**CAF NOTE: This is a major step in the financial coup d’etat abrogating retirement liabilities managed by state and local pension fund. For a story regarding Calpers involvement in engineering the coup, see Financial Coup d’Etat**
By Tim Reid
A U.S. federal judge on Wednesday granted bankruptcy protection to the California city of San Bernardino, paving the way for a precedent-setting battle between bondholders and California’s giant public pension system.
The case is being closely watched by other U.S. cities, including Detroit, which declared the biggest U.S. municipal bankruptcy last month, where budgets are burdened by soaring pension costs.
