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Borrowing from Fed has long-term economic consequences for failing states: Reports

JUNE 18, 2020 | by Bethany Blankley | WASHINGTON EXAMINER

By Bethany Blankley (The Center Square), includes “… Bergman argues that ‘municipal governments aren’t banks,’ and ‘it is difficult to escape the conclusion that the City of Chicago, Cook County, and the State of Illinois are all balance-sheet insolvent. Their assets are swamped by their liabilities. All three entities sport massively negative unrestricted net positions, the product of decades of spending beyond their means on an accrual basis despite advertised ‘balanced budgets.’ …”

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