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?


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.

There’s an economic axis of evil taking shape right now, and the people in charge of our government are too stupid to acknowledge and deal with what’s happening. The U.S. dollar and the entire financial system are at stake, and, as Glenn Beck reveals on "Glenn TV" Wednesday, our enemies’ PUBLISHED plans to take the entire thing down.

While all of this is happening, our own leaders are making everything worse. We’ve got Nancy Pelosi risking an international incident, accelerating China’s plans to collapse us. And when Biden SHOULD be focusing on the security of our country, he’s instead preoccupied with controlling the weather with his Inflation "Reduction" Act.

Glenn exposes the TRUE numbers on what that bill will do to your family’s budget. Add to that, they’re more than doubling the IRS to make sure you feel the pain. And if you think they won’t come for you, look at what they just did to the former president of the United States. The DOJ and FBI just went after the political opponent of their boss, Joe Biden.

This is what they are focused on, and the threat to the dollar — and the entire financial system — isn’t even on their radar. Pain is coming for us, and they don’t care one bit.

Watch the full episode below:

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Speaking before signing the “PACT Act of 2022” on Wednesday morning, President Joe Biden claimed that his wonderful economic plan "is working" and that somehow July’s annual inflation rate of 8.5% was actually “zero.”

“I just want to say a number: zero. Today we received news that our economy had 0% inflation in the month of July,” Biden said during a ceremony in the East Room of the White House.

White House press secretary Karine Jean-Pierre dutifully echoed the president's not-at-all misleading claim:

The truth of the matter is that last month's inflation rate of 8.5% was a (small) step in the right direction, but only because it was lower than June's 41-year high of 9.1% — and the thing is, anyone who's graduated kindergarten knows it.

So, who do White House personnel think they're fooling? On the radio program Wednesday, Glenn Beck and producer Stu Burguiere broke down how the Biden administration came to this latest disingenuous conclusion about the economy, what the latest consumer price index actually shows, and why the inevitable Biden brag-fest will be unbearable.

Watch the video clip below. Can't watch? Download the podcast here.

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Glenn Beck: This is the ONLY endgame that makes sense for the FBI’s raid on Trump’s Mar-a-Lago home

(Left) Photo by James Devaney/GC Images (Right) Video screenshot

If you're celebrating this FBI raid on Mar-a-Lago, you have no idea how much this changes things. We don't do this in America. At least, we didn't. But the left cannot have Donald Trump be president again. His "America First" platform goes against everything they've been working for. So, what's their endgame here? On the radio program, Glenn Beck said there's really only one endgame that makes sense — and it should scare us all.

"If you are not for the destruction of America, you better pay attention quickly. This is a massive move," Glenn said of the Mar-a-Lago raid.

"Who has credibility on this? ... The right will believe Donald Trump, but nobody on the left, so you're not going to change any minds there. Do you think the right will believe the New York Times? MSNBC? NBC? CBS? Do you think we're going to believe the New York Times — the people who have been carrying water for the Biden crimes? The Clinton crimes? And ... I'm talking about her server and having her own State Department people go into a skiff, which is the top secret room, completely sealed off, going in and getting documents, cutting off 'top secret,' and then emailing them to her on her private server. And nothing? And now you're going to try to convince me [that] this has nothing to do with January 6?" he added.

"Remember the [allegations about] bank servers, [Trump] was pinging a bank? Untrue. Carter Page is a Russian spy? Untrue. Donald Trump is a Russian spy? ... Untrue. Collusion with Russia? Untrue. Ukraine, the perfect phone call? Not true. Not true. Wasn't a perfect phone call. Was not impeachable. The pee tape dossier? None of that was true. Here's why they can't have [Trump] as president of the United States. They can't have him as president of the United States because we are headed towards a completely new, all redesigned, non-capitalist, nonconstitutional Great Reset," Glenn argued. "They cannot have him be president because he is America first."

Glenn warned Americans that our federal government is accumulating massive power, case in point the 87,000 new IRS agents. "Coupled with the [IRS agents] they already have ... that's almost the size of our National Guard. Do you feel comfortable with that? Democrats? You don't think there's a possibility ... that someone ... might come in at some point and weaponize the IRS?"

He also warned that the FBI's raid on Donald Trump’s home has implications that stretch far beyond simple dislike for the former president. So what are they hoping to accomplish?

"What is the endgame? You make him into a martyr by throwing him into jail or killing him ... so you make him stronger. That doesn't make sense, why would they want that?" Glenn asked. "So, what is their endgame? The only one that makes sense to me, is to stop him at any cost, then lunatics will take to the streets, and then [the Democrats] will have evidence that the [right is] more dangerous than anyone could possibly imagine. Please, pray for your country."

Watch the video clip below to hear more from Glenn. Can't watch? Download the podcast here.

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To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.