Friday, July 31, 2015

Chicago's Death Spiral Economics (Video)

"Get out!"
July 31, 2015 - Chicago is drowning in massive, fatal debt. It is doomed, to be blunt, with no chance of recovery. "Since 1927," says our video guide Stefan Molyneux, Chicago has "gone Left, and they have had Democrats rule the city for almost 90 years." Like the Democrat/Socialist-dominated state legislature in Springfield, the Chicago City Council just doesn't have the collective brains or will to pull out of the long-running cyclical orgy of spend and redistribute.  

Detroit vs Chicago: "The difference between the two cities," Molyneux points out, "is that Chicago’s debt and unfunded liabilities are more than three times higher than Detroit’s were when the city declared bankruptcy in 2013."

In this new video (below), Molyneux presents the case for declaring Chicago to be in a death spiral. It is 37 minutes of evidence, presented with occasional insertions of snark and dark humor.

"Under a near crippling amount of debt and unfunded liabilities, Chicago lawmakers recently moved towards pension reform - but were denied by the courts who deemed the reforms to be in violation of the Illinois constitution.

"On May 12nd, 2015, Moody’s Investors Service downgraded Chicago’s credit rating once again, which means that in less than two years Chicago’s credit rating has dropped seven notches under the rating agency. Moody’s also announced major downgrades for the Chicago Board of Education and the Chicago Park District debt - reducing the bonds to junk levels.

"On July, 28th, 2015, Fitch Ratings followed by downgrading the Chicago Board of Education’s credit rating and also noted a negative outlook for the CPS which means that further downgrades are likely in the future.

"Chicago joins Detroit in the illusive group of major cities with junk bond ratings from major institutions, which carries with it incredibly serous financial repercussions and increases the costs of borrowing.

Do you live in Chicago? Time to think about moving. Before it's too late.

Also see: Get more from Stefan Molyneux and Freedomain Radio including books, podcasts and other info at: