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Sanders wants Fed to bail out Puerto Rico

By Allen Cone
Democratic presidential candidate Bernie Sanders said Monday the Federal Reserve should help ease Puerto Rico's financial problems. Photo from BerniesSanders.com
Democratic presidential candidate Bernie Sanders said Monday the Federal Reserve should help ease Puerto Rico's financial problems. Photo from BerniesSanders.com

SAN JUAN, Puerto Rico, May 16 (UPI) -- Democratic presidential candidate Bernie Sanders wants the Federal Reserve to lift Puerto Rico out of its economic crisis.

Vermont's senator, campaigning on the island territory Monday, said the country's problems must be addressed immediately.

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"If the Federal Reserve could bail out Wall Street, it can help the 3.5 million American citizens in Puerto Rico improve its economy and lift its children out of poverty," he told the residents, less than three weeks before the Puerto Rican primary.

Congress is at odds on helping Puerto Rico get out of $70 billion in debt. Puerto Rico doesn't have enough money to pay its debt and it doesn't have the legal power to seek bankruptcy.

Sanders said the Fed has the power to help out, using the same powers the central bank used when it helped AIG and Bear Stearns during the 2008 financial crisis.

Sanders said creditors must work with Puerto Rico on a fair debt repayment plan to help the territory expand its tax base, create jobs and reduce the poverty rate.

Sanders also blamed hedge funds that have increased Puerto Rico's debt and now want Washington to get their investments back. He called the tactic "morally repugnant" and argued that Wall Street investors should not be the first in line for Puerto Rico revenues.

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"What vulture funds on Wall Street are demanding is that Puerto Rico fire teachers, close schools, cut pensions and abolish the minimum wage so that they can reap huge profits off the suffering and misery of the children and the people of Puerto Rico," Sanders said. "We cannot allow that to happen. We will not allow that to happen."

Puerto Rico holds its Democratic presidential primary on Sunday, June 5.

The next primaries are Tuesday in Kentucky and Oregon.

Sanders will be in Carson, Calif., on election night. The primary in that state is June 7.

Meanwhile, Oregon Sen. Jeff Merkley, the only sitting senator to endorse Sanders for president, said Monday the senator would "absolutely not" run as an independent if Hillary Clinton is the Democratic nominee.

Merkley was a guest on CNN's New Day, and responded to a tweet by presumptive GOP nominee Donald Trump urging Sanders to run as an independent because "the system is rigged against him."

"You know, Bernie went into this and he said, 'There's no way I'll be Ralph Nader.' We're not going to split the party, we're not going to empower the Republicans. He understands the damage that Bush did to this nation, and is not going to allow Trump to follow on and do even more damage," Merkley said.

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