White House walks back Trump's Puerto Rico comments as Wall Street reels

[Felya]

They can't devalue since they use US dollars, and getting a merging of their bonds is pretty much out of the question. So yeah, they're pretty screwed without either a wiping of debt or declaration of bankruptcy.

They could try and go independent and then have a devalued currency, but I am not sure that is much of a possibility either, that should have been done a long time ago.

Your first statement would cause the second statement to occur, but to the US dollar. Puerto Rico is part of the US, not an independent country with its own currency. If they went independent, we inherit their debt. Whipping out their debt, as Trump suggested, would have negative ramifications on the whole country. US states or territories defaulting on debt, has negative ramifications on US.

[Sunseeker]

I hear you there - I've got a legal background as well - it just wasn't on the corporate side. I bet it has to do with golden parachutes or something similar.

It's more that companies have more liquid assets than individuals do. They can play with the money to make it look like it's not there when they don't want people (like bankruptcy courts) to see it, and they can make it appear and available when they do need it (like to invest more). A smart person can play similar games with their assets, but not nearly as well.

[Glorious Leader]

It's funny watching so called conservatives coming out to defend trumps debt jubilee proposal. Yea i'm in favor of wiping out PR debt as well. Debts that can't be paid, won't be paid. That includes mortgage debt, student debt, credit card debt etc etc

[Deleted]

Your first statement would cause the second statement to occur, but to the US dollar. Puerto Rico is part of the US, not an independent country with its own currency. If they went independent, we inherit their debt. Whipping out their debt, as Trump suggested, would have negative ramifications on the whole country. US states or territories defaulting on debt, has negative ramifications on US.

I didn't actually consider that, my bad.

[cubby]

It's more that companies have more liquid assets than individuals do. They can play with the money to make it look like it's not there when they don't want people (like bankruptcy courts) to see it, and they can make it appear and available when they do need it (like to invest more). A smart person can play similar games with their assets, but not nearly as well.

Ah, gotcha. Makes sense and definitely sounds complicated.

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It's funny watching so called conservatives coming out to defend trumps debt jubilee proposal. Yea i'm in favor of wiping out PR debt as well. Debts that can't be paid, won't be paid. That includes mortgage debt, student debt, credit card debt etc etc

Man I hear you there - especially regarding student debt. It's all but impossible nowadays to rid yourself of it if you are unable to pay it off. Beyond ridiculous.

[Glorious Leader]

Ah, gotcha. Makes sense and definitely sounds complicated.

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Man I hear you there - especially regarding student debt. It's all but impossible nowadays to rid yourself of it if you are unable to pay it off. Beyond ridiculous.

Theirs nothing wrong with the concept of the debt jubilee in principle. Our ancient near east ancestors used to do it every 7 years. All debts wiped, all indentured servants and slaves freed. They recognized a very simple principle. Debts tended to accumulate faster than the ability of the economy to repay. Agricultural production is geometric and debt accumulation is exponential thanks to the magic of compound interest. Here's an excellent video explaining this by a fucking genius imho

[Breccia]

FEMA removes Puerto Rico relief numbers, such as what percent have power, communications, and drinking water, from its website.

The same day, the White House formally refuted the idea of relieving Puerto Rico's debt. "I know some of you say we should take Trump seriously but not literally," Sanders said, "but in this case, you can't safely do either. We will be doing neither the letter nor the spirit of Trump's off-script comment about Puerto Rico."

And as expected, health care in the country is complicated by unsanitary conditions, inability to transport patients, and only 17 of their 69 hospitals are on the power grid, 47 more are on generators, and there's a fuel shortage.

[cubby]

FEMA removes Puerto Rico relief numbers, such as what percent have power, communications, and drinking water, from its website.

The same day, the White House formally refuted the idea of relieving Puerto Rico's debt. "I know some of you say we should take Trump seriously but not literally," Sanders said, "but in this case, you can't safely do either. We will be doing neither the letter nor the spirit of Trump's off-script comment about Puerto Rico."

And as expected, health care in the country is complicated by unsanitary conditions, inability to transport patients, and only 17 of their 69 hospitals are on the power grid, 47 more are on generators, and there's a fuel shortage.

Interesting article out from the NYT re Trump and his ability to distract while the GOP smashes through legislation crafted around "fucking over the poor and middle class". I have no doubt that the GOP is at least using that strategy when they can. I'm not sure they are organized enough to make a full blown strategy.

Article.

[Glorious Leader]

Interesting article out from the NYT re Trump and his ability to distract while the GOP smashes through legislation crafted around "fucking over the poor and middle class". I have no doubt that the GOP is at least using that strategy when they can. I'm not sure they are organized enough to make a full blown strategy.

Article.

They're inept and their inability to pass health care repeal is proof alone. The fact is it's INCREDIBLE easy to be an opposition party because that requires no governance and more importantly no governance by consensus. When you actually get power it turns out you need to compromise which they are ideologically incapable of. Hell it's exactly what their base doesnt want. Compromise is a loser democrat word.

[cubby]

They're inept and their inability to pass health care repeal is proof alone. The fact is it's INCREDIBLE easy to be an opposition party because that requires no governance and more importantly no governance by consensus. When you actually get power it turns out you need to compromise which they are ideologically incapable of. Hell it's exactly what their base doesnt want. Compromise is a loser democrat word.

I could not agree more. The word compromise went out the door with the crazy Tea Party movement and all that it brought down upon the GOP.

Btw, did you see that Elon Musk is actually going to rebuild their power grid? Can he run for President?

[Dead Moose Fandango]

I could not agree more. The word compromise went out the door with the crazy Tea Party movement and all that it brought down upon the GOP.

Btw, did you see that Elon Musk is actually going to rebuild their power grid? Can he run for President?

Never vote a mad scientist into office. Have you learned nothing from the tyrannical Dr. Doom?!

[Felya]

Never vote a mad scientist into office. Have you learned nothing from the tyrannical Dr. Doom?!

Yeah, figures you point at Dr. Doom... it's not like council of Reed Richards was better. If molecule man was #2 in destroying the multiverse, then a member of Reed Richards council was #3...

[Dead Moose Fandango]

Yeah, figures you point at Dr. Doom... it's not like council of Reed Richards was better. If molecule man was #2 in destroying the multiverse, then a member of Reed Richards council was #3...

Well, I mean Doom was the actual leader of a country. Reed Richards is far worse, but he was never elected president of the US to my knowledge. He was more private contractor who helped SHIELD with concentration camps in the negative zone, but never president.

[GennGreymane]

Never vote a mad scientist into office. Have you learned nothing from the tyrannical Dr. Doom?!

didnt his country I can't spel,l do well in some alternate universe where he got to lead it or something?

[Glorious Leader]

Yeah, figures you point at Dr. Doom... it's not like council of Reed Richards was better. If molecule man was #2 in destroying the multiverse, then a member of Reed Richards council was #3...

IIRC owen reece wasn't technically at fault for the collapse of the multi verse, it was the beyonders. To be fair to doom he actually saved all of marvel.

As for the council they were eventually wiped out by the mad celestials iirc.

Doom or the reeds or molecule man would all be better than trump.

[cubby]

Never vote a mad scientist into office. Have you learned nothing from the tyrannical Dr. Doom?!

Lol, that is a good point. Plus, he probably isn't really interested. Too much bullshit.

[Tijuana]

http://www.politico.com/story/2017/1...esponse-243452



People often ask what impact a president can have on the economy. If simply presiding over growth is any indication of president's aptitude.

Here we have an example of how a president can and does have an impact. By simply saying what he did, Trump caused a "tailspin" in Puerto Rican bond prices. Something the president really shouldn't say, as that's not even part of his jurisdiction.

This is also something Trump said was an idea of how to fix the entire countries debt. Take this as a warning, if Trump's ideas during the campaign, actually take tangible shape... or even if he posts it on twitter at 2 am...

I find myself in rare agreement, Felya. Public officials should never directly comment on things like this. Most seasoned politicians know better, and Trump shows his inexperience by saying this. You would think a New Yorker would remember what happened to Lehman Brothers, shortly after a certain Democrat Senator on the Banking commitee publicly stated, "I don't see how they can recover from this."

Also, I demand street cred for siding against Trump. You fuckers always accuse me of defending everything his stupid ass does.

To the greater philosophical point, a positive president CAN help the economy along, via inspiring the public. That doesn't mean they are in control of the economy, it just means they have one of the oars, or perhaps a few oars (think viking ship, not row boat). This is more of a psychological matter though, than it is a fiscal policy matter.

I would argue that Obama's calm personality contributed greatly to his victory, in 2008. It was the right tone at the right time. The housing thing could have gone a lot worse. It really could have.

I would argue Reagan's sunny outlook inspired the public to grow the economy.

So, there are many examples of this concept. Trump, who likes to take credit for the growing stock market, ought to realize what an impact his words can have.

That said, who in the actual fuck buys PR bonds? Holy shit, just light your money on fire, or send it to me.

[GreenJesus]

I find myself in rare agreement, Felya. Public officials should never directly comment on things like this. Most seasoned politicians know better, and Trump shows his inexperience by saying this. You would think a New Yorker would remember what happened to Lehman Brothers, shortly after a certain Democrat Senator on the Banking commitee publicly stated, "I don't see how they can recover from this."

Also, I demand street cred for siding against Trump. You fuckers always accuse me of defending everything his stupid ass does.

To the greater philosophical point, a positive president CAN help the economy along, via inspiring the public. That doesn't mean they are in control of the economy, it just means they have one of the oars, or perhaps a few oars (think viking ship, not row boat). This is more of a psychological matter though, than it is a fiscal policy matter.

I would argue that Obama's calm personality contributed greatly to his victory, in 2008. It was the right tone at the right time. The housing thing could have gone a lot worse. It really could have.

I would argue Reagan's sunny outlook inspired the public to grow the economy.

So, there are many examples of this concept. Trump, who likes to take credit for the growing stock market, ought to realize what an impact his words can have.

That said, who in the actual fuck buys PR bonds? Holy shit, just light your money on fire, or send it to me.

haha seriously. I hope the interest rate on those bonds are high.

[Surfd]

Might be interesting to check to see if any known Trump associates dumped their stocks in PR bonds shortly before this happened. Reminds me of when he made some twitter comment about fucking with the budget on military planes (i think it was) causing a massive downward spike in their share prices, and someone spotted a few people in the Trump admin dumping a huge number of stock options in the company literally a few minutes before the tweets went out.