The Dark Agenda Behind Globalism And Open Borders

By Brandon Smith | 26 October 2016

ALT-MARKET — When people unfamiliar with the liberty movement stumble onto the undeniable fact of the “conspiracy” of globalism they tend to look for easy answers to understand what it is and why it exists.  Most people today have been conditioned to perceive events from a misinterpreted standpoint of “Occam’s Razor” — they wrongly assume that the simplest explanation is probably the right one.

In fact, this is not what Occam’s Razor states. Instead, to summarize, it states that the simplest explanation GIVEN THE EVIDENCE at hand is probably the right explanation.

It has been well known and documented for decades that the push for globalism is a deliberate and focused effort on the part of a select “elite;” international financiers, central bankers, political leaders and the numerous members of exclusive think tanks. They often openly admit their goals for total globalization in their own publications, perhaps believing that the uneducated commoners would never read them anyway. Carroll Quigley, mentor to Bill Clinton and member of the Council on Foreign Relations, is often quoted with open admissions to the general scheme:

“The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland; a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank… sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.”Carroll Quigley, Tragedy And Hope

The people behind the effort to enforce globalism are tied together by a particular ideology, perhaps even a cult-like religion, in which they envision a world order as described in Plato’s Republic. They believe that they are “chosen” either by fate, destiny or genetics to rule as philosopher kings over the rest of us. They believe that they are the wisest and most capable that humanity has to offer, and that through evolutionary means, they can create chaos and order out of thin air and mold society at will. […]

Trump Parasite Guildists Munchin, Cohen and Ross to Manage Loot of US

Donald Trump reached deep into the belly of the beast of Wall Street for his administration’s key economic positions. His choices signal that the U.S. will be subjected to brutal Parasite Guild measures, including privatizations via the Washington Consensus model. Part of this operation involves the shredding of employee pension plans and the employment of bank deposit bail ins.

It is now quite apparent why Trump —  was allowed to skirt through as president, and it is now time for those who call Trump “The God Emperor” to get their head out of their ass. To understand what is happening requires a thorough reading of my three-part articles on Parasite Guild operations and what it takes to counter them. Without a solid understanding of this, you are completely in the dark. The current situation is covered in US Fiscal Train-Wreck: Accident Waiting to Happen.

The New Nationalist (TNN) grades Trump’s selection of Wilbur Ross for commerce secretary as an F, a total and epic fail. Dubbed the “King of Bankruptcy,” Ross is a corporate raider who built his $3 billion fortune through the takeover of struggling companies, then wiping out jobs, wages and pensions of hundreds of thousands of workers. With these methods, he is known for “flipping” entire industries. In recent years, Ross employed Parasite Guild methods in Europe.

For 24 years, Ross worked at the New York office of (((Rothschild, Inc.))), where he ran the bankruptcy-restructuring practice. In the 1980s, after quickly expanding the reach of Resorts International to Atlantic City, Trump found himself in financial trouble. It was with the assistance and assurance of Ross, then senior managing director of Rothschild, Inc., Trump was allowed to keep the casinos and rebuild his businesses. Trump is totally beholden to the Cabal Crime Syndicate.

For secretary of Treasury Trump brings in another epic fail, (((Steven Mnuchin))), an associate of vampire squid Goldman Sachs and billionaire (((George Soros))). In 2002, Mnuchin left his 17-year post at Goldman to run a credit fund set up by Soros. In 2004, Mnuchin and (((two former Goldman colleagues))) founded hedge fund Dune Capital Management LP with the financial backing from Soros.

In 2008, IndyMac Bank in Pasadena, Calif., collapsed in one of the largest bank failures in U.S. history. Mnuchin led a group of investors, including funds run by Soros and other hedge-fund and private-equity titans, who bought it from the government for about $1.5 billion. Illustrating in spades how parasite guildists work, the Federal Deposit Insurance Corporation (FDIC) guaranteed to cover a portion of any future loan losses, a lucrative arrangement for Mnuchin and his partners.

imagesIf one wanted a model for the next “debt crisis” and to know who will be targeted in the subsequent loot, simply follow the machinations of the hedge fund lobby and the Parasite Guild itself with the following four-step process. This requires a major reality check, including being wise about the tribal Jewish network and alertness to how the kleptocratic sistema works. The resumes of Trump’s new cabinet secretaries are prima facie illustrations.

Looting in 4 Simple Steps

Step 1: The bankster Cabal primes and pumps unsustainable economic bubbles conjured from lies and garbage. Then, as planned, it pawns the garbage off onto unsuspecting pasties using exotic financial instruments, thereby creating a monster wealth transfer.

Step 2: The Cabal shorts the garbage, thereby facilitating a rout or crash of a debt bubble.

Step 3: During the crisis/collapse stage, the Parasite Guild and Cabal swoop in like vultures to pick up economic gems for a song.

Step 4: Anybody still solvent is robbed to pay off debts in full. This may include pension funds or even taxpayers. A key mechanism this cycle is bank-deposit bail ins.

In Parasite Guild situations and in theory, there can be losers other than the people — namely, the creditors — who have their holdings marked down. But that never seems to occur as little debt is ever outright forgiven or written off.

Listen to Wilbur Ross describe the debt crisis in Puerto Rico and other states. Notice he says, “Puerto Rico schemed its way into heavy debt.” Nowhere does he suggest this was enabled and facilitated by Wall Street and Wall Street infestations within government. It is “just Puerto Rico.” He then mischaracterizes the vulture funds. He goes on to concisely describe his new job and the standard bankster Washington Consensus “reforms” (aka looting).

Wage Inflation is Finally here, and it’s Toxic for the Fed

Even uber-doves are now looking over their shoulder.

By Wolf Richter | 2 February 2018

WOLF STREET — There have been all kinds of carefully phrased semi-hawkish statements emanating from carefully contained semi-hawkish Fed governors recently. Today, Dallas Fed President Robert Kaplan repeated what he has been saying for a while – that the “base case” should be three rate hikes this year, and that there could be four, warning, “if we wait to see actual inflation, we’ll be too late.”

But it’s the most fervent “doves” – when they start getting cold feet as doves – that matter the most when it comes to tightening monetary policy.

One of the most persistent, most vocal doves on the policy setting FOMC has been Minneapolis Fed President Neel Kashkari. He voted against all three rate hikes in 2017, and was vocal about why he did: inflation was too “low.”

He also does not see the asset bubbles all around us, not even the housing bubble, though other Fed governors have fretted about them. He claimed in an essay that “spotting bubbles is hard,” that even if the Fed could see them, it shouldn’t do anything to stop them because it had only “limited policy tools,” and because “the costs of making policy mistakes can be very high.” […]

Italy Eurosceptics Plot to Undermine Euro to Spark Collapse WITHIN the EU

TALY’s anti-EU populists have dropped plans to leave the euro if elected in the upcoming March election and are now plotting to undermine the monetary union from within the bloc.

By Leigh Boobyer | 18 January 2018

EXPRESS — Eurosceptic rebels are prepared to smash the EU’s monetary ceiling on Italy with parallel currencies and deficit spending — acts which are considered to be an “open violation of the Maastricht Treaty”.

Italy’s right-wing parties — Forza Italia, Lega and the Brothers of Italy — have joined forces to form a grand coalition, overseen by ex-prime minister Silvio Berlusconi, and is ahead in the latest polls.

Their joint manifesto has made it clear they will not abide by the terms of euro membership.

It includes the creation of zero-coupon Italian treasury notes to pay €30bn (£26bn) of arrears owed by the Italian state, mostly to contractors. […]

$21 TRILLION Looted from US Treasury Coffers Between 1998-2015

Every man, woman and child in America is owed $65,000 from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Defense (DOD), according to a report published earlier this year by Michigan State University professor and economist Mark Skidmore.

Working with graduate students and former HUD Assistant Secretary Catherine Austin Fitt, Skidmore and his audit team uncovered $21 trillion in unauthorized spending within HUD and DOD between 1998 and 2015. Their published research is available here: “DOD and HUD Missing Money: Supporting Documentation for $21 Trillion of Undocumentable Adjustments ($65,000 Per Person).”

In accounting terms, the missing money is referred to as “undocumentable adjustments.” When abused to a gross degree, it becomes a euphemism for theft and fraud. HUD/DOD’s “adjustments” lends new meaning to the The New Nationalist’s (TNN) term “Crime Syndicate.” This loot is so monumental that even the term “Crime Syndicate” might not do it justice.

Also revealed in the research was gross violations of financial reporting laws by the U.S. government since 1998, the same year money started flooding the coffers of hedge funds that have soared ever since.

Among the mainstream media, it appears only Forbes ran an article, with Boston University economics professor Laurence Kotlikoff covering the story. This professor disclosed government agency attempts to hide evidence and suppress the information.

On October 5, 2017 we discovered that the link to the report “Army General Fund Adjustments Not Adequately Documented or Supported” had been disabled. Within a several days, the links to other OIG documents we identified in our search were also disabled. The sequential non-random nature of this disabling process suggests a purposeful decision on the part of OIG to make key documents unavailable to the public via the website.

Professor Skidmore also disclosed attempts to shut down his project.

I have been able to talk to a few people. I tried calling the Congressional Budget Office. I talked with somebody at the GAO, and one or two people at the Office of the Inspector General, who were generating these reports. … It’s a big question in why don’t people want to look at this? Some high ranking government official also authorized the disabling of all the links to the key documents.  We know that.

I know, for example, that some activities, just for the sake of protection of the people involved in national security, have to be black budget. There is always stuff like that. Usually, it’s authorized spending, and some percentage is this black budget where only a small percentage of people and some in Congress know about it, but this is way outside of that.

The following summarizes the findings of the researchers.

The result, according to the report, is that data used to prepare the year-­end financial statements were unreliable and lacked an adequate audit trail. The report indicates that just 170 transactions accounted for $2.1 trillion in year — end unsupported adjustments. No information is given about these 170 transactions. In addition, many thousands of transactions with unsubstantiated adjustments were, according to the report, removed by the Army.

There is no explanation concerning why they were removed nor their magnitude. The July 2016 report states, “In addition, DFAS (Defense Finance and Accounting Service) Indianapolis personnel did not document or support why DDRS (The Defense Department Reporting System) removed at least 16,513 of 1.3 million feeder file records during the Third Quarter.”

Fitts in the following blockbuster interview with journalist Greg Hunter called the operation a massive criminal enterprise. She indicated this is a likely a replay of the takedown of Russia playbook. Her theory is that the endgame is a big economic bust and a Washington Consensus privatization, which has been TNN’s theory as well. The second video is an interview is with Sizemore.

Of course, this type of skulduggery is not entirely new. Just one day before 9/11, U.S. Defense Secretary Donald Rumsfeld, perhaps as foreshadowing, announced $2.3 trillion was unaccounted for in the DOD budget. In the aftermath of 9/11, Rumsfeld’s announcement was ignored and the big looting operation, by all indications, went into overdrive.

Dual Israeli-American Rabbi Dov S. Zakheim was Under Secretary of Defense and Pentagon Comptroller from May 4, 2001, to March 10, 2004. He was in place during 9/11. He never accounted for the missing $2.3 trillion. On May 6, 2004, Zakheim took a lucrative position at Booz Allen Hamilton. Booz, Allen & Hamilton. He also worked closely with DARPA, another major financial black hole. For more on Zakheim’s career and background see Rense.com’s report.

During Zakheim’s tenure as Pentagon controller, over $3 trillion dollars was unaccounted for. Additionally, military information was jeopardized and military contractors billed the U.S. for Israeli military spending: $50 million for fighter jets were rated as “surplus,” for example, and the list goes on. As the scandal of trillions surfaced, Zakheim resigned and Israel was handed the finest fighter jets in the U.S.’ inventory. Meanwhile, 15% of U.S. jets were grounded for a lack of parts.

One of the dark cards played are contract fees to fund development. Since these programs are often cancelled, those fees are paid off. Is this yet another black hole?

It behooves us to ask the obvious questions: Who manages the DOD and who is accountable? Inquiring minds would like to know. What is the background of all this “talent”? This snapshot during the early Obama administration reveals it in spades. Of the 111 U.S. Defense Department senior officials, 40 are Jewish or have Jewish spouses. This is a numerical representation of 36%. Jews are approximately 2% of the U.S. population. Therefore, Jews and spouses of Jews are over-represented among the U.S. Defense Department senior officials by a factor of 1800%. A similar perusal should be done on Christian evangelical Zionists in the DOD. TNN holds that the Zionist-occupied goverment (ZOG) infestation hat trick will be a fiat accompli.

Who are the Likely Looters?

Follow the money. Starting in 1997, there were approximately 350 billionaires globally. That number is now about 1,400. The worth of these individuals has increased from $300 billion to $2.2 trillion. This is without doubt under-reported. The second chart below shows the locales of the world’s ultra wealthy. The vast majority, about 55,000, are located in U.S. By far, the U.S. has the highest concentration of kleptocrats. It’s Crime Syndicate Central. Few plutocrats got where they are without being involved, directly or compartmentalized. Fitts mentioned the same compromised control system we have alluded to on the pages of TNN. Everything about this reinforces our theories — except we underestimated the sheer magnitude.

Kleptocrats have entire networks working below them in a power infrastructure. Such a network is expensive to maintain, which suggests a large measure of the looted $21 trillion fund it.

Another filter for spotting kleptocrats is identifying those who needs to hide their money in offshore entities. Many were revealed by ICIJ in what was dubbed “The Panama Papers.”

Trump To Fill Fed with Wildcat Banksters

The term “wildcat banking” refers to non-federally regulated U.S. state banking between 1816 and 1863, also known as the Free Banking Era. It resulted in widespread bank failures. A modern form of this approach would involve the government backing or backstopping (bailing out) the poorly regulated crazies that wildcat banking tends to attract. This occurs after the extractions are a fiat accompli.

We’ve written about U.S. Treasury Secretary Steve Mnuchin’s personal financial windfall with his group’s acquistion of IndyMac. This was effectively a wildcat bank seized by the FDIC and packaged to new wildcat “investors” with a full government backstop, removing virtually all the risk. [See “Trump’s Treasury Pick Mnuchin Explains Kleptocrat Slash-and-Burn Operations.”]

On Nov. 6, the New York Fed confirmed that its mucky muck president William Dudley will retire “in mid-2018.” Dudley worked at vampire-squid firm Goldman Sachs from 1986 to 2007. At the N.Y. Fed, he was in charge of buying and selling Fed assets and thus was heavily involved in bank bailouts — and the quantitative easing programs during and after the financial crisis. He was promoted to president of the New York Fed in 2009. Then, the N.Y. Fed acquired the assets that now constitute its $4.45-trillion balance sheet.

With this balance sheet now set to gradually unwind, the fun and corrupt part of the job is over — hence, Dudley jumps ship. If anybody knows where the bodies are buried, it’s this guy. Which wildcat crew he ends up with next will be a crucial tell.

With Janet Yellen removed as chairwoman, she will most likely also step down from her governor’s position. When Yellen goes, effectively what we have is a Fed governors’ walkout before the ship goes down. This would leave four slots to fill. Curiously, there have been three slots to fill for some time now. Many would say that this unsettling in itself. Enter the so-called Search Committee headed by your friendly representatives at Goldman Sachs/JP Morgan.

Trump has shown a proclivity to dip into the Carlyle Group’s corner of the swamp. In early October, he nominated (and the Senate quickly approved) Randal Quarles as a member of the board. During his confirmation hearing, Quarles said it was time to roll back the regulations that were imposed on banks after they nearly took down the global financial system in 2008. He will become the chief bank regulator at the Fed, filling the slot that became vacant in April, when Daniel Tarullo resigned “unexpectedly”.

Quarles was a partner at The Carlyle Group, a private equity firm of which new Fed Chair Jerome Powell is also an alum, as well as a host of other financial firms. Carlyle is ranked the No. 1 largest private equity firm in the world.

Suffices to say that The Carlyle Group is worthy of an article of its own, but the bottom line is that it’s a huge player in leveraged buyouts. For certain, Carlyle could do without those pesky regulators looking over its shoulder. It doesn’t take a rocket scientist to connect the dots. Don’t be the least bit surprised if Dudley do-right ends up with these boyz.

Wildcat finance is being greatly expanded under the Trumpenstein administration. In fact, this will be the nexus of my predicted looting under a Shock Doctrine scenario. [See podcast “Russ Winter Forsees Debt Slave Wars.”]

The Jefferson Cupronickel: America’s Last Honest Currency

“When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.” — Sir Thomas Gresham (Gresham’s Law)

The Jefferson nickel, or the Cupronickel (1946-2014), should be considered as America’s last honest currency. Your first reaction might be “only a kook cooped up in bunker would hoard nickels, right?” Not exactly. Consider this: Kyle Bass, founder of the Hayman Capital Partners hedge fund, reportedly exchanged one million dollars for 200 million Cupronickel nickels.

Cupronickels consists of 75% copper and 25% nickel. Coinflation tracks its “melt value,” which is currently about 4.17 cents (2.59 cents copper and 1.58 cents nickel). At this level and with returns on savings nearly zero, a nickel is a open-ended call on both inflationary spikes in these metals and moves by the U.S. Mint to melt down the Cupronickels and reissue a cheaper version, thus putting Gresham’s Law into play.

On the the prospect of a new coin, the Coin Modernization, Oversight and Continuity Act of 2010 recommends in its December 2012 report that advanced notice of two to three years be given before all old nickels are removed from circulation. They also note that the current 5-cent coin costs 10.1 cents to produce and distribute. Once the Cupronickel metal composition changes, prices of the coins will jump because sorting will become required. Then Cupronickel investing goes from incredibly cheap to having higher costs, making your initial capital investment in nickels even greater.

At that point, a secondary market would kick in, similar to what happened with pre-1964 silver coins. This will be especially true if the underlying metals in the coins appreciate in the current deluge of fiat money printing. Although one might wait for the change in metal composition to occur, realize that the new coinage will enter the banking system quickly and banks may pull the old coins just as fast. Since the banking system is the best vehicle for procuring these Cupronickels, it makes since to be preemptive.

Few investments offer a floor like this, or insurance back-up plan. Obviously, each Cupronickel holds a 5-cent face value, so worst-case scenario you can cash in on your currency for its original value as an exit strategy. At first blush, because of the weight and storage issue, this might seem to be more a working class investment. Perhaps so. Yet, even for well-to-do folks — and and particularly savers — $100 boxes or $2 rolls serve as real emergency money. One full shoe box weighing 110 pounds holds about $500. The $100 bank box pictured would be the preferred method of hoarding Cupronickels and also visually puts the storage issue into context.

Many argue that leaving lots of money in so-called insured banks offering no return is the poor option. There is little problem picking up several $100 boxes at my local bank. If you query about picking up more from others and was told to give them a little advanced notice and they could arrange it. Some nickels have numismatic value, but my test sort through about $50 in nickels yielded virtually nothing. Silver content war years nickels have been picked clean.

Nickels, however, are a stealth form of metal investment because it is less prone to attracting the attention of thieves. Given that $1,000 worth of nickels weighs 220 pounds, it is hard to imagine that a nickel holder would be a reasonable target. A thief would need a dolly, a moving crew and a good size truck for much of a take.

As an investment, nickel as a component has good prospects, as it is quite depressed and trading at about a fourth of its 2007 super spike. The simple explanation is that the price spike of 2007 brought out more production. But few mines have a life beyond a decade. Now, nickel is also selling well below its marginal cost of production, which is about $17,500 to $20,000 a ton across the industry. Vale, the world’s second largest nickel producer, has been shutting down older mines, as has Xstatra in Australia.

Nickel is primarily used in the production of stainless steel but is now is getting a play with electric vehicles. Additionally, European distributors are maintaining bare-bones inventory, another classic sign of a washed-out resource. Of late nickel has been on the move higher. In world of endless bubbles and scams this one stands out.

Puerto Rico Being Set Up for Parasite Guild Loot

Sleeping Americans might want to watch Trumpian former grand strategist Steve Bannon’s “Generation Zero” documentary below. It well describes how sick and near death the U.S. is as a debt-enslaved target of the Parasite Guild.

It’s the proposed, unapologetic, medieval-bloodletting Shock Doctrine treatments that should be of concern, because the Trump administration has defacto-hired the Rothschilds and the Crime Syndicate to dissemble and foreclose on the country. The U.S. might as well be Greece, because that’s what’s next. Nowhere does Bannon speak to the Greek Golden Dawn “extreme right” “neo-Nazi” debt-slave solution. See How Once a Torn Country Liberated Itself from Debt Slavery. That would be an actual default and never paying the Parasite Guild back and or letting them foreclose or privatize.

It has always amazed me how real default options are never discussed in the public discourse. It is always minor haircuts, followed by roll out maturity extensions with even more debt piled on.

For understanding the Parasite Guild and Shock Doctrine system see:

Puerto Rico was in severe debt-slave trouble well before hurricane Irma. The storm pushed it over the cliff, and Donald “The Red Queen” Trump finished the job by saying “no bailout for Puerto Rico.”

The Red Queen also inferred that “Goldman Sachs holds these bonds.” That is sleight of hand. Of $76 billion, $50 billion is owed to everyday investors through pension funds and other intermediaries. Less than 25% of Puerto Rico’s debt is held by hedge funds, according to estimates by Cate Long, founder of research firm Puerto Rico Clearinghouse. The rest of the debt is owned by individuals and mutual funds that are held by mom-and-pop investors.

Another pile on is coming, because when Puerto Rico gets federal relief — perhaps via line of credit, as requested by the governor — repayment of debt from federal government is likely to take seniority over existing debt obligations.

The scam now is to get Aunt Millie’s fund manager, who takes his orders from the Parasite Guild and Crime Syndicate, to dump these bonds cheap — in fact, very cheap. The Parasite Guild will scoop them up and later deal with the bankruptcy in the New York courts under the direction of Parasite Guild crony judges.

The case of Argentina discussed in my Parasite Guild articles is illustrative. This will be a multi-year process. Typically, there is little debt forgiveness or significant haircuts in these captured courts. Debtors are cut little slack. This is the precursor to a literal foreclosure of the island under new owners. Watch also for shock doctrine austerity, pensioner wipeouts, privatizations and reconstitution of key Puerto Rico assets and infrastructure into new hands.

As part of this process, hundreds of thousands of native Puerto Ricans are being uprooted and displaced to the mainland U.S. Notably, a little more than 5 percent of electrical customers had service on the storm-ravaged island, according to officials — with the head of its power utility saying that number would rise to just 15?percent during the next two weeks. Puerto Rico Electric Power Authority is also debt burdened and bankrupt and doesn’t have the financial clout to rebuild.

Food and drinking water also remained in short supply, and the Federal Communications Commission said more than 88 percent of cellphone towers were out of service.

The long-term plan of the Parasite Guild and the vultures will be some transformation of Puerto Rico into a rich-man enclave. But first the riff raff have to be foreclosed upon and removed. There will be some human trafficking as well, especially given that Puerto Rican women are exotically attractive. One wonders how many will end up in the Middle East. It is a younger population so healthy organs will also be available for the market.

Listen to Rothschild agent and hack Wilbur Ross discuss Puerto Rico before Irma. In Parasite Guild situations and in theory, there can be losers other than the people — namely, the creditors — who have their holdings marked down. But that never seems to occur as little debt is ever outright forgiven or written off. Listen to Ross describe the debt crisis in Puerto Rico and other states. Notice he says, “Puerto Rico schemed its way into heavy debt.” Nowhere does he suggest this was enabled and facilitated by Wall Street and Wall Street infestations within government. It is “just Puerto Rico.” He then mischaracterizes the vulture funds. He goes on to concisely describe his new job and the standard bankster Washington Consensus “reforms” (aka looting).

The following chart from Zero Hedge shows the next likely large city bankruptcies-with Chicago, Dallas, Phoenix and Pittsburg leading the pack. Among the states it is Illinois, New Jersey and Connecticut.

 

Puerto Rico Rejects Loan Offers, Accusing Hedge Funds of Trying to Profit Off Hurricanes

By David Dayen | 28 September 2017

THE INTERCEPT — Puerto Rico has rejected a bondholder group’s offer to issue the territory additional debt as a response to the devastation from Hurricane Maria. Officials with Puerto Rico’s Fiscal Agency and Financial Advisory Authority said the offer was “not viable” and would harm the island’s ability to recover from the storm.

The Prepa (Puerto Rico Electric Power Authority) Bondholder Group made the offer on Wednesday, which included $1 billion in new loans, and a swap of $1 billion in existing bonds for another $850 million bond. These new bonds would have jumped to the front of the line for repayment, and between that increased value and interest payments after the first two years, the bondholders would have likely come out ahead on the deal, despite a nominal $150 million in debt relief.

Indeed, the offer was worse in terms of debt relief than the one the bondholder group made in April, well before hurricanes destroyed much of the island’s critical infrastructure.

Puerto Rico’s Fiscal Agency and Financial Advisory Authority suggested that profit motive rather than altruism was the bondholder group’s real goal. “Such offers only distract from the government’s stated focus and create the unfortunate appearance that such offers are being made for the purpose of favorably impacting the trading price of existing debt,” the agency said in a statement. […]