by Mish

Brown says Illinois pensions have “surplus funds and rainy day funds tucked away around the state.”

That statement alone is enough place her in the looney bin, but it gets much worse.

She proposes guaranteeing the pensions, liquidating them, then paying down the state of Illinois debt. The results would then be “the pension fund would be self-funding; the state would have a bank that could create credit to support the local economy and pensioners would have money to spend, increasing demand.”

Her magic is then compounded because “Better yet, it [the state] could borrow from its own bank and pay the interest to itself. The proceeds could then go to its pensioners rather than to bondholders.”

Why stop with pensioners? Let’s borrow a trillion dollars, pay the interest to ourselves and live happily ever after, stimulating demand. Yeah, right.

If I Only Had a Bank!


As much as I hate central banks (and I do think they should all be eliminated – to be replaced by free markets), bureaucrats in the US would likely do much worse on monetary policy than the central banks.

Please consider this scary video by Ellen Brown.

The idea that North Dakota, a small loosely-populated farm state is in good shape only because it has a state bank is preposterous.

Worse yet, Brown takes that absurd position to the extreme with a proposal to end the Fed and put California and Illinois politicians (state politicians in general) in charge of printing money to support union causes.

Brown understands various problems with the Fed, but proposes a solution that is worse, putting politicians in charge of printing presses.

Mike “Mish” Shedlock

Illinois Pension Benefits, Other Promises, and Insolvency

Let's take a momentary reprieve from Italian insolvency to discuss the sorry state of affairs in Illinois.

“B” Word Hits Chicago: Illinois Governor Proposes Bankruptcy for Chicago Public School System

At long last, Illinois has a sensible proposal to help Chicago schools: Bankruptcy.

Illinois General Assembly Retirement System Only 13.52%

Despite a massive rally in the stock market, Illinois public pension liabilities continue to grow.

Illinois State Workers, Highest Paid in Nation, Demand 11.5 to 29% Hikes

Illinois state workers, are the highest paid in the nation. AFSCME workers already get platinum healthcare benefits that would make nearly everyone in the country green with envy.

US Population Growth +0.79%, Illinois -0.17%, Illinois Second Worst to Coal Plagued West Virginia

According to Census bureau data, only seven states lost population in the last reporting year (July 2014 – July 2015).

Illinois Budget: What it Does and Doesn’t Do (Surprise Giveaway to Muni Bondholders?)

Illinois now has a budget, the first in three fiscal years. An excellent writeup on The Stump entitled Illinois Financial Disaster: Even More Reactions to the Budget explains what passage of the budget does and does not do.

Governor Rauner Screws Illinois

Illinois governor Bruce Rauner caved in on tax hikes and got absolutely nothing in return.

Paul Krugman: “Deficits Saved The World”

Dateline August 27, 2009 Paul Krugman: “Deficits Saved The World” Inquiring minds are reading Till Debt Does Its Part

Illinois Revenue Freefall: Fiscal Year-to-Date -8.1% and Worsening

Illinois’ fiscal condition is in bad shape and worsening. Jim Muschinske, Revenue Manager, notes a “February Freefall“.