La idea que la deuda es ilegal es una farsa. Es algo tan fácil de desmentir que puedo hacerlo sin tener JD.

Abro hilo 1. Deuda odiosa y/o los fondos no se gastaron bien.

Ningún tribunal del mundo ha declarado que una deuda sea odiosa. Es una idea hipotética del derecho internacional que nunca se ha probado en ninguna corte.

For people on the mainland who might not know much about Puerto Rico, here's the reality. Puerto Rico has always lagged far behind the US mainland. Median family income is a mere 20K compared to 65K for the states. Job losses spurred on by the repeal of special tax breaks in 2006, the 2008 financial crisis, hurricane Maria, and poor government services which are the result of chronic under funding due to the territorial status set off a huge out migration in 2004 which continues today.

Before the Federal Reserve Act was passed, the US Govt finances were very much like a household's. B/c of the gold standard, the government could not create money at will. Thus, it was very much subject to market discipline. That is, the interest rate that US govt got in the markets was very much determined by perceptions about risk and government's ability to repay. The govt also directly competed with private sector for a scarce amount of credit which lenders could provide.

Repurchase agreements (the 1.5T) are a swap of one form of government debt (Treasury debt) for another (Federal Reserve balances). 1.5T for coronavirus response is new spending and must be approved by Congress.

https://twitter.com/Strandjunker/status/1238210391613886466

The Fed is increasing the amount of money it lends to entities which buy and sell govt debt. This will keep the market for Treasury debt working well. It would be much simpler to just have the Fed print money when the Treasury would like to deficit spend.