Informative Essay On The Avva Crisis

Most Americans, don’t know how Puerto Rico got the way it is and like Nelson said many believe that the debt we have is one that was 100% our fault. However, most don’t understand the deep history and relationship Puerto Rico has with the United States and how the way we have and continued to be treated has a lot to do with the debt Puerto Rico

Russia is already in debt and it couldn’t really afford to be put into more. Russia’s national debt is around 6,709,506,270,191. Russia is so large that it makes sense that there national debt is so high. In the U.S. our country isn’t big at all compared to Russia and we are in 11 trillion dollars more in debt then they are. Both the U.S. and Russia need to cut back on spending on unnecessary things and focus on reducing the

Venezuela is a country located on the northern coast of South America. It borders Guyana to the east, Brazil to the south and Colombia to the west (“Basic Facts on Venezuela”). It is interesting to see how a country that was once rich and had a strong government can end up caught in an economic crisis. Then, this may result in violence and chaos in the country. The worst part is that a crisis in one country can produce shocks all over the world.

May 1st, Puerto Rico had to default again on their debt. Now reaching $72 billion ("Everything You Need to Know..."), Puerto Rico is facing a serious problem. Congress is currently working on finding a solution to the problem, but they can’t agree. In this paper, Puerto Rico’s debt situation and the severity will be outlined while proposing solutions to help lessen the problem.

Currently, Puerto Rico is facing a whopping $72 billion debt, high unemployment rates, a decaying education system, and an increase in families fleeting

Fifteen trillion three hundred and fifty-six billion one hundred and forty million dollars was the measure of the public debt at last count in January 2012 (The Bureau of Public Debt). Even at the current higher-than-average national average gas price of $3.51 that could buy more than four trillion gallons of gas (Pankratz). That’s enough gasoline to drive a Hummer H2 around the equator of the Earth one hundred and seventy-five million times. It is also 31 times the U.S. yearly consumption of gasoline(U.S. Department of Energy).

and other countries, which put them in high debt that is nearly impossible to pay off. With the debt getting bigger over time, they try to raise taxes to pay it off. However, that causes the citizens to move out, looking for better employment and opportunity in the U.S. With citizens moving out and debt getting larger, it’s hard for the economy and for the citizens that stay in Puerto Rico. Taxes aren't spent on public services such as schools, law enforcement, etc. as much, but are used on paying off the debt, which in turn causes the residents to move out, because they aren’t being helped by the government."The debt is not payable ... there is no other option. This is not politics, this is math," Garcia Padilla (2015) told the New York Times in an interview published Sunday evening, "But we have to make the economy grow. If not, we will be in a death spiral." The island is near a “Death Spiral”, in which a country is in economic crisis because it has no way to pay its debt. If this continues, Puerto Rico will be in the red, which in the economic terms means that they are in major trouble and will affect the people still living

In a business such as hospitality, the quality of your hotel and satisfaction of your customers are what are important. If the business’ quality is being affected by government taxes, it may affect the satisfaction level of clients you were looking for, affecting profitability. Some other effects may include a reduction of reputation of a nation. If a country is continuously failing to pay its debts, other nations may begin to look down on said country. This negative view towards a country could affect how well your business does; it’s possible that potential business partners avoid you solely on the fact that the country you’re in no longer has a good reputation. The next possibility of danger is a default by a country. If a country defaults on a payment, it means it is unable to pay its debts. This in turn could lead to a crisis such as Greece. Because a country cannot pay its debts, it is likely to continue borrowing even more in attempt to pay for its outstanding debts. As a nation further borrows money to pay its debts, it goes further in debt. This in turn could cause many nations that may have invested funds to the debt-ridden country, to weaken in economic capabilities.

To start off, the Venezuela-Colombia border has been closed due to being attacked by paramilitary groups, drug traffickers, and black marketeers. The two countries have had disputes involving trans-border trade which affects Venezuela’s economy. For example, Venezuela is experiencing extreme shortages in food and household items. Also, many migrants from Colombia migrate to Venezuela to search for oil-related work.

As of now China is giving aid to you in exchange for free oil, this arrangement is creating more harm than good as Venezuela is not selling enough of its oil and is loosing more in this deal in the long run, Venezuelans currently pay next to nothing for gas and one U.S. Penny now purchases about five gallons of gas in Venezuela. Loosing foothold in the oil market has lead to a staggering inflation to where citizens can no longer afford basic commodities. This is clearly a problem as you know your country is in largely an importing country, your government can no longer afford to pay for importations of foods and items such as flour, sugar and other commodities. Venezuelan citizens can be seen standing outside of supermarkets for hours hoping to buy good that are either sold out, were never in stock or are priced way out of their range like a bag of sugar for $12,000 dollars. Many citizens have resorted to getting good spots in lines and selling them just to make money. Your currency problem is only made worse by the inefficient and confusing exchange market. Currently your currency is loosing value faster than any other country in the world. Last year one U.S. Dollar was equaled to 88 bolivars now it is equal to 190 bolivars. Venezuela now has 3 official currencies there is the government official bolivar, then the limited exchange currency the SICAD1 and introduced just this year is the SICAD2 which is used for the private market. Lastly there is the

The economic crisis of Puerto Rico continues to deepen as the situation increasingly becomes grimmer. As of January 1, the government of Puerto Rico defaulted on its second bond payment in less than a year. The government has commenced choosing between bond payments and essential services. The island’s constitution requires general-obligation bonds to be paid out before other services; however, Governor Alejandro Garcia Padilla made it clear he will prioritize his constituents over the financial institutions, stating, “My government has the responsibility to protect, as much as possible, Puerto Ricans from grave consequences.” He backed up this statement by allowing the Public Finance Corporation to default on the $37 million dollar payment due January 1. The government paid out nearly $1 billion in other bond payments on January 1, yet the necessity to prioritize services and bonds is a troubling sign for the Commonwealth.

Venezuela is now witnessing its largest protests in a decade. President Nicolas Maduro who is a affiliate and follows the socialist norms took power almost a year ago and has cracked down on demonstrations with unprecedented force, using the National Guard and armed paramilitary gangs. There is a considerable portion of the population that is fed up with the country’s rapidly weakening financial system. The government has run out of cash and now relies on printing money to finance itself. As a result this country has the highest inflation rate in the world.

As well all know Puerto Rico is under a debt crisis of 70 billions of dollars , the fiscal position is unsustainable, the population is falling, and there is no growth. All those 4 issues are the responsible of how the situation is going in the island. More than 4 billion in annual tax revenues fund debt service and are not available for public service.The total public debt of Puerto Rico has nearly doubled over the past decade.The accumulation of debt accelerated when the island’s government began borrowing no to invest in infrestucture , but to cover budget shortfall. The biggest controversy during this crisis is that Puerto Rico can not declare in bankruptcy that’s why the United States will create a new federal law called PROMESA signed

very big debt and owes almost every country some money. Currently it is more than

The readily identification of debt crisis was Mexico’s inability to serve its outstanding debt of $80 billion debt. And the situation continue to worsen, and one year later, by October 1983, 27 countries owing $239 billion had reschedule debts or in the process of doing so.