Friday, July 3, 2015

Puerto Rico to Become the New Haiti?

Capitalism created Haiti, and now capitalism threatens to turn Puerto Rico into a new Haiti.  To capitalists, the solution for borrowing too much money is to borrow more money:
Hedge funds holding billions of dollars of the island’s bonds at steep discounts are frustrated that the government has not seemed willing to reach a deal to borrow more money from them.
“We want to be a part of the solution to the commonwealth’s fiscal challenges,” a group of investment firms, including Centerbridge Partners and Monarch Alternative Capital, wrote in a letter last week.
An aide to the governor said the hedge funds’ debt proposal was too onerous. And the deal would only postpone Puerto Rico’s inevitable reckoning.
Haiti was poor because of the indemnities it agreed to pay to France after the slave revolt.  In essence, Haiti's new leaders a few hundred years ago agreed to impoverish Haiti into perpetuity in exchange for France recognizing the Haitian leadership.  Poverty forever for Haiti.  Only recently, after earthquakes and other natural disasters, did France forgive the debt.

Puerto Rico is advised to become the new Haiti.

How about Puerto Rico be give the freedom to become prosperous?  3.6 million people is just about right for a sustainable nation.  Try the Hong Kong model, not the Haiti model.  Free markets, not capitalism.

An absolute key is nonviolence.  Haiti's slave revolt was violent, and any time violence is used to make change things get far worse.  Look to Gandhi, not Toussaint Louverture (although Louverture had the capacity to be a Gandhi).

Feel free to forward this by email to three of your friends.


Anonymous said...

There are plenty of small places that are economic wonders and powerhouse dynamos, like Singapore, Hong Kong, and Switzerland.

Puerto Rico could be the same way. Also Puerto Rico with it's warm caribbean tropical climate and beaches could be a tourist mecca if only proper economic reforms were made.

Anonymous said...

Haiti was following after the French and American Revolution. Haitians were 10 times more justified in revolting than the French or the Americans. Only problem Haiti has was they were black. There were not any prosperous Black nations they could commerce with or borrow from.

John Wiley Spiers said...

A theme I push is no one has a right to violence, so revolution is unjustified, even at ten times the rate. Not sure how anyone gets rich borrowing, nor why a "black" nation needs a commonwealth of other black nations in order to thrive.

It seems the indemnities which Haiti leaders agreed to pay had ruined Haiti's future, just as Greek leaders sold Greeks down the river, Irish leaders sold Irish down the river.

Feel free to expound on your thesis.