Illinois Boss: No More Borrowing

TheFundamentals most significant fundamental is DEFICITS = DEBT = DESTRUCTION. We have been researching and writing about specific examples of this formula for quite a while. It appears that a growing portion of our citizens are beginning to grasp the applicability of this formula to both their local fiscal situation and the national situation. A recent Gallup poll indicated the 47% of Americans do not want the federal debt limit raised and that included 30% of Democrats. There are some notable exceptions to this growing awareness. Perhaps the most notable are the citizens of the state of Illinois. These folk are living in a state of denial. All except one, the treasurer of the state, Dan Rutherford. Here are his exact words describing the financial mess in Illinois:

• Bond repayment debt currently stands at $45 billion. Illinois must stop borrowing. In 2002 bond debt totaled only $12 billion. Illinois’ financial position leaves our credit rating second worst in the country, only ahead of California.

• Pension and retiree health care liabilities add up to $140 billion.

• Total debt liability for Illinois families currently stands at $42,000 per household.

• Responsible budgeting: spending only as much money as the state brings in. This will help set Illinois on a course of financial recovery.

• Freezing state spending will begin to shrink the debt and help repair Illinois’ miserable credit rating. Taxpayers, pension recipients, and future generations of Illinois citizens can afford nothing less.

The entire document is only 4 or 5 pages long. It may take thousands of pages of silly laws setting up wasteful government bureaucracies employing hundreds of thousands of unneeded costly public employees but when the end comes it will be quick and concise. The document is available at: http://www.facebook.com/note.php?note_id=10150187523669562

Regardless of where you live, we suggest you walk away with some simple conclusions from Rutherford’s comments:

1. No More Debt, regardless of where you live.

2. The Pension Problem, at all levels of government, across the United States is not just a prospective problem. It needs to be addressed for current pensioners as well as future pensioners. It requires drastic change to defined contribution plans for all current and future government employees. Today. Now. Immediately.

3. The stark difference between the words of the Illinois Treasurer and the Federal Treasury secretary. One says no more debt; live within our means. One says raise the debt; full speed ahead on deficit spending. Geithner and his foolish sidekick, Bernanke must go. In November 2012, their boss must go.

4. Their replacements cannot be more fools of the past. They must have the credentials, the experience and the will to correct the financial mess we are in. They must recognize that no other issue matters if we do not get our finances in order.

5. The party in power and their special interests view any attempt to either discuss these fiscal problems or offer solutions as an opportunity to attack and criticize those offering such proposals and terrify the voting public in order to gain more brief political advantage. Their reward should be complete political devastation (i.e. throw the bums out.)

6. Government is the problem. The solution is a combination of the reduction and, in many cases, the elimination of entire government departments. Small tinkering around the edges will not make any difference. Entitlements must be reduced. Military spending and activities must be curtailed. Now.