Puerto Rico says it will default on Monday

[Gorgodeus]

Do we know why? Seems like a US territory fulfilling the criteria and voting for statehood ought to have some explanation if their request never makes it out of committee purgatory.

Think about it. Puerto Rico would add to the Democrats in Congress. The GOP is not going to let that happen.

[Deleted]

This has been developing for a while, sovereign defaults are always interesting

[Gorgodeus]

This is a biased reply, so take it for what it's worth. Two factors - a) while some Puerto Rican voters have voted for statehood when given a chance, the most recent vote wasn't clear and it's not a universally held view in Puerto Rico, which b) gives folks on the right plenty of cover for obstructing the admission of a mostly non-white state full of likely Democratic voters.

I would say it was very clear when 61% voted for statehood.

According to the official results of Puerto Rico’s State Electoral Commission, 54 percent (970,910 out of 1,798,987) of eligible electors voted ‘No’ to remain in the current political status. Furthermore, 61 percent of the people (834,191) voted in favor of our Island joining the Union as the 51st state. As of the others options in the ballots, Free Association gathered 33 percent of the vote (454,768), while Independence generated 5.4 percent (74,895).
http://thehill.com/blogs/congress-bl...ing-everywhere

[Faloestin]

According to the official results of Puerto Rico’s State Electoral Commission, 54 percent (970,910 out of 1,798,987) of eligible electors voted ‘No’ to remain in the current political status. Furthermore, 61 percent of the people (834,191) voted in favor of our Island joining the Union as the 51st state. As of the others options in the ballots, Free Association gathered 33 percent of the vote (454,768), while Independence generated 5.4 percent (74,895).
http://thehill.com/blogs/congress-bl...ing-everywhere[/QUOTE]

Except the vote wasn't a clean up or down on statehood. The vote was split into two parts - the first on remaining a commonwealth (to which 54% voted no), and the second asking voters to choose between statehood and a couple of other options, but not staying a commonwealth. 61% of the people who voted on the second question voted for statehood, but a quarter of the voters left their ballots blank - which means Yes to statehood only got 45% of the total number of people voting. All of which meant confusion and messiness, and plenty of wiggle room for it going nowhere on Capitol Hill.

[Vyxn]

HOW DID PUERTO RICO GET INTO THIS MESS?

Puerto Rico has been in an economic recession for roughly 10 years, caused by several factors. Manufacturing jobs started leaving the territory after certain tax credits, officially known as Section 936, expired. The global economic downturn that started in 2007 only compounded the negative impacts on Puerto Rico.

As a result, the territory's unemployment rate is 12.2 percent, more than double the 5 percent unemployment rate for the U.S. Its poverty rates are the highest in the nation. Residents have been leaving the territory in search of new economic opportunities.

To cover budget shortfalls, Puerto Rico's government started borrowing heavily from a mix of mutual funds and hedge funds, and its debt levels ballooned to $72 billion. Its debt levels have become so large that the government is unable to pay its debts and provide basic government services. Roughly a third of Puerto Rican tax revenue now goes to cover its debt.
http://abcnews.go.com/US/wireStory/q...ained-38804023

let me explain that in simpler terms to all our Sander and Clinton Supporters
Taxes went up business left and their tax revenue went with them