SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: i-node who wrote (760129)12/30/2013 11:42:02 AM
From: FJB   of 1575767
 
Puerto Rico Takes a Page from Argentina’s Playbook
300+ Walter Russell Mead's Blog by Andy Iacobucci

We may have spoken too soon about Puerto Rico moving on the road to recovery. At the same time it was reforming its pension plans for teachers, the island territory was also borrowing money from its own public employee insurance fund to plug a hole in its budget. As a result, Reuters argues, Puerto Rico be following in Argentina’s footsteps, citing a news item from a 2009 which draws a parallel between Argentina’s behavior and Puerto Rico today:

Here is a warning to us all. The Argentine state is taking control of the country’s privately-managed pension funds in a drastic move to raise cash.

It is a foretaste of what may happen across the world as governments discover that tax revenue [falls short], and discover that the bond markets are unwilling to plug the gap. The G7 states are already acquiring an unhealthy taste for the arbitrary seizure of private proper.

For those who haven’t been following the Kirchner saga, comparisons with Argentina are not a good thing, particularly when it comes to pensions and retirement funds. Puerto Rico’s borrowing may not be as bad as this, but given the rest of the news coming from the island lately, it doesn’t inspire confidence.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News