Thursday, July 13, 2017
Turning a corner?
For the first time in MANY years an Associated Press article tells the truth in two normally all-false areas.
Illinois lawmakers who recently ended the longest fiscal standoff of any state since the Great Depression are counting on an ironic strategy to dig out of mountains of debt: borrowing even more money. It's an unorthodox approach considering deficit spending largely created the mess and Illinois' worst-in-the-nation credit rating makes borrowing inordinately expensive. However, supporters say it's the best way to begin to erase $14.6 billion in overdue payments to vendors and service providers.First, acknowledging that you can't get out of debt with debt. This runs contrary to all accepted Krugmanite and Randite "economics", and even more powerfully contrary to the official leftist MMT solution of exponentially hypermultiplying turbodebt.
It's typically advisable for governments to borrow for long-term construction projects only. But analysts say for Illinois, it's a sound way to get ahead of its crisis instead of letting it fester. "Illinois' problems are entirely a matter of politics and willingness," said Matt Fabian, a partner at Municipal Market Analytics. "The state has had the ability to fix its budget and remedy its long-term liability. It's just chosen not to for all these years."Second, speaking negatively of a Holy State run by Holy Democrats, the political home of Our Lord And Savior Obama. This isn't April 1, so I'll have to assume that AP is not writing satire. They're allowing TRUTH to leak through their filter for some strange reason.
Labels: Pluponents
¶ 3:01 PM
