With $123 Billion in unsecured debt Puerto Rico has filed for bankruptcy and become the largest American government unit to fail financially. The island is already bleeding it’s brightest and most talented professionals to other places and now the whole place is headed for uncharted waters.

It is interesting to note that in the 1960’s before the full fledged embrace of socialist government policies Puerto Rico was a thriving economy with a vibrant middle class but as always happens the social programs destroy the working families they portend to protect.

It will also be a huge test for the United States government as states like Illinois teeter on the razor blade of default. What will Washington do if anything to guarantee the debt the island piled up in bonds and unsecured government pension plans?

You’d better pay attention to what happens next but please take note that socialist programs and Marxist ideals fail every single time. It is the third guarantee of life, death, taxes and socialism fails.