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Monday, June 19, 2017

Illinois: One of Many Deadbeat States

Today we're going to pick on the state of Illinois and not just because we hate their two 'native' sons Obama (really was foreign born) and Lincoln (was born in Kentucky)..

Well not so much the people living there..

OK, we're going to point out the financial drain a certain minority group has become on the state but otherwise a no-blame zone
We've had many examples in past and present of deadbeat cities such as Detroit and NYC in the 1970s and deadbeat territories (Puerto Rico recently) that had to be bailed out by taxpayer dollars just to keep the governments running and poor ignorant minority populations from rioting

Now it looks like Illinois will be the first US state to have over-extended itself to such a degree that it begs for Federal assistance  (states are not allowed to file in bankruptcy court like cities and municipalities thus far..)

Here's some recent example of how their continued financial mismanagement and their nanny-state system of giving money to all those inner city blacks who keep making babies and getting more checks is destroying the state:
Roadwork Could Shut Down Across Illinois Due To Budget Impasse  (Chicagoist) – "Roadwork across Illinois may grind to a halt at the end of June due to the continued state budget impasse, a representative for the Illinois Department of Transportation (IDOT) announced Wednesday. IDOT will be unable to pay contractors on July 1, unless the state passes a stopgap funding measure...

Illinois has gone almost two full years without a state budget, which has hit education funding throughout the state and generated more than $14 billion in unpaid bills."

Powerball, Mega Millions to Halt Illinois Lottery Due to State’s Inability to Pay Winners (Mish) – Both Powerball and Mega Millions Lotteries Will Pull Out of Illinois on June 30 due to the budget impasse.

Without a budget in place, the state is not authorized to make payments to the association or Mega Millions.

Lottery proceeds are about 2% of state revenue... Revenue corporate income tax collection is down 41.3%. 

Could Illinois be the first state to file for bankruptcy?  (CBS) –  A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. 

At the moment, it’s impossible for a state to file for bankruptcy protection, which is only afforded to counties and municipalities like Detroit.

Chapter 9 bankruptcy protection could be extended to states if Congress took up the issue, although Stanford Law School professor Michael McConnell noted in an article last year that he believed the precedents are iffy for extending the option to states. Nevertheless, Illinois is in a serious financial pickle...

Ratings agency Moody’s Investor Service earlier this month downgraded Illinois’ general obligation bonds to its lowest investment grade rating, citing the state’s growing pile of unpaid bills and its mounting pension deficit. 
Illinois, by the way, has the lowest credit rating of any state. Lower ratings mean higher borrowing costs, since lenders view such borrowers as riskier bets...

As noted by the Fiscal Times, Illinois is the only state that’s been operating without a balanced and complete budget for almost two years.

Gov. Bruce Rauner said after the Illinois Legislature failed to produce a full 2017 budget earlier this month, “We’re like a banana republic. We can’t manage our money,”

Yes you are & No you can't
A lot of the financial drain is due to a black population that is a whopping 14.5%  (and an absolutely disgusting 33% of all Chicago residents!)..

While to some, it might not seem fair or nice to pick on them, let's compare that state to a couple others with low black populations to see how their economies are doing..

In South Dakota, only 1.3% of the state is black and it possesses the 6th lowest unemployment rate in the nation at 3.8%.. It is also ranked 13th in education
In North Dakota, only 5.8% of population is black and it was ranked by Business Insider as the strongest state economy in the nation with the 2nd lowest unemployment rate (3.1%) and highest growth rate in nation (7.1%)..  It's also ranked 6th in education

Illinois is 30th..

We will never ignore truth or facts for political correctness

So back to deadbeat land of Lincoln..
Based on the immensity of its pension obligations, the legal barriers to simply cutting benefits, and falling tax revenues, Illinois is a lock to default on some or all of its obligations in the next few years.

This affects pensioners, state contractors and pretty much anyone who cares about or depends upon local public services.

In other words, life is going to get a lot harder for people living in the state, and especially for those living in double-bankrupt sanctuary city Chicago.

But the real question is once Illinois is magically bailed out, who is next?
If Illinois defaults, how far behind can New Jersey, Kentucky, or Connecticut be?

The next big question is: How will stronger governments respond to the implosion of weaker ones? If the failed states are bailed out by the still-solvent, what does that do to the latters’ balance sheets?

It becomes the haves giving to the have-nots which is exactly what socialism is

But at the end of the day, it becomes the fault of the voters of Illinois

Instead of caring about real-world problems like this, so many especially in the media are only focused on Russia meddling, alleged 'obstruction' and Impeachment-mania

Such a mess..