Trump’s Vulturism
Encircles Puerto Rico
Which Invites a Latino Call to Action
History
regards that when an underdeveloped nation falls asunder – the vultures begin
to circle it. Puerto Rico is in a most dire weak position. Hurricane Maria hit
the Island on Sept 20th, 2017. As of November 30th, 2017,
only about 20% of the schools are functional, on a part time basis, thanks to
internationally donated gas generators. The other 80% of schools remain closed.
Puerto Rico is still dealing with 40-50% of the island still without
electricity. There is a call for action
from both Trump and the U.S. Latinos.
Puerto
Rico has a $75 billion bond debt. It is also suffering under a humanitarian
crisis. The hurricane damage, estimated to be potentially as high as $95 billion.
This is a probable total of $170 billion and growing.
The
U.S. plans for revival of one of its “commonwealth” territories are abysmal.
Let us say that I’m wrong, that Trump is ready for the call. He would, of
course, forego the billions he wants to spend on “The Wall” and save over $1 ½
trillion dollars by not cutting taxes on the rich. Thus he might better handle
the Puerto Rican crisis. He might also add a few dollars to secure the
retention of “The Dreamers”, so that they can stay in the U.S.? But as you
well know, these two groups are basically – non-white. The chances of this
happening are abysmal. Of course there are other reasons as to the difficulty
of this redress, but when all of them are taken into account, effective redress
the answer is still the same: abysmal.
Recently,
the international community has pledged over $2 billion (mostly in loans and/or
debt relief) to help rebuild the Caribbean Islands from their string of
hurricanes. Puerto Rico is one of them. The Netherlands pledged $700 million.
The European Union $352 million. Mexico, $27 million – and so on. And the U.S.?
$4.3 Million. And how much of that for Puerto Rico? Abysmal. Clearly, Trump
doesn't believe in climate change, nor in the value of his citizens of color. A
racial issue at a time when almost ½ of the U.S. and 2/3 of the American
Continents are people of color clearly cannot be part of making “America Great
Again”!!
Puerto
Rico is part of the U.S. They are U.S. citizens. But they are not a state. They
are a U.S. Territory – a “commonwealth”! They, on the island, cannot vote. By
not being a State, they are powerless. If they had federal representation for
its 3 ½ million people, they would have at least 5 U.S., House Representatives
and 2 U.S., Senators. They would have a “Voice” on the “Floor” petitioning on
their behalf with the power of the vote. Instead, they are treated like a
colony with colonial oversight and colonial exploitation. Thousands are leaving
the island because they have no choice. Some may move into the urban ghettos
and may be dealt with in the same way the African American are treated. A few
with sufficient skills, education, family and/or connections, will fare better.
Puerto
Rico, as you can see, is on its knees – vulnerable for exploitation. History
records that the U.S. kleptocracy and/or "corporatocracy" is always ready for that.
Theses vultures, as in the past, are circling the island. It is a type of “I
don’t really care about you, but let me see how I can make money from you.”
Trump,
when first taking a more “serious” note of the situation, especially after
hearing the national protest of dragging his feet, suddenly pretended to make
“special” amends by publicly pledging in October to “wipe out” the bond debt.
His budget director and others quickly and quietly caused him to renege. The
“Drain-the-Swamp Commander-in-Chief” then advised restructuring the debt. He
made reference to Goldman Sachs (GS), a major “swamp” member from which he
“drained” some of its officers to be Secretaries for his Cabinet. In 2014, GS
had purchased, or co-signed for, $120 million in Puerto Rican bonds, but have
yet to officially file claim. It is possible that they may never file--to the
detriment of the Puerto Rican dilemma.
No
question about it – the vultures are in. And growing. They are always there
when “someone” is in need of “help”. We know of some of the few from the
“undrained swamp”.
A special
investigation by the publication, In These Times has identified at least
24 vulture firms. 16 of them are from New York (Trump’s haven), 4 from
California, 1 from Massachusetts, and 3 from Minnesota. Those 3 are: Verde
Partners (Mpls), White Box Advisers (Mpls) and Merced Capitol (Minnetonka).
A
good example of “vulturism” is the Trump International Golf Club in Puerto
Rico. The Puerto Rican government Development Bank granted developers $25 million
to build this golf course and hotel. Financial problems soon surfaced and the
government agreed to reissue $26 million in bonds--only after Trump agreed to
license his name to the project. It still did not pan out, and the owners filed
bankruptcy in 2015. The loan was never paid. Trump owned it in name only and
could not be held accountable.
Another
contract is now causing controversy. Whitefish Energy of Montana won a $300 million
bid in September to rebuild the Puerto Rican energy grid – to finally turn the
lights back on for the island. It offers to rebuild the old antiquated
coal/petroleum burning system. It offers no climate friendly technology. Its
credentials are questionable. The 2-year-old firm has only 2 full-time
employees. Its primary backer is HBC Investments, a private equity firm run by
Joseph Colonetta – a Trump major donor! Once all this came to light, the
Governor of Puerto Rico canceled the contract. However, there are some Twin
Cities entrepreneurs qualified for the job. There is a solar system of advanced
technology that could be installed quicker and provide service over the
mountains, an improvement over their old system. Peter Reese, former Xcel
contracts manager, now heads this Solar Energy Relief firm. His company might
get the new contract.
The second
part of this report will deal with the need for our Latino call to action.
