by SGT, SGT Report:
This is a red alert economic collapse update.
The state of Illinois is now on fiscal death watch after a District Court ruling on Friday demanded that the state pay back its debts at an accelerated rate.
Federal judge Joan Lefkow in Chicago ordered Illinois to come up with hundreds of millions of dollars it owes in Medicaid payments that state officials say the government doesn’t have, the Chicago Tribune reported.Judge Lefkow ordered the state to make $586 million in monthly payments (from the current $160 million).
As Zero Hedge reported on Saturday, "Friday’s ruling by the U.S. District Court takes the state’s finances from horrific to catastrophic,” Comptroller Susana Mendoza, a Democrat, said in an emailed statement after the ruling. "Payments to the state’s pension funds; state payroll including legislator pay; General State Aid to schools and payments to local governments will likely have to be cut.”
Illinois has racked up more the $15 BILLION in debt after years of over spending, and now the reaper must be paid.
As the Health Ranger Mike Adams warned just days before this new ruling, Illinois pensioners should expect as much as a 70 percent reduction in monthly pension payments as the unfunded promises can no longer be kept.
And the imminent bankruptcy of the state of Illinois is just the tip of the iceberg. Like Puerto Rico recently did, we can expect to see other troubled states following suit.
The next domino to fall? If you live in New Jersey, Florida or California consider what's happening in Illinois right now to be fair warning. Because your mismanaged state it likely next.