Illinois Heads To Junk Credit Status

The wave of K is coming:

Illinois is on track to become the first U.S. state to have its credit rating downgraded to “junk” status, which would deepen its multibillion-dollar deficit and cost taxpayers more for years to come.

S&P Global Ratings has warned the agency will likely lower Illinois’ creditworthiness to below investment grade if feuding lawmakers fail to agree on a state budget for a third straight year, increasing the amount the state will have to pay to borrow money for things such as building roads or refinancing existing debt.

The outlook for a deal wasn’t good Saturday, as lawmakers meeting in Springfield for a special legislative session remained deadlocked with the July 1 start of the new fiscal year approaching.

As I look out on the parades of fat, hairy Italian guys in Victorian dresses, and the helpless liberal rabbits complaining we are not importing radical Muslims fast enough, it is apparent that we are setting some sort of record for peak-r.

This level of r is not natural for our species. I do not believe it happens in nature anywhere except where a sole consumer of some plentiful resource like grass is hunted to near extinction. When I look out now, I see humans who are psychologically deformed, like some African woman with a giraffe neck from all the metal rings she has clamped around her neck from the time she was a child.

Though not an expert, I suspect Rome had a similar crippling force. In Rome is was the riches of conquered lands and copious slave labor. In our time, the deforming force that has left our people so crippled psychologically was debt spending.

When Ronald Reagan first decided that we could borrow and spend faster than the Russians, the die were cast, and we were consigned to entering a period of peak r that would be unprecedented. Once rabbitized by that initial fix of free money, we were destined to head back to the credit line like a junkie.

Now K is back, but it doesn’t hit everywhere, all at once. K begins in the poorest areas, and the most rabbitized. As it overtakes those areas, the migrants flee to the remaining bastions of r, and like locusts, they consume every free resource they can, before picking up and fleeing again.

We are now beginning to see this wave sweep over the world. Poor areas like Africa that depend on free resource influxes from wealthier nations see and feel the early K, and their migrants flee. Areas high in r, like Puerto Rico, see it too even though they are not as poor.

Now the K is just arriving in America, and even despite the nation’s wealth, the rabbitized areas are beginning to feel the crunch, in the form of investors being hesitant to lend them money to facilitate their free resource buffet. These resource constrictions will cascade down the food chain, reducing jobs, diminishing spending in stores, driving real estate prices down, and diminishing everyone’s perceptions of their overall wealth. And then one day it will hit, and everybody will stop lending, shutting off the borrowing by force.

I expect that before the collapse we will see the rabbitized areas, panicked with K, threaten the responsible K areas in some fashion, with some consequence like putting all their homeless bums on busses and sending them to the K area. The K areas, still unaffected by the shocking psychological effects of shortage will have to decide, to appease the r areas and avoid the small amount of early conflict, or stand up and endure the minor early conflict, in the hopes of being better off later, in the Apocalypse.

All of it is preparation for the fall of the US Government, which I think will appear somewhat like the collapse of the Soviet Union. Paychecks with either stop, or become worthless, and people will just walk away to find niches where they can exchange value elsewhere.

I suppose r and K are a pendulum, and we have swung quite far toward the r side of things. Still, it is surprising to see just how powerful a little debt spending can be. No nation on earth could have destroyed Ronald Reagan’s America. But give Congress a credit card, and there will literally be almost nothing left.

This whole experience has completely changed how I view warfare. Flooding a competitor with free resources is about the most counter-intuitive means of destruction I could imagine. But who could argue with the results?

Spread r/K Theory, because you can make your enemies destroy themselves with kindness