cogito ergo imago
El Capitolio de Puerto Rico, San Juan
The Capitol was inaugurated in 1929, though substantial work continued into the '60s. The dome was completed in 1961.
It has distinguished architectural forebears, being based in part on Columbia University's Low Memorial Library (1895, McKim, Mead & White), which was itself based in part on the Pantheon (dates disputed, Marcus Agrippa / Hadrian). All of which classifies it as NeoClassical Revival.
Strictly speaking the Government of the US territory of Puerto Rico isn't bankrupt. But a case can be made for constructive bankruptcy - the Government is not paying all its creditors; even if it wants to, it can't pay all its creditors; it has petitioned the US Congress to be permitted to enter bankruptcy (permission was denied). To some this adds up to de facto bankruptcy, if not de jure.
The tale of how the Isla Del Encanto got to this sorry mess is too long to go into here, and many facts are disputed - for example there are allegations of levels of fraud that would make an Enron executive blush (not to mention the ratings agencies who certified the Island's bonds Investment Grade): The looting of public funds, colossal amounts of dosh missing, incomprehensible government accounts (Caribbean News Now / Richard Lawless)
Either way, the numbers are grim. For example the Government employees' pension funds have $1.8b on hand to cover $45b in liabilities (Reuters). Together with a negative cashflow of $1b a year, the funds would seem to be not long for this world. A financial tragedy for 330,000 people, plus their dependents. And the Island's state-owned electric power monopoly, PREPA, has an operating deficit (ie it loses money BEFORE debt service is counted) so if it loses access to borrowed money it will soon after not be able to pay for the oil it needs to generate electricity. The Government has officially reneged on its guarantee of PREPA's debts, but it's hard to imagine them allowing all electricity generation to cease.
Meanwhile in DC, an oversight committee has been appointed "to help Puerto Rico control its spending and restructure its massive debt load." The committee is described as "bi-partisan", a word with a curiously antique ring to it. The choices it faces are difficult, to say the least:
Either
- To the extent possible, continue subsidies and payments to government entities and employees - teachers, cops, retirees, the judiciary, roads, water, that sort of thing; failure to do this will stretch social cohesion.
Or
- To the extent possible, pay banks and bond-holders; if not, the Government will lose access to the debt markets and fall back on its entirely inadequate tax revenues.
It can't do both. And that's only the financial situation. The underlying economy is also in tatters.
I've spent many happy times in Puerto Rico and it's sad to see it come to this pass.
El Capitolio de Puerto Rico, San Juan
The Capitol was inaugurated in 1929, though substantial work continued into the '60s. The dome was completed in 1961.
It has distinguished architectural forebears, being based in part on Columbia University's Low Memorial Library (1895, McKim, Mead & White), which was itself based in part on the Pantheon (dates disputed, Marcus Agrippa / Hadrian). All of which classifies it as NeoClassical Revival.
Strictly speaking the Government of the US territory of Puerto Rico isn't bankrupt. But a case can be made for constructive bankruptcy - the Government is not paying all its creditors; even if it wants to, it can't pay all its creditors; it has petitioned the US Congress to be permitted to enter bankruptcy (permission was denied). To some this adds up to de facto bankruptcy, if not de jure.
The tale of how the Isla Del Encanto got to this sorry mess is too long to go into here, and many facts are disputed - for example there are allegations of levels of fraud that would make an Enron executive blush (not to mention the ratings agencies who certified the Island's bonds Investment Grade): The looting of public funds, colossal amounts of dosh missing, incomprehensible government accounts (Caribbean News Now / Richard Lawless)
Either way, the numbers are grim. For example the Government employees' pension funds have $1.8b on hand to cover $45b in liabilities (Reuters). Together with a negative cashflow of $1b a year, the funds would seem to be not long for this world. A financial tragedy for 330,000 people, plus their dependents. And the Island's state-owned electric power monopoly, PREPA, has an operating deficit (ie it loses money BEFORE debt service is counted) so if it loses access to borrowed money it will soon after not be able to pay for the oil it needs to generate electricity. The Government has officially reneged on its guarantee of PREPA's debts, but it's hard to imagine them allowing all electricity generation to cease.
Meanwhile in DC, an oversight committee has been appointed "to help Puerto Rico control its spending and restructure its massive debt load." The committee is described as "bi-partisan", a word with a curiously antique ring to it. The choices it faces are difficult, to say the least:
Either
- To the extent possible, continue subsidies and payments to government entities and employees - teachers, cops, retirees, the judiciary, roads, water, that sort of thing; failure to do this will stretch social cohesion.
Or
- To the extent possible, pay banks and bond-holders; if not, the Government will lose access to the debt markets and fall back on its entirely inadequate tax revenues.
It can't do both. And that's only the financial situation. The underlying economy is also in tatters.
I've spent many happy times in Puerto Rico and it's sad to see it come to this pass.