Democrat Illinois about to get "junk" credit rating (Congress, salaries)
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CHICAGO (AP) — Illinois is on track to become the first U.S. state to have its credit rating downgraded to "junk" status, which would deepen its multibillion-dollar deficit and cost taxpayers more for years to come.
S&P Global Ratings has warned the agency will likely lower Illinois' creditworthiness to below investment grade if feuding lawmakers fail to agree on a state budget for a third straight year, increasing the amount the state will have to pay to borrow money for things such as building roads or refinancing existing debt.
The article does state that the 'junk' rating may be applied IF the state fails to pass a budget by the end of this month.
"According to the report, the agency is close to lowering the state's credit worthiness below investment grade if a state budget isn't agreed upon by lawmakers."
Obviously, all reasonable people hope that they can agree on a budget.
Obviously, all reasonable people were pleased in 2014 that the United States credit rating was not harmed by those that were against raising the debt ceiling to pay for debts already incurred (like the Canadian, Ted Cruz).
Rauner is the good guy in this. He was elected to put a stop to the crazy overspending, not to work with Madigan, who is the bad guy. The Republicans have offered a fiscal compromise but Madigan refuses to compromise, mostly because the Republicans are demanding term limits which will mean the end of Madigan's career.
I'm sorry he's not the "boss". Illinois is not his fiefdom.
Democrats are really good at spending other people's money... That is, until they run out of other people's money to spend. Then the bills pile up and finally become due. And that is when the truth is revealed. Democrats cannot be trusted with handling the responsibility of managing anything more complex than a lemonade stand. So who on earth would want them in charge of one of the most powerful nations on the planet? Not I.
Bond traders will be making a mint. Eventually, maybe. Few years from now, the State will finally have a budget and the bonds will go up in value. Meanwhile the bond holders will be getting High yields.
Walker did a good job bringing Wisconsin back as a more tax friendly state friendly to corporations. It's one reason Foxconn has them on their list as possible candidates to place a plant and there's so much development going on in Racine/Kenosha... companies want to be near Chicago without having to deal with Illinois. At some point you do have to stop treating corporations as the enemy and look inward at your bloated pensions and salaries of public employees like teachers and make some hard cuts.
Despite the democrat meltdown in WI and recall attempt, life did not come to an end, things are still going, and life is better off. I'm not saying republicans are perfect, but the two parties to complement each other from time to time.
Illinois went the opposite route.. the more people criticized them on their spending, the more cocky they got like an spoiled schoolkid, they went and spent even more, proudly proclaimed Chicago a sanctuary city, and now they're going bankrupt. Nice work. Democrats seem to think there's an unlimited source of money that they can use to solve all the world's problems. At some point you need to make hard cuts...
Obviously, all reasonable people were pleased in 2014 that the United States credit rating was not harmed by those that were against raising the debt ceiling to pay for debts already incurred (like the Canadian, Ted Cruz).
Yes, pay the bills on your debt by the method of...taking on more debt. Sure, that inspires confidence in the solvency of your country . Besides, there's more than enough revenue coming in through taxes to pay the interest on the debt without incurring more debt - Obama just threatened to not use that revenue and only to use new debt to pay it, in an attempt to blackmail the state's victims into accepting the abuse heaped upon them through Obamacare et alia.
A reasonable person would have said that the interest on the debt and the country's credit rating will be paid first out of the revenue coming in in the event of Congress forcing an instant contraction of the budget to levels balanced with revenue (which would mean by any reasonable legal standard that cutting spending is the will of Congress). Rand Paul and the Tea Party have proposed bills that would explicitly allow the President to pay the debt first in this event, as well as guaranteeing that federal workers and the like would be paid in the event of a shutdown, but the Democrats and Obama blocked all those bills - gee, I wonder why that is...perhaps because it would deprive them of the leverage they use to blackmail the public.
In short, if the Tea Party had had their way there would be no default in the event of no debt ceiling hike and no problems for the federal employees in the event of a shutdown; the only reason the scenarios you outline are even possibilities at all today is the intransigence of the Democrats and various pro-government scum.
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. Besides, there's more than enough revenue coming in through taxes to pay the interest on the debt without incurring more debt - Obama just threatened to not use that revenue and only to use new debt to pay it, in an attempt to blackmail the state's victims into accepting the abuse heaped upon them through Obamacare et alia.
