Puerto Rico's debt crisis

The US Commonwealth of Puerto Rico is also having debt issues, it seems. (Michael Fletcher, Puerto Rico’s governor says island cannot pay back $70 billion in debt, is near ‘death spiral’ Washington Post 06/29/2015)

And, guess what? Austerity economics didn't work very well there, either: "Meanwhile, the government has raised taxes, cut government employment and slashed pensions in a futile effort to get its debt burden under control. Those actions have only slowed the acceleration of debt creation, while harming efforts to reignite the economy."