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Ha'aretz
In a meeting last month with UN Secretary-General Antonio Guterres, U.S. President Donald Trump termed Prime Minister Benjamin Netanyahu the harder side to convince in his efforts to broker an Israeli-Palestinian peace deal, according to seven Western and Israeli sources who were either present at or briefed on the meeting.
Reuters
President Donald Trump said on Tuesday while on a trip to Puerto Rico to observe hurricane recovery efforts that the island's massive debt will have to be wiped out.

"They owe a lot of money to your friends on Wall Street and we're going to have to wipe that out. You're going to say goodbye to that, I don't know if it's Goldman Sachs but whoever it is you can wave goodbye to that," Trump said in an interview with Fox News.

It won't last.
by gk (gk (gk quattro due due sette @gmail.com)) on Wed Oct 4th, 2017 at 06:33:42 AM EST
[ Parent ]
Or maybe it will last.... Naked Capitalism reports on who owns the debt. It isn't G-S.
That mystery has finally been solved, with the help of the The Baupost Group, who unmasked themselves to The Intercept. The Baupost Group, a Boston-based hedge fund managed by billionaire Seth Klarman, owns nearly a billion dollars of Puerto Rican debt, purchased under a shell company subsidiary and hidden from public scrutiny. Baupost acquired the debt through an on-paper Delaware-based corporation named Decagon Holdings LLC, whose beneficial owner had been unknown until now.

[...]

He is known as the top campaign contributor in New England, and has been a major donor in Republican politics in Massachusetts, including largely secret support for 2016's Question 2, an ultimately unsuccessful effort to lift a state cap on charter schools. Klarman supported Hillary Clinton in 2016, calling Trump "completely unqualified for the highest office in the land."

by gk (gk (gk quattro due due sette @gmail.com)) on Wed Oct 4th, 2017 at 06:47:39 AM EST
[ Parent ]
Another case of misplaced precision. "Paul Singer" is a trope; "Jesus" is a trope. These tropes denote a two beliefs, or "value," systems expressed by people and the predictable outcome of each.

Diversity is the key to economic and political evolution.
by Cat on Wed Oct 4th, 2017 at 05:11:21 PM EST
[ Parent ]
It won't last.

Sure it will ... I saw an article and I was just thinking about this. I thought, "The Emperor is doing something nice for the little people ... this is a first ... what's the catch?"  And then I realized,

The U.S. Federal Govt. ONLY exists for the enrichment of the already rich.  After all, those are the people/entities which do all of the lobbying/bribing. Puerto Rico is now ... and God knows for how long in the future ... incapable of servicing ANY debt.  I.E. the rich debt holders are screwed unless ... wait for it ... th U.S. taxpayer pays off the debt holders and it all goes to swell the current U.S. debt.  Who's going to notice or complain about the extra U.S. debt?  Nobody.  Just watch.  

An aside.  Now that I'm officially an "old fuck" I was thinking about some college level seminar courses I'd like to see that might make good (great?) diaries. Any takers?

They tried to assimilate me. They failed.

by THE Twank (yatta blah blah @ blah.com) on Wed Oct 4th, 2017 at 06:54:14 AM EST
[ Parent ]
The most regarded post-WWII institutions - IMF, World Bank, GATT/WTO, Euro, ES, CIA, even UN - all work for the creditor class everywhere from the get go.
by das monde on Wed Oct 4th, 2017 at 10:11:08 AM EST
[ Parent ]
Why didn't they teach me that in high school? The world would have made so much more sense.

They tried to assimilate me. They failed.
by THE Twank (yatta blah blah @ blah.com) on Wed Oct 4th, 2017 at 11:52:50 AM EST
[ Parent ]
The public school system also works for the creditor class.
by gk (gk (gk quattro due due sette @gmail.com)) on Wed Oct 4th, 2017 at 11:56:41 AM EST
[ Parent ]
This call to forgiven odious debt of the PR is consistent with Mr Trump's earlier, campaign-season ideas of US "strategic default." Do you remember? That was met by incredulity of Enemy of the People, not mention the US Congress. Of course, never mention the US Congress.

US Congress passed PROMESA. So, no. The decision is not Mr Trump's to make.

Puerto Rico Oversight, Management, and Economic Stability Act 06/30/2016 Became Public Law No: 114-187.

archived:
It all began in Rhode Island 2013
Quick! Park your billions in P. Rico 2015
Jones-Shafroth of 1917 and the Puerto Rico Federal Relations Act of 1950 2017

Diversity is the key to economic and political evolution.

by Cat on Wed Oct 4th, 2017 at 06:07:10 PM EST
[ Parent ]
It's also consistent with his whole real estate career. But his view seems to have been that he (now the US) can default on anyone, but woe to anyone who dares to default on him.
by gk (gk (gk quattro due due sette @gmail.com)) on Wed Oct 4th, 2017 at 06:33:51 PM EST
[ Parent ]
My point is, the US Congress will not permit PR default --OR-- loan forgiveness for PR --NOR-- will it intervene in civil litigation by PR creditors to mitigate PR's debt service burden. IT IS WRITTEN.

Furthermore, PR "territory" status offers no recourse to restructure debt such as available to US states and municipalities (eg. Detroit judgment, based on fraudulent CDO marketing which convected the mayor!)


Diversity is the key to economic and political evolution.

by Cat on Wed Oct 4th, 2017 at 07:12:33 PM EST
[ Parent ]
The THREAT to allow default may have been directed at the Baupost Group. Give them heartburn while they are having lunch. After all they were led by a big contributor to Hillary and said nasty things about T. A way of saying "If the opportunity arises you will REALLY get screwed if I have anything to say about it."

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Oct 5th, 2017 at 04:05:29 AM EST
[ Parent ]
A "threat" by Trump is implausible. A "threat" by US Congress is actionable. That's the way this world turns, regardless of hysterical press headlines.

Yesterday's VOA/NPR reaction, for example, to Trump's one-liner was ridiculous, nothing but assurances that Trump cannot unilaterally "wipe that out," PR debt.

EX.A Trump's Remarks About Erasing Puerto Rico's Debt Jolt The Markets LISTEN

...The president appeared to walk that back ...

US press response is ridiculous, not only because Enemy of the People piled its story of his DEPOTISM, NEPOTISM, & TYRANNY into a corner from which there is no logical exit; The likelihood of these paid pubic intellectuals finally admitting, Trump alone is not responsible for US gov predicaments, is nil; and "our" assets are sacrosanct.


Diversity is the key to economic and political evolution.

by Cat on Thu Oct 5th, 2017 at 01:46:39 PM EST
[ Parent ]
 - "A "threat" by Trump is implausible. A "threat" by US Congress is actionable. That's the way this world turns, regardless of hysterical press headlines."

Well, it takes both in a lot of cases, and then it has to get past the judiciary. But there are instances in which executive discretion can be a worry: waiving the Jones Act and declaring national emergencies being two recent and obvious examples. And then there is prosecutorial discretion. In this case the Attorney General reports to the president, but we can be comforted that most attorneys general will feel considerable constraint from the actual law. And that may or may not apply to Jeff Sessions - depending...


"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Oct 5th, 2017 at 01:59:42 PM EST
[ Parent ]
just no. Stop with the mental gymnastics, you'll only end up where I started. Trump cannot unilaterally extinguish PR debt. There is no will in US Congress to extinguish PR debt. And PR has no authority to extinguish its debts that can be found in USC (cited above).


Diversity is the key to economic and political evolution.
by Cat on Thu Oct 5th, 2017 at 02:34:15 PM EST
[ Parent ]
True that he cannot unilaterally extinguish PR debt. But he could do a lot of other things. That was what I was saying. A mobster might not be able to send one to jail, but there are a lot of alternative actions they could take.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Oct 6th, 2017 at 04:36:19 AM EST
[ Parent ]


Diversity is the key to economic and political evolution.
by Cat on Thu Oct 5th, 2017 at 02:44:49 PM EST
[ Parent ]

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