Fed's Dudley Sent Puerto Rico A "Plane Loaded With Cash"

Tyler Durden's picture

In the days following Hurricane Maria's devastating blow to Puerto Rico, air traffic on the island came to a complete standstill as airport damage prevented commercial pilots from servicing the island.  That said, with the island economy grinding to a halt, San Juan International apparently managed to find a way to accept one very important plane...a "jet loaded with an undisclosed amount of cash" from New York Fed president William Dudley.  Per Bloomberg:

Less than a week into the massive blackout that followed Hurricane Maria and essentially turned Puerto Rico into a cash-only economy, one top local banker became so concerned about the supply of bills that he called the Federal Reserve.

 

William Dudley, the New York Fed president, put the word out within minutes, and ultimately a jet loaded with an undisclosed amount of cash landed on the stricken island, according to Richard Carrion, the Popular Inc. executive chairman who made the call. He and Chief Executive Officer Ignacio Alvarez reflected on the chaotic early days of the crisis in an interview Friday at their office in San Juan’s Hato Rey financial district.

 

“We thought the cash was going to be a problem,” said Carrion, 64, whose bank is the biggest in Puerto Rico by deposits. “The magnitude of this is something we haven’t experienced.” Suzanne Elio, a New York Fed spokeswoman, declined to comment on the money shipment.

 

The executives described corporate clients’ urgent requests for hundreds of thousands in cash to meet payrolls, and the challenge of finding enough armored cars to satisfy endless demand at ATMs. Such were the days after Maria devastated the U.S. territory last month, killing 39 people, crushing buildings and wiping out the island’s energy grid. As early as the day after the storm, the Fed began working to get money onto the island, according to a person with knowledge of the matter, who asked not to be named discussing the Fed’s preparations.

Dudley

Of course, as we've noted before, nearly three weeks after Hurricane Maria made landfall in Puerto Rico on September 20th, some 90% of the island is still without power and the resulting damage to the local economy will undoubtedly have long-lasting effects.

Nine of ten Puerto Ricans are still without power, half the island has no drinking water, schools are closed, there’s a government-mandated curfew -- and businesses everywhere are trying to cope. At Popular, half of branches remained shuttered Friday, as did two-thirds of ATMs.

 

Alvarez, 58, is a Harvard Law School graduate who took over as Popular’s CEO earlier this year. Previously, the post was held by Carrion, whose family has helped run the firm for generations. Alvarez said that stores have closed and workers have been laid off as a result of the storm, which is a worry for the bank.

 

“More than property damage to our collateral, which is not going to be that great, is the economic disruption caused by the hurricane,” he said.

 

The lack of power was a nightmare for dialysis and cancer patients, as well as the elderly trapped in condominiums without air conditioning. The blackout also means that this corner of credit-card dependent America is relearning how to function almost entirely in cash. When some generator-powered ATMs finally opened, lines stretched hours long, with people camping out in beach chairs and holding umbrellas against the sun.

 

Popular could face a downgrade by Fitch Ratings on concerns that the storm’s after-effects may harm business. Its stock has dropped 11 percent since the storm in New York trading, and is down 19 percent for the year.

Banoc Pop

Meanwhile, the even larger threat to the Puerto Rican economy is that residents will simply decide they've had enough of the island life, and the constant threat of devastating hurricanes that comes along with it, and jump ship to the mainland.  As Bloomberg notes, the island already loses roughly 2% of its population a year to the continental United States but, with many people being evacuated in the days following September 20th, it's very likely that 2017 will see a much larger exodus.

A major concern, both men agreed, was the prospect of a mass exodus to the U.S. mainland. Governor Ricardo Rossello has warned that, if the aid package being debated in Washington falls short, “millions” could leave the island. The population has already been shrinking 2 percent annually for three years running on the island of 3.4 million, due in large part to a decade-long economic lull.

 

“There is a danger” of flight, Carrion said. “I don’t need a visa. I don’t need anything to go there. I have relatives in Orlando, or I have relatives in Houston, or I have relatives in New Jersey.”

 

“Everybody has relatives in the states,” said Alvarez, cutting him off.

 

“Yeah, everybody,” Carrion said. “There’s more Puerto Ricans in the continental U.S. than here. So everybody’s got a relative.”

...all of which has Democrats laying out the welcome mats in the key swing state of Florida...never let a good crisis go to waste.

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WillyGroper's picture

now we know why the ny fed caught on fire...it WAS ctl-p!

SoilMyselfRotten's picture

It never got off the ground, its been sitting there since the Iraq war circa 2003

NotApplicable's picture

I was told there would be a helicopter.

nope-1004's picture

This represents the sheer stupidity of the situation:  Drop cash and then manipulate "markets" to make it seem like there is no inflation.

All the while the hole the Fed is digging gets deeper.

Stupid as all hell.

In addition, I see people standing in line at a bank and with the islands' power outages, they must be bringing in their USB sticks to transfer out of bigcoin.....

 

Ignatius's picture

Well, it beats sending plane loads with pallets of C-notes to Iraq.

Ignatius's picture

Let me know when the tickets go on sale.

American Psycho's picture

Were any "hostages" released?

loves the truth's picture

The corrupt politicians thank you. 90% will be stolen by them.
That’s why Puerto Rico is broke now

Omen IV's picture

Make PR Great Again !- MPRGA

Dreamers get to stay and go to PR for 50 years as a debt slaves to pay for ??? - each ten years they get 1/5th of their Permanent Green Card but NO voting rights

NO welfare / education / section -8 housing / government jobs / food stamps ----- allowed!

 

get in on the ground floor and show them PR's your better than them - Homestead PR!

 

MPRHA !

John Kerry-Heinz's picture

Ok, let me git dis straight.  PR is one the most corrupt corners of the greater US, and we send in a massive "plane load" of cash while lawlessness is on a one month drinking\drug\whore binge? What could possibly go wrong?  Why not just send the entire Clinton foundation as the security detail on the same plane .....................

That graveyard scene from Betelgeuse keeps flashing through me mind.

https://www.youtube.com/watch?v=z0XoLM3Jnd0

 

seataka's picture

During WWII the "BUY WAR BONDS" Campaign had nothing at all to do with financing the war, and everything to with controlling INFLATION. Which was why it was done. 

I just learned this a few weeks ago and it completely changed the way things 'look'.

ReZn8r's picture

why would we, the US, give plane loads of money to this situation. There is nothing to buy, the US is so fucking stupid.

SafelyGraze's picture

"the island already loses roughly 2% of its population a year"

I am working tirelessly to address this problem

hugs,
jeorge sorros 

peddling-fiction's picture

Is it not the US Treasury that prints and distributes cash, or do they not hide the truth anymore?

Dwain Dibley's picture

The Treasury prints the Fed distributes.

Legal Tender Status

How Currency Gets into Circulation

Our money is not what people have been led to believe.

MONEY

 

.

 

peddling-fiction's picture

First the FED lends it to US, Inc.

So they also control its distribution.

Shameless.

Dwain Dibley's picture

You don't know what you're attempting to talk about.

The Fed does not 'loan' the U.S.G. anything.

 

peddling-fiction's picture

Dwain dweebly.

We are on Zerohedge so it is my duty to inform you that the Fed is a private corporation.

The Fed loans the USG and charges interest.

Only then does the Treausury print the Dollars.

More here: http://www.zerohedge.com/news/2013-05-07/11-reasons-why-federal-reserve-...

Read Executive Order 11110

Dwain Dibley's picture

And it's my duty to inform you that you're a blithering idiot and you do not know what the fuck you're attempting to talk about.

The Fed does not 'loan' to the U,S,G,  All profits made by the Fed, to include interest payments, are remitted to the Treasury, minus expenses and dividend payments.

The Fed must pay for the production of legal tender notes and post collateral of equal value to the notes received from the Treasury.

The intent and goal of EO 11110 was to remove U.S. notes from circulation.

The article you linked was written by an idiot.  The Fed does not print our money.  

Neither the Fed or the banks possess the legal authority to create money.

MONEY

 

.

 

beaker's picture

So what do you do if all of your wealth is in Bitcoin and the internet shuts down???

I woke up's picture

Wait a minute, I thought we were going to ban cash

WillyGroper's picture

we are...goin dijiTALL donchano?

cash is for tptb to continue their whoring arms deals, child trafficking, drugs & organ harvesting.

did i miss anything?

SirBarksAlot's picture

This was probably to quickly cover-up the fact that the banks don't actually HAVE any cash.

It's probably why Christine Lagarde suddenly decided to tout Bitcoin.

doctor10's picture

nothing...absolutely NOTHING wrong with the economy of the USA that issuing $500, $1000, $5000, $10,000 and $100,000 dollar Federal Notes wouldn't cure in about 36 months.

 

the damn bankers can let 330,000,000 off the hook for the rest of the 7.5 bilion...except they'd prefer to cut off their nose to spite their face-as they have for most of human history

HRClinton's picture

Wouldn't a plane load of Charmin be cheaper, if not more effective and comfortable for the same task?

Van Halen's picture

Best comment of the day award!

kliguy38's picture

LOL..........anyone surprised? After all, its not like its real......

silverer's picture

Didn't cost my silver or gold a thing. After all, it's just paper they sent down. Soon, when people realize it's value is less than toilet paper, because it clogs toilets, it's basically over for the US as a holder of the world's reserve currency.

GlassHouse101's picture

shhh . . you'll shatter it's confidence!!

Pernicious Gold Phallusy's picture

"Who would have thought of that? None of my friends living in Manhattan ever uses cash!"

Antifaschistische's picture

See, without electricity and payment processing capabilities, their EBT cards aren't working.

icedoc's picture

Not a problem. Here in the states if a EBT scuzbucket lives in a rural area where stores lack computerization, their EBT arrives in the mail as cash. Drunken bums from Portland have mailboxes in rural Eastern Oregon to receive the cash and then buy whatever they want. Never food though. Ain't our government great? No MAGA needed.

lester1's picture

fake markets fake everything!

hedgelessWhoresMan's picture

Money for nothing and the chicks for free.

HRClinton's picture

In the Fed's case, it's...

"Money from nothing, and checks for free".

Ah, that ain't workin'. That's the way jew do it.

BritBob's picture

 

Look out for the UN!

The UN C24 with such members as Iran, Syria, China, Cuba and Russia want to muscle their way into US Puerto Rico affairs:

The United Nations committee on independence for colonies yesterday passed its annual resolution asserting Puerto Rico’s right to self-determination and independence.

The U.N. has identified three options for a territory’s self-determination: In addition to independence, what would be statehood in the United States and nationhood in an association with another nation that either nation could end.

Popularly known as the decolonization committee, the panel created in 1961 has never had jurisdiction concerning Puerto Rico’s political status. Despite this, it has passed resolutions on the subject since 1972.

It has not, however, been able to get its resolutions further approved in the U.N. The U.S. Government has blocked its efforts. A little bit of information on the said committee -

Falklands – UN C24 Committee (2 pages):

 

https://www.academia.edu/11274445/Falklands_-_UN_C24_Committee

 

rf80412's picture

The UN is of course assuming that the Puerto Ricans don't have exactly what they want: no border, welfare, and remittances.

What does it matter if you can't vote when nothing changes anyway?

BigWillyStyle887's picture

Yes! Yes! Jewbucks for everyone!!!!!

wmbz's picture

 "jet loaded with an undisclosed amount of cash"

"Undisclosed" That's really funny!

Every f---ing thing the un-fed does is undisclosed. If they do "disclose" it...  it is a f---ing lie!

 

onewayticket2's picture

all that cash and NO ONE ever has to pay for it.  it's magic!

Winston Churchill's picture

I heard this morning that FEMA is handing out 2 months of foodstamps to all comers in Florida,to

replace food lost in freezers/refridgerators.I had two generators going to save mine, so I'm

obviously stupid.Fuckem, I might go get me some out of spite.

John Kerry-Heinz's picture

 

Go git em.  I had a conversation last week with an old friend and a Vietnam vet.  He had applied for VA benefits a year and half ago and POOF, presto, fukn change O, last month like magic he and his wife's joint checking account now has monthly $3600 deposits (tax free) for the remainder of their lives, plus full health coverage. 

We are witnessing complete & utter insanity at all levels of the financial, governmental, and judiciary levels.  It's like the evil twin of Trickle Down Economics.

 

 

pynky01's picture

was he exposed to agent orange and got PTSD as a side order... he must be a general ... you could add a few more tidbits of info to give us an idea of what is really going on... the marxist jew is your enema...

John Kerry-Heinz's picture

He was a cook.  To my recollection he threw everything he could come up with at the wall to see what would stick.  Agent O, hearing loss, joint problems etc. were all extrapolated.  As far as I can tell exagerated issues of old age seem to be game.

Games Without Frontiers's picture

If he had to give up prime years of his life, to be involved in a war he didn't volunteer to be in, then fuck Uncle Scam. If Uncle Scam doesn't want to pay the bennies, then stop sending young men to get shot up in pointless fucking conflicts.

HRClinton's picture

We've ALL been exposed to Agent Orange.

It's stored in the WH on weekdays.

Where are my gibmees?

blue51's picture

The aim is to get into Bankruptcy Court , as soon as possible . U.S . Citizens vs U.S.A CORP.

WillyGroper's picture

you're paying for them.

no harm in a very minor rebate from the blood sucking squid.

directaction's picture

I’d get a new load of food stamps each day using a different name each time