According to McKnight news and I quote:

“As you may know, Puerto Rico now finds itself in a deep financial crisis. How bad is it? Well, let’s just say Illinois looks fiscally responsible by comparison. Yeah, it’s that bad.”

“For after many years of spending far more than it could ever hope to pay back, Puerto Rico is now officially insolvent. To help dig out, the island’s lawmakers turned to Congress for help. Federal lawmakers responded by passing a law that restructures Puerto Rico’s $73 billion debt obligation (which doesn’t account for another $40 billion in pension IOUs). But creditors have successfully sued in federal court to repeal the law. The Supreme Court has agreed to hear Puerto Rico’s appeal. But what’s even more interesting is that Democratic senators have introduced a measure that would give the island Chapter 9 protection.”

Blogger comment:

In my book “The American Enterprise Manifesto” I present restructuring of the national debt as inevitable.  In Chapter 11 (Chapter 9 for public institutions) of the book I outline the possibility and the aftermath of the Federal Government going bankrupt and filing for protection.  The most meaningful aspect of this reorganization of debt is “restructures Puerto Rico’s $73 billion debt obligation (which doesn’t account for another $40 billion in pension IOUs) … But creditors have successfully sued in federal court to repeal the law.”

Aha, finally it has hit the fan as a pebble ripples in the pond so will this action to save America from its bureaucracy.  We cannot absorb the $125 trillion dollar of future unfunded obligation for pensions for government workers that is not on the books for any entity … cooking the books has cost America its financial viability for the next century.  If the private sector doesn’t demand accountability for the public sector’s under the radar incurrence of such a irresponsible act we will be under foreclosure by our creditors.    I wonder what China, our biggest creditor, feels about never being repaid their Treasury notes?  First Puerto Rico, next Illinois, next California, next New York, next Texas, next Pennsylvania, next … etc.