The Puerto Rico Debt Crisis Explained

The Puerto Rico debt crisis has reached a point where only help from Washington can save it.

As Congress considers a bill to allow Puerto Rico to deal with its debt, Americans rightfully have a lot of questions about how and why this happened – and how it will affect them.

That's why we've put together this Q&A about the situation.

Here's the Puerto Rico debt crisis explained...


Taxpayer Bailout Imminent If Congress Doesn't Save Puerto Rico… Now

A taxpayer bailout to keep Puerto Rico from drowning in its own debt is imminent unless Congress acts fast.

But there's one major "sticking point" keeping Congress in limbo.

Here's more on what needs to happen... right now...

market crash

Another Stock Market Crash Warning Sign Just Came from China Today

Some investors have grown complacent amid the 14% recovery in U.S. equities following the worst ever start to a year.

But a stock market crash could be coming thanks to China's insane debt load.

Here's what you need to know...


Saudi Arabia Debt Will Rise $113 Billion If the Country Acts on Its Threat

Low oil prices are sending Saudi Arabia debt levels to record highs.

Now, the Kingdom is issuing an even larger threat to one of its biggest competitors.

And it could send the country's economy spiraling out of control...


[CHART] The Saudi Arabia Debt Crisis Just Got $9.4 Billion Worse

The Saudi Arabia debt crisis has already reached critical mass.

But a report just came out this week showing how one crucial component of Saudi Arabia's economy took a massive nosedive last month.

These charts explain just how bad the problem is for the world's largest oil exporter...

Market Crash

WARNING: Record Global Sell-Off of U.S. Debt Could Trigger Economic Collapse

Foreign governments buy U.S. debt because of its status as the world’s reserve currency – the American economy has long been viewed as a safe place to invest.

But that’s all changing now – events that could spark a U.S. economic collapse are already underway…

The Wall Street Journal revealed this week that China – the largest holder of U.S. investments – is ridding itself of its U.S. investments at the fastest rate in history. Central banks in China, Russia, Brazil, and Taiwan are selling U.S. government bonds at such a pace that it’s caused the most dramatic shift in the $12.8 trillion Treasury market since the 2008-2009 financial crisis.

Foreign central bankers’ massive offloading of U.S. debt sends a dangerous signal.

Here’s why…


Wasteful Government Spending: Walls That Melt in the Rain, Catfish Inspectors, and More

With a national debt of $18.4 trillion, you'd think that tracking down and eliminating wasteful government spending would be more of a U.S. priority.

In the tradition of retired Sen. Tom Coburn, two lawmakers, Rep. Steve Russell, R-OK, and Sen. John McCain, R-AZ, are now publishing examples of government waste.

Here are 11 hard-to-stomach instances of wasteful government spending...

Market Crash

Here's Your Insurance Against a $200 Trillion Debt Bubble

The world is awash in debt, and it's simply unsustainable. As worldwide debt levels keep setting new records, there's no chance anyone will ever be paid back.

Even "vampire squid" Goldman Sachs, with its tentacles deep into bond markets, thinks so.

The world's central banks now have an insurmountable dilemma: Raising interest rates will just increase the repayment burden. Keeping them low will only inflate the debt bubbles all over.

The sovereign debt crises we've seen over the last six years have triggered major sell-offs, but odds are high this $200 trillion global problem could start the mother of them all.

But I'm going to show you how to make a killing as the bill comes due...

Puerto Rican default

How Much Does Puerto Rico Owe? 4 Charts That Put Puerto Rican Debt in Perspective

The long-anticipated Puerto Rican debt crisis just kicked into full gear…

The island revealed Aug. 3 it made only $628,000 (1%) of a $58 million debt-service payment that was due Aug. 1 – marking the largest municipal default in U.S. history.

Exactly how much does Puerto Rico owe?

These charts break it down...

global economy

The Real Reason Russia and China Are Dumping U.S. Debt

The dollar is a weapon, built up by the U.S. debt to foreign nations and protected by U.S. military might.

But the U.S.'s financial foes aren't taking it anymore. They want to bring an end to this financial weaponization of the dollar.

And in doing so, they are going to do whatever it takes to both diminish the dollar's role as a reserve currency and introduce a new international payments system to settle global transactions...