Martin Armstrong Says, “Absolutely No Hope for Illinois”

illinois pension crisis
I learned a long time ago not to doubt Martin Armstrong when he predicts long-term trends in the economy. He warned his readers years ago that a pension crisis is going to be what derails the economy. If he’s worried about Illinois being a harbinger for America as a whole, then I’m worried too…

 

Illinois House had voted 72-45 to pass a 32% income tax hike as government refuses to address the real issue of a never-ending need for more and more tax revenue to keep state employees rolling in their pensions. The governor vetoed the tax increase and he was overriden.

There is absolutely no hope for Illinois. We are facing a major Sovereign Debt Crisis at the state and municipal level that will eventually bring down governments on a wholesale basis.

The policies of just tax’em til they die and then tax their heirs is coming to an end. Governments will collapse and the only solution is to limit government by a new constitution that it may not consume greater than 15% of GDP on a federal, state, and local level combined. Employment should primarily be outsourced and private entities should bid to run various departments. That will eliminate government pensions, which is the monumental source of the real crisis.

 If I lived in Illinois, I would strongly consider high-tailing it out. It could get really ugly as time passes.

Curated from Illinois – Poster Child for the Coming Sovereign Debt Crisis | Armstrong Economics

 

Be the first to comment

Leave a Reply

Your email address will not be published.


*