WASHINGTON, D.C. – Today, the Center for Individual Freedom (“CFIF”) launched a new advertising campaign highlighting fundamental flaws with the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) as passed by the U.S. House of Representatives last week.
The radio advertisements, which will begin in Ohio, Pennsylvania and Wisconsin, warn against the broad powers given to the federal control board established by PROMESA to reprioritize and “cram down” Puerto Rico’s debt, including possibly subordinating its constitutionally protected general obligation debt to the Commonwealth’s unfunded pensions.
PROMESA’s ambiguity in instructing an unaccountable control board to “adequately fund” Puerto Rico’s pensions is a real threat to retirees and savers across America who have invested in Puerto Rico’s general obligation bonds on the constitutional promise that their investments would receive priority over all other government obligations. They shouldn’t be asked to bail out Puerto Rico now with their own savings.
“Savers and seniors could be forced to pay for Puerto Rico’s $46 billion in unfunded pensions,” states the ads. “Retirement savings drained — to pay for years of mistakes by politicians in Puerto Rico.”
The ads also note that the control board is authorized to receive gifts, paving the way for more crony capitalism and mischief.
The ads can be heard at the links below: