From the Mises Institute with the link found on Wirepoits:
“No state has a junk bond rating, though Illinois is the lowest rated at BBB−, followed by New Jersey at A−. S&P bond ratings go from AAA being the highest to D the lowest…
“Illinois and New Jersey are examples of a future state bankruptcy or default on a future bond debt obligation payment.”
Meanwhile, on the national front, consider this from WIND’s morning email:
Bloomberg: When the US borrows money, it needs to pay its loans back with interest—just like any other borrower. But America’s national debt is currently $34 trillion and rising. Soon, the US will need to spend more each year paying interest than what it spends on national defense. In 2013, US debt surpassed the country’s GDP (Bloomberg). FEE: As the government’s debt grows, the amount of money the government must pay on interest increases. If the government issues a single one-year bond redeemed for $1,050, taxpayers have to pay $50 in interest. If the government issues two such bonds, it will end up being $100 in interest. If tax revenue can’t pay the bond, government officials will either have to increase taxes, take out a new bond increasing the debt and interest even further, or print money. All of these essentially amount to a tax increase. The problem for future taxpayers doesn’t end here, though. As government tries to borrow more, it has to offer increasingly better deals in order to entice lenders. After a while, promising $1,050 on a $1,000 bond won’t convince any new lenders. The government will have to up the ante to $1,060 (FEE).