This is what government madness looks like. You shut down the economy and then you have to borrow billions of dollars that are printed out of thin air.
Illinois plans to borrow an additional $2 billion from the Federal Reserve in an effort to prop up its dire financial circumstance, reports Bloomberg.
It would be the second time the worst-rated state has borrowed through the central bank’s Municipal Liquidity Facility, an emergency lending program for state and local government issuers. Illinois already borrowed $1.2 billion from the Fed during fiscal year 2020 to cover pandemic-induced losses.
According to Bloomberg, the COVID-19 lockdowns worsened Illinois’s already strained finances: the state is struggling with $137 billion of pension debt and $7 billion of unpaid bills. Illinois is projecting a fiscal 2021 budget gap of about $3.9 billion and deficits are expected to continue through 2026, according to a Nov. 13 forecast from the Governor’s Office of Management and Budget.
Has anyone thought of cutting back on government spending and perhaps going into default instead of the mad money printing?
-RW
"Has anyone thought..." Well, there's your first problem. Isn't that against the law there?
ReplyDeleteAnd give up political power? In Illinois?
ReplyDelete