The Chicago Tribune has come out with a pretty blunt article stating that the government is essentially bankrupt with no possibility of recovery.
John Kass writes:
“Illinois is like Venezuela now, a fiscally broken state that has lost its will to live, although for the moment, we still have enough toilet paper.
But before we run out of the essentials, let’s finally admit that after decade upon decade of taxing and spending and borrowing, Illinois has finally run out of other people’s money.”
This is socialism in its truest form; Government helping itself to other peoples money for their personal benefit. The Illinois constitution is written to put government pensions before everything else. That is helping the poor to paying their debts. The Illinois government employee greed has pushed the State beyond the point of no return and the constitution can only be amended to deny future employees pension. It cannot be altered to deal with the quarter-trillion owed to state employee pension funds.
There is no way out because it may be questionable if Illinois can even go bankrupt.
Kass’ solution may sound ridiculous, but it is probably the only way to deal with the crisis – tear-up the state as a state and dissolve it entirely.
“Dissolve Illinois. Decommission the state, tear up the charter, whatever the legal mumbo-jumbo, just end the whole dang thing.
We just disappear. With no pain. That’s right. You heard me.
The best thing to do is to break Illinois into pieces right now. Just wipe us off the map. Cut us out of America’s heartland and let neighboring states carve us up and take the best chunks for themselves.
The group that will scream the loudest is the state’s political class, who did this to us, and the big bond creditors, who are whispering talk of bankruptcy and asset forfeiture to save their own skins.”
InterAnalyst is about protecting your retirement and investment accounts. I am stressing this once again that you should get out of all government debt in the state and local level and do not buy or own 1 cent again.
Socialisms party’s over! This is only the beginning of the Sovereign Debt Cancer in the USA.
InterAnalyst has been serving investors globally since 1990. Authoring hundreds financial articles and publications, thousands of trading charts to investors worldwide.