It has become clear the Federal government is the driving force behind the financial troubles of the States; every Federal incentive is for the States to overspend as explained in The Nature of the Beast, judicial activism, the general welfare, and the butterfly effect, and What went wrong with our Republic.
Who benefits when the States go bankrupt?
This recent article from the New York Times lets the cat out of the bag.
“Some states are so burdened that the only feasible way out may be bankruptcy, giving Illinois, for example, the opportunity to do what General Motors did with the federal government’s aid.”
Do what General Motors DID? Would the Federal government now come in and OWN the State thus replacing the Governor with a hand-picked buddy of the President? Would the State Legislature be dissolved and replaced with advisors to the President? Or would it all be done behind the scenes as a “shadow government” to let us keep the illusion of a Republic?