Illinois Has Lowest Bond Rating

Posted on by February 5, 2024

From the Mises Institute with the link found on Wirepoits:

“No state has a junk bond rating, though Illinois is the lowest rated at BBB−, followed by New Jersey at A−. S&P bond ratings go from AAA being the highest to D the lowest…

“Illinois and New Jersey are examples of a future state bankruptcy or default on a future bond debt obligation payment.”

Meanwhile, on the national front, consider this from WIND’s morning email:

Bloomberg: When the US borrows money, it needs to pay its loans back with interest—just like any other borrower. But America’s national debt is currently $34 trillion and rising. Soon, the US will need to spend more each year paying interest than what it spends on national defense. In 2013, US debt surpassed the country’s GDP (Bloomberg). FEE: As the government’s debt grows, the amount of money the government must pay on interest increases. If the government issues a single one-year bond redeemed for $1,050, taxpayers have to pay $50 in interest. If the government issues two such bonds, it will end up being $100 in interest. If tax revenue can’t pay the bond, government officials will either have to increase taxes, take out a new bond increasing the debt and interest even further, or print money. All of these essentially amount to a tax increase. The problem for future taxpayers doesn’t end here, though. As government tries to borrow more, it has to offer increasingly better deals in order to entice lenders. After a while, promising $1,050 on a $1,000 bond won’t convince any new lenders. The government will have to up the ante to $1,060 (FEE).

Comments

Illinois Has Lowest Bond Rating — 27 Comments

  1. I thought the Toilet Man had everything under control!

    That’s what the media tells us.

  6. And Jumbo Boy, Lord of the Illegals, will say unto you that this is extremist right-wing misinformation.

    So shall the Leftist media parrot this proclamation in his support.

  7. We’re the worst, but we’ve been turning it around and are only one notch behind New Jersey and closing the gap. Only this crowd would bitch about their state improving on its position and actively root for its failure. What a bunch of whiners, it’s like you want to lose so you can complain about how much you lost. Keep voting RINO, seems like it’s giving you what you want.

  8. At least it’s not as much debt as what tRumpty (or Obama, Bush, etc, etc, ran up. But we give that a pass?

    As Poop points out, we’re trending steadily upward in bond rating. Main reason being the very real increases in taxes and receipts as currently being applied to our bills and debts.

    For the last 20-30 years, that trend was steadily and increasingly negative. Now our taxes (and their receipt) have started an improving trend.

    You have to pay your bills sooner or later. Here we are….

  9. Pooopycorn. Please choose accordingly.

    I am a: Teacher, gubment employee, on entitlements, illegal, “victim” in life, union member, or spouse of any of the forementioned.

  10. I’ve got the same budget problems as Illinois.

    Food $100
    Rent $300
    Scented Candles $2400
    Vodka $4100
    Data $2000

    So I’m good, right fellas?

  11. Gather around children, JT will convince us all that his vote matters and that unicorns are real.

  12. “have to pay our bills sooner or later.”

    Whaaaa?

    Ya mean with FED COVID monies?

    That darn Steve keeps bringing those facts to the table.

  13. I’m coming from the rational standpoint that cash is cash on the State side. But that cash on the Fed side is just an imaginary number and make-believe. Which IS ripe for argument, but is a different one. 😀

  14. WOW. Mega Troll Day Today. And Monk you smoke dope. That doesn’t make you “rational”.

  15. JT, you think your vote matters and you think voting can change anything. That dosent make you “rational”. Keep wasting your time “making a difference”. LOL. Tell Cindy there is soft serve in the rec room. It’s chocolate!

  17. How many plane loads of gold did Trump fly out of the City of Rome again Monk? I don’t click on your stupidity anymore. Is it John Cleese, Seinfeld or some other garbage that rattles around in your dope addled brain?

    Be careful, Metadata Marc is spying on you. LOL

  19. @charliekirk11
    Here’s the list of Republican senators who have yet to disavow the border betrayal bill. If your senator is here, call them, and politely demand they go on the record against this sellout.

    Murkowski (AK)
    Sullivan (AK)
    Boozman (AR)
    Crapo (ID)
    Young (IN)
    Grassley (IA)
    Ernst (IA)
    Moran (KS)
    McConnell (KY…okay, this one isn’t happening)
    Cassidy (LA)
    Kennedy (LA)
    Collins (ME)
    Wicker (MS)
    Hyde-Smith (MS)
    Fischer (NE)
    Ricketts (NE)
    Tillis (NC)
    Hoeven (ND)
    Cramer (ND)
    Mullin (OK)
    Lankford (OK…start planning the primary now, not later)
    Graham (SC)
    Tim Scott (SC)
    Thune (SD)
    Rounds (SD)
    Cornyn (TX)
    Romney (UT)
    Capito (WV)
    Barrasso (WY)
    Lummis (WY)

    We need 41 votes to kill the Invasion Authorization A

  21. When your Woke Broke, why would you have a rating? nothing = nothing

  23. JT obviously can’t argue the post at hand. ‘Let’s change the subject so I can rant like a lunatic”.

  25. WOW Dingo. That video ought to trigger those of Hebrew background.

    Good find. It goes right along with Netanyahu’s belief system.

    Here come the trolls. LOL

  26. ‘Let’s change the subject so I can rant like a lunatic”. nailed it.

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