Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain About 1%
By: Chris Mullen, Gold Seeker Report

Northern Vertex Files Preliminary Economic Assessment Report for the Moss Gold Mine in NW Arizona
By: Northern Vertex Mining Corp.

Does The CoT Structure Prohibit A Rally?
By: Craig Hemke

Harry Dent’s Gold Prediction Invalidated
By: Przemyslaw Radomski, CFA

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
By: GoldCore

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

 
Search

GoldSeek Web

 
The Great Illinois Gold Rush!


 -- Published: Thursday, 1 October 2015 | Print  | Disqus 

By Gary Christenson

There is no gold rush in Illinois.  The important question is, “Why Not?”

Per Mike Shedlock (Mish) here and here:

  • “Illinois is in serious financial trouble.”
  • “Illinois has no current budget.”
  • “The reality is Illinois is flat-out broke.”

The State Comptroller estimates that the backlog of unpaid bills will exceed $10 Billion by December.  Worse, “In January [2015], Illinois’ total cumulative liability was $159 Billion.”

“Pay-Later Budgeting” has not worked.  “… the state of Illinois has run deficits in every fiscal year since 2001.”  The state borrowed, sold assets, underfunded retirement plans, borrowed even more money to fund retirement plans and yet pretended all was well.

Borrowing today increases the strain on future budgets and reduces available funds for future pensions, salaries, benefits, general expenses, and payoffs.  Eventually the “piper will be paid.”

Mish has more to say but the message is clear.

  1. Illinois is in deep trouble and getting worse each year.
  2. Politicians are not addressing structural issues.
  3. The current and unfunded liabilities are far too large to be paid.
  4. Retiree pensions and benefits will eventually be reduced.
  5. Taxes are already high and increasing taxes will not solve their problems.

It is worth noting that the members of the Illinois legislature increased their wages in the midst of this management disaster, and are paid, even without passing a budget.

Back to the important question:  Where is the gold rush?  Retirees, future retirees and current state workers should realize that they will inevitably lose benefits and jobs while their taxes and expenses increase.  Gold, not the legislature nor the politicians, will protect their purchasing power.

But strangely, there seems to be no gold rush in Illinois for protection against their legislature, pension underfunding and loss of purchasing power.

MORE PARALLELS BETWEEN ILLINOIS AND SOVEREIGN GOVERNMENTS:

There are similarities between the state of Illinois (and others) and the US government, Greece, Spain, Italy, the EU, the UK and Japan.

  • Massive government deficits every year. Check!
  • Unpayable unfunded liabilities that will damage or destroy the currency, the economy, taxpayers, and the middle class. Check!
  • Politicians unwilling to address structural problems. Check!
  • Extend and pretend – let the next governor, mayor, president, or prime minister address the consequences of current inaction. Check!
  • Retirees will be disappointed when promised benefits are either reduced or paid in a currency with such devalued purchasing power that the retirees feel robbed. Check!
  • Wealth was transferred from the middle class and the state to the political and financial elite. Check!
  • It will not end well. Check!

Where is the gold rush?  Apparently the only rush to buy gold in any large quantity exists in Russia, China, and India, but not Illinois, the UK or the US.  That will change as the consequences of bad policies are realized.

Illinois (like many other states) is facing an ugly financial future.  Illinois can’t “print” money to pay their bills so eventually horrible adjustments will be made.  Sovereign nations such as the US, Japan, and the UK can “print” their currencies until others refuse to accept payment in those currencies.  This delays, but does not eliminate, the inevitable consequences and implosion.

CONCLUSIONS:

  • A state salary or pension in Illinois (and many other states and countries) may be at risk. An alternate plan is needed.
  • Politicians will “extend and pretend” instead of addressing structural problems, so those problems will become worse.
  • Unpayable liabilities will not be paid. 
  • Consequences will be ugly and may arrive soon. Be prepared! 
  • Buy gold (and silver) to protect your purchasing power.

Charles Hugh Smith:  “Here’s Why the Status Quo is Doomed

Gary Christenson

The Deviant Investor


| Digg This Article
 -- Published: Thursday, 1 October 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.