep well pawns.
Nice but, if I'm reading your info correctly, the process wasn't going anywhere back in May when the article was written and Puerto Rico still had some resources to restructure with.
Whole different deal since the storms.
Perhaps the President will do the right thing for once and push Congress into letting Puerto Rico wipe the slate clean or settle up for pennies on the dollar and get a fresh start with a whole new rebuild of the island.
We'll see.
Anti trump, you bet. I dont trust the man and I dont like people I can't trust.
BTW, I felt the same way about clinton
...............................
If I let you into my life I want to be fairly sure its not to take advantage of me. I dont entend on lying to others and I sure as hell dont want others lying to me. I repeat I do not trust trump. period
Doesn't read or sound like a joke. I'm sure Puerto Ricans appreciate that about as much as the golf trophy Trump decided to honor them with.
But hey, Trump obviously feels tragedy and loss are good things to joke about...And apparently some here do as well.
"Hey what's the matter man?
We're gonna come around at twelve
With some Puerto Rican girls who's just dyin' to meet you
We're gonna bring a case of wine
Hey, let's go mess and fool around
You know, like we used to"