Why Puerto Rico needs its own currency

Unless Puerto Rico is made a U.S. state, this is the only longterm solution to its debt problem

Puerto Rico could benefit from producing its own currency.
(Image credit: REUTERS/Ana Martinez)

Puerto Rico is in a tight spot. It is staring down $72 billion in debt — and the reason is almost stupifyingly simple.

But first, some important background: Puerto Rico has already defaulted on $221 million in debt payments, and is facing multiple lawsuits from wealthy hedge funds that own many of its bonds — and who expect their payout. Much of the rest of its debt obligations are due sometime in the next few months, and with punishingly high unemployment and an economy that's been in recession for years, the money just isn't there.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.