On June 1, 2017, a major event happened in the U.S. that few Americans noticed. Even fewer Americans have any idea of the consequences of the event. Two major bond rating services, Standard and Poor’s Corporation and Moody’s, lowered the ratings of state bonds issued by the state of Illinois. For all practical purposes, municipal bonds issued by Illinois are essentially junk. If the state of Illinois was a corporation, it would have to declare bankruptcy !
This website, Sanityandsense.com, published many articles over the past eight years relating to the debt burden of a number of states in the U.S. All local, county, and state governments are forbidden from doing what only the U.S Federal Government can do. Only the Federal Government can employ a method of deficit financing. All cities, all counties, and all 50 states in the U.S. are required to have a balanced budget. It is a sane and totally sensible federal law. Unfortunately it is not enforced as it should be. An article published on this website on August 24, 2013, contained the following statement: ” … Twenty-six states are in violation of federal law by operating their budgets using illegal deficit financing….”
Some states have improved their financial conditions while other states have increased their financial problems. What amazes me as a law abiding American Citizen is how the news media reports, and too often fails to report, important news stories.
When Barack Obama was elected President, I thought that he would use his immense power and influence as President to help his home state of Illinois strengthen their financial condition. Yet, he never even seemed aware of the public corruption in Illinois. Like Louisiana and Arkansas, Illinois has a long and infamous history of public corruption. As a state Senator from Illinois, it seems apparent to me, that Obama should have known about Illinois’ decades of public corruption. Yet, it appears that Obama used the well known system of public corruption in Illinois to support his own Machiavellian political ambitions without any concerns for the public welfare.
Even a gentle newsline like the following might have served the American People very well as well after Obama was elected in 2008. ” … Now that former state Senator Barack Obama has been elected as 44th President of the U.S., what will he do to help Illinois correct the severe financial problems that exist in that state ?” If an article with that thesis had been written in 2009, I seriously doubt that Illinois would be in their present financial condition in 2017 ! The news media wrote a number of articles about how Ms. Obama dressed and a lot of warm and fuzzy articles about the dog that Senator Kennedy gave as a gift to the Obama family. My question is: ” Where was the hard news that should have been reported? ” Apparently the answer is that there was not any hard news because the news media was so very busy praising Mr. Obama who did not have one scintilla of information about economics and municipal finance.
From my perspective both George W. Bush (43) and Barack Obama totally lacked the necessary information needed to make sane and sensible economic decisions for the American People. Donald Trump has an unbelievable amount of knowledge about economics, international economics, finance, international finance, city governments, state governments, the U.S. trade deficit, the U.S. debt, and how to place the U.S. on a sound economic basis again. Yet, 90% of the media are on a totally immoral and totally unjust course to destroy President Trump and his plans to make America Great Again.
It would not surprise me if the ” biased media ” blamed Mr. Trump for Illinois’ financial mess. Strangely enough, the federal government has agencies to regulate securities, the money supply, banks, insurance companies, transportation, trade, commerce, labor, the environment and just about everything else that can possibly be imagined. However, I am not sure which agency, if any, should have been monitoring municipal debt. Clearly Americans are not willing to allow what they perceive as a corrupt congress to appropriate U.S. tax dollars to ameliorate Illinois’ financial disaster.
R. Van Conoley ( The U.S. Government can absolutely not allow any state government in the U.S. to go bankrupt. Illinois, like several other states, did not bother to pass a legal and binding state budget. Possibly, President Trump’s major problem is to convince some members of the “Resistance” that America is a nation of Laws that must be followed.)