ILLINOIS DEBT BOMB – BAM !
We warned our readers to avoid bonds and coupon clipping or funds, or ETF’s that held proportions of Illinois state and city bonds. Why?
This state has politically been THE EXAMPLE of the failed policy of decades. Running deficit spending and borrowing to make ends meet for decades – the red ink has caught up to the state. The basic industries that made the central windy city the Mecca of the Mid West have now all evaporated. The City Planners never got the AGE OF THE ENTREPRENEUR “Right” and failed to diversify Illinois into the Central States ENTREPRENEUR Pump required for high priced jobs, inspiration for the young, and reformation from the factory age to the age of the MIND and IP as wealth.
As the failed manufacturing model created a CAPITAL FLIGHT out of the State, over decades, the debts piled up. The higher taxes and never ending cost of living rises with lower wages that were not rising, created a debt squeeze to the middle class that broke the economics.
Next came HUMAN FLIGHT. Over 25% of the population of Illinois has been lost to states like Florida and Texas where the JOBS are. The young are leaving to pursue their dreams which are dead ended in Chicago. The cost to start and own and operate job creating ventures in Illinois is ranked near the bottom and population informed by the internet is leaving to better opportunity states that have success policies versus failed policies.
Politicians hampered in “the old mind sets” are dead locked this weekend in emergency legislation. The failure to adjust THE POLICY OF DISASTOR AND DEBT to the POLICY OF GROWTH AND OPPORTUNITY is now reached a punching bag point for the state.
The State of Illinois and its tax payers are half hostage by Politicians who are competitive and insane. Without sane collaboration mind sets the future of the state is now past redemption. What does this MEAN.
It means the following as we have long laid out here:
- Illinois will now become the first USA state to be moved to JUNK status on their bonds and essential state financing.
- The state is the LATE STATE paying their critical vendors who pick up garbage or who perform ESSENTIAL services so late these services like fire and police are in jeopardy of breaking down.
- The citizens of the state will now have to pay impossibly new high taxes to keep the state alive financially.
- The Pension bad debt obligations of underfunded obligations of over 15 billion cannot be accommodated and must result in default.
- The State of Illinois will become the first USA major State to go bankrupt and use bankruptcy to legally wipe out its promises debts and reset its future. The pain this will cause will ripple to the entire USA economy as billions in federal debt are defaulted upon.
- Other states will follow Illinois as will increasingly large cities across the USA now drowning in debt.
- The ETF markets holding these debt bombs will themselves begin to create financial contagion across the world. This debt crises caused by insane politicians where politics leads economics versus economics runs politics, creates a predictable melt down.
There is no silver bullet. We have passed the point of economic redemption. DEFAULT is the only way into the future for corporations known as states.
What American’s do not understand is their constitutional form of government no longer exists. That model is an illusion only.
Legally that protected right and model was stolen from American’s when they were not looking by insane politicians who were bought and paid for.
Today agencies like the FBI, the CIA, the Court of this county or that City, or that Federally are all CORPORATIONS. You can look them up. They are no longer CONSITTUTIONAL entities. They are legal corporations paying tribute under CORPORATE by laws and legal rules not constitutional rules, and the holding corporation for them all is the corporation of the UNITED STATES.
In these corporate mega structures states are no sovereign. They are corporations. They can go bankrupt. The USA can go bankrupt. Then they can under bankruptcy law reorganize, wipe out their promises to say the health care of its citizens and or its payments to the FED (after all these are just two corporations doing business together) and their promises to seniors and retiree’s saving trillions. The USA becomes profitable will 100 million also go bankrupt and must work or die. If there is no work they die. That helps reset the economics as well.
Bet you didn’t see any of this coming. Who knows all this? It’s all available. You can look it all up on line. There are books written with all the court records and documents cited. However, the hypnotized populations believe false news, and buy into illusions of national pride that the Corporate heads put out, to keep them in absolute power and to keep you – who have the real power – ignorant so you will not act to reclaim your own powers.
In the end the madness of the Corporate Leadership the Elite Super Wealth, will in historic insanity destroy the entire systemic model, through credit abuse and debt that defies prudent economic modeling. It has been our history for over 5,000 years.
Why do we not learn and revise our model to avoid repeating this pattern?
It seems generationally we never retain the memory lessons of economics and each new generation loses the historic model to build a better improved system on. The insane gain power and the sane allow them to do it. Why?
Insanity is a madness the sane recoil from. Only when they are life threatened as we all will be eventually in this insanity; do we rise and begin to guillotine the insane as France did. Watching FRANE massively embrace a better way today – is refreshing. Can it happen in America?
Illinois suggests the USA is running out of economic time. Billions are moving to BIT COIN to get out of US dollars before it is too late.
It is not today.
It is not tomorrow.
But the Super Crash of 60% of value in all asset classes evaporating, is coming. The entire system model is going to collapse. There is no way to avoid the 100’s of trillions of bad debts worldwide, sending the system into a dark age.
Preparing to ride that repeat of history OUT and well is what we guide you too in this blog of truth. We do ask you to share this blog to protect those YOU CARE FOR.
The truth is powerful but only if you act. Illinois is the economic canary in the mind shaft now moving to JUNK status with state Bankruptcy not far behind as Chicago must race the state to file first – as first fileting wins. There is no winner though and we are so sorry for the people of Illinois as the state fiddles while the people burn. My suggestion to you in state – RELOCATE to the opportunity states. Ohio is in the black not the read and the jobs are north. MOVE before it is too late for you. MOVE.
Berny Dohrmann – On Illinois pending bankruptcy.
HOW DOES IT GET ANY BETTER THAN THIS ?
256 850 4712 -cell 814 490 6531
Trinity Florida 34655
http:bernyd.com – latest book link