A Puerto Rico debt crisis of epic proportion is officially underway. The U.S. territory defaulted Aug. 3, handing over only 1% of the $58 million owed. It owes $72 billion in total -- a debt load that's by far larger per capita than any of the 50 states.
But Puerto Rico's default is nothing compared to what's in store for American taxpayers - who have been misled by Washington into thinking the government's unfettered borrowing can go on forever...
"The Puerto Rico debt crisis should serve as a cautionary tale of how debt heaped upon debt, even to a U.S. Commonwealth, ultimately meets its reckoning," Money Morning Special Contributor Michael E. Lewitt told readers.
You see, the irresponsible fiscal promises that caused Puerto Rico's default are being perpetrated by U.S. federal, state, and local governments every single day.