Krauthammer: 'Somebody is going to have to take a haircut' in Puerto Rico debt crisis

Syndicated columnist and Fox News contributer Charles Krauthammer told "Special Report with Bret Baier" Friday that "somebody is going to have to take a haircut" to resolve the debt crisis gripping Puerto Rico.

The U.S. territory is facing a default next month on a $422 million bond payment, and another $780 million is due to creditors in July.

"Is it going to be the bond holders, the investors, or is it going to be the people of Puerto Rico who would have to chip in by lowering their pensions and other freebies that the government had given out in an extravagant spending spree that it could never afford?” Krauthammer questioned.

"The scale of this is huge," he added. "Detroit was $18 billion [in debt when it declared bankruptcy in 2013]. Here we are talking about $70 billion."

House Speaker Paul Ryan, R-Wis., has described the situation as "chaos" and said a bipartisan debt restructuring bill needs to pass to keep U.S. taxpayers off the hook. Meanwhile, televison ads are flooding the airways urging lawmakers to oppose a bailout.

"I do not understand the ads that are running about the bailout," Krauthammer said. "That is not on the table right now. It might be, eventually."