Chicago & The State of Illinois Are Bankrupt

The city of Chicago and the State of Illinois are bankrupt thanks to years of Socialist rule and public employee union domination.   If we want to see what will happen to the United States as a result of Socialist Schemes that are bankrupting our country, look no further than Emperor Pinocchio Veto Obama's home state.  Chicago and Illinois are such a fiscal mess that this Blogger sold a Class A office building that we built and owned in the suburbs of Chicago, at a loss because we could not rent the space given all the business flight.  I wanted out of this Black Hole, created by Socialists in government, before there is a complete collapse of the city and the state, which could have made our building completely worthless.

The people of Illinois recently elected a Republican Governor; but he still must work with a Socialist legislature unwilling to do what is necessary to get Illinois's fiscal house in order.  Liberal Socialist judges, no doubt appointed by Obama or Clinton, have ruled that public employee pensions, that are bankrupting the city and the state are sacred.  The only answer is higher taxes, which will cause even more companies to leave the state and actually result in less tax revenues not more.   So, Chicago and the state of Illinois are in a death spiral.  They can't really raise taxes any higher because the consequences would be disastrous; yet they can't pay their bills.  So the best the Socialists can do is borrow even more money at higher interest rates, assuming anybody is willing to lend them money.  Of course, this is just a giant Pozzi Scheme.  When the bottom falls out the last guys in will lose everything.   This Blogger would not buy Chicago, or Illinois bonds with somebody else's money; yet alone my own no matter how high the interest rate. 

Any company that does business with the city of Chicago, or the state of Illinois is risking never being paid.  Many have already been stiffed.  And, both Chicago and Illinois bonds are rated as junk, which means that default is possible.  Finally, Obama can't come to the rescue because any bail out would have to be approved by a Republican Controlled Congress, which will never happen.  So, the only possible solution is bankruptcy and a default on Illinois debt.  What other choice is there.  Other cities, states and the federal government are not far behind.  The only difference is that the federal government can print money, which will lead to very high interest rates and inflation.   That day is not too far off.  Chicago and the state of Illinois have no such option.