Puerto Rico avoided a default on debt maturing on Tuesday but warned that its deteriorating liquidity meant that future defaults loom.
There had been speculation that the U.S. territory would default on all or part of the $355 million notes issued by its financing arm, the Government Development Bank.
While Puerto Rico first defaulted in August, failure to make the payment on Tuesday would have been more significant because part of that debt was protected by the commonwealth’s constitution.
Another default could have triggered lawsuits, further spooked investors and undermined the island’s efforts to climb out of $72 billion in debt.
Puerto Rico said in a statement that it made the payment despite “extreme fiscal challenges.” It warned of problems ahead as it will have to “claw back revenues pledged to certain bonds issued in order to maintain public services,” Governor Alejandro Garcia Padilla told the U.S. Senate Judiciary Committee.
The commonwealth would use the clawbacks to fund payments on top-priority debt carrying constitutional protections, Garcia Padilla said in written testimony. However, in oral testimony, he said clawbacks could also be used to maintain public services.
“The imminence of a default when presented with the alternative between paying creditors and providing essential government services looms large,” Garcia Padilla said.
Garcia Padilla signed an order allowing Puerto Rico to begin redirecting certain funds in light of recently revised revenue estimates and its deteriorating liquidity situation, the island said.
In written testimony, Garcia Padilla said: “In simple terms, we have begun to default on our debt in an effort to attempt to repay bonds issued with the full faith and credit of the commonwealth and secure sufficient resources to protect the life, health, safety and welfare of the people of Puerto Rico.”
Height Securities analyst Daniel Hanson said the comments meant Puerto Rico was defaulting on “instrumentality debt, not debt with a constitutional pledge.” General obligation bonds, along with GDB bonds that have constitutional guarantees, should be safe, he said, but bonds from entities such as highway authority PRHTA and infrastructure financing authority PRIFA are at risk.
Of the $355 million paid on Tuesday, $81.4 million was to service non-general obligation-backed debt and $273.3 million was for notes backed by the commonwealth’s general obligation guarantee.
During the hearing Senator Richard Blumenthal, a Democrat, said Puerto Rico “narrowly averted a complete default” by unsustainable financial gymnastics.
The payment on bonds issued by the GDB was crucial as Puerto Rico tries to stretch its liquidity into 2016 to provide more time to restructure debt.
In August, Puerto Rico paid only $628,000 of a $58 million payment due on its Public Finance Corp bonds.
(By Megan Davies and Nick Brown; Editing by Lisa Von Ahn)
Read more at Reutershttp://www.reuters.com/article/2015/12/01/us-usa-puertorico-idUSKBN0TK4BH20151201#e6iDYgd9hYhbOrpP.99
August stock market turmoil prediction fulfillment and what it means
August 28, 2015
[August 2015 stock market turmoil]
After all these years of doing this, it’s still quite surreal. You make a unique, specific prediction or pattern projection, and right when it’s supposed to happen, it does. The prediction was first discussed in February on STRUG, then publicly/Etemenanki on August 2nd (see “Dog Days Prophecy“).
It unfolded before our eyes in August, dramatic news headlines we had foreseen months ago. There were otherwise no indications that stock markets would be in historic turmoil in August 2015. The stock market is unpredictable and on top of that historically the month of August is not known for market chaos. On top of that, there was a great doom buzz on the internet about September, making everyone overlook August (which actually made me more confident about August). In other words, my prediction was unique, improbable, and yet it still came true.
From Dog Days Prophecy I posted here on August 2nd (red emphasis added):
It is highly significant therefore that Regulus and Jupiter will be in “royal” conjunction on ~August 11.
Remarkably ~August 11, 2015 is also pinpointed by a “Mayanfinancial crisis” time code I started highlighting back in February (STRUG) which is based on the Golden Ratio (“phi”) and at least three major dates/events […]
The financial crisis theme is underscored by an additionalequidistant Mayan timeline coming from the May 6, 2010 “Flash Crash” (Dow Jones) pinpointing August 8, 2015, just 3 days before August 11 […]
The point is not necessarily that we will have another such literal financial crisis in August 2015. But that we will have some notable event(s) heavily resonating with these things. [End quote]
On August 11th, the exact day predicted in my time code (“window #1”), China devalued its currency out of nowhere and destabilized global stock markets.
Aug 11, 2015 China devalues yuan in shocking move
Aug 11 Dow plunges triple digits on surprise yuan devaluation
Aug 12 China’s yuan currency falls for a second day
Aug 12 Global markets plunge on yuan’s drop
Then starting on August 20th, the exact date I had pinpointed as the start of “window #2” (Aug 20-26), stock markets started to really panic (still due to China), making big headlines around the world. The exact situation we had foreseen.
- ~Aug 22: Heliacal rising of Sirius at Paris latitude (48.86 N)
- ~Aug 24: Heliacal rising of Venus at Paris & London latitude
- ~Aug 24: Heliacal rising of Sirius at London latitude (51.5 N)
Aug 20, 2015 Dow plummets 358 points to close below 17,000 for first time since October on fears of China slowdown
Aug 20 Worst day for stocks in 18 months as global woes hit
Aug 20 Global economy woes hit markets
Aug 20 Worst day for stocks in 18 months as global woes hit
Aug 20 Global economy woes hit markets
Aug 21, 2015 Global Stocks Fall Further on China Worries
Aug 21 Dow plunges 531 points, concluding its worst week since 2011
Aug 21 Stock Market Plunge: Dow Lowest Level in a Year on China Fears
Aug 21 Stocks crater: Investors cast nervous eye on global growth
As our “August window #2” closed on the 26th, the stock market suddenly recovered and stabilized.
There’s no room for denial here: This stock market turmoil of August 2015 was accurately anticipated in my articles months ahead of the event. I rarely discuss stock markets or economy, or make predictions about them. But here I did. Both the timing and the type of event predicted were specific and unlikely. Both proved undeniably accurate.
Even though here on Etemenanki/STRUG dealing with future patterns is what we do day in and day out, it’s still not often that we get to see a fulfillment of a projected pattern in this dramatic, direct and undeniable way. And this is very valuable and something that isneeded… because, well, here is how I put it at the beginning of my 2011 article Lucifer’s Destiny:
What I write about on this website – all things “multicontextual” – tend to perplex people. So out of alignment is it with most people’s normal mode of thinking that they get disoriented and end up leaving in a state of confusion. Their inner knowing may recognize a higher order of “truth” but the conscious mind needs a lot more convincing and time before it can digest and begins to concede that there is such thing as “multicontextual coherence” – typically expressed as synchronicities – that underlies reality beyond the threshed of what is normally considered possible.
It’s one thing to notice bits and pieces of “meaningful coincidences” in life. It’s harmless. Numerology? Cute. Symbolism? Entertaining. Maybe even inspiring. But when it gets to the point of super interchontextual coherence – which is what I highlight and demonstrate on this website – it apparently gets a little discombobulating and even “scary” for many. The ordinary mind tries to find a way to squash it, so that order is restored, no need to radically revise one’s view of the world. To accept it is to reject a fundamental bedrock of one’s practical but incomplete understanding of reality. That would be like experiencing a catastrophic earthquake and then having to rebuild a city. It’s a tall order. It takes great effort and commitment. Something we don’t normally look forward to.
So I understand the psychological effects. It can be an instant crossroads in that the mind has to make a big decision concerning the nature of reality itself. Consciously or unconsciously this pressure is felt and it makes many uncomfortable. But such is the nature of truth. Truth, more often than not, becomes inconvenience. You either decide to accept it or deny it. Life is a series of these decisions. You keep denying and it takes its toll. There is you, there is truth, and in between is time.
The more we go against truth, the more trapped we get in time. And it gets heavier and heavier… until it collapses like a star into a black hole. We need to short circuit the process and escape time. For that, finding truth and accepting it must be our priority. It takes a lot of energy and focus because truth hides like fox and we must chase it into the rabbit hole where it’s dark and you’ll need a map to navigate effectively otherwise you just end up going in circles. This “map” or “radar” is what is signified by what I call multicontextual (or intercontextual) coherence. It’s a bit like using a Venn diagram; you go for the most heavily layered area for the most universal “answer”. Put another way, it’s like a “meta analysis” of synchronicities. A “meaningful coincidence” here, another synchronicity there, and another there… This much people can notice and they try to interpret each such “sign”. But they don’t think to or don’t know how to find connections between these “coincidences” that unify them. The area of such unification – coherence – is the blip on the radar or an arrow pointing to the direction of truth.
How do I know? Because truth necessarily transcends time and that means you’d know you’re on the right path when the “map” you’re using begins to point to, by way of projecting patterns forward, things/events in the future that come true. That’s the “Holy Grail” in the search for hidden truth. It’s the Stone of Destiny.
I’ve been at this for many years now and have long realized that it’s through the use of this “Holy Grail” – making the hidden nature of reality undeniable via accurate predictions – that the readers’ conscious mind can be sufficiently and quickly motivated to start “revising” its model of reality. It becomes a “wake-up call” that facilitates a plunge into the rabbit hole.
* * *
The internet is vast and there are so many people claiming to know what’s going on, the truth, or the future in terms of how the world or reality works. I’m sure you know some/many of them. Conspiratorial, religious, political, psychic, doomtard, you name it, they are everywhere. But how many of them can actually back up their claim? The only clear way to demonstrate one’s deeper understanding/knowledge is to make accurate, improbable predictions. How many times have you actually seen them do that? Probably never. Once perhaps, but even a broken watch is right at least once a day.
Here, on Etemenanki/STRUG, you actually do regularly witness accurate predictions. Often in an indirect way but sometimes quite dramatic as was the case here. It’s been this way for nearly two decades now. I do what I do and back up what I say without claiming to hear Jesus, or blaming everything on conspiracies, or being driven by politics, or claiming to be psychic, or belonging to any organizations or belief systems. The combination is partly why my websites manage to stay relatively unknown. (People see my information and the unique value of it, but they hesitate to share it with others, because it’s so “out of context” and I don’t belong to any “social club” so to speak. It’s a curious human behavior.)
Bottom line, you’ve seen who can and who can’t back up their alternative view of reality. And the winner may not be who you would have preferred. (Religious folks would have liked to see someone from their own belief system backing up their claims, for example.) But here we are, you’ve witnessed something that should be impossible with your own eyes. Now what are you going to do about it? Are you going to pretend this didn’t happen to protect your belief system? Are you going to start stealing information to bolster your own group/chosen belief system? Or are you going to change your world view based on what you know to be true? It’s up to you to move forward or get stuck.
If you have no problem accepting the truth, one thing you can do to help is to start telling others about my websites. This is not something I’ve done in the past (i.e. encouraging to share) but I feel the time is right for this kind of information and actual source of the information to get more exposure. Time for truth to whisper a little louder. You can also help me (and yourself actually) by subscribing to STRUG where information moves much more rapidly and goes much deeper. It’s time to allow truth to flow more naturally in the world and you can help start the domino.
NOTE: For a limited time, you can subscribe to STRUG for a deeply discounted price: $9.95/3 months (normally $14.95), $19.95/6 months (normally $26.95). Don’t miss this opportunity to jump in the rabbit hole!
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