Isn't Illinois going bankrupt?

Isn't Illinois going bankrupt?
What happened to that?

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They have still failed to reach a deal, on top of that a judge has ruled they also now need to make Medicaid payments on top of what they already cannot pay

In August if they have still failed to reach any sort of settlement (which they won't unless they can somehow pull a billion dollars out of thin air) they will officially not be paying for many public services including pensions, unions etc

Tldr the western world faces economic collapse in August when illinois insolvency pops every industry bubble in the first world

They're in the legal process to avoid it. This has so far included massive tax hikes (32% raise in income taxes) and probably even more property taxes (already the highest in the nation). Moody's has said so far they're probably gonna downgrade the state anyways even if they do get a budget together because they have no confidence in the ability of the government to manage the potential increased income to actually pay their debts and not take on more debt.

Its gonna get worse but they're in the wheeling and dealing phase.

>Tldr the western world faces economic collapse in August when illinois insolvency pops every industry bubble in the first world

child. the 2008 or whatever housing bubble did nothing. we print money and pretend to punish the assholes.

Illinois will not be allowed to die. Detroit can die. Chicago will not be allowed to die.

Read a fucking book. I'd start with Green Eggs and Ham.

(is kayla really gone?)

Chicago fag here. What does this mean for me?

Nothing at all. Chicago is the fucking second city after NY.

Relax and go to school or work or whatever you do. Ignore the CNN hysteria.

All public services, pensions, etc. will collapse if an extreme deal is not implemented by August.

If a deal is implemented the taxes that come out of your pockets will be extraordinary.

hello,

you seem to think quantitative easing will work indefinitely. you are wrong

don't tread on me,
hank

>We will print money until the problem goes away.

Why don't I feel better then?

You'll pay even more than you already do to live in an overpriced shithole filled with niggers

>will collapse

the great thing about Sup Forums is that we are all anons.

the shitty thing about Sup Forums is that I can't rub your face in this nonsense during august.

nobody understands economics. NO FUCKING BODY.

Yes, but they won't miss payments till Aug 1

>the western world faces economic collapse in August when illinois insolvency pops every industry bubble in the first world

Thank god. I can't take much more of these jewish shenanigans.

stop projecting. it's funny you say nobody "understands economics" while conveniently glossing over my first post. wow you are stupid

>filled with niggers

You see only the Sup Forums version of chicago.

It's a pretty nice place to live and work. You just have to learn where the no-go areas are. All huge cities have no-go zones. Deal with it.

>wow you are stupid

I agree with this part, but you are wrong about all the rest.

...

Let me tell you what I don't understand.

Money printing doesn't cause inflation when utilized to purchase stocks because the money velocity of said printed money is low.

When the money printing is utilized to pay for pension funds and Medicaid programs, however, the money velocity is high, which leads to inflation.

If the elite decide to print money to bail out Chicago, it'll be an epic mistake that will give me a lot of schadenfreude. The fact that you don't see this means we are collectively fucked about this situation.

Wonder how long the rest of Illinois is gonna put up with this shit. They've essentially been turned into a serf state for Chicago.

>I agree with this part, but you are wrong about all the rest.
that's all you're going to address? me calling you stupid? maybe you aren't stupid. i think we're speaking to mr. rahm emanuel - a real living cocksucker

They did what everyone does right before they start to get their shit back together:
>illinois
>california
>kansas
They told the extremist GOP retards to fuck off.

>chicago not full of niggers
>highest crime rate in u.s.
Hmmmmm

>The fact that you don't see this means we are collectively fucked about this situation.

NObel prize winner Paul Krugman would disagree with you and then he would remind you that he is a Nobel Prize winner.

is kayla really gone for good?

republican traitors in the house jumped ship and overridden the governor's veto.

there is now a permanent tax increase and no reforms.

I******s needs to be sold off to Canada or the highest bidder. It no longer deserves to be a part of America. Nothing but a bunch of corn niggers and dindus killing each other. Maybe after we sell it America will be great again.

God, I hope to see livestreams of doddery old fucks rioting in every main street of Illinois as their pensions and medical payments are missed.

QE will only help if California taxpayers - for example- don't mind taking a 20% tax hike up the arse in order to bail those northern fuckers out

>mr. rahm emanuel - a real living cocksucker

I really doubt that he's a kayla fanboie

>You see only the Sup Forums version of Chicago.
I live by and visit Chicago relatively regularly. I have quite the disdain for that shit smear. Nearly any modern city in the States is a blight.

And the housing market will always go up and never crash because that's what all the experts have decided. The fact that you had to appeal to authority, by definition, means you lost this argument. The question you should ask yourself is, how much inflation will it cause to bail out Illinois?

Who knows. It may not be enough to matter.

>Nearly any modern city in the States is a blight.

this is true.

nice trips.

look at london, paris, berlin.

the whole fucking world is losing the war against them.

this is starting to depress me. one last kayla and then i'm hiding this thread. I can't take all this negativity.

Welcome to the trifecta of shit-tier people coming from California, New York, and Illinois. These states are precisly dead because of people like you fucking them up and then leaving after the fact to spread your plague further! Congratulations, big shots! Pat yourselves, no please, please, I insist!

They reached a deal to kick the can down the road and make things worse for themselves in a year.

Some guy on twitter that his property taxes are higher than his mortgage. What do they pay?

>God, I hope to see livestreams of doddery old fucks rioting in every main street of Illinois as their pensions and medical payments are missed.
it won't happen because the pensions are secured by the constitution. illinois doesn't have enough republicans in the house and senate to amend the constitution.

furthermore, some of the republicans in the house are traitors/RINOs that voted in line with the democrats for a permanent income tax increase and no new reforms on the budget. if all the republicans voted no the veto would have not been overridden and democrats would be forced to pass at least some reforms.

So decades of Democrat control and corruption don't have anything to do with Illinois not being able to pay for its massive socialist programs?

QE will make things worse the longer they keep the facade going.

We did it before it was cool.

LET ILLINOIS BURN, ENJOY THE CHIMPOUT COMING OUT OF CHICAGO FUCKFACES

>be me
>lived in a basement apartment for 7 years
>moved out the city and bought a house in suburbs
>a year later, state is gonna collapse and have to move out again
>mfw

The thing is that there is state and federal loans, and they are not the same thing.

Federal is not a worry.

States are. For example, with the new taxes Illnoise will be able to make payments in Aug, they still have deep holes and they will be borrowing more money to pay off debts owed they already pay 200 bases points more then states who are sound with their money, and when Fitch and Moody downgrade them again it will be 300-400 basis points.

And the taxes are so high they are already running people away. The only way to to fix the issue is gut the pension or gut the government services, both of which are deeply unpopular.

and the feds will not bail out the state.

Just dodge taxes and store your money offshore like the rich.

chicago tribune is actually attacking the cook county assessor this year.

they discovered that lower priced houses are over assessed, leading to situations like you pointed out where taxes can be higher than the mortgage. meanwhile, expensive houses can be under assessed by as much as only 50% of their true value. so those people pay only half of what their taxes could be. this means that the poor are paying more than they should, while the rich are getting substantial breaks.

i bought a house for 190k that's assessed at 260k. the taxes are almost 8k a year, or about $670 a month. the same amount as my mortgage. i'm in the process of appealing it, but the assessor office is known to be a corrupt shithole so if you don't use a connected lawyer's firm (like that crook madigan) it's likely they'll reject the appeal.

It must suck being perma-triggered

I'm your huckleberry.

I'd like to see some analysis of the actual size of the pension liabilities relative to the size of the state economy first of all. Might just need a haircut.

As for seigniorage, the question becomes the size of the printing relative to the rest of the economy, which I don't think is that high. Moreover I don't know how you'd actually use money printing to buy pensions liabilities unless they were somehow going to buy assets direct from the federal reserve or something

I don't know about the pensions, but the recent drama was directly the result of an extremist GOP governor being an obstructionist, anti-tax jihadist retard. They overruled him and things got better.

Similarly California got the GOP out of the state government and suddenly they were somehow magically able to govern again, and Kansas was somehow magically able to balance its books too.

But
>create a stupid fake crisis
>blame "big government" and the democrats
bullshit typical of the anti-American anti-tax jihadists making up the core of the current GOP.

Seriously people are starting to notice, bigly.

2.67 percent

watch this

youtube.com/watch?v=31BxmYhhD9Y

I'd just move to Wisconsin or Indiana if I were you.

>I don't know about the pensions
over 120 billion in the hole

on top of this, Trump promised to cut federal fund to sanctuary city, so who know how much damage it would cause.

ok... 120 over what timeframe? How big is the tax base there?

w...what? no.

They raised the state income tax 32% and passed a budget for the first time in almost 3 years.

Republicans jumped ship and voted to raise taxes. The governor vetoed (he was in favor of a temporary tax increase, this one is permanent) and wanted structural reforms to accompany it.

His veto was overridden by the bare minimum needed.

The outlook still isn't great, but this is an enormous step away from bankruptcy.

The biggest risk was if a deal was going to fail, bonds would be rated junk. They mentioned that may still happen even if taxes are raised, but haven't yet.

It's better now. The state has a permanent form of increased taxation in the form of a 4.95% flat income tax (rather than the 3.25% it was before).

Still some bumps ahead, but the storm is over.

>this is what keynesians actually believe

she lives!

Reading articles about the pension fund these past few years has been truly hilarious. How does it feel to know that that some rich fund guys with political buddies have been bleeding cash out of your pension fund with a fucking firehose for years and years?

my post had literally 0 to do with keynesianism though

nice vocab word nigger, had to spellcheck it

Flee immediately

i would love to move, but i have a year of grad school left and there is fuck all in terms of jobs related to what i study in either wisconsin or indiana. in fact, the places with related jobs are almost all leftist shitholes.

i'm just hoping that illinois reaches a boiling point, all the scum leaves when the gibs end, and things get unfucked. that's still probably at least a decade away, though. it would have happened sooner if not for the republican traitors overriding rauner's veto.

Who else here is genuinely excited for the return of feudalism? Just imagine: no more high taxes, no more whining about equality and "muh rights," no more being slaves to the financial jew- just working 4 hours a day, 3 days a week, caring taking care of your family and community and thanking God. I can't wait for the West to collapse.

Only Krugmanites believe the retarded rosy picture you painted where debts never come due and higher taxes have no negative effects.

Illinois needs to just cancel all the pensions. Nobody deserves a pension anyway.

>But muh police, fireman, etc... pensions.

If you're not willing to do a certain job without a pension, you are easily replaceable. At this point in history, everybody is replaceable, because there are 25 people willing to fill your spot, and the odds are that they can do teh job just as well, if not better than you. You are not a special snowflake.

They need to remove unions from all civil jobs (police, fire, etc....). There are plenty of people who can do those jobs just as good, who won't cry if there is no union for them.

how is the storm over? illinois has the highest or second highest property taxes in the nation depending on the year. this was somewhat offset by the relatively modest state tax, which now increased by 32%.

just look at this shit.

What's your field?
I moved from Illinois (Belleville area) to St. Louis, and there are jobs a plenty over here (especially in STEM). Most of the STL county hasn't been overrun with nigs yet, and parts of South City are pretty decent.

You must be thinking of someone else, or you're just crazy, because that's not what I wrote. Also that's not what any trained economist believes. Anyway, read a book and/or get on meds.

>The outlook still isn't great, but this is an enormous step away from bankruptcy.
You have a Detriot problem on a state wide basis. Yeah, I'd say you might have a problemm but keep on kicking on.

That chart is disgusting

If you can't afford the property taxes, no matter what they are, then don't own property. It's that simple.

The problem isn't that the taxes are too expensive, the problem is that you can't afford it.

it's no better than knowing that a good chunk of your taxes goes straight to some government shithead that fucked around for a few decades and got a promotion right before retiring so that his pension would be bigger.

hurr durr, permanently increase the tax! that'll solve our gibs policy! durr durr

fucking kill yourself chicongo faggot

rocket and jet fuels and combustion.

Yeah, they're are people lining up for those jobs who are willing to sacrifice pay and benefits to get it. However, like anything else you get what you pay for. I personally would not want my police, fire, and ems services any more inept then they already are.

Total tax revenue per year, for all revenue (include fuel taxes and so on) is 38 billion.

the total hole is 130 billion. Each day it grows by 20 million as it not being funded enough.

My favorite part about renting is knowing increased costs never get passed down to me, which is why I'm so confused why it keeps getting more expensive every year.

Shhhhhh! The kikes might hear you!

>hurt durr just give Democrats total control to raise taxes and everything is fine

>how dare you accuse me of keynesianism

>bonds would be rated junk. They mentioned that may still happen even if taxes are raised, but haven't yet.
Will be as soon as the state issues the six billion more in bonds that the plan calls for. The rating agencies have stated that any issuing of new debt (and not debt specifically to roll over existing bonds) will result in junk status.

higher property taxes means higher rent, or do you seriously think landlords will let their profits slip?

A resurgence of small communities banding together, building walls around neighborhoods to repel raiding bands of minority's, tilling up yards and vacant fields to plant crops, hunting, fishing, gardening, animal husbandry, attending church on Sundays. It's going to be glorious.

keep dreaming faggot. can't wait for your state to collapse as niggers live stream the biggest chimpout and looting spree ever so I can watch in my comfy bed.

Sounds comfy, but it would just be more efficient to wall off the big cities and pay people to stand watch and shoot those that try to escape.

In summary.

Most states pay 2% interest on bonds.
Illinois already pays 4.25%

Illinois also has billions in debts that are growing at 12% a year (for non-payment after 90 days).

The plan calls for the issuing of 6 billion more in bonds to pay off debts that are growing at 12% per year.

That will result in junk status, so bonds will be at 6.25 to 7%. But as old debt needs to be rolled over, they will be paying that higher rate for all other money owed.

No you don't get what you pay for when it comes to labor. You just tell yourself that to rationalize that you should make a certain amount per year. There is someone who can step in and do your job, just as good, if not better, and they'd be willing to do it for less.

>But I need to make a living.

No you don't. You want to make a living, but you don't need to, because society can replace you in a heartbeat. If you became homeless, you would be easily replaced and the world would go on just fine without you.

Well. You implied that the Fed was going to purchase Illinois bonds as the buyer of last resort, which would indirectly secure pension liabilities as well as support Madigan's machine. If this isn't what you implied, then clearly I'm in the wrong and I'll get back to painting that fence.

That's all fine and good until you realize your neighbors aren't Mr. Rogers and aren't and don't think and behave like your way of life. Enjoy.

i.e. they shot themselves in the foot, but at least they passed madigan's budget so he's happy.

Nigga, you dumb.

So, what's the yearly deficit projected to be including debt servicing? Does the new deal help?

I'm googling this stuff and as always it's amazing how little useful information there is out there. I'm reading something like $17billion/year in pension payouts which is high, however.

Government expenditures need to be contained, yes, but seriously dumbasses, if you have a problem of government debt then bringing in more tax revenue helps.

Jesus christ it's basic math. Whatever, just keep blaming having to pay any taxes whatsoever on the mere existence of black people and wondering why people don't take you seriously.

>You implied that the Fed was going to purchase Illinois bonds as the buyer of last resort,
Actually I said that this was unlikely in response to someone suggesting using money printing to pay illinois pensions.

democrats

Feudalism? Try more like Warlordism. You think big government is bad? Wait until you deal with a militia. Your rights are whatever the warlord decides they are, and you pay whatever the warlord wants you to pay, and if you don't like it, then the warlord will give you the bullet as option B instead.

Thank you for clarifying that retards old information.

based retard

Ah. You win internet points then. But still, raising taxes isn't going to solve the problem as long as liabilities grow faster than what the taxes can be reasonably raised.

>Moreover I don't know how you'd actually use money printing to buy pensions liabilities
That is simple, The illinoise pension issue bonds that the central bank buys to produce a interest rate well below market rates.

Illinois pension sells bonds paying 1% to FED
uses money to buy government bonds that pay 3%.

2% is profit by abridge to increase the wealth of the fund.

Just that they will hate to do that since many other states outside of the south east (and a few in the south east) have such big holes.

My state is thankfully 95% funded.

Kansas is in same shape after years of Republican tax cuts.

Uh oh. Now what?

this makes me so angry, 8k a year!

>higher property taxes means higher rent,

Then it means higher rent. The reality is the same. The problem is that you can't afford it, not that it's too expensive.

>All huge cities have no-go zones. Deal with it.
nigger detected

The only problem with that is that it'll guaranteed increase money velocity, which will lead to inflation. How much inflation that is, I don't know.

Also, Louisiana is in trouble. After Jindal tore them a new asshole.

Had to elect a Democrat to try to fix it.

Uh oh. Now what?

I would inhale her butt queefs.

>if you have a problem of government debt then bringing in more tax revenue helps.

People and businesses are leaving the state dipshit. "We just need to squeeze more" is not sustainable given they're already squeezing more than every other state and that they're still accruing debt at ever higher interest rates.

Why did you buy it then?

All of the tax rates are public info. You bought it and now you're upset because of something that already existed before you bought it (the tax rate).

Quit crying like a little baby.

If your warlord sucks then join one with a better deal.