4Oct2013 AFP Photo Mladen Antonov via RT

Are government defaults an epidemic in the USA?

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Court Ruling Sends Illinois Into Financial Abyss

Zero Hedge reports: "From Horrific To Catastrophic": Court Ruling Sends Illinois Into Financial Abyss

Illinois entered its third straight fiscal year without a budget as Republican Governor Bruce Rauner and Democratic lawmakers failed to agree on how to compromise over the government’s chronic deficits, pushing it closer toward becoming the first junk-rated U.S. state.

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Then came the begging.

According to Bloomberg, on Friday Illinois House Speaker Michael Madigan, a Democrat who controls much of the legislative agenda, pleaded with rating companies to "temporarily withhold judgment” as lawmakers negotiate. “Much work remains to be done,” the Democrat said on the floor of the House Friday, before the chamber adjourned for the day. “We’ll get the job done.”

Meanwhile, the state remains without a spending plan, its tax receipts and outlays mostly on "autopilot", leaving it with a record $15 billion of unpaid bills as it spent over $6 billion more than it brought in over the past year, and with $800 million in interest on the unpaid bills alone. The impasse has devastated social-service providers, shuttering services for the homeless, disabled and poor. The lack of state aid has wrecked havoc on universities, putting their accreditation at risk.

READ More at zerohedge.com...

Puerto Rico's governor, Ricardo Rosselló, Filed For Bankruptcy... and Now The Power Utility PREPA Files For Bankruptcy!

Back in May 2017, Puerto Rico's bankruptcy was reported as the biggest ever U.S. local government bankruptcy!
Apparently the situation across America is getting worse...

Read: Puerto Rican Power Utility PREPA Files For Bankruptcy Reuters Jul 02, 2017

The Puerto Rico power utility PREPA, ladden with a $9 billion debt load, has filed for a form of bankruptcy, Puerto Rico's primary fiscal agent said on Sunday.

The Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) said PREPA power had filed in the United States District Court of Puerto Rico for protection under Title III of the 2016 Puerto Rico rescue law known as PROMESA, which gave Puerto Rico and its agencies access to a workout process akin to U.S. bankruptcy.

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The Worldwide Debt Burdens Continue To Mount!
What about the other U.S. regions and territories?

Maine To Begin Shutdown After Gov. LePage Says He Won't Sign Budget Bill

After Maine Gov. Paul LePage delivered an ultimatum to state lawmakers, promising to provoke a government shutdown should the state's legislature hand him a budget that includes a tax increase, it appears the governor intends to keep his word.

Read zerohedge.com

Connecticut Gov. Signs Exec. Order Taking Over Spending After State Fails To Pass Budget

Meanwhile, Governor [Dannel P. Malloy] signed an executive order taking over the state's spending authority which will cut most services but at least keeps the government open. From Reuters:

• CONNECTICUT GOVERNOR SIGNS EXECUTIVE ORDER TO TAKE CONTROL OF STATE SPENDING AFTER FAILURE TO PASS FY 2018/19 BIENNIAL BUDGET

• CONNECTICUT EMERGENCY SPENDING PLAN KEEPS STATE GOVERNMENT OPEN BUT CUTS SERVICES

Read zerohedge.com

Obviously, Something Major Is Happening!

And I am confident that I could list many more states in America (and certainly worldwide) that are facing budget problems and debt defaults.

Be Prepared for Market disruptions and corrections
If you haven't already, Take Your Money Out Of The Banks!

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