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        <h1 id="reader-title">Protests Against 'Colonial' PROMESA Debt
          Plan Rock Puerto Rico</h1>
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              <p>September 1, 2016<br>
              </p>
              <p>Hundreds of protesters took to the streets in San Juan
                Wednesday to block the first scheduled conference on the
                installation of a <a target="_blank"
href="http://www.telesurtv.net/english/news/21st-Century-Colony-US-Picks-Businessmen-to-Rule-Puerto-Rico-20160831-0030.html">financial
                  control board </a>to remedy <a target="_blank"
href="http://www.telesurtv.net/english/news/Puerto-Rico-Debt-Crisis--20160509-0059.html">Puerto
                  Rico’s crippling debt crisis</a> but slammed by
                critics as an anti-democratic, neo-colonial policy that
                will redistribute wealth from the island nation to Wall
                Street. </p>
              <p>Demonstrators formed protests lines and blocked roads
                with rocks and bricks to disrupt the conference at San
                Juan’s Condado Plaza Hilton. They carried signs and
                shouted slogans against the federal control board, whose
                authority will supercede that of Puerto Rico’s
                democratically-elected governor, effectively handing
                budgetary decision-making over to unelected appointees,
                <a target="_blank"
href="http://www.telesurtv.net/english/news/21st-Century-Colony-US-Picks-Businessmen-to-Rule-Puerto-Rico-20160831-0030.html">many
                  of them bankers</a>. </p>
              <p>The U.S. law creating the control board, known by its
                acronym PROMESA, grants the oversight panel the power to
                cut pensions, labor contracts with civil servants, and
                social services, to restructure its US$73 billion debt
                load. </p>
              <p>Despite lines of riot police and occasional use of
                pepper spray, the protests managed to block
                conference-goers on their way to the venue and forced
                organizers to re-arrange the meeting agenda, local media
                reported. </p>
              <p>“The power of the people and their determination to
                have control of their own destiny was so apparent,” Eli
                Jacobs-Fantauzzi, a member of Defend Puerto Rico, told
                Remezcla Wednesday. </p>
              <p>Meanwhile, just hours after demonstrators gathered
                early Wednesday morning for the day of action bringing
                together various organizations, <a target="_blank"
href="http://www.telesurtv.net/english/news/21st-Century-Colony-US-Picks-Businessmen-to-Rule-Puerto-Rico-20160831-0030.html">President
                  Obama announced his appointments</a> to the
                seven-member, Republican-dominated federal control
                board. The group of experts, six men and one woman,
                includes Andrew Biggs, described by The Intercept as an
                “architect of conservative efforts to cut and privatize
                social security.” </p>
              <p>In a statement Wednesday, U.S. member of Congress Luis
                Gutierrez, who has been a staunch critic of PROMESA,
                warned against the potential of the control board
                becoming an “occupying force,” calling on members to
                commit to transparency. “Last I checked, Puerto Rico is
                a colony, but still a democracy of U.S. citizens who
                deserve respect and the trust of this appointed body,”
                Gutierrez wrote. </p>
              <p>PROMESA, the Puerto Rico Oversight, Management and
                Economic Stability Act in full, was rushed through U.S.
                Congress—where Puerto Rico doesn’t have a vote—in late
                June, ahead of the island’s July 1 debt payment default.
                Passed with bipartisan support, the act was heralded as
                a plan to rescue Puerto Rico. But critics have harshly
                condemned the PROMESA control board as a <a
                  target="_blank"
href="http://www.telesurtv.net/english/news/5-Leftists-Speak-out-Against-Colonial-Puerto-Rico-Debt-Bill-20160630-0008.html">pretext
                  to ramp up colonization</a> and undercut labor rights
                and slash public services. </p>
              <p>Protests have been ongoing on the island. Earlier this
                week, anti-PROMESA demonstrators attempted to shut down
                the local newspaper El Nuevo Dia, accusing the outlet of
                promoting the control board with a pro-U.S. editorial
                line. A group of protesters have also maintained an <a
                  target="_blank"
href="http://www.telesurtv.net/english/news/Ongoing-Puerto-Rico-Protest-Camp-Blasts-Colonial-PROMESA-Bill-20160712-0016.html">occupation
                  outside the U.S. federal court</a> in San Juan’s Hato
                Rey area, launched at the end of June as a long-term
                encampment against the so-called “junta.” </p>
              <p>PROMESA has already brought changes to Puerto Rico,
                including slashing the minimum wage to just US$4.25 for
                people under 25 amid high levels of poverty and
                unemployment. Funding for pensions, education, and
                health care is also facing cuts, while basic services
                are at risk of privatization. </p>
              <p>Puerto Rico’s legal status and <a target="_blank"
href="http://www.telesurtv.net/english/analysis/5-Ways-the-US-Treats-Puerto-Rico-Like-a-Colony-20160603-0006.html">colonial
                  relationship with the U.S.</a> have crippled its
                ability to tackle its debt crisis. As a U.S. territory,
                the island is barred from declaring bankruptcy, an
                option only available to municipalities in U.S. states
                through the bankruptcy code. This legal conundrum has
                meant that it is very difficult for Puerto Rico to
                restructure its US$73 billion debt. </p>
              <p>While Puerto Rico faces austerity and a financial
                control scheme reviled as colonial, bondholders are
                poised to reap massive profits. A recent report by the
                ReFund America Project found that nearly half of Puerto
                Rico's debt load is interest on loans underwritten by a
                slew of Wall Street firms through what the researchers
                of the report compared to a payday lending scheme. </p>
              <p>In San Juan, demonstrators have pledged to continue
                protesting PROMESA. </p>
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