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The Worst Financial Nightmare In Illinois History Erupts As State Comptroller Declares ‘We Are In Massive Crisis Mode’

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Margaret Thatcher once said that the big problem with socialist governments is that “they always run out of other people’s money”, and unfortunately we are witnessing this play out in a major way in the state of Illinois right now.  At this point, the Illinois state government has more than 15 billion dollars of unpaid bills.  Yes, you read that correctly.  They are already 15 billion dollars behind on their bills, and they are on pace to take in 6 billion dollars less than they are scheduled to spend in 2017.  It is the worst financial crisis in the history of Illinois, and State Comptroller Susana Mendoza sounds like she is about ready to tear her hair out in frustration

“I don’t know what part of ‘We are in massive crisis mode’ the General Assembly and the governor don’t understand. This is not a false alarm,” said Mendoza, a Chicago Democrat. “The magic tricks run out after a while, and that’s where we’re at.”

It’s a new low, even for a state that’s seen its financial situation grow increasingly desperate amid a standoff between the Democrat-led Legislature and Republican Gov. Bruce Rauner. Illinois already has $15 billion in overdue bills and the lowest credit rating of any state, and some ratings agencies have warned they will downgrade the rating to “junk” if there’s no budget before the next fiscal year begins July 1.

Would you continue to do work for the Illinois state government if you knew that they were this far behind on their bills and that it is doubtful that you would be paid any time in the foreseeable future?

Of course the answer to that question is quite obvious.  As contractual relationships break down, social services are starting to suffer, and there is not much hope that things will take a turn for the better any time soon.

At this point things have gotten so bad that the Illinois Department of Transportation is planning to cease all roadwork starting on July 1st, and even the Powerball lottery is threatening to cut all ties with the state

As reported previously, the state Transportation Department said it would stop roadwork by July 1 if Illinois entered its third consecutive fiscal year without a budget – the longest such stretch of any US state – while the Powerball lottery said it may be forced to dump Illinois over its lack of budget. For now, state workers have continued to receive pay because of court orders, but school districts, colleges and medical and social service providers are under increasing strain.

So what has caused this unprecedented crisis?

At the core, the problem is political.  A tense standoff between a Republican governor and a Democratic legislature has resulted in the state going 700 days without a budget

On May 31, Illinois will have gone 700 days without a budget, an unprecedented political failure. Also on May 31, if a budget is not passed, it could mean that the state could go until 2019—an unimaginable idea, except that senators have already imagined it.

How does a state, led by a successful businessman as governor, a brilliant political strategist in the House, and a consummate dealmaker in the Senate, end up in this kind of political disorganization? Bad political errors led to bad political incentives, and as the problem worsened, so did the political risk of solutions—and what politicians had to ask of their constituents.

This is another example of how deeply divided we are as a nation right now.  Democrats hate Republicans and Republicans hate Democrats, and it is getting to the point where the two parties cannot work together on even the most basic things.

In the end, the state of Illinois is either going to have to cut spending dramatically, raise taxes substantially or some combination of both.  And since the Democrats have very large majorities in both chambers of the state legislature, I wouldn’t count on spending being cut that much.

This is the thing with big government – it always has a tendency to get even bigger.  And the bigger government gets, the more of our money and the more of our freedom it takes away.

That is why I am a huge advocate of dramatically shrinking the size of government on the federal, state and local levels.  Like Rand Paul has often said, I want a government so small that I can barely see it.

When you let government get out of control, what you end up with is a ravenous beast that has an endless appetite for more of your money.  In Illinois, the money is all gone and the beast is desperately hungry for more.

Sadly, what is happening in Illinois is just the tip of the iceberg.  If stock prices start declining from these massively inflated levels, state pension funds all over America are going to be in crisis mode very rapidly.  And a new recession would greatly accelerate the financial problems of a whole bunch of states that are already dealing with huge budget shortfalls.

Unfortunately, experts all over the country are warning that the next major downturn is coming very quickly.  For example, just consider what Bernard Arnault just told CNBC

A financial crisis could be just around the corner, according to the chief executive of LVMH, who has described the global economic outlook as “scary”.

“For the economic climate, the present situation is…mid-term scary,” Bernard Arnault told CNBC Thursday.

“I don’t think we will be able to globally avoid a crisis when I see the interest rates so low, when I see the amounts of money flowing into the world, when I see the stock prices which are much too high, I think a bubble is building and this bubble, one day, will explode.”

There is always a price to pay for going into too much debt.

A financial day of reckoning can be delayed for a while, but eventually bad financial decisions are going to catch up with you.  The state of Illinois is learning this lesson in a very harsh manner right now, and the country as a whole is on the exact same path as Illinois.

I am often criticized for endlessly warning about America’s coming day of reckoning, but you can’t pile up the biggest mountain of debt in the history of the world without paying a price.

Just like the state of Illinois, we will pay for decades of exceedingly foolish decisions, and unfortunately this is going to cause severe economic pain throughout our entire society.

 
  • Liberty First

    Amen.

  • Midwest Values

    Illinois is the Venezuela of the Northern Hemisphere. Great resources, home to large corporations and a very educated workforce. We also have a smart governor. Rest of the state including of the city of Chicago is ran by a bunch of clowns

    • leeholsen

      no it’s greece

    • William Lutz

      Thanks socialism.

      • kimsarah

        Privatized gains and socialized losses.

        • SoCalBeachDude

          What “socialized losses” are you talking about?

          • CensoredSpeech✓ᴰᵉᵖˡᵒʳᵃᵇˡᵉ

            The crony capitalist gains the Democraps put in their own pockets but when they waste your money on foolish endeavors they give the bill to the taxpayer! Isn’t that neat, how that works?

        • Yup

    • RJSharp

      i figure its more corruption then socialism… slightly more.

  • YH

    The sooner Illinois reaches rock bottom, the sooner they can begin the recovery process. The best thing Illinois could do would be to elect a Progressive Democrat as Governor who will rubber stamp every spending bill that comes across his desk. He may even suggest a few major spending proposals himself. That way the entire state financial system can collapse sooner than later, so they can begin the restructuring process. And no, I’m not being sarcastic folks. As George Orwell stated in his book titled 1984, “Freedom is Slavery, Spending is Saving, and Ignorance is Strength.”

    • SoCalBeachDude

      The issue is that Illinois has RUN OUT OF MONEY and cannot raise further money in the municipal bond markets, so approving more bills to spend more money would be nothing other than a meaningless act of total denial and utter absurdity.

      It is now “NO MONEY, NO CHECKIE” time in Illinois.

      • YH

        As I understand the law, States cannot declare bankruptcy. The Congress and Federal Reserve will not allow a State to declare bankruptcy. They will simply engage in deeper deficit spending like the federal government. State politicians may shut down the government for a while as an act of defiance if they don’t get their greedy ways. But when the welfare debit cards stop working, and the people begin to ransack and loot Wal-Mart, and lawlessness breaks out across the state, the shut down won’t last long.

        • SoCalBeachDude

          Huh? The Federal Reserve has nothing whatsoever to do with bankruptcy laws which are codes ENACTED BY CONGRESS.

          http://www.uscourts.gov/services-forms/bankruptcy

          There is no such thing as “deeper and deeper deficit spending” UNLESS A STATE CAN SELL GENERAL OBLIGATION BONDS INTO THE MUNICIPAL BOND MARKETS.

          Illinois is now at a stage where IT CANNOT DO THAT – at least not without attempting to do so at interest rates approaching 8% – and then the question is WHO WOULD BUY THOSE BONDS CERTAIN TO DEFAULT?

          • Undecider

            What’s the debt level of the Federal government and why and how does it keep growing? Who’s the creditor?

          • SoCalBeachDude

            Huh? There are many MILLIONS OF CREDITORS to the federal government through the OWNERSHIP OF AROUND $20 TRILLION IN US TREASURIES (bills, bonds, notes, and TIPS). The federal government is itself its own largest creditor through its various agencies who own US Treasuries with the Medicare and Social Security Trust Funds being the largest of those creditors.

          • Siloo Kapadia

            That is a chilling thought!

          • YH

            Huh? Do you not remember how the Federal Reserve monetized the U.S. debt (illegally) in 2009 through the use of the Too Big To Fail Banks who bought U.S. treasuries and then sold them back to the Fed Reserve??? IMO that is exactly how the Fed Reserve would come to Illinois rescue. The Fed Reserve cannot directly monetize U.S. debt, but there are many other indirect means to do it. If Illinois could sell enough worthless bonds to bail themselves out, they would have done so already. Based on the latest population information available, and the number of people getting the hell out of Illinois, they know what’s about to happen. And they are not sticking around to pay the higher taxes which are coming even though they voted for the politicians who facilitated the financial collapse.

          • SoCalBeachDude

            The Federal Reserve did no such thing at all in 2009, and NEVER “MONETIZES” ANY US GOVERNMENT DEBT EVER – which you admitted yourself in your comment above.

            Banks routinely purchases US Treasuries which are CASH EQUIVALENTS and use depositor funds to do so which is routine and banks hold a substantial amount of US Treasuries as do Money Market Funds and other funds.

            The Federal Reserve only purchases US Treasuries and MBS instruments as part of their security portfolio and NEVER PURCHASES MUNICIPAL BONDS nor does it purchase any MBS instruments that are of less than stellar quality.

            Illinois will certainly not be getting any financial assistance from the Federal Reserve which does not even deal with states nor from member banks of the Federal Reserve and will simply have to attempt to sell its downgraded municipal bonds at ever increasing yields (interest rates). An interest rate approaching 100% would be the most appropriate rate for any future Illinois municipal bonds, and yes, the taxpayers there will be stuck with the bill and can expect much higher taxes.

        • xenonman

          All that ultimately happens with all these governmental shut downs is that the public employees enjoy an unexpected paid vacation.

    • Siloo Kapadia

      “The sooner Illinois reaches rock bottom, the sooner they can begin the recovery process.” YES, but that process takes a lot longer than most people realize. And knowing all the inter-racial “harmony” you can expect all hell to break loose in the meantime. Don’t expect anything to improve for quite a few years. Also remember that this is not 1929, and that the world is a lot more competitive.

      • xenonman

        Start to learn Chinese now! lol

  • Bill

    The center of this cesspool of corruption is Chicago but it gets little mention. Until the politicians behind it are removed their unconscionable greed will continue to destroy.

    • xenonman

      and that cesspool is exactly where Obama launched his political career!

  • SoCalBeachDude
  • SoCalBeachDude

    FORCED SALE OF IL GENERAL OBLIGATION BONDS…

    Illinois is in a serious bind. The road to perdition has been well lit, and signposted. 8 downgrades in 8 years for the General Obligation (GO) liabilities of the state, with another drop down to junk likely as soon as July 1st, the beginning of their 2018 “fiscal” year. The unfunded pension liability of Illinois’ five state plans now exceeds US$130bln. IL State now has the lowest funded pension percentage (ranging from 37.5% to 44.2%) of all 50 states.

    Each Illinois taxpayer is on the hook for almost $50,000 in unfunded liabilities (pensions and post retirement health benefits). Illinois is the 5th most populated state in the union at 12,800,000, for reference. Same ranking for income (for now). Illinois has proposed a 20% privilege tax on investment management services (read; hedge funds) which was tabled in February 2017, approved by the House Revenue and Finance Committee in March and if enacted becomes effective July 1, 2017. The taxation of carried interest is highly topical at both the Federal and State level presently with both NY and NJ considering similar legislation (CT and FL are gladly accepting hedge fund refugees at the time of publication).

    In addition to the pension woes, Illinois has not passed a balanced budget for 3 years in a row, as required under their constitution. This has resulted in the untenable situation whereby the state has accumulated $14.5bln in “accounts payable”, on which they will owe $800mm in interest and fees as of June 30, 2017. The cascade effect (i.e. it rolls down hill) has been very damaging. Chicago Public Schools (CPS) are owed nearly 1/2 billion from the state ($467mm to be exact) and must resort to “Grant Anticipation Notes” to bridge the funding gap created. CPS are hoping to keep the cost below 8% which is the usury cap in effect for some school budgets.

    The same negatives that sent Puerto Rico (importantly not a State, technically a Protectorate https://ibankcoin.com/firehorsecaper/2016/04/10/puerto-rico-the-spoils-of-war/) on tilt recently are evident in Illinois as well, namely rampant crime and failing schools. Many schools are years behind in even tabulating scoring tests, which would be required to confirm their bottom quartile performance. To rival the record for shootings in Chi-town you have to go very far afield to places like Kabul.

    http://www.valuewalk.com/2017/06/illinois-broke/

  • SoCalBeachDude

    Rich countries have a $78 trillion pension problem

    Dreams of lengthy cruises and beach life may be just that, with 20 of the world’s biggest countries facing a pension shortfall worth $78 trillion, Citi said in a report sent on Wednesday.

    “Social security systems, national pension plans, private sector pensions, and individual retirement accounts are unfunded or underfunded across the globe,” pensions and insurance analysts at the bank said in the report.

    “Government services, corporate profits, or retirement benefits themselves will have to be reduced to make any part of the system work. This poses an enormous challenge to employers, employees, and policymakers all over the world.”

    http://www.cnbc.com/2016/03/16/rich-countries-have-a-78-trillion-pension-problem.html

  • SoCalBeachDude
    • df NJ

      Congress needs to reign in Wall Street from destroying main street!

      • kimsarah

        The mother of all ponzi schemes starting to unravel.

        • SoCalBeachDude

          Illinois has been unraveling very clearly for all to see for the past 10 years.

      • SoCalBeachDude

        Main Street is FUNDING ITS OWN DESTRUCTION by “investing” (speculating) in Wall Street.

  • JC Teecher

    ” And since the Democrats have very large majorities in both chambers of the state legislature, I wouldn’t count on spending being cut that much.”

    Since most of the majority of the bigger cities are controlled by liberals/demoncrats, look at the cities that may be next to follow Detroit and Chicago. Here is a peak at some as reported from an article in the National Review. Which, is partly about the blacks marching against the republicans and the right.

    ” Who, exactly, is in charge of these cities and city agencies about which African Americans do have many legitimate complaints? Philadelphia, Cleveland, Detroit, Baltimore, Los Angeles, San Francisco, Chicago: Not exactly famous enclaves of conservative Republican political dominance. Because Dallas is in Texas, people sometimes forget that it is a city like any other American city, and Democrat-dominated. In Dallas, as in Philadelphia, Baltimore, and Detroit, that Democrat domination is due in great part to a black Democratic voting bloc.”

    So essentially; when rioters/marchers follow the story line of those on the left, they forget to stop and think, who are the politicians running these cities, and why are we blaming people that don’t even control them. The left loves this lapse in judgment and reality.

    • SoCalBeachDude

      Illinois and its cities and towns have NO CHOICE BUT TO CUT SPENDING DRAMATICALLY at this stage as they are TOTALLY OUT OF MONEY and already have $14.5 billion in unpaid bills in arrears. Politics don’t matter at all in the face of that catastrophic and dire financial situation.

      • JC Teecher

        You are really ignorant or too stupid to realize the point of my commentary. The democrats got these cities into these situations, and they sure as hell will never change, because they have the demoncrat voters…brainwashed.

        So politics does matter, as far as any attempt at making a change for a reversal. As long as the voters keep following liars, they get what they deserve. As long as 93% of African american women, keep voting to kill the innocent in the womb and even out out it, to harvest organs, they are cursed cities, and to some degree, the states as well.

        When 85% of those same African American voters claim to be Christian, then that my friends is a double whamy, that comes with a double cursing.

        Where will all those demoncrat politicians be when the shtf, and the cities are in chaos because there is no food?
        They will be in their protected communities with their hoards of stored foods, and could care less about the very people they say they are in office to protect. LIES!

        But have no fear, all you city dwellers, the big intellectual smart guy with all the answers will be out feeding the masses with his tons of stored doughnuts that have a years shelf life.

        BAHWAAAA BHAWAHAAAA!

        • SoCalBeachDude

          You are simply NOT DEALING AT ALL WITH FINANCIAL REALITY and anything outside of that is COMPLETELY IRRELEVANT.

          It’s now NO MONEY, NO CHECKIE” time and the people in Illinois will simply have to adjust to that very straightforward reality.

          • Bob332

            Yeah, they’ll “adjust” after they riot and burn it to the ground.

          • SoCalBeachDude

            Anyone who tries any of that kind of grossly illegal hooligan nonsense will be dealt with very harshly by the local and state police and the national guard and will get precisely what they deserve including being cut of in the future from any and all benefits.

          • Stuey

            This is utter nonsense. What world are you living in, oh yeah that’s right, the Beverly Hills fantasy world.

          • SoCalBeachDude

            Beverly Hills, California is one of the best run cities in the United States and all cities should work to emulate the enormous success of Beverly Hills.

            http://www.BeverlyHills.org.

          • JC Teecher

            And riot they will, when all they can find to eat is in the fields of the Heartland.
            On a diet of corn and soybeans, the masses from Chicago will get tired of the back door trots and the raw azz will be directed at municipal buildings.
            Break things, throw things, and light things on fire, will be the only thing that keeps them from thinking about their azzes on fire from all those meals of field corn and soybeans. With no bread or crackers, it will be like a steady diet of grasses and legumes. Things get very ugly, very fast.

          • Stuey

            Exactly right!! Drugheaddude thinks everything will just go on as normal, what utter nonsense he spews.

          • xenonman

            Time for us in neighboring WI to stock up our arsenals!

        • awb22

          I blocked SBB, and it’s refreshing not to see his idiotic comments.

        • Siloo Kapadia

          “Where will all those demoncrat politicians be when the shtf, and the cities are in chaos because there is no food?”
          Panama, Bermuda, Switzerland, Singapore, Ecuador, Honduras, Bahamas, Japan, Malta, Spain and any other country that allows wealth/investment immigration. I know, as I see many “former” Americanos here in Singapore already.

          • xenonman

            Yes, but what of the hard-working white Americans who can’t cough up the exorbitant sums usually required for admission into those countries?

    • xenonman

      Don’t forget that serious corruption seems to inevitably accompany African-American and Hispanic politicos.

  • BS1986

    HAHA a State version of Detroit-democrats destroy everything they touch.

    • SoCalBeachDude

      Illinois Republican Party

      The 2010 elections saw the election of Illinois Republican Mark Kirk to the US Senate as well as a Republican sweep of Illinois US House seats. Republicans came within 5 seats of a majority in the Illinois House of Representatives and gained seats in the Senate. Republican nominee Bill Brady narrowly lost the gubernatorial election to Pat Quinn, leaving Democrats in full control of the redistricting process. This resulted in gerrymandering heavily in favor of Democrats. As a result of the redistricting process, Illinois Republicans suffered huge losses in the 2012 elections.

      In the 2014 gubernatorial election, Republican nominee Bruce Rauner defeated incumbent Governor Pat Quinn to become the first GOP Governor since George Ryan left office in 2003. Republicans also picked up two Illinois congressional seats and a seat in the Illinois Senate.

      https://en.wikipedia.org/wiki/Illinois_Republican_Party

      • BS1986

        leaving Democrats in full control of the redistricting process. This resulted in gerrymandering heavily in favor of Democrats. As a result of the redistricting process, Illinois Republicans suffered huge losses in the 2012 elections.
        SOOOO its run by democrats……..

        • df NJ

          I wish we can get rid of the dramatic redistricting and gerrymandering all the time. This is insanity. There’s got to be a better way.

          • BS1986

            Blame the liberals they redistrict when they want to try and steal an area away.

        • Stuey

          Exactly!! What was the point of drugheaddudes article anyway?

          • BS1986

            Hes slow.

      • BS1986

        SOOOO its run by dumb-o-crats

    • William Lutz

      So do Republiclowns.

      • BS1986

        YEAH? SHOW ME WHERE? Cause the last two bankruptcies fall squarely at the feet of democrats.
        There will be more and ALL OF THEM will be democrat run cities/states.

        • William Lutz

          I’m only suggesting that most Republicans are just as statist and corrupt as the scummy Democrats are. Both are bought by huge corporations, both are associated with special interests lobbyists, and both don’t give a sheet about the common American individual. I rightfully claim that the two parties are just two different sides of the same coin. They are both unsophisticated and obsolete.

          Time to consider joining the Libertarians and Greens.

          • BS1986

            Libertarian MAYBE. THe greens are worthless, like really worthless.

  • Bear1000

    Is it any surprise that this is happening in the same state that Obama is from?

    • SoCalBeachDude

      Hellery Clinton was also originally from Illinois.

      • SnodtBlossom

        It’s saddens me that you dislike my girl so much.
        I know you boys just can’t accept women in power and progress.. and there’s always excuses,.. but I think Hillary would have been a great president.

        • awb22

          That’s just plain ignorant.

        • onezeno

          The article leads off with a quote from one of the most powerful women in history.

          • Stuey

            Yeah, but she doesn’t count because she wasn’t a liberal woman. These feminist aren’t for women, they are for liberal women.

        • xenonman

          At least Hillary helped to pave the way for a Trump victory!

      • Bear1000

        True, true.

      • xenonman

        and now she’s in an elitist NY suburb!

    • Understanding 18

      That is the truth. All of this is occurring in Illinois where Satan is from.

    • xenonman

      Of course Obama has already moved out of IL! lol

  • jakartaman

    drunkin demedopes. Look at the states that are in trouble.
    I hope they boom and Trump tells them to kiss off

    • df NJ

      The Trumpenzees are just as bad.

      • jakartaman

        Bad but no where near as bad as blue sates

  • df NJ

    We need to stop giving money to Israel and Saudi Arabia and give it to the states! AMERICA FIRST!

  • tacoma

    IL should form its own central bank. Issue money to repay loans and expenses. In Bitcoin that is.
    Or they should try to join Canada. But Canada didn’t even want Vermont in the War of 1812 settlement so why touch a bankrupt state now?

    • SoCalBeachDude

      No state can form a central bank and issue its own currency and that is totally prohibited by the US Constitution. BitCON is just a PONZI SCHEME SCAM and is a SPECULATIVE COMMODITY and not a currency at all.

      • Stuey

        Yeah, forming a central bank is only available to the corrupt federal government.

  • William Lutz

    Amen to that. I really wish for an economic fiasco to happen. I’ve been patiently waiting for it for the past couple of years. May the spiral be accelerated ASAP.

    • df NJ

      Why would you ever wish for other people to suffer?

      • William Lutz

        Because we deserve it. Time to pay the piper.

        • df NJ

          Maybe you do! Everyone in New Jersey works their butts off!!

        • SnodtBlossom

          Spoken like the foreigner you are.

    • William Lutz The Loser

      Don’t you worry if a collapse happens you will lose everything you have worked hard for?

      Oh. Wait. You are William Lutz. You have nothing and work menial jobs a turtle could do.

      Never mind my question.

  • William Lutz

    Can all hell break loose already, please?

    • George Soros

      LOL

      • William Lutz

        Are you the real George Soros? If so, we’re friends.

  • df NJ

    Jesus will save us from suffering financial collapse. Jesus is Lord. All God’s blessings will come to those who believe in Jesus.

    • William Lutz

      Bah humbug!

      • df NJ

        The power of Christ compels you. The power of Christ compels you.

    • leeholsen

      It’s going to get a lot worse before he comes, worse that Venezula; best to protect yourself first and when he does come to call out for him and ask for his forgiveness; we all share some part letting the country become the mess it is.

  • df NJ

    How about we close our European military bases! WWII is over. Let’s save Illinois!!!

    AMERICA FIRST!!! EUROPE SECOND!!!!

  • Jeri Brace

    Illinois is the first domino of many to come.

    • df NJ

      More reason to stop giving foreign aid to Israel. Bring the troops home. Save Illinois!!!!

      • William Lutz

        Yeah. Israel doesn’t need our help. They’re moochers.

        • df NJ

          They are moochers.

      • Midwest Values

        In the event of a Mideast war involving the United States, Israel has a very strong defense which will buy the US valuable time to get resources. The Billions Israel receives is very cheap and will one day save countless US Soldiers lives

        • awb22

          Sure, it’s cheap when you can borrow into oblivion. It won’t be so cheap after the next fake crisis to justify even more QE and doubling the national debt again. It’s cheap when it’s not your money and you’ll probably be dead before the bill comes due. The rulers of Israel are the Ashkenazim Jews, who are coordinating mass Muslim immigration into Europe and it’s those same khazars which will one day take possession of the US if we don’t repudiate the debt and repeal the Federal Reserve Act of 1913 et al.

          Let the ME burn.

          • SoCalBeachDude

            The Federal Reserve versions of QE had NOTHING WHATSOEVER TO DO WITH THE US GOVERNMENT DEBT and merely involved purchases of EXISTING SECURITIES FROM MEMBER BANKS including US Treasuries with 100% of the proceeds always remaining INSIDE THE FEDERAL RESERVE IN THE RESERVES ACCOUNTS OF THE MEMBER BANKS from whom the Federal Reserve purchased those securities.

          • G. Neel

            Said no one ever ^ The fed and the “government” have always been in collusion and cooperation with each other.. Since they are both incorporated entities designed to enhance their own bottom line, this is what you get! Both of these companies only care for their own well being and health and they will continue to create chaos and discord until every social program and plan implodes as they run out of our money to pay for their socialist agenda.

        • Siloo Kapadia

          If you mean the Israeli-Saudi-UAE alliance you are right!

    • Rob Andover

      Agreed 100%. I’m just glad to be in Arizona where the budget is not quite as bad as in other places and where the government (local, anyway) isn’t quite as huge as it is in California, or Illinois, or other liberal madhouses.

    • SoCalBeachDude

      Illinois will simply be a relatively controlled isolated implosion, and not a “domino” at all.

      • Stuey

        Laughably false.

  • df NJ

    We need to stop giving money to Israel and Saudi Arabia and give it to the states! AMERICA FIRST!

    SCREW THIS GOD DAM FOREIGN AID SHIITE!! I’M SO SICK OF EVERYONE IN THE USA HAS TO LIVE IN SHIITE FOR ISRAEL!!!

    • William Lutz

      F*** Israel.

      • df NJ

        And close our European bases!! EFF THE FRENCH!!!!

        • SoCalBeachDude

          The French are lovely folks and are the ones who gave the USA the Statue of Liberty which sits in New York Harbor and are the ones who FOUGHT FOR AND WITH THE AMERICANS FOR INDEPENDENCE FROM THE UK without which the USA would still be a colony of England.

          • df NJ

            Let they pay for defending Europe against the Russions. I don’t care how lovely they are why should US citizens pay for it? Give me one reason why? Oh, I bet you won’t. You will not answer my questions and I bet you will pose some other BS questions I don’t care about. Money talks.

          • SoCalBeachDude

            All of the countries of the EU pay for NATO, and Donald Trump has constantly pushed that they should pay more for NATO. Alternatively, I would advocate abolishing NATO or greatly reducing its size as it is nearly entirely obsolete and unnecessary.

          • awb22

            Trump’s the man.

          • SnodtBlossom

            That may be why I work with more foreign-born than American-born.

          • aldownunder

            And the first too run when the SHTF

        • awb22

          We really don’t have any EU bases anymore. A lot’s changed since the collapse of the soviet union and two gulf wars.

      • JC Teecher

        Anyone that tries to F Israel will be F’d back in return. Anyone that stands in support of Israel and it’s sovereignty, will be blessed and protected supernaturally.

        If Trump fails to realize that helping Philistinia become a state within a state, will be further dividing God’s covenant land, and cursings and damnation will follow.
        Watch and wait America, when achieving a so-called Peace Agreement by ignorant leaders becomes a fact instead of a dream, the dividing of America/House of Israel will soon follow.

        Split in half physically and literally, and flooded coastal cities and towns. Death and famine wil cover the land.

        So pray that this Administration stays away from that deadly decision of pushing forward with a Philistinia State, within a State.

        • awb22

          That’s not exactly true, at least not from a biblical perspective. There’s a documentary on youtube called Marching to Zion by Pastor Steve Andersion that would be worth your time.

          In fact, look at the timeline of perversions of truth since Jesus’ day. First, there was the compromise of Christianity with paganism to form a state religion in Rome in around 300 AD. Then there was the founding of Islam by a pedophile around 700 AD, and the first mention in history of the Ashkenazim Khazars, from whom modern Jews trace their ancestry, is in 1000 AD. From these Ashkenazim we get the Rothschilds, the bankers of European courts in the 18th century and now the world. Ask me who are the most evil, and I will tell you it’s the Jew.

          Certainly the doctrine of the trinity and other pagan practices weaken the church. Certainly a world war was fought during the crusades for the future of Europe. Certainly, since the end of WWII and the establishment of the state of Israel, the arab world has been destabilized and now it is the Jew which is organizing the destruction of Europe through mass migration with the heads of European governments as their willing accomplices

          What they who serve the Devil fail to comprehend, is that he will destroy them just as surely as he would the rest of God’s creation.

          • JC Teecher

            What you fail to understand by following some man that writes a book, or does a you tube video, or even a well detailed commentary, that they usually have a personal ax to grind, or are biblically illiterate on the subject.

            I have read many of men’s doctrines and interpretations of who the -ews are, and where they come from, etc.,etc, etc.

            There are three main groups of those that call themselves -ews. There are sub classes of those as well.
            The one main main group that we should be concerned with, like the Rothschilds.

            Very early on they infiltrated the Kingdom of Judea, and more importantly the Levitical Priesthood.
            The Bible explains in deep detail and serious understanding, about this group, that originated from the tribe of Kenites, aka offspring of Cain, the first murderer and son of Satan through flesh woman Eve.

            They expanded rapidly and were intertwined through many tribes that practiced idolatry. When they infiltrated the synagogues, they started as scribes, and then became oh so holy and started wearing the clothes of royalty.
            When Christ called them out as the ones that claimed to be of our brother -udah, but are of the synagogue of Satan, this is the sect that He was referring to. They have spread their wicked seed through out history, and are intertwined with many nations, peoples, and tongues. Some are easy to recognize and identify as liars and thieves, but many are more subtle.

            To label all -ews as evil is a very very deadly mistake. To label all as those of the Ashkenazi bloodlines is from a lack of TKU, truth,knowledge, and understanding. I worked on this understanding primarily with a person that had the same ideology and hated all -ews like they were responsible for everything negative in her entire life, and would not understand or even attempt to try and understand truth, and ended up hating me for telling her truth, that I backed up biblically with scriptures over a period of two years.

            When she could not convert me to become a straight line -ew hater like her, she turned on me like a rabid dog.
            I feel sorry for people that live their lives in ignorance and hate.
            Most of the truth i bring forth, people misinterpret as hate, but I hate no one or no ideology per say, but I choose not to align with those things and people as well, but I can still pray for their soul.

        • Gay Veteran

          send YOUR money to Israel, keep our tax dollars here at home

    • leeholsen

      Foreign money has nothing to do with states and cities that cannot manage themselves.
      Illionois problems are on themselves, until they default of course and make it the countrys problem.

      • SoCalBeachDude

        No, that would not make it a federal problem at all.

    • SoCalBeachDude

      No, the US government HAS NO MONEY TO GIVE TO STATES even if it wanted to and has no business engaging in any bail out actions for states at all ever. The federal government of the US is TOTALLY INSOLVENT and has liabilities that are least $16 trillion greater than its assets of only around $4 trillion. As to revenue sharing for massive welfare and other programs of all sorts, the federal government already shares in the VAST COSTS OF THOSE PROGRAMS THAT THEY HAVE MANDATED ON STATES and those programs are the CORE CAUSE OF STATES HAVING FINANCIAL ISSUES.

    • JC Teecher

      while you are at using the Lord’s name in vain, (which proves my point that you are not Christian, but use Jesus name and God as mockery), over your disdain over Israel, then what about the 300 million dollars per year that US taxpayers give to the Palestinians, which in return pay out lifetime payments to families of killed jihadis?

  • df NJ

    Are we really going to choose having Rammstein military base open or saving Illinois???? EFF GERMANY!!!!!

    SAVE Illinois!!!!! AMERICA FIRST GOD DAMN IT!!!!!!

    • SoCalBeachDude

      Leaving aside the fact that the federal government is totally INSOLVENT AND HAS NO MONEY and is running a $1+ trillion a year annual deficit, it simply is not the responsibility of the federal government of the USA to in any way attempt to subsidize or bail out states.

      • df NJ

        Get rid of the Federal Reserve and have the treasurer issue legal tender without interest. Then we will be able to finally get rid of the debt.

        • SoCalBeachDude

          What utter stupidity. The Federal Reserve does not issue US dollars with interest, but rather REBATES 94% OF ITS ANNUAL PROFITS EACH YEAR TO THE US TREASURY.

          Interest is the TIME VALUE OF ALL MONEY and no money will ever been loaned to anyone without interest being charged.

        • awb22

          Amen!!

  • leeholsen

    The city of Houston has given their employees raises the past two years running despite being billions of dollars in debt and Houston is in relatively good shape compared to places like Chicago.
    The city, state and federal employees refuse to live in reality until it comes crashing down on them.
    I would bet money that most of all of these government employees do not get 25% of what their pensions are when reality comes.

    • xenonman

      Unfortunately, they will continue to receive 100+ % of their bloated pensions, as long as we continue to harbor this very naive concept that public-sector unions somehow promote the general good!

  • df NJ

    How many Americans have to live in squalor to keep our 700+ foreign military bases open??????? TIME TO BRING THE BOYS HOME!!!

    AMERICA FIRST!!! If the states are collapsing then whats the point of having any military????? The military did nothing to protect us on 9/11. If the states collapse where’s the tax basing going come from to pay for the military????

    • HeyAHuman

      The entities that run this country and economy are intentionally running it into the ground, and are planning to capitalize on a cheap foreign labor pool in order to further their global agenda which they plan, in the coming years, to move towards robotics, AI and automation, with the remaining lot of humans under the control of militarized slave labor camps.

      • SoCalBeachDude

        Nobody is “intentionally” running anything into the ground at all with the US economy or government, but rather the government is FILLED WITH A BUNCH OF PANDERING SPINELESS SPENDTHRIFTS who get elected and hold their “power” by endless mindless spending.

        • df NJ

          The Federal Reserve keeps the US in debt.

          • SoCalBeachDude

            Absolutely and laughably false. The Federal Reserve only owns less than 14% of the US government debt and 86% of it is owned by parties other than the Federal Reserve. Not to mention that the Federal Reserve is now in the process of reducing their total $4.4 trillion balance sheet by around 50% over this year and next which includes $2.5 trillion in US Treasuries (government debt) which should be dropping to around $1.2 trillion by the end of 2017.

            The biggest drawback to that is that the debt sold off by the Federal Reserve will then start costing the US government 100% of the interest paid on it, as while it is owned by the Federal Reserve it is essentially INTEREST FREE as the Federal Reserve annual rebates more than 94% of its profits to the US Treasury.

    • SoCalBeachDude

      The federal government spending on military is only 16% of annual federal government expenditures plus 4% for veterans benefits for a total of 20% of the annual $4 trillion federal spending. It is not in any way a proper role or the responsibility of the US government to in any way financially assist any state or states in the USA. Not to mention that would create a horrendously bad precedent if even a single state were to be handled in that way.

      As to states, it is up to their OWN GOVERNMENTS to manage their financial affairs properly, and if they don’t have enough taxes to pay for their services then they can easily 1) cut government services, pensions, etc., and/or 2) increase taxes to cover their costs. There simply are no other options at all,other than borrowing by issuing general obligation bonds, and now Illinois is at the end of that road.

      • df NJ

        Fine. Then you will agree no foreign aid until the states are made whole.

        • SoCalBeachDude

          “Made whole” for what? States are not owed anything from the federal government for their own spending matters but rather just for specific programs that the federal government mandates that states provide residents for which they are already getting substantial funding from the United States federal government.

      • df NJ

        16% is BS number because it includes Social Security which should not be in that pie chart.

        I thought you were smart. Why the eff are you pro-military spending? Military just destroys wealth. It doesn’t create economy.

        • SoCalBeachDude

          All Social Security spending comes right out of current federal tax revenues as all of the prior funds were used to fund the US deficit and are now in the form of US Treasuries (US government debt) to the tune of about $5.5 trillion.

        • awb22

          He’s an idiot and will waste your time.

          • SoCalBeachDude

            Hardly, but you certainly are just that, dude.

  • TtT Engine

    This is not a political problem, it is a gargantuan DEBT crisis of the highest order caused by decades of MASSIVE government. All the Blue entitlement states are severely under water. Sick&ILL Illinois will lead the train of collapsing states. This left wing tax sucking state has roadway tax buckets on friggin side streets for God sakes. SICK & GETTING SICKER. Decades and decades of massive government, massive entitlements, an upside down population caused by 60 million abortions and millions of workers out of the work force is the root cause of this financial calamity. Could you imagine the amount of taxpayer $ needed to fund Illinois’ 660 pension funds ? IOU’s for lottery winners !This is governmental wreckage and piracy of the highest order. If Pres. Trump were to open one U.S. factory per day, it would take the U.S.A. over 164 years to gain back the 60,000 U.S. factories closed/moved abroad since 2000. I will ride a bicycle before I put my A in one of your disgusting computer cars. Stick your robo cars where the sun doesn’t shine. The NEW RED/NWO/Abortion/Atheist/Climate devils have been systematically dismantling the U.S.A. since the 1960’s. OB, the fundamental transforming nation destroyer, put the finishing death blow on the RWB. You schmucks who voted him 8 years were suicidal. You “catholics” have much to answer for. Without a direct miracle/intervention from God in heaven, MS’s “the economic collapse” is unstoppable. It’s basic math folks ! The uber’s have their bunkers. May God provide/spare the faithful. Christi Fidelis !!

    • df NJ

      Pure BS. The US will never get out of debt by design. Get rid of the Federal Reserve and the US will be able to pay off its debts and have abundant surpluses. The system is rigged. If you think otherwise you are delusional.

      https://www.youtube.com/watch?v=ByFfzMORXSM

      • SoCalBeachDude

        What totally bogus and utter false nonsense. The Federal Reserve did not run up a single penny of the US government debt. That was run up 100% as a result of the GROSSLY PROFLIGATE DEFICIT SPENDING BY CONGRESS AND THE WHITE HOUSE OVER THE PAST 40 YEARS.

    • OhLucifer LovesMe

      Bravo well Said.

    • Gay Veteran

      “…an upside down population caused by 60 million abortion….”

      and pray where would Illinois find an extra 60 million jobs?

      • SoCalBeachDude

        Indeed.

  • Taos61

    I think a major cause of this debacle is insanely high pension benefits.What’s been promised is far beyond what can be paid on a sustainable basis.Govt workers in some dept make as much or more than they did working.How can you justify those getting 6 figure checks when people are living a whole lot longer and demand cola adjustments.Not feasible at all.

    • SoCalBeachDude

      Yep, 100% correct and that is true for ALL STATES and for the US FEDERAL GOVERNMENT.

      • df NJ

        Get rid of pensions and people will riot. There’s only so much poverty people are willing to take. How many congressmen have to get shot in the butt before you wake up?

        • SoCalBeachDude

          That’s what the police, national guard, and water cannons are for should that ever happen, and pensions are going the way of the dodo bird – particularly for the public sector employees.

          • Bruce

            Don’t forget there is a halluva lot more of us then their are of them.

          • SoCalBeachDude

            No, the amount of CRIMINAL HOOLIGAN GARBAGE is very small relative to the amount of RESPONSIBLE CITIZENS in the USA and anyone engaging in such reprehensible criminal hooligan activities would be strongly condemned by all.

          • xenonman

            I think you mean for private sector employees, most of whom have zilch in pensions.

        • awb22

          It’s the taxpayers who should be rioting. Instead it’s the welfare recipients. All the more reason for pension AND welfare reform.

        • xenonman

          We already have a sizeable number of retirees who must make do on NO pension at all. If retired state employees won’t accept modest cuts in their overbloated pensions, then let them riot (and be shot down).

      • Siloo Kapadia

        That is what we believe and that is why we made it for the exits back in 2011. There is trouble all over the world but USA and China are the eyes of the financial storm. BOTH are prone to massive rioting and in USA you also have racial.ethnic tensions that are unheard of in most other countries. BTW many Indians are fast leaving USA and many are also renouncing their USA citizenships so that alone should be a red flag to those that want to see it.

    • df NJ

      That’s not true. Wall Street has come in with exotic pension investments and have siphoned all the money out of the pensions. Google it.

      • SoCalBeachDude

        Please provide a single example as to that.

    • billtheguy

      You’re correct. Look at Detroit, Michigan. They thought they would always have the big three tax base, and now it is gone. They thought all along that they would be able to fund the city pensions forever. Promised huge pensions. Same thing will happen to my brother but he begs to differ.

    • Midwesterner

      You hit it on the head. There is NO Municipality, NO Corporation that can pay a retire’s income for 30 years AND his insurance AND replace him with someone & pay him too. All there people were promised money & they should get it, BUT the next generation of State employees have to contribute more to their retirement funds, & pay more of their insurance. It is unsustainable at the rate it is going.

      • NJ Renter

        Sorry, but it’s too late to try to keep all the unrealistic promises. Math is math and if they try to raise the tax revenue to pay all the obligations they made, it will destroy what’s left of the local economy and they won’t get the additional revenue anyway.

    • xenonman

      …and it can’t go on forever either! Here in neighboring WI, I know of retired clerical state workers who can afford the latest luxury pick-up trucks and winter in HI every year. In the private sector retirees from similar employment would be lucky to receive any pension or benefits whatsoever!

  • kimsarah

    The big problem with crony capitalism is “they always get rich by stealing other people’s money”

    • HeyAHuman

      That’s the problem with capitalism… even with regulation, those regulating can be “bought”. It seems that in time, any economic system can and will be hijacked by the corrupt.

      • SoCalBeachDude

        And the alternative is exactly what?

        • df NJ

          Have legislation ensuring free markets are kept free as opposed to what we have now. The problems of our country are NOT rocket science. The lobbyists force the politicians to pass laws creating cartels and monopolies in exchange for campaign financing. The lobbyists own the politicians. The CEOs own the lobbyists.

          • SoCalBeachDude

            There has NEVER been any such thing as “free markets” in anything and all markets of any importance have always been REGULATED just as they should always be.

        • HeyAHuman

          If you read the last sentence there, you’ll see that I don’t claim to have the solution. Do we have to have “the answer” for each problem we talk about on this blog?

    • df NJ

      CEOs and Corporations ARE the government. Lobbyists own the politicians. The CEOs own the lobbyists. It doesn’t matter which party controls the presidency. The lobbyists define domestic policy. The CFR defines foreign policy. The president is irrelevant.

    • SoCalBeachDude

      How is anyone “stealing” anyone else’s money?

  • df NJ

    Wall Street has raided the state pension funds with exotic investments that have siphoned all the money away from pension funds. Google it.

  • df NJ

    Jesus will save us from suffering financial collapse. Jesus is Lord. All God’s blessings will come to those who believe in Jesus.

    Jesus is the answer. If you don’t have faith in Jesus the economy will collapse.

    • SnodtBlossom

      there is no god

      • df NJ

        Of course there’s a God. I will prove to you God exists. God is just a word. Nobody denies the existence of the word God. God is defined by every sentence that uses the word God. God is a special word with a particular meaning no other word has. God represents every possible thought a person can have. Go also represents all truth unknown by man. This multiple semantic representation makes God unlike every other word in our dictionary. God is word representing every possible idea a mind can hold.

        • SoCalBeachDude

          There are more than 400 legitimate gods in the world with one for each of the more than 400 legitimate religions of the world.

      • GSOB

        Romans 5:8
        Galatians 1:4

  • IronBelly

    Since Illinois cannot reduce state pensions directly, Illinois should enact a special income tax on retired state government employees receiving overly generous pensions. The tax would not be applied to private sector pensions.

    • df NJ

      An investigation of how pension funds were invested would be helpful.

    • awb22

      Same difference. The governor tried to reform pensions, and lost in the state Supreme Court. Pension reform is needed everywhere.

    • xenonman

      In WI, lavish state pensions are nicely exempted from state income tax. RIDICULOUS!

  • Bob332

    Calimexifornia is not far behind. The U.S. govt under both parties and most state government don’t understand a SIMPLE formula…DON”T SPEND MORE THAN YOU TAKE IN” or eventually you WILL collapse.

    • SoCalBeachDude

      That is of course, excellent advise, and California has done just that and has a balanced budget with a surplus.

      • df NJ

        In my home town we have 3 police departments. 1 works and the other 2 are retired. Local government corruption is out-of-control. And there’s nothing that can be done about it. FBI is too busy investigating terrorism.

        • billtheguy

          Something similar here. The sheriff retires takes his pension then runs for sheriff and wins. Now is that double dipping or what?

      • Stuey

        If they have a balanced budget why is their debt going up every second???

        • billtheguy

          Didn’t Gov. Arnold in his day try to sell the Coliseum for needed money? I know it was a long time ago.

          • SoCalBeachDude

            Times were different back then, and Arnie was a total jackass in every respect and is long gone as Governor here.

        • SoCalBeachDude

          What on earth does total debt have to do with a BALANCED BUDGET?

          • Stuey

            Oh my god, the NEW dumbest statement you have EVER made. Unreal actually. Well if you have a balanced budget then you shouldn’t be adding more debt right. But CA is adding debt every second to the 459 BILLION they already owe. Anyway, you question is so absurd I don’t know what else to say about it.

          • SoCalBeachDude

            Your cluelessness regarding budgets and debt are beyond mind boggling, dude.

          • Stuey

            Then respond to my point of why CA continues to add debt when they have a so called balanced budget. But no, you won’t do that, you just do your usual routine, which is double talk and insult.

          • Stuey

            If you have a true balanced budget then your debt should not be increasing every second of every day. So debt is directly related to having a balanced budget. I am amazed i have to explain this to you.

      • HeyAHuman

        That’s completely false. California is one of the LEAST SOLVENT states with massive debt obligations, and was ranked as having the 7th worst fiscal condition of 2016 out of all states.

        • SoCalBeachDude

          Absolutely false and extremely stupid and utterly bogus assertions. California is by far the largest state economy in the USA with more than $2.5 trillion in GDP which is about 14% of the entire US GDP. California manages its state funds very responsibly and has a LARGE BUDGET SURPLUS and is in excellent condition financially and we just gave Governor Jerry Brown another small raise for his superb management.

  • Paul Vosper

    the 15 billion is in the private accounts of the crooks ,that run the murdering state of ILL.

    • df NJ

      FBI is too busy investigating terrorism rather than keeping state and local government corruption in check. When was the last time you heard of someone going to jail for corruption? Being against Big Government is one thing. Being against any government at all is anarchy!

      • Paul Vosper

        IT is not anarchy , it’s smart !!!!!!!! ……….

    • SoCalBeachDude

      Absolutely false. The $15 billion is the AMOUNT IN STATE BILLS ABOVE THE AMOUNT IN STATE REVENUES which is why they have a stack of $15 billion in UNPAID BILLS which has been accumulating for years.

  • Bob

    Could Illinois put more taxes on cigarettes and alcohol? This would certainly raise a good amount of funds that could lower their budget debt.

    • David_R59

      That trick has been tried by every government on the planet.
      People are organized and ready for it. Smuggling by organized crime will mean even less revenue collected.
      .
      Raising taxes will not do it. Lowering expenditures may.

  • stingray

    What state next????

    • df NJ

      For years they’ve been trying to destroy the teachers union in New Jersey.

    • David_R59

      Hopefully it’ll be California.
      They always boast that they’re the leaders in any important changes in society. Let they take the lead.
      It’ll look good on ’em.

      • SoCalBeachDude

        California is in EXCELLENT CONDITION as to its state budget and is thriving with a fully balanced budget which is running a very nice SURPLUS. As to leadership, California ALWAYS LEADS THE WAY and has by far the largest economy of any state in the US and would be the the largest economy in the world if it were an independent sovereign country.

  • XSANDIEGOCA

    Alas, IL can not print money.

    • df NJ

      We need to get rid of the Federal Reserve so we can pay off our debts.

      • XSANDIEGOCA

        The last guy who seriously proposed that was JFK and we know what happened to him.

        • df NJ

          Trump seems pretty brave.

          • SoCalBeachDude

            The US government debt is not in any way “contrived” but was caused by the RECKLESS GROSS PROFLIGACY OF THE US CONGRESS with most all of it run up just over the past 37 years since 1981 when it was just under $1 trillion and is now over $20 trillion.

        • SoCalBeachDude

          JFK never proposed any such thing at all.

      • SoCalBeachDude

        What utterly bogus nonsense. The Federal Reserve is the LARGEST SINGLE ENTITY CONTRIBUTOR TO US GOVERNMENT REVENUES EACH YEAR and has always rebated 94% of its profits each and every year for the past 103 years to the US Treasury. The Federal Reserve did not run up a single penny of the US government debt and CONGRESS AND THE WHITE HOUSE ARE 100% TO BLAME FOR THAT US GOVERNMENT DEBT.

        • PocoPete

          So where did all of these profits that the Fed rebates to the Treasury originate from?

          • SoCalBeachDude

            The Federal Reserve indeed REBATES MORE THAN 94% OF THE PROFITS IT EARNS EACH YEAR TO THE US TREASURY FOR THE BENEFITS OF GOVERNMENT TAXPAYERS and has done so for the entire 103+ years of its existence.

            The bulk of the Federal Reserve’s profits these days come from its $4.4 trillion ASSET PORTFOLIO which is comprised of around $2.5 trillion in US Treasuries with most o the rest in MBS instruments. The rebate of the earnings on those makes the INTEREST ESSENTIALLY FREE TO THE US GOVERNMENT ON THE US TREASURIES OWNED BY THE FEDERAL RESERVE which are around 14% of all outstanding US Treasuries.

            As the Federal Reserve SHRINKS ITS BALANCE SHEET over this year and next by around 50% by the end of 2018, the rebate to the US Treasury will fall accordingly which will make the deficit increase further and the cost of the US government carrying debt higher.

    • SoCalBeachDude

      Neither can the US federal government.

  • Leif Erickson

    Reduce drastically all of the Illinois state pension payouts, cut social welfare benefits, and implement an increase in state sales tax. Then step back and watch the riots.

    • df NJ

      There will be riots if they force so many people into poverty.

      • Leif Erickson

        Catch 22

      • SoCalBeachDude

        So what. It’s NO MONEY NO CHECKIE time.

    • SoCalBeachDude

      There are plenty of water cannons and police and state troopers and national guard to handle any hooligan nonsense should anyone try such stupidity.

  • df NJ

    Here’s the problem why ignoring people or only seeing one side of issue is bad. You just don’t understand the issue. awb22 called me an idiot. SCBD thinks I’m insane and he’s right (always the case). And snodblossum doesn’t believe in the existence of God (oh hum). But here’s the point:

    “So even if Pew’s numbers were right, the “unfunded liability” crisis had nothing to do with the systemic unsustainability of public pensions. Thanks to a deadly combination of unscrupulous states illegally borrowing from their pensioners, and unscrupulous banks whose mass sales of fraudulent toxic subprime products crashed the market, these funds were out some $930 billion. Yet the public was being told that the problem was state workers’ benefits were simply too expensive.”

    This issue is more complicated than just blaming state workers as having “exorbitant” retirement lifestyles.

    Looting the Pension Funds
    All across America, Wall Street is grabbing money meant for public workers

    http://www.rollingstone.com/politics/news/looting-the-pension-funds-20130926

    • JC Teecher

      …and you forget to mention the “fuzzy math”, that 99% of the states/ cities, that are in trouble, use to hide the truth from it’s people. Even the highly praised Niki Haley, as potus UN ambassador, had her state of SC in deep trouble from “not” making changes necessary, to preserve the pension fund. For political purposes, she had the comptrollers and lawyers hide the facts from the people, just like she hid the fact that she only changed from her Hindu religion when she saw an opportunity to make it in politics.

      It has happened over and over, in almost every major city that is in financial distress, they do the fuzzy math, and “project” a brighter picture for their future, than actually exists. You can’t hide the truth forever, because it will eventually find you out, and truth will be exposed.

      • df NJ

        Thanks for responding. The article I thought covered some interesting details. If illegal corruption did occur I wish the FBI had the resources to start enforcing justice. The article also gives a good explanation how this problem evolved. The Fed has talked about helicopter money. City worker pensions would be a great mechanism for distribution. I think people are missing the point that these people living off city pensions are a direct stimulus to the economy. These pensions are not insane but mostly cover cost of living. I think it’s a really big mistake to get rid of these pensions. We should try to be creating more economy not destroying it!

        Jesus is Lord

        • SoCalBeachDude

          Rolling Stone is one of the most stupid and clueless publications in the world that knows little about music and absolutely nothing about the financial industry and just had to pay out a huge settlement for its bogus allegations about a non-incident at some little college somewhere in the US.

    • awb22

      I was talking about SocalBeachBum, who is a godless idiot who will waste your time. You believe God, by definition that makes one wise.

      • df NJ

        I try to avoid passing judgment on others. I defer to the big guy.

      • SoCalBeachDude

        By definition that makes you just a “believer” without any empirical basis at all to believe!

    • SoCalBeachDude

      Wall Street is doing no such thing at all as “looting” any pension funds and to assert that is totally bogus rubbish.

  • Ron Liebermann

    There is no “budget shortfall”. That term is merely propaganda to make people believe that outrageous government pensions are legitimate. The only solution is to create a smaller budget.

    • df NJ

      Seems like.

    • David_R59

      Do you really think the Democrats and Rahm Emanuel would go for smaller budget? They’d have to take all of their favourite people off welfare.

      • SoCalBeachDude

        They obviously WON’T HAVE ANY OTHER CHOICE.

  • Stuey

    Good, let Illinois crash and burn.

  • TOUJOURS DEMAIN

    Move slightly further South to Naples.

  • Bilgeman

    It’s a shame that Indiana or one of the bordering states in better shape don’t offer to buy the southern counties for a few billion.

    I would think Indiana because the politics of the Hoosiers and Little Egypt seem to be politically simpatico.

    The Illinois DemocRats should be onboard with this since it turns their blue state even bluer,(if somewhat smaller)…and what’s the price of a few seats in the US Congress as long as they can continue providing social services to Sanctuaried illegal aliens, right?

  • David_R59

    Just to make a point, all Republican voters should vote for the Democrats in the next state election. That way the Democrats will completely own this mess and cannot blame Republicans for making it worse.
    This is what’s happening with the Obamacare fiasco. It’s collapsing and the Democrats are blaming Trump!

  • “V”

    “The magic tricks run out after a while, and that’s where we’re at.”
    Please take note Ms. Yellen!!!!

    • SoCalBeachDude

      The Federal Reserve does not engage in any “magic tricks” at all and is VERY TRANSPARENT and is an extremely conservative and well-managed central bank.

  • Richard O. Mann

    The only way to cut down on the size of the government in the US at this time would be a complete over throw and start over. Since I doubt that will happen, the next possible action will be to wait until the economy crashes, have the President declare martial law, and then see what happens.

    • SoCalBeachDude

      False, and that certainly is not going to happen at all.

  • whteshark

    But, but, but Illinois is a blue state and everyone knows Democrats are so much better and so much smarter than the rest of us little people, right?

  • wombat1951

    The impasse in IL is all Boss Madigan, the Dem. He refuses to compromise. Rauner said he would agree to raise taxes if Madigan would agree to make changes that got IL into the trouble it finds itself.

    Rauner is a rare GOP politician that refuses to cave. But Madigan won’t deal.

    • SoCalBeachDude

      Well, that’s true, but then what does he expect Illinois to do? Creditors will totally cut it off from any further borrowing and vendors will refuse to provide it with any services. The lotteries are even closing down and refusing to participate in Illinois. Roads will go unrepaired, and people will simply have to be fired en masse from state payrolls. BLAME BOSS MADIGAN, for the little good the blame game does!

  • SaintSimian

    And the Illinois politicians will look so surprised when they announce the state is bankrupt. What? Who…me? Nah, they will all say it is our fault for allowing them to rape and pillage by voting them in. Hoping that in our guilt, we vote them in for another term. America has become a victim of domestic violence and must figure out how to break the cycle or get used to the black eyes, sore holes, and low self-esteem..

    • SoCalBeachDude

      Illinois is INSOLVENT, not bankrupt, as there are no provisions in the federal bankruptcy code for any state to ever file for bankruptcy. Time to suck it up in Illinois and simply raise taxes very considerably there.

  • J.j. Cintia

    These goofs are waiting for a bailout. Lets see if Trump is dumb enough for this. He might be. I have a feeling that California, and all the other blue states are waiting to see how Illinois plays out before they start admitting they’re bankrupt too. All these liars like that idiot Moonpie in California have been claiming big surpluses and diversity works crapola. Actually they’re broke as a joke now. Those imbeciles who keep claiming all the red states are welfare cases and the “diverse” dumps of blue are so much in the black they can jettison the rest of America and build their delusional utopia of plenty are about to hit the hard bottom of reality. Plenty of BS maybe. Blue is broke. Red ain’t far behind. The Third World has dumped their garbage here. And that failure has led predictably to bankruptcy. Trump either goes Eisenhower or he’s going down in History as the Lincoln Party Loser that Lost Civil War II. Trust me. They either dump the liabilities or they have to run from Angry Americans.

    • SoCalBeachDude

      The federal government itself needs a massive bail out and the only place to turn for that is its own taxpayers. As to Illinois, like Puerto Rico, it has zero chance of getting any financial assistance at all from the federal government.

  • Leif Erickson

    Sure it’s safe. If the economy collapses, you’ll starve before the mortgage company forecloses on your home. Don’t worry. You’ll be dead before you become homeless.

  • rkb100100

    They’re still eating? Theres no crisis.

  • Siloo Kapadia

    “As contractual relationships break down, social services are starting to suffer, and there is not much hope that things will take a turn for the better any time soon.”
    Bachas (kids), this is happening all over USA and not just in Illinois. But Illinois is a kind of bellweather – a sign of things to come for the country as a whole. We saw this in NJ even when we lived there. Good public services gone crap, worsening transportation systems, etc. Very big shame!

  • SoCalBeachDude
  • SoCalBeachDude

    California’s total debt is very manageable and the State has a population approaching 40 million people which is by far the largest population of any state and an economy with a GDP of more than $2.5 TRILLION a year which is by far the largest state economy in the USA with no other state even coming remotely close to California.

    • Stuey

      Ok, if 459 billion is so manageable then it shouldn’t be any problem to start paying it down. But as you see on the debt clock CA is adding more debt every single second of the day. And please don’t make another absurd comment like “CA has a balanced budget and what does that have to do with debt”. I still can’t get over that statement of yours, holy smokes man you must have been hitting the sauce hard lately.

      • SoCalBeachDude

        Why would any state or entity ever want to pay off all debt?

        • Stuey

          Once again, drugheaddude DOES NOT directly respond to the topic of hand. He responds with another question. This is a pattern here that everyone is becoming aware of, double talk and insult that is all he can do.

  • JoeShepherd

    Illinois and all of the other states could pay all of their bills with about 10% of what we have wasted fighting needless wars in the Middle East.

    • SoCalBeachDude

      Absolutely false, and the federal government revenues are NEVER GIVEN TO STATES. Hellloooooooo?

      • JoeShepherd

        They could be given to the states. This is simple math. 2 Trillion on Iraq and Afghanistan, more than enough for all of our domestic needs.

        • SoCalBeachDude

          The only money ever distributed to states is for SHARED PROGRAMS such as the vast array of welfare programs that are administered by the states. Do not ever expect a single penny to simply ever be “given” to state governments. Moreover, the “wars” had no separate cost at from the US military budget of around $800 billion a year and the VA budget of around $200 billion a year, and the federal government is and has been running an ANNUAL DEFICIT OF MORE THAN $1 TRILLION so it has NO MONEY WHATSOEVER AVAILABLE TO “GIVE” TO ANY STATE UNDER ANY CIRCUMSTANCES.

          The “needs” (wasteful spending) of states is THEIR OWN PROBLEM and it is a problem of their OWN MAKING. The solutions are very straightforward and amount to 1) CUT SPENDING, and/or 2) RAISE TAXES. Period.

  • Bruce

    Make NO mistake about it. Politicians are the cause of our economic mess. They were elected to represent us. They are supposed to lead. They have lead us down a dark path with NO light at the end.
    My wife is a state employee very near retirement. Thankfully not in Illinois but, in reality what’s the difference. Once the can stops being kicked down the road ALL states will be in trouble. As well as the US Gov itself. Once the collapse occurs the 50 states that are the legs of the stool will also falter.
    Once that happens then the chaos, hunger and madness will overtake this land. However, at some point every single politician will be a target. They have sold all of us down the road. They (not us) have allowed laws that paved the way for all of our factories to leave this land. They have caused the great unemployment. They could have stopped all of this but, oh! hell no. They own the factories or their cronies do. Or they have derived Millions in campaign contributions to save their own cushy jobs.
    A nurse who is a relative of mine recently got stuck with a needle that had given a diabetes patient their insulin. The patient also has HIV. The risk of infection is low however, they still wanted her to take a 30 day regimen of medicine that would stop even the low chance of infection. the medicine is over $3,000. Politicians could of stopped the insanity with prescriptions as well. They did nothing as prescriptions went out of site.
    Over and over again they have voted for bills that screw us. ALL LOBBYIST activities should be banned. They bring their bags full of money for votes in their favor. While all of the common people are SCREWED! This is what has happened in Illinois. Greed, mismanagement and politicians!

    • SoCalBeachDude

      Politicians REPRESENT THE AMERICAN PEOPLE and it is the AMERICAN PEOPLE who are responsible for our current financial mess in certain states and in the USA.

  • Bruce

    Some have said that all the rioting, looting and utter chaos will be stopped by Police, national guard, Etc. That is utter foolishness. I can’t count the number of major riots that were NOT stopped until the rioters were ready to stop. There are thousands of people for every cop and National Guard. You really think their tactics are going to work? NOT.. They have rules and laws to go by and rioters don’t. When the collapse becomes full blown it would be a suicide mission for ANYONE to think they are going to stop the masses.

    • SoCalBeachDude

      Criminal hooliganism WILL NOT BE TOLERATED ANYWHERE IN AMERICA and whatever force and means are necessary to stop such idiocy will be used effective to get such nonsense totally stopped.

  • xenonman

    Maybe IL should just go out of business in 2018, on the occasion of the bicentennial of its statehood!

    • SoCalBeachDude

      They could attempt to merge with some other state in the area on its borders, possibly Indiana.

      • xenonman

        as long as that state isn’t WI !

      • xenonman

        As long as it isn’t WI !

  • NJ Renter

    And why would the Illinois National Guardsmen even show up if the State can’t afford to pay them on time?

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