The War Against Today Dollar Prices

As you take heed to Saqib Bhatti and you live in Puerto Rico, your response to what’s occurring on the ground? What are the banks, and what’s actually-how are they responsible for this debt? And سعر الدولار الان we only came upon about this, سعر الدولار فى مصر as a result of tons of - tons of - of veterans from all around the nation began emailing me and calling me and saying, "Have you seen what’s going on? We’ve seen mass closings of schools. You already know, there’s a health-there may be severe cuts to healthcare at the same time there’s a Zika outbreak. Postal Service, needed to help investigators determine which healthcare claims were most more likely to be fraudulent. We'd like to ensure, if there’s a PROMESA management board, that they’re not cutting companies additional. And so, my group, the ReFund America Project, we’re actually going to be releasing a sequence of reviews over the subsequent couple of months that may look at the different ways wherein Wall Street banks actually focused Puerto Rico with predatory offers, and actually calling on the PROMESA management board to be placing the interests of the people of Puerto Rico first, to cancel the illegitimate debt so that we can correctly fund services. And banks swooped in-banks like Citigroup, Goldman Sachs-and mentioned, "Hey, here’s a deal," regardless that they knew that these offers would be really dangerous and Puerto Rico would by no means have the ability to pay them in the long run.

In his wonderful new e book, Bad Money, political analyst Kevin Phillips explains how the Clinton and Bush administrations allowed and even aided the unregulated finance business to create the giant bubble of largely worthless securities that's now bursting. JUAN GONZÁLEZ: But now, your report additionally indicates that these bonds are so nugatory that they at the moment are being traded on the secondary market at 14 cents on the greenback, you know, 15 cents on the dollar, and that the-now hedge funds are buying them up, hoping that even if they get 50 cents on the greenback, they nonetheless make a killing, because at the low fee that they purchased them. SAQIB BHATTI: That’s precisely proper, that what we’re having is-you realize, there’s a secondary market for bonds, similar to there’s a secondary marketplace for mortgages, the place the lender that sells you your mortgage, they package it up right into a safety, they sell it off, and it will get handled.

And so, what happened over there was, because you had the situation where, you already know, Puerto Rico is a colonial economic system and never in control of its personal finances at the tip of the day, there’s a lot pressure that’s coming from the skin, because these points couldn’t be resolved. On June twenty ninth, the government-owned Puerto Rico electric company introduced its plan to boost by 28 p.c the island’s electricity charges, that are already larger than any state but Hawaii. That’s an effective curiosity fee of 785 percent. And the way in which these bonds work could be very very like a payday loan, where, as a result of you’re not allowed to pay back the principal or the curiosity for a few years, and over time the interest retains compounding, you find yourself with these astronomical curiosity rates. And at the top of the 47 years, that $ninety seven million becomes $1 billion that Puerto Rico has to pay again. Meanwhile, even earlier than President Obama has named members of the brand new management board, we’re starting to study simply how bondholders are being protected and the individuals of Puerto Rico made to suffer. So we are trying to restructure the debt, and the bondholders have not been in a position to provide us an excellent deal within the restructuring of the debt.

The additional cash shall be earmarked to pay debt service on as much as $9.Three billion in new bonds the corporate, referred to as PREPA, plans to situation to exchange its previous debt. As part of the restructuring, the utility’s new administrators will come largely from the U.S., and the brand new bonds pays an astounding curiosity of 10 p.c. I believe about forty p.c of the kids reside in poverty. 10 p.c beginning subsequent month. And so, quite a lot of the traders that are actually buying it, that are these vulture hedge funds which can be buying at dirt-low prices and making an attempt to make a huge revenue, profits as much as close to-as much as 2,000 percent, if you’re shopping for at 5 p.c and planning on trying to collect all 100. I mean, just to place that into perspective, the idea is that there’s one thing that theoretically on its face is value $1, and I’m going to pay you 5 cents to purchase it up.

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