Is Obama’s BIG $72 BILLION DOLLAR BAILOUT of Puerto Rico On The Horizon Or Will It Become The 51st State? [Video]Lets hope the Republicans can push back on this effort by Democrats to bail out the horribly mismanaged government in Puerto Rico. There s also been talk of making Puerto Rico the 51st state giving it the opportunity to declare bankruptcy under federal code. Read between the lines below and you ll know why the Dems want to give statehood to Puerto Rico: According to a report by the Congressional Research Service (CRS), if Puerto Rico were to become a state, based on a population of approximately 3.8 million, it would be entitled to at least six seats in the House of Representatives. As a state, they would, of course, receive two Senators. The island state would have the same number of electors as the state of Oregon. Puerto Rico would also qualify for bankruptcy under the federal code, a critical issue during the difficult economic situation which Puerto Rico finds itself in.The Obama administration   in particular the U.S. Treasury   has been under pressure for months from Democrats and Puerto Rican politicians to find a solution to the commonwealth s fiscal crisis.Puerto Rico s $72 billion of debt is the product of decades of mismanagement, profligate borrowing, a broken taxation system and recurring deficits:  Puerto Rico Bankrupt! from Kereakos Zuras on Vimeo.Its political leaders and various public institutions have hidden information from the capital markets and kicked the can down the road for as long as possible without undertaking real fiscal reforms. This is why an easy  solution  to the island s current situation does not exist outside the realm of a time machine.This, however, has not stopped the administration and Treasury from throwing a final Hail Mary.With the release of a somewhat vague plan that was outlined by Treasury Council Antonio Weiss and lobbied for by various Puerto Rican politicians at a Senate Energy & Natural Resources Committee, President Obama pressed Congress to give the entire Commonwealth of Puerto Rico the ability to file for Chapter 9 bankruptcy.The new proposal is being widely referred to as  Super Chapter 9,  in part because Chapter 9 currently can only be applied to municipalities and cities in the United States. The legislation would also go even further than the Puerto Rico bankruptcy bill currently before Congress.This deal will be a tough sell to a Republican Congress. Many conservative members have already balked at the idea of  bailing out  Puerto Rico with the more limited bankruptcy bill, and with good reason.Any bankruptcy bill for Puerto Rico would punish retirees whose pension funds invested in these bonds because they were tax-free, had strong security and were explicitly protected from Chapter 9. Conversely, it would reward Puerto Rico and its politicians for years of irresponsible spending and poor fiscal policy.Equally significant is the implication of this new type of Chapter 9 for American investors in the near-future. Illinois, New Jersey, Pennsylvania, Connecticut are among the states with large unfunded liabilities facing fiscal crises   and the list is growing at an alarming speed. If Super Chapter 9 is granted for Puerto Rico, why wouldn t these states expect it?The negative consequences of all of this could be catastrophic for infrastructure investment in the United States. The roughly $3.5 trillion municipal debt market that funds the paving of highways, schools, hospitals, and police and fire stations has rested for decades on a set of rules and laws that made these bonds  safe  investments. The status of this designation has begun to crack since Detroit filed for Chapter 9 bankruptcy back in 2013.If suddenly it was put on the table that not only cities, but whole states, could write down their debts, with bondholders having no recourse, the effect would be to fundamentally undermine the municipal debt market. It would be akin to dropping a great white shark into a pool party   except, instead of swimmers, it would be retirees and other muni investors chaotically scrambling to safety and fleeing these investments, or else charging huge premiums to states to borrow money.The cost of those increased rates, of course, would be borne by the taxpayers in the form of an additional and unnecessary charge for keeping the infrastructure of their states viable.It should be inconceivable that a member of Congress from a state that has been reasonably responsible in managing its fiscal house would vote for this  super  chapter 9 approach. They would be essentially voting to raise taxes on their constituents to subsidize less responsible states, since the cost of borrowing for all states will go up dramatically if a few states threaten to take this new path. It is difficult to see how anyone could justify that back home.Read more: The Hillpolitics
is obama big billion dollar bailout puerto rico on the horizon or will it become the state video lets hope republicans push back effort democrats bail horribly mismanaged government puerto rico there also talk making puerto rico state giving opportunity declare bankruptcy federal code read lines know dems want give statehood puerto rico according report congressional research service crs puerto rico become state based population approximately million would entitled least six seats house representatives as state would course receive two senators the island state would number electors state oregon puerto rico would also qualify bankruptcy federal code critical issue difficult economic situation puerto rico finds obama administration particular treasury pressure months democrats puerto rica politicians find solution commonwealth fiscal rico billion debt product decades mismanagement profligate borrowing broken taxation system recurring deficits puerto rico bankrupt kereakos urls political leaders various public institutions hidden information capital markets kicked road long possible without undertaking real fiscal reforms this easy solution island current situation exist outside realm time however stopped administration treasury throwing final hail release somewhat vague plan outlined treasury council antonio weiss lobbied various puerto rica politicians senate energy natural resources committee president obama pressed congress give entire commonwealth puerto rico ability file chapter new proposal widely referred super chapter part chapter currently applied municipalities cities united states the legislation would also go even puerto rico bankruptcy bill currently deal tough sell republican congress many conservative members already backed idea failing puerto rico limited bankruptcy bill good bankruptcy bill puerto rico would punish retirees whose pension funds invested bonds strong security explicitly protected chapter conversely would reward puerto rico politicians years irresponsible spending poor fiscal significant implication new type chapter american investors illinois new jersey pennsylvania connecticut among states large unfounded liabilities facing fiscal crises list growing alarming speed if super chapter granted puerto rico states expect the negative consequences could catastrophic infrastructure investment united states the roughly trillion municipal debt market funds paving highways schools hospitals police fire stations rested decades set rules laws made bonds safe investments the status designation begun crack since detroit filed chapter bankruptcy back suddenly put table cities whole states could write debts bondholders recourse effect would fundamentally undermine municipal debt market it would akin dropping great white shark pool party except instead swimmers would retirees muni investors chronically scrambling safety fleeing investments else charging huge premiums states borrow cost increased rates course would borne taxpayers form additional unnecessary charge keeping infrastructure states conceivable member congress state reasonably responsible managing fiscal house would vote super chapter approach they would essentially voting raise taxes constituents subsidized less responsible states since cost borrowing states go dramatically states threaten take new path it difficult see anyone could justify back the hillpolitics
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Is Obama’s BIG $72 BILLION DOLLAR BAILOUT of Puerto Rico On The Horizon Or Will It Become The 51st State? [Video]Lets hope the Republicans can push back on this effort by Democrats to bail out the horribly mismanaged government in Puerto Rico. There s also been talk of making Puerto Rico the 51st state giving it the opportunity to declare bankruptcy under federal code. Read between the lines below and you ll know why the Dems want to give statehood to Puerto Rico: According to a report by the Congressional Research Service (CRS), if Puerto Rico were to become a state, based on a population of approximately 3.8 million, it would be entitled to at least six seats in the House of Representatives. As a state, they would, of course, receive two Senators. The island state would have the same number of electors as the state of Oregon. Puerto Rico would also qualify for bankruptcy under the federal code, a critical issue during the difficult economic situation which Puerto Rico finds itself in.The Obama administration   in particular the U.S. Treasury   has been under pressure for months from Democrats and Puerto Rican politicians to find a solution to the commonwealth s fiscal crisis.Puerto Rico s $72 billion of debt is the product of decades of mismanagement, profligate borrowing, a broken taxation system and recurring deficits:  Puerto Rico Bankrupt! from Kereakos Zuras on Vimeo.Its political leaders and various public institutions have hidden information from the capital markets and kicked the can down the road for as long as possible without undertaking real fiscal reforms. This is why an easy  solution  to the island s current situation does not exist outside the realm of a time machine.This, however, has not stopped the administration and Treasury from throwing a final Hail Mary.With the release of a somewhat vague plan that was outlined by Treasury Council Antonio Weiss and lobbied for by various Puerto Rican politicians at a Senate Energy & Natural Resources Committee, President Obama pressed Congress to give the entire Commonwealth of Puerto Rico the ability to file for Chapter 9 bankruptcy.The new proposal is being widely referred to as  Super Chapter 9,  in part because Chapter 9 currently can only be applied to municipalities and cities in the United States. The legislation would also go even further than the Puerto Rico bankruptcy bill currently before Congress.This deal will be a tough sell to a Republican Congress. Many conservative members have already balked at the idea of  bailing out  Puerto Rico with the more limited bankruptcy bill, and with good reason.Any bankruptcy bill for Puerto Rico would punish retirees whose pension funds invested in these bonds because they were tax-free, had strong security and were explicitly protected from Chapter 9. Conversely, it would reward Puerto Rico and its politicians for years of irresponsible spending and poor fiscal policy.Equally significant is the implication of this new type of Chapter 9 for American investors in the near-future. Illinois, New Jersey, Pennsylvania, Connecticut are among the states with large unfunded liabilities facing fiscal crises   and the list is growing at an alarming speed. If Super Chapter 9 is granted for Puerto Rico, why wouldn t these states expect it?The negative consequences of all of this could be catastrophic for infrastructure investment in the United States. The roughly $3.5 trillion municipal debt market that funds the paving of highways, schools, hospitals, and police and fire stations has rested for decades on a set of rules and laws that made these bonds  safe  investments. The status of this designation has begun to crack since Detroit filed for Chapter 9 bankruptcy back in 2013.If suddenly it was put on the table that not only cities, but whole states, could write down their debts, with bondholders having no recourse, the effect would be to fundamentally undermine the municipal debt market. It would be akin to dropping a great white shark into a pool party   except, instead of swimmers, it would be retirees and other muni investors chaotically scrambling to safety and fleeing these investments, or else charging huge premiums to states to borrow money.The cost of those increased rates, of course, would be borne by the taxpayers in the form of an additional and unnecessary charge for keeping the infrastructure of their states viable.It should be inconceivable that a member of Congress from a state that has been reasonably responsible in managing its fiscal house would vote for this  super  chapter 9 approach. They would be essentially voting to raise taxes on their constituents to subsidize less responsible states, since the cost of borrowing for all states will go up dramatically if a few states threaten to take this new path. It is difficult to see how anyone could justify that back home.Read more: The Hillpolitics
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: is obama big billion dollar bailout puerto rico on the horizon or will it become the state video lets hope republicans push back effort democrats bail horribly mismanaged government puerto rico there also talk making puerto rico state giving opportunity declare bankruptcy federal code read lines know dems want give statehood puerto rico according report congressional research service crs puerto rico become state based population approximately million would entitled least six seats house representatives as state would course receive two senators the island state would number electors state oregon puerto rico would also qualify bankruptcy federal code critical issue difficult economic situation puerto rico finds obama administration particular treasury pressure months democrats puerto rica politicians find solution commonwealth fiscal rico billion debt product decades mismanagement profligate borrowing broken taxation system recurring deficits puerto rico bankrupt kereakos urls political leaders various public institutions hidden information capital markets kicked road long possible without undertaking real fiscal reforms this easy solution island current situation exist outside realm time however stopped administration treasury throwing final hail release somewhat vague plan outlined treasury council antonio weiss lobbied various puerto rica politicians senate energy natural resources committee president obama pressed congress give entire commonwealth puerto rico ability file chapter new proposal widely referred super chapter part chapter currently applied municipalities cities united states the legislation would also go even puerto rico bankruptcy bill currently deal tough sell republican congress many conservative members already backed idea failing puerto rico limited bankruptcy bill good bankruptcy bill puerto rico would punish retirees whose pension funds invested bonds strong security explicitly protected chapter conversely would reward puerto rico politicians years irresponsible spending poor fiscal significant implication new type chapter american investors illinois new jersey pennsylvania connecticut among states large unfounded liabilities facing fiscal crises list growing alarming speed if super chapter granted puerto rico states expect the negative consequences could catastrophic infrastructure investment united states the roughly trillion municipal debt market funds paving highways schools hospitals police fire stations rested decades set rules laws made bonds safe investments the status designation begun crack since detroit filed chapter bankruptcy back suddenly put table cities whole states could write debts bondholders recourse effect would fundamentally undermine municipal debt market it would akin dropping great white shark pool party except instead swimmers would retirees muni investors chronically scrambling safety fleeing investments else charging huge premiums states borrow cost increased rates course would borne taxpayers form additional unnecessary charge keeping infrastructure states conceivable member congress state reasonably responsible managing fiscal house would vote super chapter approach they would essentially voting raise taxes constituents subsidized less responsible states since cost borrowing states go dramatically states threaten take new path it difficult see anyone could justify back the hillpolitics