The ’51st U.S. State’ Declares Bankruptcy As Corporate Insiders Sell Stocks At The Fastest Rate Since The Last Financial Crisis

Puerto Rico has collapsed financially and has ‘filed for the equivalent of bankruptcy protection’. When this was announced on Wednesday, it quickly made front page news all over the planet. For decades, Puerto Rico has been considered to be the territory most likely to become ‘the 51st U. S. state’, and there have even been rumblings that we could soon see a renewed push for statehood. But that is on the back burner for now, because at the moment Puerto Rico is dealing with a nightmarish financial crisis that is the result of an accelerating economic collapse. Unfortunately, many Americans still don’t believe that what has happened to Puerto Rico could happen to us, even though signs of major economic trouble are emerging all around us.
Almost two years ago I issued a major warning about the debt crisis in Puerto Rico, and now the day of reckoning for ‘America’s Greece’ has finally arrived…
Saddled by mountainous debts and undermined by rapid population loss, Puerto Rico filed for the equivalent of bankruptcy protection Wednesday in a historic move that will trigger a fierce legal battle, with the fate of the island’s citizens, creditors and workers at stake.
The oversight board appointed to lead the U. S. territory back to fiscal sustainability declared in a court filing that it is ‘unable to provide its citizens effective services,’ crushed by $74 billion in debts and $49 billion in pension liabilities.

This post was published at The Economic Collapse Blog on May 3rd, 2017.