Illinois Bet the Farm and Lost—You'll Never Guess Who They Want to Pay the Tab

Illinois is facing a fiscal crisis that would see normal businesses shutting their doors and packing up the U-Haul. But states are an entirely different matter. They're not allowed to declare bankruptcy.

Pensions, which a judge ordered must be paid by Illinois, now amount to 100 percent of the state's revenue. Moreover, those pension funds are invested in the stock market and cannot be paid without a guaranteed five to seven percent return --- which is nearly impossible. So lawmakers have come up with a new plan to solve the problem created by an overburdened, overreaching government: tax the rich.

"This is an actual proposal now. They want to tax the rich, but in particular, they are mad at the people who are making so much money on the stock market. So what they're going to do, in Illinois, they are now proposing a 'small' tax of 20 percent," Glenn explained Thursday on radio.

The other proposal on the table is to break up the state and have it absorbed by the surrounding states.

"How many people in Missouri want to now be responsible for East St. Louis?" Glenn asked.

Thanks, but no thanks, Illinois.

GLENN: Hello, America.

Back in -- when I was at Fox, I did a segment on pensions and how pensions were working for fire firefighters and police and everything else. And if you remember, it was like four or five -- when pensions first started, it was like four or five workers would support the firefighter that left. Remember?

The problem is, is that the pyramid has been turned upside down. Now, what's happening, is one person is trying to take care of three or four pensioners. And there's absolutely no way to cover it. The math doesn't work. The pyramid is upside down. And it's a pyramid scheme.

So what did they do? The -- the unions decided that they would take all of the money that was supposed to go to pensions and they would put it into the stock market. And they had to get a return of five to 7 percent a year to be able to cover -- what they said, cover all of the pensions. It still didn't work.

Stu, you're wise enough to -- on money investment. How -- how difficult is it to get a guaranteed return of five to 7 percent a year?

STU: There's actually no such thing as a guaranteed return, in this particular climate, of five to 7 percent a year.

GLENN: Right.

STU: I mean, if it's in the stock market, it's obviously never guaranteed.

GLENN: Right. And in the stock market, or any investment, say I need 7 percent or I collapse every year. Is that something you should put together?

STU: That's a horrific idea.

GLENN: Horrific idea. There's no -- there's nobody in --

PAT: You might get that some years.

GLENN: Correct.

PAT: You might even do better than that some years.

STU: Oh, yeah. And you will.

PAT: But it's almost a guarantee you won't get it every year.

GLENN: So because the pension is upside down, the pyramid pension is upside down, now you have one person paying for three people, it doesn't work. And the stock market has been up and down. You never know if you're going to get five to 7 percent. But if you put your money in, in 2008, when the stock market was, what? At about 8,000.

STU: It was in the 6800 range --

GLENN: Yeah, might have been 6800.

Okay. Today, the stock market is at 21,000.

STU: Right.

GLENN: So you got a pretty good return on your money, don't you think?

PAT: Yeah. Tripled it.

GLENN: Yeah. You put your money into the teacher's union and the teacher's union is invested in stocks, that's fantastic. You went from 6800 went to 21,000. That's probably the best run of the stock market in history.

We were at an all-time high of 21,000. Illinois now has 100 percent of every tax dollar coming in, going out to pay for the pensions. 100 percent of every tax dollar, which means nothing for schools, nothing for roads, nothing for infrastructure, nothing to pay the mayor, nothing but graft now for city council. Nothing. 100 percent.

And a judge has said, "You cannot reduce any of the pensions. They must -- the state of Illinois must pay 100 percent of those pensions," which is now taking 100 percent of every tax dollar to pay.

So now they're saying, "We're going to break Illinois up." One suggestion is we're going to break Illinois up into five separate states and give portions of the state of Illinois. So congratulations, St. Louis, you're going to get east St. Louis as well. And you just to have take care of that.

Or is it -- it's east St. Louis, isn't it? Across the border? Yeah. Congratulations. How many people in Missouri want to now be responsible for east St. Louis?

But congratulations. You might get that. And, you know, it will now be part of your state. Congratulations.

No, thank you. And you can pay for all the pensions and everything there. Well, that's not going to work. The states aren't going to do it. Because every state is in this condition.

So --

PAT: Except for Texas.

GLENN: Except for Texas. Be careful.

Now, what are they talking about -- besides -- they're not going to break the state up. So besides that, what is the state of Illinois suggesting that they do?

The state has a great idea. They say that the wealthy are getting rich off of the stock market. Now, let's remember that the pensions are all in the stock market. So it's not just the wealthy that are getting rich on the stock market. It's the people who have their money in 401(k)s, IRAs, and in pension funds. They're getting rich on the stock market. Or they're at least getting partially paid because of the stock market being run up. So what is Illinois' plan?

Oh, I'll show you next. And show you how this works out, a little like what's happening in London, when we come back.

GLENN: All right. Let me just -- let me just take you through this real quick, and then we're going to get to what lessons did the Democrats learn and where is the world headed.

The problem in Illinois is going to hit every -- is going to hit every state. And it's going to hit every state differently. The pensions -- and we're talked about the fire, the police, all -- all state workers -- the pensions are out of control and have been for a long time. And back in 2008 or 2009, as I outlined, if we don't take care of these problems now, we are going to be facing massive issues in the future and there will be no good outcome. The outcome will be, dump it into the lap of the federal government. That's what I said at the time, 2008, 2009, if you remember that episode.

Well, we're here now. And Illinois, which is the state that I used as the example, is the first one to start to collapse. They have -- the money that they owe people in pensions is going to take 100 percent of the budget, and the state has said that they have to have -- they have to pay these pensions. So that's 100 percent of the budget.

The pensions are invested in the stock market. And for them to pay the pensions -- this is what they claimed -- they needed a five to 7 percent guaranteed return on their money. Well, that's impossible. I mean, that's -- you know, I know the Bernie Madoff. But it's on the road to Bernie Madoff. Nobody can promise you five to seven. But you had to have five to 7 percent in pensions because they wouldn't reduce the pensions they promised everybody. And we all accepted it. And the politicians were too greedy to say these unions are lying to you. You're never going to be able to retire because this is -- this is nothing but a Ponzi scheme.

All right. They're not getting enough of the return. They're not able to be able to make the money when the stock market is at 21,000. The highest ever. And they still can't make these pensions work.

It's not like, we had a crash, and it was unexpected. No, no, no. Highest stock market ever. And it's still not enough.

What happens if we have a correction and it falls to 15,000? What happens if -- let's be crazy and say another, you know, 2008 happens and it falls down to 16800. Or another Great Depression happens.

Well, what happens to then the Illinois pension fund, which is now taking 100 percent of the budget? Is it 200 percent of the budget?

So Illinois has bankruptcy. No, that's not going to work. Because a state can't declare bankruptcy. They can break the state apart. That's not going to happen.

So they're left with taxes. Let's take more from the poor, right? Isn't it the poor?

No. No. Sorry. They want to tax the rich.

Now, who are they taxing? Who are they going to tax? This is an actual proposal now. They want to tax the rich, but in particular, they are mad at the people who are making so much money on the stock market.

So what they're going to do, in Illinois, they are now proposing a small tax of 20 percent.

PAT: Oh, my gosh. On --

GLENN: On transactions in the stock market. Okay.

PAT: Good golly.

STU: What?

GLENN: 20 percent tax over a certain amount for the uber rich.

Well, Stu, you're investing money in the stock market, and Illinois sets a trap up to take 20 percent of your money. What do you do?

STU: Putting my money somewhere else, because even if I'm successful, I lose under this proposal.

GLENN: Correct. If I get a 7 percent return on my money and I want to move my money, I lose an additional 13 percent. I lose the 13 percent -- I'm sorry. No, no, no, wait. I lose -- yeah, 13 percent. Because I've made seven, but they're taking 20. So I've lost 13 percent of my money, even though I gained.

STU: So then, of course, these wealthy individuals do not invest in the stock market. And what happens to the stock market when they don't invest in it?

GLENN: What? What are you talking about?

STU: Yeah, it doesn't stay up. If you start taking millionaires or billionaires out of the stock market, that doesn't help.

GLENN: Yeah. Or because you are taxing the people of Illinois, something else happens too.

STU: People move the hell out of the state.

GLENN: Yes. There we go. They move. They take their crap and they leave Illinois.

STU: Now, that helps the pension funding, right?

GLENN: No.

STU: Because not having those people there -- they're so bad for the economy, those rich people.

GLENN: No. No. No.

So now they're gone.

PAT: Jeez.

JEFFY: Well, we've got to do something about that. We've got to make it so that they can't move.

GLENN: Right. Right. So now there's two problems: That's not going to work. It will only make things worse. And then the state will say, we've got to make it so people can't move.

This is going to be -- there's another problem that is going on. So the state will have to move it up to the federal government because the federal government will be the only one that could be the backstop. Because Illinois is too big to fail. There's another problem.

If I have my pension in the firefighters union or the police union and I'm already seeing in places like Dallas that there's no way I'm going to get my pension, it's starting to collapse in a healthy city, like Dallas. I'm going to do, what? I'm going to ask for my cash payout. I'll take less to get my money now.

So once they start to see what's really happening in Illinois and they realize, this whole thing is going to collapse, all of the people who have pensions are now going to say, "I'm getting my money out now." And that's -- what happens -- what do we call that when it happens to banks?

PAT: Run on the bank.

GLENN: Run on the bank. So what do they do? They usually close the bank so you can't do a run on the bank. And then they tell you, you can only take out a certain amount. So now you don't have a choice anymore.

The federal government will tell you, you can't take the pension money. You can't take a lump sum anymore because it will cause a run on the pensions. So when this happens and you have the stock market -- let's say the stock market crashes and the extra taxes on the rich don't work and then people start to lose their job and lose their money in their 401(k) and you don't have a pension, the federal government is going to bail you out. By putting that much money -- by printing that much money, what happens then again to our money? Because now we're printing millions and billions of dollars, that is going to have velocity.

After imprisoning a pastor for refusing to follow COVID-19 restrictions, Canadian officials barricaded his church. And when some church members retaliated by tearing down part of the fence, Canadian Mounties arrived in riot gear.

Rebel News Founder Ezra Levant joined Glenn Beck on the radio program to give his insight on the crazy situation. He described the new, armed police presence surrounding GraceLife Church in Edmonton, Alberta, and how it not only encouraged hundreds of protesters to stand with the church in support but forced congregation members underground to worship as well.

What's happening is eerily similar to what occurs everyday in China, Levant says, and it must stop. Who would have thought this type of tyranny would be so close to home?

Watch the video below to hear Ezra describe the religious persecution taking place in Canada.


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Enough prayers? Why is supposed Catholic Joe Biden suggesting that Congress ought to stop praying for after someone commits acts of gun violence?

On Friday, Stu Burguiere and Pat Gray filled in for Glenn and discussed President Joe Biden's remarks during his speech on gun control. "Enough prayers. Time for some action," Biden said. Stu and Pat were surprised how dismissive Biden appeared to be on the idea of prayer.

Watch the clip to hear more. Can't watch? Download the podcast here.

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Just days after Canadian pastor James Coates was released from prison for refusing to bow to COVID-19 lockdown restrictions, several police officers showed up at another church to ensure restrictions were being followed. But Polish pastor Artur Pawlowski of the Cave of Adullam Church in Alberta, Canada, knew his rights, telling the cops not to come back until they had a warrant in hand.

Filling in for Glenn Beck on the radio program this week, Pat Gray and Stu Burguiere played a video of the interaction.

"Please get out. Please get out of this property immediately. Get out!" Pawlowski can be heard yelling at the six officers who entered his church.

"Out! Out! Out! Get out of this property immediately until you come back with a warrant," he continued. "Go out and don't come back. I don't want to talk to you. You Nazis, Gestapo is not allowed here! ... Nazis are not welcome here! Do not come back you Nazi psychopaths. Unbelievable sick, evil people. Intimidating people in a church during the Passover! You Gestapo, Nazi, communist fascists! Don't you dare come back here!"

Watch this clip to see the heated exchange:

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One of the most dangerous existential threats to the United States is Critical Race Theory, or CRT. As Glenn Beck has exposed over the past year, CRT is gaining momentum and has been preached in our universities for a while now.

Then last August, leaked documents revealed that Marxism, activist ideology of Black Lives Matter, is making its way into grade school classrooms across the country. And since then, things have only gotten more intense.

On next week's Wednesday night special, Glenn will expose the new ways progressives are systematically indoctrinating our kids and culture with this dangerous ideology. But first, it's crucial that you know what your kids may already be learning.

"What I'm about to show you is just the beginning," Glenn said, introducing the leaked documents.

"I found it shocking that Black Lives Matter supporters have developed lesson plans that start from preschool all the way up to the 12th grade," he continued. "Do you know the money it would take to tailor things ... and get it out to the schools and the unions for each age, to be able to brainwash the kids on Marxism and how to destroy capitalism by using race, sexual orientation, and gender?

"Our children don't stand a chance," Glenn added later. "They're not being taught anything except how to be radical activists. What the hell has happened?"

Watch the video clip below or find the full episode here.


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