The Gallows Clock Moves Closer To Midnight......Illinois Dealt Severe Financial Blow by Judge

[AuH20]

It's really happening. We may see the big event in our lifetimes, after all the deceitful accounting games. Sharpen up those carpentry skills

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcQ81nXuL08pqK0DGFpNcXvtw7s4YaBIJ z6uMS0ViEBI_ESaaoJV


http://www.zerohedge.com/news/2017-07-01/horrific-catastrophic-court-ruling-send-illinois-financial-abyss


However, in a "shocking" development, just hours remaining before the midnight deadline to pass the Illinois budget, and Illinois' imminent loss of its investment grade rating, federal judge Joan Lefkow in Chicago ordered Illinois to come up with hundreds of millions of dollars it owes in Medicaid payments that state officials say the government doesn’t have, the Chicago Tribune reported. Judge Lefkow ordered the state to make $586 million in monthly payments (from the current $160 million) as well as another $2 billion toward a $3 billion backlog of payments - a $167 million increase in monthly outlays - the state owes to managed care organizations that process payments to providers.

While it is no secret that as part of its collapse into the financial abyss, Illinois has accumulated $15 billion in unpaid bills, the state's Medicaid recipients had had enough, and went to court asking a judge to order the state to speed up its payments. On Friday, the court ruled in their favor. The problem, of course, is that Illinois can no more afford to pay the outstanding Medicaid bills, than it can to pay any of its $14,711,351,943.90 in overdue bills as of June 30.


The backlog of unpaid claims the state owes to managed-care companies directly, as well as to the doctors, hospitals, clinics and other organizations “is crippling these providers and thereby dramatically reducing the Medicaid recipients’ access to health care,” Lefkow said in her ruling (attached below).

* * *

Friday’s court ruling, which meant that the near-insolvent state must pay an additional $593 million per month, may have been the straw that finally broke the Illinois camel's back.

“Friday’s ruling by the U.S. District Court takes the state’s finances from horrific to catastrophic,” Comptroller Susana Mendoza, a Democrat, said in an emailed statement after the ruling.

[Danke]

Cut pensions and pay.

[AuH20]

Cut pensions and pay.

Judges will never allow that. The system is rigged to destroy itself due to the 'checks and balances system' which ENSURES the corruption and profligate spending continues. Stuff is going to burn. People are going to hang. Cats and dogs may live together too. :)

They may try to throw money at the problem through federal intervention but that may augment a further inflationary spiral. It's only a matter of time.

[Keith and stuff]

Cut pensions and pay.

Yep. Declare bankruptcy than cutting pensions by half or so has been done in Democrat parts of AL. It might be the only solution for the state of IL. I mean, I realize taxes will also likely need to double, and even Republicans there are pushing the largest tax increases in state history, when the Governor campaigned on cutting taxes... frankly, if this Governor doesn't end up in jail, he will make it out as one of the best governors in modern IL history.

[Krugminator2]

8 out of top 10 states in financial instability are solidly blue states. Only Kentucky (which had a Dem gov and a Dem house until last year) and Maine (a purple state) are in the top ten.

All of the top ten states in financial health states are bright red states. https://www.mercatus.org/statefiscalrankings

[specsaregood]

8 out of top 10 states in financial instability are solidly blue states. Only Kentucky (which had a Dem gov and a Dem house until last year) and Maine (a purple state) are in the top ten.

All of the top ten states in financial health states are bright red states. https://www.mercatus.org/statefiscalrankings

NJ just went into govt shutdown last night. their pensions issues are as bad as IL maybe worse.

[Krugminator2]

NJ just went into govt shutdown last night. their pensions issues are as bad as IL maybe worse.

I hadn't even heard that. This news with NJ and Illinois should be dominating, not Trump's tweets. New Jersey has a legislature that is almost 2-1 Democrat. There is nothing Christie can do with that. Massachusetts ranks 49 out of 50. It is nice that they have elected people like Romney. But the legislature was around 8-1 Democrat. As long as these states have Democratic supermajorities, they are doomed.

[specsaregood]

I hadn't even heard that. This news with NJ and Illinois should be dominating, not Trump's tweets. New Jersey has a legislature that is almost 2-1 Democrat. There is nothing Christie can do with that. Massachusetts ranks 49 out of 50. It is nice that they have elected people like Romney. But the legislature was around 8-1 Democrat. As long as these states have Democratic supermajorities, they are doomed.

The NJ budget is being held up by some weird issue where Christie wants to steal money from the states largest insurer because he deems that they have too much cash in reserve for emergencies.

[Swordsmyth]

They can have a 1 time bail out if they surrender their statehood and become a federal territory, thus losing their Senators, Reps and Electors.
Or they should secede and leave the federal judges jurisdiction.
Either way we win.

[angelatc]

Judge Lefkow ordered the state to make $586 million in monthly payments (from the current $160 million) as well as another $2 billion toward a $3 billion backlog of payments - a $167 million increase in monthly outlays - the state owes to managed care organizations that process payments to providers.

Wait - what? 586 mil minus the current 160mil = +$426 mil +$2 billion......equals a $167 million increase? Liberal math?

[AuH20]

http://www.zerohedge.com/news/2017-07-01/americas-pension-bomb-illinois-just-start


We've written quite a bit over the past couple of months about the pending financial crisis in Illinois which will inevitability result in the state's debt being downgraded to "junk" at some point in the near future (here is our latest from just this morning: "From Horrific To Catastrophic": Court Ruling Sends Illinois Into Financial Abyss).

Unfortunately, the state of Illinois doesn't have a monopoly on ignorant politicians...they're everywhere. And, since the end of World War II, those ignorant politicians have been promising American Baby Boomers more and more entitlements while never collecting nearly enough money to cover them all...it's all been a massive state-sponsored scam.

As we've noted frequently before, some of the largest of the many entitlement 'scams' in this country are America's public pension funds. Up until now, these public pension have been covered by stealing money set aside for future generations to cover current claims...it's a ponzi scheme of epic proportions...$5-$8 trillion to be exact.

Of course, the problem with ponzi schemes is that eventually you get to the point where the ponzi is so large that you can't possibly steal enough money from new entrants to cover redemptions from those trying to exit...and, with a tidal wave of baby boomers about to pass into their retirement years, we suspect that America's epic ponzi is on the verge of being exposed for the world to see.

And when the ponzi dominoes start to fall, Bloomberg has provided this helpful map to illustrate who will succumb first...

The real fun will begin when the cretins do what they are accustomed to doing............


Once the dominoes start to fall, and they will, those "ignorant politicians" we mentioned above will think they're doing the right thing when they attempt to "socialize the issue" with federal bailouts and tax hikes. Unfortunately, this is one crisis that will be too large for even American taxpayers to bailout.

[Swordsmyth]

Illinois Blows Budget Deadline, Pushing It Closer to Junk Ratinghttps://finance.yahoo.com/news/illinois-blows-budget-deadline-pushing-040100456.html

[Madison320]

It's really happening. We may see the big event in our lifetimes, after all the deceitful accounting games. Sharpen up those carpentry skills


Who knows if this is the beginning. It doesn't seem like a huge deal to me but maybe it is? I'm still waiting for 2 key events, one is recession and two is a resumption of QE by the Fed.

[Swordsmyth]

Illinois House Approves Historic 32% Tax Increase, Governor Vows Vetohttp://www.zerohedge.com/news/2017-07-02/illinois-house-approves-historic-32-tax-increase-governor-vows-veto

[Pauls' Revere]

They can have a 1 time bail out if they surrender their statehood and become a federal territory, thus losing their Senators, Reps and Electors.
Or they should secede and leave the federal judges jurisdiction.
Either way we win.

Tweeted to @realDonaldTrump

[AuH20]

Illinois House Approves Historic 32% Tax Increase, Governor Vows Vetohttp://www.zerohedge.com/news/2017-07-02/illinois-house-approves-historic-32-tax-increase-governor-vows-veto

IS that for real? 32%?

[Swordsmyth]

IS that for real? 32%?

32% of the current %

I just copied their headline, clearly clickbait.

[Swordsmyth]

Illinois Tax Rate Soars 32% After Senate Overrides Governor Vetohttp://www.zerohedge.com/news/2017-07-04/illinois-tax-rate-soars-32-after-senate-overrides-governor-veto

[Krugminator2]

Raising taxes seems like a great strategy, assuming they want to make their state even more uncompetitive. It is funny. Indiana has lower taxes, a much lower unemployment rate, and a balanced budget. Yet instead of learning from their neighbor, Illinois wants to copy Greece.

http://www.chicagobusiness.com/article/20150128/OPINION/150129823/indiana-and-illinois-a-state-that-works-vs-a-state-that-borrows

[unknown]

http://i.imgur.com/2G6RbqP.jpg

[Swordsmyth]

Illinois House adjourns without voting on budget veto overridehttp://www.wpsdlocal6.com/story/35811413/illinois-house-adjourns-without-voting-on-budget-veto-override

[Swordsmyth]

Moody's Puts State On Review For Downgrade To Junk Despite Budgethttp://www.zerohedge.com/news/2017-07-05/terrible-news-illinois-moodys-puts-state-review-downgrade-junk-despite-budget

[angelatc]

Illinois House adjourns without voting on budget veto overridehttp://www.wpsdlocal6.com/story/35811413/illinois-house-adjourns-without-voting-on-budget-veto-override

Interesting. I assumed they'd rubber stamp the veto override.

[DamianTV]

Solution: Legalize POT and tax it?

[Swordsmyth]

Boss Madigan's Republican enablers give his minions cover
http://www.chicagotribune.com/news/columnists/kass/ct-illinois-budget-tax-hike-kass-met-0707-20170706-column,amp.html

[opal]

Maybe it's time for a state reduction.. think the neighboring states that are doing better would like a piece of Illinois? Toss all the politicians.. start over...
I could live with two less crap US senators and a bunch less reps