AFF Ad Campaign Highlights the New Argentina: Puerto Rico

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DES MOINES, Iowa, July 29, 2014 /PRNewswire-USNewswire/ -- The American Future Fund (AFF), a national 501(c)4 organization, continues its advertising campaign warning on the unlawful actions of Governor Alejandro Padilla of Puerto Rico - a U.S. Territory - that puts at risk the U.S. Constitution and edges the Commonwealth ever closer tohemispheric rogue nation, Argentina.

Nick Ryan, Founder of the American Future Fund, said: "As Argentine President Cristina Kirchner prepares to plunge her country further into the financial abyss, Governor Padilla believes this is the model for Puerto Rico, which will leave U.S. taxpayers footing the bill."

Recently, Governor Padilla signed a law that eviscerates the rights of investors and violates the U.S. Constitution.  When the independent ratings agency gave the Commonwealth poor financial marks for it, Padilla moved to deploy the instruments of his government to investigate them.  To make matters worse, this new law could leave the lights on the island literally being turned off because of Padilla's actions against the local electric utility.  What's more, all of this comes as his government ripped up a legally-binding agreement with a local bank his own administration signed.  Since the bank has sought legal redress, Padilla's administration has orchestrated a campaign of intimidation against the bank, and its employees.

"Governor Padilla's continues to claim that Puerto Rico is financially solvent, respects creditor rights, is a safe place to invest, and is an upstanding U.S. Territory.  Nothing could be further from the truth. The Governor's blatant disregard for the rule of law threatens to isolate Puerto Rico from bond markets and cost U.S. taxpayers even more. Nancy Soderberg, a former Clinton Administration official, put it best: Governor Padilla must 'uphold property rights, the rule of law, contractual rights and the rights of investors and creditors,'" concluded Ryan.

To view the initial advertisement click here.

Background

In recent weeks, Governor Padilla and his government have undertaken a full-blown attack on the rule of law, the U.S. Constitution and investor rights.  The first example, Doral Financial Corporation, a US-based bank and mortgage lender that Puerto Rico lawfully entered into a contractual agreement in 2012 acknowledging the Commonwealth owes Doral over $230 million.  The agreement was ratified by both parties yet again in 2013. But Governor Padilla and his government are now refusing to honor this contract. Moreover, Doral's regulator - the Office of the Financial Institutions Commissioner - and key political leaders including the Department of Justice are threatening the bank and its employees. These actions, coming after Doral's decision to file litigation to enforce its agreement with the government, are disturbing, and an abuse of power by Governor Padilla and his government.  The second example involves a new law, the Debt Enforcement and Recovery Act, which was rammed through the legislature by Governor Padilla.  This law would allow the Puerto Rican government to repudiate the debts of the Puerto Rico Electric Power Authority (PREPA).  This would stiff investors, some of which include small investors and pensioners on and off the island.  This law violates the U.S. Constitution, and has led the island's bond ratings to be downgraded to junk status.

Photo - http://photos.prnewswire.com/prnh/20140729/130799

SOURCE American Future Fund