Financial Flagellation – Illinois Budget Deadlines Passes Without Action…

Utilizing some Bloomerberg and Zerohedge reporting – treeper SeekerofTruth provides a nice recap of Illinois financial self-flagellation.  Charging head-first into the abyss:

SeekerOfTruth – June 30 came and went and the Illinois legislature did nothing. So the courts have stepped in now.  Bloodbath coming. Fun to watch if any news outlets would report on the story. The bloodbath of decades of liberal policies and corruption.

From Horrific To Catastrophic”: Court Ruling Sends Illinois Into Financial Abyss.

By the end of Friday – the last day of the fiscal year – Illinois legislators failed to enact a budget, and while negotiations continued amid some glimmers of hope and lawmakers planned to meet over the weekend, the failure marked a continuation of the historic impasse that’s left Illinois without a full-year budget since mid-2015, and which, recall, S&P warned one month ago will likely result in a humiliating and unprecedented downgrade of the 5th most populous US state to junk status.

Then came the begging.

According to Bloomberg, on Friday Illinois House Speaker Michael Madigan, a Democrat who controls much of the legislative agenda, pleaded with rating companies to “temporarily withhold judgment” as lawmakers negotiate. “Much work remains to be done,” the Democrat said on the floor of the House Friday, before the chamber adjourned for the day. “We’ll get the job done.”

… However, in a “shocking” development, just hours remaining before the midnight deadline to pass the Illinois budget, and Illinois’ imminent loss of its investment grade rating, federal judge Joan Lefkow in Chicago ordered Illinois to come up with hundreds of millions of dollars it owes in Medicaid payments that state officials say the government doesn’t have, the Chicago Tribune reported.

Judge Lefkow ordered the state to make $586 million in monthly payments (from the current $160 million) as well as another $2 billion toward a $3 billion backlog of payments – a $167 million increase in monthly outlays – the state owes to managed care organizations that process payments to providers.

Friday’s court ruling, which meant that the near-insolvent state must pay an additional $593 million per month, may have been the straw that finally broke the Illinois camel’s back.

“Friday’s ruling by the U.S. District Court takes the state’s finances from horrific to catastrophic,” Comptroller Susana Mendoza, a Democrat, said in an emailed statement after the ruling.

As a result of the court decision, “payments to the state’s pension funds; state payroll including legislator pay; General State Aid to schools and payments to local governments — in some combination — will likely have to be cut.”

Also, without a budget that includes borrowing to pay down the bill backlog, Illinois by August will run out of money for key expenses for the first time since the stalemate began, according to Comptroller Mendoza. That means school funding, state payroll, and pension payments could be affected, she said. There won’t be enough money for these mandated or court-ordered payments.

she said that payments to bond holders won’t be interrupted (more below).
As noted above, Mendoza said that this won’t jeopardize debt-service payments, however she probably should have added “for now.” For now, Illinois hasn’t missed any bond payments and state law requires it to make monthly deposits to its debt-service funds.

===> Missed bond payments and the state goes into default. If bonds are moved to junk status many bond funds will have to sell the bonds because many mutual funds do not allow any or much junk rated bonds in the fund.

PS. This is the real number 1 news story in the country right now. And almost nobody even conservative sites are reporting on it. Muh Russia narrative needs to be replaced with Illinois policy and legislative failures as the number 1 story all over in the country. Illinois is the not so shiny example of the policies that the MSM so longs for and preaches as good every day.

Nothing will likely be done until this does become a national story and people see just how stupid Illinois people are. Right now they can save some face but not if this becomes headlines all over. This is no longer a kick the can further down the road situation. They only have until the end of summer until the can falls into the abyss. Then schools will not open and more importantly Teachers Union people will not be paid.

Bond payments missed and the state instantly goes into debt default and that activates financial legal processes.  (link)

They’d better get things straightened out quick, they’ve got a library to help fund…

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224 Responses to Financial Flagellation – Illinois Budget Deadlines Passes Without Action…

  1. Publius2016 says:

    Country’s

    Like

  2. Publius2016 says:

    That’s right, I forgot: in the words of Chicago’s mayor, “never let a crisis go to waste.”

    Liked by 4 people

  3. dogsmaw says:

    http://abc7chicago.com/politics/speaker-madigan-no-vote-on-budget-this-weekend/2171835/
    ILLINOIS BUDGET
    Speaker Madigan: No vote on budget this weekend

    Updated 1 hr 36 mins ago
    SPRINGFIELD, Ill. — Illinois lawmakers returned to work Saturday after missing a key deadline to prevent the state from starting an unprecedented third consecutive fiscal year without a budget, but the House leader said a vote wouldn’t be taken over the weekend, meaning the state is entering dangerous territory.

    A $36.5 billion plan to rebuild Illinois’ crumbling finances passed a critical test on Friday, but a final deal hasn’t been reached. House Speaker Michael Madigan appeared brief on his chamber’s floor Saturday and said negotiations on a budget deal were continuing.

    Without a budget, the state comptroller will be unable to cover basic services ordered by courts, road construction and Powerball ticket sales could halt, and the state’s credit rating could be downgraded to “junk.”

    The fiscal morass is the longest of any state since at least the Great Depression, with Illinois ringing up a $6.2 billion annual deficit and a $14.7 billion stack of past-due bills.

    Democrats who control the Legislature said the latest proposal, which won a preliminary 90-25 vote in the House on Friday, would be fueled by a $5 billion income tax increase and $2.4 billion in spending reductions. Revenue details have yet to appear in the legislation, but lawmakers weary of the two-year standoff with Republican Gov. Bruce Rauner approved the spending outline.

    Lawmakers were negotiating spending-and-revenue work as well as issues demanded for two years by the first-term governor, such as freezing local property taxes.

    Republicans responded to Madigan’s announcement Saturday by standing in objection. One GOP member shouted “Speaker Junk” – a reference to the state’s creditworthiness – as Madigan left the floor.

    Madigan said Friday that he would send messages to the major credit agencies, which promised a downgrade of Illinois’ creditworthiness if the state didn’t have a deal by the new fiscal year. Credit agencies typically don’t publish analyses on weekends or during holiday periods, so the timing might be in Illinois’ favor.

    The Prairie State’s last annual budget expired two years ago. Without a deal this time, the United Way reports that 36 percent of all human services agencies in Illinois face closure by year’s end, according to Rep. Greg Harris, the Chicago Democrat sponsoring the fiscal blueprint.

    “There’s really not much to say, given the gravity of the situation we’re in. People in every corner of the state are watching what we do, to see if we get the job done,” Harris said in presenting the plan on the House floor Friday. “We’re staring at an abyss which faces us tomorrow morning when the clock strikes midnight.”

    Still, what has routinely been acidic, rancorous debate over how to meet the state’s financial needs gave way to a measured tone of cooperation.

    “I come to you today with great joy, not with regret or despair. We’re going to save our state, and we’re going to save it together,” the House Republicans’ floor leader, Rep. Steve Andersson of Geneva, said to thunderous applause.

    The House adjourned mid-afternoon with the caveat from Deputy Majority Leader Lou Lang, a Skokie Democrat, that “meetings are taking place all over the building.”

    The proposal awaiting final House approval is similar to a Senate fiscal plan, meaning the House plan would need Senate concurrence. It’s unclear whether House members who voted for Friday’s spending outline would cast similar tallies for a yet-to-be-unveiled revenue plan, which will likely include a 32 percent hike in the personal income tax rate, from 3.75 percent to 4.95 percent.

    Few places in Illinois have been hit harder by the financial mess than the capital city, where state bills owed to the city, hospitals and other vendors have topped $300 million, said Springfield Republican Rep. Sara Wojcicki Jimenez.

    “Almost everyone in my district has been touched by this crisis, and many have lost sleep, including me,” Wojcicki Jimenez said. “I’ve not been able to go to church, drop off my kids at school, go to the grocery store, eat out, without friends, neighbors, people I don’t even know, urging me to pass a balanced budget.”

    Liked by 1 person

  4. lastinillinois says:

    Here’s something regarding pensions in illinois that doesn’t get discussed much:

    Over the last 3 or so years, Chicago Public Schools has been privatizing their building engineers and custodians.
    Custodians are becoming/have become Aramark, bldg engrs are becoming Aramark or Sedexo Magic (Magic Johnson’s part ownership gives them minority status so they can bid on these jobs).

    Anyway, by june 30 2018 every bldg Engr at CPS will be either Aramark, Sedexo Magic or CPS employee choosing to retire.

    My question:
    If Chicago pensions can’t be funded now (and they can’t), how will they be funded going forward when there is no-one left paying in?

    Liked by 7 people

    • lastinillinois says:

      “….. by June 30 2018 every bldg Engr AND CUSTODIAN will be either ……”

      Liked by 2 people

    • mightyconservative says:

      Wow, I didn’t know that. Thank you For Sharing!

      Liked by 2 people

    • This is a big problem, and you can’t blame the retirees. They bargained for their retirements in good faith, and the courts have said that those plans are to be safe. The problem is that the states all ran them like Ponzi schemes, but the workers aren’t responsible for that.

      Liked by 3 people

      • spaulj67 says:

        Every single retirement plan is a ponzi scheme it’s just that some are better funded than others. Heck even the so called assets they hold are just more IOUs.

        Liked by 5 people

      • “…in good faith …” Really? Seriously? Are you assuming all these retirees are idiots and didn’t know what they were doing???

        Liked by 2 people

      • thesavvyinvester says:

        ” The problem is that the states all ran them like Ponzi schemes, but the workers aren’t responsible for that.”

        Motown, I actually knew a pension adviser to a MI Municipality 20 years ago. He was an Insurance Agent / Investment Adviser who got the waivers from Corporate to do this task, it may have been a volunteer gig, but he loved it, highlight of his career, From what I gather, he thought and acted like the buzz word of the day “A Fiduciary”. From our conversations, they tried to mimic the S & P 500 nothing exotic.

        20 years later, It is enough to make you scratch your head that the following hasn’t happened. 1, let Vanguard run your Pension ( if they would do it ) 2, “The Index Revolution” by Charles Ellis denotes that the Index Revolution is real, why bother hiring Pension Managers, you’d be better with 1/2 dozen Indexes managed passively possibly with an eye towards your outflows. Other than control and power, why would any Municipality or State that has a Defined Benefit Plan not freeze it and look for a low cost operational Index model that is hands off from those that could muck it up, is beyond me….

        Liked by 1 person

        • Chip Stevens says:

          Your performance using any old S&P 500 Index fund can vary and can be superseded by using the CORRECT S&P 500 index. Not all S&P 500 indexes are the same. 45 years in the investment advisory business taught me that long ago. Do some serious research and you’ll discover what I mean.
          Overlooked or omitted in this discussion is the fact that much of New Jersey’s government functions are also shut down currently due to……..Democrats in Trenton haven’t/can’t/won’t pass a budget either.
          Hmmmm. Illinois democrats and New Jersey democrats: do I see a pattern here?

          Like

        • dayallaxeded says:

          we all know why those common sense moves weren’t made–pol hogs at the trough.

          Like

    • farmhand1927 says:

      During the past 8 years in particular, larger school districts across the nation have contracted food service and custodial jobs to Sodexo, a.k.a., SEIU, a.k.a., major source of funding and support to the radical Left and amnesty/open borders activists.

      Not all school districts have gone that route, just as not every teacher in America is unionized. I’m amazed at how many taxpayers in many parts of the country don’t know if their local district has a teacher’s union or not.

      We’ve slowly but surely fallen asleep at the wheel and allowed school districts, often run by progressive administrators and superintendents jump thru liberal hoops in exchange for state and federal money.

      While some superintendents that make well over 6 figures a year, have company vehicles, lots of all expense paid retreats to exotic locations to learn how to maintain their own behemoth ruling structures, lots of kids in their districts attend classes in portable classrooms with poor ventilation and learn to the sound of mice scurrying under the floors and gnawing away at the bldg skirting.

      Schools are overcrowded and class sizes too large but when revenue comes in, somehow there’s new assistant to the assistant to the superintendent jobs that must be filled first. Ask any ‘super’ in that scenario and they’ll rant that it’s the taxpayer’s fault. If only they would approve bond measures and give the schools more money. The big Suburban’s in the administrative fleet are almost 3 years old and need replacing; we need all this because its ‘for the kids’.

      School board meetings too often have closed door sessions. Why? They operate on our money and hire our employees. Why can’t the people paying for all of it know what’s going on? Curriculum is often decided behind closed doors and then we complain that schools have rewritten history and wonder how it happened. And of course, one of my top pet peeves, taxpayers get held up by the bunch of lyin’ crooks and thieves known as CNN as we’re forced to fund CNN Student News into classrooms every single school day, K-12. It’s been proven that they lie to us, yet we allow them to indoctrinate our kids and not enough people seem to care.

      Take the above scenarios happening across the country, compound the waste, fraud and abuse many times over and you’ve got the Chicago School District. Their teacher’s union is beyond a powerful political machine. Rahm Emanuel carries on all the ‘traditions’ that embody the fiscal and social climates in a city that’s not safe to walk the streets in.

      When Rahm was elected mayor, he boasted that he was putting a citizen task force of Muslims on Chicago streets. They were supposed to walk and drive neighborhoods, patrolling for problems and given authority by the new mayor to solve problems. Look at the crime rate and worse, mortality rates, since that went into effect.

      Chicago runs Illinois, the Madigan’s which have Chicago roots, run Springfield. The people of small towns and farming communities were always helpless against the Daley Machine and today remain helpless against the various Chicago crime syndicates in general simply because they are grossly outnumbered.

      Believe it or not, Illinois would be a red state were it not for Cook County (Chicago) a couple collar counties, the portion of St. Louis that spills into IL and Champaign County, home of the Univ of Illinois, the school that spawned Bill Ayers and Bernadine Dorn.

      Illinois was, for centuries, an actual swamp. Some of my ancestors and maybe some of yours literally drained those Illinois swamps using hand dug tiling systems, teams of horses, two-man saws and back breaking labor that aged men and women well before their times. What was left behind is some of the most fertile, black loam soil on the planet. Illinois farmers have been big players in feeding the world for decades. Chicago cashed in on that resource and grossly abused it’

      Some of the kindest, most hardworking, America (and Trump) loving people in America live in Illinois. They are the Forgotten Men and Women, too. They’ve had their money confiscated and their voices and votes are laughed at.

      Time for a new era of draining the Illinois Swamp that is the Democrats, Chicago and Springfield political hacks and obstructionists. This story of Illinois’ collapse should be touted as a prime example of liberalism and socialism left unchecked. The Left has enabled the once great city of Chicago to devolve into a Venezuelan fiscal and social abyss. But if course, CNN and the MSM would never allow the coverage, would they?

      Until that modern day Illinois Swamp gets drained, if it ever does, it’s fair game to go after the perpetrators of the crimes that have caused this fiscal nightmare, but remember to have some compassion for those in the state that have fought against it all and tried but were silenced. They and their families are the real victims.

      Liked by 2 people

      • dayallaxeded says:

        Ill needs to change its and Chicongo’s form of goobermint to implement an electoral college or senatorial representation regime that also appoints management for Chicongo. Weight representation by common sense, not just population.

        Like

        • Oscar Oddpicker says:

          Excellent summary. I live in Illinois and will be moving out for good in 4 years.
          Illinois is a one party system (John Kass, Chicago Tribune columnist refers to the Illinois political power structure as “the Combine.”)
          I believe Mike Madigan (the emperor of Illinois) has run out of rabbits to pull out of his hat. Also, what I didn’t hear on national news along side the failure of Illinois to pass a budget last Friday is the new Cook County soda tax. I live in Cook County and I feel every time I leave my house, I’m vulnerable to some form of new street tax, penalty, speed/photo radar, parking ticket or fine.As bad as Rahm Emanuel is as mayor of Chicago, I predict the next mayor will be even further left and send the collapse of Chicago and Illinois into hyperdrive.

          Like

  5. Troublemaker10 says:

    Medicaid sinking Illinois
    http://donsurber.blogspot.com/2017/07/medicaid-sinking-illinois.html#more

    Excerpt:

    Yes, I get that the pension costs in Illinois are through the roof. ERISA — a 1974 congressional act that protects private pensions — does not cover government workers.

    But what is really sinking Illinois’s state budget is Medicaid. In order to receive $12 billion in federal money, the state must pony up $8 billion next year.

    That is a whopping 22% of the state budget. State after state after state faces the same dilemma.

    The medical industry has milked state taxpayers dry by providing the poor routine services at emergency room prices. If states said no, hospitals would stop giving routine treatment in ER.

    Reining in Medicaid is long overdue, yet the medical industry’s lobbyists are persistent. People will die!

    Liked by 5 people

    • Joshua2415 says:

      We should let Illinois taxpayers in on a little secret…EVERYONE is going to die. Human beings have a 100% mortality rate. None of us are getting out of this alive!

      Liked by 3 people

    • nimrodman says:

      “The medical industry has [milked] BILKED state taxpayers dry by providing the poor routine services at emergency room prices.”

      There.
      Fixed it for ya.

      Liked by 1 person

    • farmhand1927 says:

      Keep this in mind, America, as the Left attacks the new healthcare legislation because of ‘cuts’ to Medicaid.

      Shame on Paul Ryan and Mitch McConnell, et al, for not telling the truth abt what Medicaid has done to state and federal budgets.

      Liked by 1 person

  6. SeekerOfTruth says:

    Advance to next week and the Illinois budget talk. A clue into the BS that will come out. Do not fall for it. Look behind the curtain.

    Will they pass a budget? Probably
    Will the passed budget do anything really to solve their many serious problems? No.

    If a budget is passed it is being passed for only 2 reasons.
    1) To show the rating agencies that they can do something and please do not lower bonds to junk status.
    2) And try to get back into the Powerball and Mega Bucks lotteries.

    The budget will have future tax increases and future cuts in spending with many cuts never happening. Budgets often project cost cuts and savings that never happen until 5-10 years later and then never really happen.

    Do not fall for the talk that will come out and the lies and spin. Like look we passed a budget and solved all our problems. Just spin for the rating agencies.

    Dems are good at spinning and lying. To get the Chicago and Illinois Dems to really try to solve their problems would be like trying to get CNN to say nice words about President Trump. It would just taste bad coming out of their mouths. Never going to happen unless rating agencies downgrade them to junk even with a passed budget.

    CNN – never going to happen – Nice words about President Trump and family. The only remaining followers of CNN are the very radical left. If they lose the radical left they would have nothing.

    Liked by 5 people

  7. Donna in Oregon says:

    I predict that Sec. Sonny Purdue will help the rural people of Illinois. They will be fine. Farmers and other producers will get financial assistance if they need it. President Trump is working hard to create great trade deals. Everyone’s gotta eat. POTUS supports the forgotten men and women of this country. That is why we elected him.

    The media and politicians of the Swamp…..they are on their own.

    Liked by 2 people

    • Donna, the only “financial assistance” the US Ag Dept can offer farmers is crop insurance. i know there are some price guarantees and crop purchases, but those programs are already in place. The Ag Dept can’t pretend there has been a weather event. So exactly what kind of financial assistance are you expecting?

      The state’s financial problems are not related to farmers’ lives. Some of my farmer friends in Oregon have told me they just wish they could make enough money to pay taxes!

      Liked by 1 person

      • Donna in Oregon says:

        Sorry, I’m late in responding. Got distracted….

        1. This All Affects the Rural Trump Voter
        This afternoon, President Donald Trump is signing an executive order that creates a rural taskforce “designed to promote agriculture and rural prosperity in America.” As the Washington Free Beacon writes,

        Trump will meet with members of the agriculture industry including Secretary of Agriculture Sonny Perdue, Zippy Duvall, the president of the American Farm Bureau, and various farmers and ranchers to discuss the issues facing the industry.
        ‘We will be asking Secretary Perdue to establish a task force that does a 180-day review of regulation and policy, legislation that unnecessarily hinders economic growth in the agriculture area,’ said Ray Starling, the special assistant to the president for agriculture.
        Of course, many rural voters are hoping Trump can help reanimate their local economies: offering tax cuts, tariffs, or other regulatory initiatives that might foster growth and bring back jobs. Anything that might offer hope in the face of economic blight and brain drain.

        https://www.usda.gov/media/press-releases/2017/04/25/perdue-joins-white-house-farmers-roundtable-president-trump-issues

        The task force will examine and consider, among other issues, current barriers to economic prosperity in rural America and how innovation and technology may play a role in long-term, sustainable rural development. The panel will attempt to strengthen federalism by working with state agencies charged with implementing economic development, agricultural, and environmental programs, while also emphasizing regulatory flexibility for farms and small businesses. With a dependence on sound science, task force members will examine crop protection tools used by farmers and also address concerns regarding labor needed for livestock and year-round agricultural jobs. Additionally, the group will focus on tax policies that allow family farms to remain intact, while also protecting against federal takeover of state-adjudicated water rights, permitting and licensing, and conservation requirements beyond what is provided in law. Finally, members will look to improve food safety and the implementation of food safety laws, but also recognize the unique nature of farming and the diverse business structures of farms.

        Liked by 2 people

  8. GW says:

    Now we know why Illinois people are called FIB’s !!!
    The only thing that could be better than this is if it were to happen to California LOL.

    I just hope there isn’t some sort of Federal Bailout foisted upon us by Congress.

    Liked by 2 people

    • carrierh says:

      CA is already in bankruptcy and no longer the largest provider of anything except more taxes, nothing accomplished, money disappearing into the General Fund and “elsewhere” and you can only tax so much, and especially when the invaders on our CA soil pay nothing and get everything free. Ill now and CA next because, again, democrats tend to believe money does grow on trees. NOT!

      Liked by 2 people

      • Grandma Covfefe says:

        State Gov’t pensions is one of the biggest problems. All Gov’t need to pay into SS like the rest of us. These so-called state funded pensions should be outlawed as there is no accountability. No excuses, no exceptions.

        Like

      • thesavvyinvester says:

        “and CA next”

        My money is on Connecticut, they are in deep doo-doo as well. Don’t forget New Jersey coming along on the outside down the backstretch. FWIW Howie Carr was on a screed a year or 2 ago that Massachusetts between Mass Care and the 50k a year the state doles out to anyone on assistant (aka new immigrants ) was also making MA a financial morass….

        Like

  9. Life Long Illinoisian says:

    Recipe for disaster.
    1. Unionize Public Employees
    2. Allow Unions to support Political Candidates and work in Elections
    3. Allow Politicians to decide pay and benefits for Union Public Employees
    4. Allow Politicians to spend freely on public entitlements to more than 50% of the voters
    5. Allow Political Parties to block challengers in primaries with “straw man” candidates ready to file for election if challenger files.
    6. Allow opposing political parties to collude with each other to divvy up which Offices each party will control.
    7. Nullify votes by manipulating the system so that 80% of the voters don’t even vote.

    This is what happened in Illinois. This is what has almost happened in the USA as a whole.
    This is “Democracy” American Style.

    Liked by 7 people

  10. Alison says:

    Leftist economic disasters reach combustion point at the same time MSM is self-destructing in flames of #FakeNews.

    I thank Our Lord every day for President Trump & his stellar cabinet.

    It would be hard to overstate the size of the bullet we dodged when Hillary tanked. Bailing out blue state underfunded liabilities with our federal tax dollars was looming on her horizon.

    My liberal teacher daughter-in-law ought to be questioning the solvency of her ‘guaranteed’ retirement pension here in Colorado. Sadly she drinks the teachers’ union kool aid. The only guarantees in life are death & taxes. Gov’t & Union promises don’t qualify.

    Liked by 5 people

  11. thirdand43 says:

    The decent people from the rest of Illinois (the non Chicagoans) ought to descend upon the State House with 21st century versions of torches and pitchforks.

    Liked by 1 person

    • ahem says:

      Not everyone in Chicago is a knuckle-dragiing moron. I have been voting against the machine for decades. Unfortunately, current family circumstances mandate that I go down with the ship. The greed and corruption of the Democrats will affect my ability to get healthcare and probably be the death of me.

      Please try to remember that not everyone in Illinois deserves this.

      Liked by 5 people

      • fuzzi says:

        I have several family members living in IL, including some in Chicago. They make enough money to survive, but have to live in older, poorer neighborhood housing. The cost of living in the nicer suburbs are beyond their means, so they’re stuck.

        We told them they’d be welcome here in NC, as they are not liberals. 😉

        Liked by 1 person

        • dilonsfo says:

          Yep…when it appears you are going to lose everything, or at least a large portion, it is time to move on. Mississippi is a great state with a much lower cost of living than Chicago. If you are not a liberal then move south. If health insurance is the only issue then start calling and emailing Congress. Of course nobody is suggesting that everyone in Chicago is bad…however, if the majority is then the good suffer and there is no changing that fact. When the ship goes down so does everyone onboard. Those that took to life rafts might face hard times but they will survive. I know several people that could not take the liberals in California and, at great sacrifice, moved their families to rural Georgia. Not a lot of great jobs in the rural areas. Each one decided to take a chance and began small businesses. It took four to five years but every family is now making a great deal of money. One is now a millionaire.

          Liked by 2 people

      • marcyo13 says:

        No one deserves what happened in Illinois, or CA, or Connecticut. They were lied to, conned, backdoor illegal deals were made, corrupt politicians and union officials colluded to cheat the taxpayer and on and on. Even at the National level, we have all been lied to for decades by the uniparty.

        Liked by 2 people

        • Grandma Covfefe says:

          Marcy013 Thank you for saying that. I get annoyed with some here saying/taunting the people living in these states: “drop off into the ocean”,” leave the Union”, “get nuked”, “you asked for it”, “you deserve it”, etc. They speak like 100% of us are stupid. Many of us are really stuck in our states and we have faithfully voted conservative all our voting lives. The real cowards are other conservatives that left these states only because they gave up too easily and left a void filled by corrupted people, so our votes got watered down badly. They are part of the problem. They won’t stay and fight back in numbers, statewide. That’s how President Trump won-he won by numbers nationally.

          During Obammie’s rule, we heard from so many people declaring they’re leaving USA! because they couldn’t handle BO. This attitude shows lack of foresight as to what is best for our country. You either stay and fight back, or leave with your tail between your legs which will guarantee USA going down into the trashbin.

          As always, as I’ve been saying for 40 years, Immigration is also a overall problem.. They don’t/won’t understand our system–that everyone has to contribute in order to receive later in their life.

          Like

      • Bill Petty says:

        We came here in 2009 because both of our kids ended up here. We too will be going down with the ship, but family is family.

        Like

    • carrierh says:

      Sad we elect pigs and then think they won’t eat up everything. We need to take responsibility for all t fraud, stealing, mishaps and money disappearing without ever getting anything done. Until we take back our country, this will continue.

      Liked by 1 person

  12. MOA says:

    Competent financial management is one of the easiest jobs on earth.
    Don’t spend more than you earn. And if you do, don’t come to me looking for money to keep you in the manner to which you have become accustom.

    Liked by 2 people

  13. mcclainra says:

    Hubby is a retired banker, reads CTH often, and in having a conversation about this article today, and him trying to explain some monetary stuff to his musician wife, me, he reminded me of some of his quotes regarding money, which I will share with you. Certainly the place to do so.

    “Paper is poverty,… it is only the ghost of money, and not money itself.
    Thomas Jefferson to Edward Carrington, 1788.

    I sincerely believe… that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.
    Thomas Jefferson to John Taylor, 1816.

    Paper money eventually returns to its intrinsic value — zero.
    Voltaire

    There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
    Ludwig von Mises

    The Welfare State is merely a method for transforming the market economy step by step into socialism.
    Ludwig von Mises

    Deficit spending is simply a scheme for the confiscation of wealth.
    Alan Greenspan

    By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
    John Maynard Keynes

    There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a manner which not one man in a million is able to diagnose.
    John Maynard Keynes

    The power to determine the quantity of money… is too important, too pervasive, to be exercised by a few people, however public-spirited, if there is any feasible alternative. There is no need for such arbitrary power… Any system which gives so much power and so much discretion to a few men, [so] that mistakes – excusable or not – can have such far reaching effects, is a bad system. It is a bad system to believers in freedom just because it gives a few men such power without any effective check by the body politic – this is the key political argument against an independent central bank.
    Milton Friedman

    We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks.
    Rep. Louis T. McFadden to Congress, 1932.

    The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.
    Attributed to both Lord Acton and Sir Alexander James Cockburn”

    His comment initially was ‘as goes Illinois, so will follow California & New York” if they haven’t already. He also commented that one major difference in individual states and the federal government is that the feds can “print their own money”. 😀

    Liked by 5 people

  14. Don’t forget that Uncle Miltie, my family’s affectionate term for Dr. Milton Friedman, also promoted the personal income tax via IRS.

    Like

  15. Donna in Oregon says:

    Here is a cautionary tale for the states that are failing:

    OC Ends 23-Year Bankruptcy as Illinois, Connecticut and Maine Default
    http://www.breitbart.com/california/2017/07/01/oc-ends-23-year-bankruptcy-illinois-connecticut-maine-default/

    Liked by 2 people

    • Grandma Covfefe says:

      Thank you, Donna, for this. I missed this reading, and since we dumped our newspaper 2 years ago, I wasn’t aware of this last payment from OC. I’m glad to hear that, but I hope they will still remain a smaller gov’t here in OC. We lived here for over 40 years, and that was a terrible mess. Sadly, for the first time in OC history we have gone blue on Nov 8 2016. It’s the illegals who is watering down our votes and we have voting corruptions here too.

      I am very anxious for the immigration reform and esp voter reform. We often wondered if our votes were even counted the way we voted. We are still not out of the woods, state-wise. Real Corruption up there in Sac.–their pensions is #1 priority–very infuriating.

      Prayers for all Trumps’ supporters who are dealing with same garbage. Let your voices be heard, like we did here in OC 23 years ago.

      Liked by 1 person

  16. G. Combs says:

    Seems the newest Illinois Constitution has this:

    SECTION 5. PENSION AND RETIREMENT RIGHTS
    Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.
    http://www.ilga.gov/commission/lrb/conent.htm

    So Illinios CAN’T decrease state pensions or fail to pay them WITHOUT a change to the state constitution. Note the date: Adopted at special election on December 15, 1970

    ~ 1970 is when the fecal material really started hitting the rotating blade. About the same time Nixon took the USA off the gold standard.

    Liked by 1 person

  17. Attorney says:

    1000 upvotes! Especially the last line….

    Like

  18. OverWatch says:

    Chicago is 13x larger by population than the next largest city, Aurora. Chicago has a population that is 20% of the state population. I spent a lot of time in Chicago recently and when it gets warm in May it becomes is a mindless mass of libtards and brainwashed ‘republican’ tourists. All of the trades I worked with in the city at my construction project came from outside of Chicago. A working person in the city comes from the western farmlands and these people are good conservatives (even if they don’t know it). Don’t give up on Illinois or even New York. The people outside the city centers may still watch Faux or go to the moovies, but they are salvageable. Preach the TCTH way to them. They might see the light, don’t lump them in with the city center libtards.

    Like

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