Puerto Rico makes up a law from thin air allowing it to default on creditors.

Bankrupt Puerto Rico should rename itself Puerco Grande because it is just as bad as the Euro PIIGS when it comes to the practice of maintaining a high lifestyle based on unpayable levels of debt.  We've known for a long time that Puerto Pobre was going to BK but it is amazing how the people allow their politicians to continue putting on some kind of a show about it.  Everyone wants to know what government is going to do to "fix" it.  What a joke.  Everyone is in debt up to their eyeballs and they think it is just going to go away and everything will just work out fine.  Idiots, all.

So today the Puercopobrecanian government passed a bill saying they could just stop making those pesky debt payments.  Gee, what a shocker.  Someone who trusted corrupt government is going to get screwed by the stroke of a pen.  If they don't like it, what are their options?  At the end of the day the person who gets justice is the person in charge of overpowering force.  Period.  Might makes right and it always has and always will.  Of course the "might" can take many forms.  It can be dirt on politicians which gets released (informational might) or it can be guns and bombs (military might) or it can be massive strikes and supply chain disruptions (economic might) but at the end of the day, might makes right.

Puerto Rico is of course the tip of the Iceland-USA-berg.  In other words, we are all headed toward an Icelandic collapse at some point. It's just that the bigger players are larger economic flywheels.  But we are no different structurally and so the end fate will be no different.

This is why, at the end of the day, you cannot have all or even the lion's share of your wealth stored in government controlled accounts.  Government is run at the top levels by lying, disgusting, murderous thieves.  Those below them follow orders like sheep in order to keep their jobs, happily selling the country down the river as they do it.  You have to be insane to trust your retirement wealth to an entity which, by the simply application of ink to paper, can relieve you of your life savings "for the good of the country".  They will tell you that they have to take your savings to protect your retirements!  Anyone who does not heed these words is a complete idiot and after so many years of warning people about the obvious inevitable I will have little sympathy when it actually transpires.  The signs are all around us.  Those who cannot read them are destined to be victims of their own ignorance.