Despite an ongoing pretense that nothing happened, it turns out the US corporate government based in Washington DC and registered in Puerto Rico really did go bankrupt last week. The bankruptcy of Puerto Rico is different from something like the bankruptcy of Detroit because Puerto Rico is a fully owned DC subsidiary and so the parent company must take the fall. This was why the Chinese Finance Minister suddenly cancelled a meeting with his Japanese and South Korean counter-parts last week because of a “financial emergency.”

http://www.reuters.com/article/us-adb-asia-trilateral-idUSKBN1802V2

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