Memorial Day 2015

There will be no new material posted on Survival And Prosperity today in honor of the gallant men and women that served, fought, and died in defense of this amazing country of ours.

It is because of their sacrifice that I am able to type this today and share it with all of you.

And for that, among other freedoms they helped preserve, I am eternally gratefully.

New posts will appear tomorrow. Enjoy the remainder of this long holiday weekend.

Christopher E. Hill
Editor

Monday, May 25th, 2015 Housekeeping No Comments

Resource Of The Week: Free Access To Combat Handguns, Guns & Weapons For Law Enforcement, Guns Of The Old West, Tactical Weapons, And More Magazine Articles

Back on April 23, I named free digital editions of a number of FMG Publications (American COP, American Handgunner, GUNS Magazine, and Shooting Industry) as the “Resource Of The Week.”

This week’s ROTW nomination is along those same lines. From the website of New York City-based Harris Publications, Inc.:

Harris Publications is one of the nation’s largest special interest media companies operating over 75 brands with print, digital, mobile and live event platforms…

Their offerings include the following magazines/media:

AK-47 & Soviet Weapons
• American Frontiersman
Ballistic
BlackGuns
Combat Handguns
• Complete Book Of Guns
• Complete Book Of Handguns
• Concealed Carry Handguns
• Glock Autopistols
Gun Annual
• Gun Buyer’s Annual
• Gun Buyer’s Guide
Guns & Weapons for Law Enforcement
Guns Of The Old West
• The New Pioneer
Military Surplus
• Personal & Home Defense

• Personaldefenseworld.com
• Pocket Pistols
• Realworldsurvivor.com
Special Weapons For Military & Police
• Survivor’s Edge
Tactical Weapons
The Complete AR Rifleman

Now you see those titles in bold? Harris Publications allows free access to selected articles within these publications. This includes many pieces on a number of topics from both current and archives issues, such as:

• “12 Products That Will Enhance Your AK Rifle” (AK-47 & Soviet Weapons)
• “46 Everyday Carry Items in 3 Different Setups” (Ballistic)
• “Primed For Perfection: Building a Combat-Ready, Custom AR” (BlackGuns)
• “13 Entry-Level 1911 Pistols Under $800 For Home Defense and Range Training” (Combat Handguns)
• “How To Choose The Right Pocket Pistol For Self-Defense” (Pocket Pistols)

Looking for some reading material over the long holiday weekend? Head on over to Harris Publications’ Tactical-Life website here, making sure to select “See Current Issue” of the magazine you’re interesting in reading to access the free articles.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: Link added to “Resources” page)

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Illinois Tax Hikes Coming Warn Municipal Bond Fund Managers

Talk of rapidly-approaching tax hikes in the “Land of Lincoln” is growing. Reuters’ Nick Brown, Megan Davies, and Karen Pierog reported yesterday:

With no easy way to financially engineer or negotiate its way out of a budget and pensions crisis, Illinois is likely to dish out some unpleasant medicine to its residents in the next few years. And investors say that is most likely to come in the form of higher taxes.

Given the Democrats’ control of the state legislature and their opposition to many proposals for spending cuts, municipal bond fund managers see little alternative for Republican Governor Bruce Rauner other than eventually agreeing to hike taxes, such as raising the state’s income tax or broadening its sales tax base…

(Editor’s note: Bold added for emphasis)

Regular readers of Survival And Prosperity shouldn’t be surprised when the hikes (fees, fines, and taxes) arrive, as they’ve been discussed on this blog for quite some time now. The tragedy is that Springfield continues to waste time and resources on trivial matters while neglecting to tackle crucial issues like the well-publicized debt crisis. Monique Garcia and Kim Geiger reported on the latest nonsense preoccupying the politicians. From the Chicago Tribune website this afternoon:

Democratic Speaker Michael Madigan’s effort to ask voters to approve a measure to impose higher income taxes on millionaires failed in the House on Thursday, but provides the powerful Southwest Side politician ammunition to attack Republicans in next year’s legislative campaigns.

The proposal needed 71 “yes” votes to pass, but received just 68. But now there’s a roll call, and Madigan’s Illinois Democratic Party could send out mailers criticizing Republicans who voted against the idea. Democrats already have sent out attack ads against Republicans who did not vote in favor of a property tax freeze last week

(Editor’s note: Bold added for emphasis)

Games. Stupid political games as the state’s “financial reckoning day” fast approaches.

By the way, back on March 24 of last year I blogged about that push for a “millionaire’s tax” in Illinois. My prediction now is pretty much the same as it was a year ago:

Should Illinois Democrats jack up their income taxes, I suspect the number of Illinois millionaires right before the tax hike is implemented will plummet. Revenue will follow. Out-of-state vacation homes in Indiana and Wisconsin will be declared as primary residences.

The only difference being, I forgot to mention Michigan vacation homes.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Sources:

Brown, Nick, Davies, Megan and Pierog. “As Illinois runs out of options in budget crisis, tax rises seen in the cards.” Reuters. 20 May 2015. (http://news.yahoo.com/illinois-runs-options-budget-crisis-tax-rises-seen-051616644.html). 21 May 2015.

Garcia, Monique and Geiger, Kim. “Madigan’s ‘millionaire tax’ question fails in House.” Chicago Tribune. 21 May 2015. (http://www.chicagotribune.com/news/local/politics/ct-rauner-warns-of-long-overtime-20150521-story.html). 21 May 2015.

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Jack Spirko: Trendy Downtown Areas Will Be ‘Burned To The Ground’ In Coming Urban Riots

Speaking of The Survival Podcast, I was listening to a different episode (number 1566, “What the Baltimore Riots Say about our Future”) some time back and made took note of some advice host Jack Spirko shared with listeners. He warned on April 28:

You know those trendy areas in downtown that everybody thinks are great places to live as a hipster, because you can walk to the donut shop and the coffee shop? Sooner or later in most of our big cities those are going to be burned to the ground. Don’t live there. Don’t live there. One more time, don’t live there. Get out of the urbanized areas. I don’t care how you do it, just do it. You’re better off anyway…

Spirko added later in the podcast:

I wish I had better news for you. I wish I could tell you that this is an isolated incident. But here’s what I believe. The potential for this type of a riot exists in every major city in America. And it actually would be relatively easy to set them off like fires. It really would. I think the right people, with the right messaging, the right agitation, the right insiders, could cause a riot like this in any city with a population over 500,000 in America today. And quite a few smaller venues too. I really do. That should scare the shit out of you. But the response should scare you even more. It’s not going to be pretty. That’s why you need to be prepared…

A sobering forecast for the country, to say the least. You can listen to the entire episode on The Survival Podcast website here.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Project Prepper, Part 35: Expanded ‘Innate Survival Needs’ List

This “Project Prepper” entry is going to be a short one since I’m busy plugging away at a number of preps to be covered in this series of posts down the road.

Back in Project Prepper, Part 9 (dated February 27, 2013), I talked about the six “innate survival needs” that my preparedness efforts for this series would focus on (hat tip Jack Spirko of The Survival Podcast as the originator of this list of needs). That list included (in order of priority):

• Security
• Water
• Food
• Shelter
• Sanitation and Health
• Energy

Recently, I was listening to episode 1557 of The Survival Podcast, “The Responsibility Of Being Prepared.” On April 15, Spirko told listeners:

All we need to do is start looking at the basic needs of human kind and in the modern world. These are simple. They’re universal:

• Food
• Water
• Shelter
• Energy
• Health and Sanitation
• Physical Security
• Financial Security

Note how Spirko has now broken down “Security” into “Physical Security” and “Financial Security.”

I like that expanded list of “innate survival needs,” and will adopt it. Reordered for my purposes:

• Physical Security
• Financial Security
• Water
• Food
• Health and Sanitation
• Energy
• Shelter

“Physical Security” is still priority number one because I predict the push for more gun “control” will continue while crime simultaneously gets worse. “Financial Security” breaks into the list at number two because the most likely disaster I see on the horizon is an economic one. “Shelter” now brings up the rear as I’ve completed that move from my Chicago apartment to a house in the suburbs (plus there’s my family’s place in Wisconsin where I spend time).

More soon…

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Niles Gun Shop, Range Lawsuit Decision Pushed Back To June

The drawn-out saga that is the proposed Sportsman’s Club and Firearms Training Academy (gun shop and range) at 6143 Howard Street in northwest suburban Niles is set to continue for at least another month. Richard Ray of the Pioneer Press (Chicago suburbs) reported on May 14:

The court date for an anticipated ruling on whether or not a gun range can be built in the village of Niles has been pushed back to June, according to information from the clerk of the Circuit Court of Cook County’s office.

This marks the second time Judge Franklin Ulyses Valderrama has motioned to take the case under advisement and push back the ruling, court records show…

(Editor’s note: Bold added for emphasis)

Regular readers may recall I’ve been following the Niles gun shop/range story for almost a year now. I blogged last month that Judge Valderrama was originally scheduled to make a ruling on April 14, but pushed a decision back until May 14.

Here’s hoping the judge rules in favor of the Village of Niles and 6143 Howard Partners Inc/Sportsman’s Club and Firearms Training Academy in June.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Ray, Richard. “Court date for Niles gun range decision pushed back again.” Pioneer Press. 14 May 2015. (http://www.chicagotribune.com/suburbs/niles/news/ct-nhs-gun-range-date-tl-0521-20150514-story.html). 19 May 2015.

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JM Bullion Having Silver Super Sale This Week

Memorial Day Weekend is almost here- along with the big sales. Affiliate marketing partner JM Bullion (reviewed here) is having a Silver Bullion Blitz this week. From an e-mail I received from the Dallas, Texas-based precious metals dealer yesterday:

Silver Bullion Blitz Starts Now!

On sale now at JMBullion.com are a variety of popular silver bullion products at amazingly low prices…

The full list of sale products include:

1 oz Sunshine Silver Round – 89¢ over spot any quantity
1 Kilo RMC Silver Bar – 79¢/oz over spot
100 oz Sunshine Silver Bar – 55¢/oz over spot
2014 1 oz Armenian Silver Noahs Ark Coin – $1.99 over spot any quantity
1 oz RMC Silver Round – 85¢ over spot any quantity
1 Kilo RMC Silver Bar – 79¢/oz over spot
1 oz A-Mark Silver Round – 89¢ over spot any quantity
10 oz A-Mark Silver Bar – 85¢/oz over spot
100 oz Johnson Matthey Silver Bar – 65¢/oz over spot

JM Bullion offers free shipping on all orders which includes full tracking and insurance. Our pricing contains no hidden fees the prices you see is your delivered price…

Interested in any of these offerings? Keep in mind the following from the e-mail:

Please note that we have limited quantities of each product available, and this special pricing is only good while supplies last.

Click on the banner ad below, where you’ll be taken to the JM Bullion site. Please note that by clicking on the ad and purchasing a product, I receive a commission from the sale.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Signs Of The Time, Part 85

Monday at lunch I finally got the chance to read my Sunday paper. From the Chicago Tribune “Perspective” section, in the part entitled, “Voice Of The People”:

Do not allow silencers

I cannot believe that there is serious consideration to permitting gun silencers to be used by gun owners in Illinois. Anyone with an ounce of common sense will recognize that guns with silencers are the weapon of choice for assassins, terrorists and murderers. What would happen if a nut entered a school and starting shooting randomly with such a weapon? No noise to alert the rest of the teachers and children?

Two things came to mind when I saw the above:

1. The author has quite an imagination.

2. Yet another argument leaning heavily on emotion (plea for “common sense” is often a giveaway), but devoid of facts.

Emotionally-driven arguments. Very much a sign of the time.

But now the facts on this subject.

An ABC7 Chicago I-Team Investigation recently looked into suppressors as legislation legalizing such devices has been introduced in the Illinois House (HB0433) and Senate (SB0803). Chuck Goudie reported on the ABC7 website on April 30:

Silencers used by criminals on TV and in movies; this is how most people know of the device.

Sponsors of a bill to make them legal in Illinois say the Hollywood interpretation is pure fiction…

A 2007 study found silencer use in crime is rare…

(Editor’s note: Bold added for emphasis)

“Guns with silencers are the weapon of choice for assassins, terrorists and murderers.”

Whatever you say.

And all those “assassins, terrorists and murderers” will be lining up for silencers if they’re legalized in Illinois, right?

As I blogged back on February 11:

Firearm suppressors (or sound suppressors and silencers as they’re also known) are highly-regulated in the United States. J. Guthrie reported on the Guns & Ammo website back on May 13, 2012:

If you lived in Scotland, they would be required for hunting. If you lived in Finland you could saunter down to the local gun shop and buy one over the counter—one more reason to like Finland. In the U.S., suppressors are regulated by the National Firearms Act and you have to first make sure they are legal in your state, fill out a federal form and send it, a couple of photos and some fingerprints into the BATFE for approval. Once approved—the process can take six or seven months—the BATFE sends you a little stamp and some paperwork and you can take possession of the suppressor from you dealer. There are legal considerations for interstate transportation and transferring the suppressor too…

Just like most felons don’t acquire their firearms lawfully, neither will they be obtaining suppressors legally- particularly in a highly-regulated environment like the one that currently exists.

Fears of a proliferation of legally-manufactured, lawfully-obtained suppressors among the bad guys in the “Land of Lincoln” are unfounded.

As for the “Voice Of The People” on these devices? I sure as hell hope it isn’t.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Goudie, Chuck. “Are Gun Silencers A Threat To Safety?” ABC 7. 30 Apr. 2015. (http://abc7chicago.com/news/are-gun-silencers-a-threat-to-safety/689952/). 18 May 2015.

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49 Shot In Chicago This Past Weekend

Weekend of April 17-19: 4 killed, 30 wounded from shootings in Chicago

Weekend of April 24-26: 4 killed, 22 wounded

Weekend of May 1-3: 5 killed, 29 wounded

Weekend of May 8-10: 2 killed, 24 wounded

Weekend of May 15-17: 2 killed, 47 wounded

That’s correct- 49 shot in the city of Chicago this past weekend.

Peter Nickeas reported on the Chicago Tribune website this afternoon:

At least 49 people were shot, two of them fatally, since Friday afternoon in Chicago. Twenty-two people were shot Friday night into early Saturday and another 18 were shot late Saturday morning into Sunday.

The violent weekend comes on top of a 22 percent increase in shooting incidents so far this year. Through May 10, there were 627 shooting incidents, up from 516 for the same year-earlier period, the [Chicago Police] department said.

Last year saw shooting incidents rise to 2,084, up nearly 12 percent from 1,866 in 2013…

(Editor’s note: Bold added for emphasis)

All this shooting, and it’s not even summer yet.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Nickeas, Peter. “49 people shot in Chicago over weekend: ‘Whole bunch of shots.’” Chicago Tribune. 18 May 2015. (http://www.chicagotribune.com/news/local/breaking/ct-chicago-violence-20150517-story.html). 18 May 2015.

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Tuesday, May 19th, 2015 Crime, Public Safety, Self-Defense No Comments

Next Riot: Cleveland?

Ferguson. Baltimore. Next up, Cleveland?

There’s been talk that Cleveland, Ohio, could potentially be the location of the next major U.S. riot after the verdict from the manslaughter trial of Cleveland police officer Michael Brelo is released as early as this week.

From a Friday post on the Straight from City Hall website, which is maintained by the Mayor’s Office of Communications in Cleveland’s city hall:

City of Cleveland Preparing for Peaceful Protests

The City of Cleveland continues to prepare for peaceful protests leading up to and following the trial of Cleveland Police Officer Michael Brelo. Mayor Frank G. Jackson stated that the city is working with citizens and leaders across the community to foster understanding and ensure order and public safety. The verdict may be reached as early as next week and subsequent protests may be spontaneous or unpredictable…

“The verdict may be reached as early as next week.”

One Cleveland news outlet doesn’t think today will be the day the verdict is announced. Kaily Cunningham reported on the Fox 8 (Cleveland) website Saturday night:

The verdict for Cleveland police officer Michael Brelo is not expected to come Monday, but could actually take days or weeks.

In a statement from the administration at the Cuyahoga County Common Pleas Court, they said Judge John O’Donnell is not expected to make a decision as early as Monday…

Brelo, 31, is charged with two counts of voluntary manslaughter for the 2012 police chase and shooting that left Timothy Russell and Malissa Williams dead…

(Editor’s note: Bold added for emphasis)

Stay tuned…

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Cunningham, Kaily. “Verdict for Cleveland police officer charged in deadly chase and shooting could take days or weeks.” Fox 8. 16 May 2015. (http://fox8.com/2015/05/16/verdict-for-cleveland-police-officer-charged-in-deadly-chase-and-shooting-could-take-days-or-weeks/). 17 May 2017.

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Monday, May 18th, 2015 Civil Strife, Crime, Legal, Public Safety No Comments

Cook County Public Pension Fix Could Mean Property Tax Hike

Blog readers in Cook County, Illinois, should prepare themselves for the possibility of higher property taxes shortly. Hal Dardick and Monique Garcia reported on the Chicago Tribune website Friday:

Cook County Board President Toni Preckwinkle is trying to revive a plan to overhaul government worker pensions, with supporters arguing the proposal is vastly different from changes to state retirement benefits recently struck down by the Illinois Supreme Court.

The proposal would cut benefits and raise retirement ages but also guarantee health care benefits for workers when they retire. It calls for the county to put almost $147 million more a year into the pension fund, though Preckwinkle continues to be vague about how she’ll fund that increase by repeatedly saying “all options are on the table.”

If the County Board chooses to foot the bill with a property tax increase, the average homeowner would pay up to $65 more a year starting in 2017, according to one internal county document the Tribune obtained when Preckwinkle sought the same legislation last year.

That measure was approved by the Senate last year but stalled in the House. It is now scheduled to be heard by a panel of House lawmakers next week…

(Editor’s note: Bold added for emphasis)

Readers shouldn’t be surprised about the prospect of higher property taxes. I blogged back on January 13:

Cook County Board President Toni Preckwinkle also gave a speech yesterday in which she hinted at county residents having to make future sacrifices. John Byrne reported on the Chicago Tribune website Monday:

Preckwinkle gave a speech to the City Club of Chicago about her first-term achievements and laid out a blueprint for her second four years in office. Asked afterward about the likelihood she will be forced to raise taxes, Preckwinkle said only that it will be “a challenge” to meet the county’s financial obligations.

“We have significant challenges, both around the spike in our debt obligations and our pension obligations, and my charge to our chief financial officer is that he has to do everything he can to be creative in figuring out how to address these problems,” she said…

Preckwinkle crafted a $4 billion budget for 2015 that includes no new taxes, fines or fees. She has warned that the 2016 budget will be far trickier to balance because debt payments will increase and the county could need to come up with $144 million more to pay into the county workers retirement system if she gets the pension fund changes she has asked for from the General Assembly.

“I can’t predict now, because we don’t even have a pension bill, how much it’s going to cost or what it’s going to take, but it’s going to be a real challenge, I’ll say that,” she said Monday.

(Editor’s note: Bold added for emphasis)

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Dardick, Hal and Garcia, Monique. “Preckwinkle tries again on Cook County pension changes.” Chicago Tribune. 15 May 2015. (http://www.chicagotribune.com/news/local/politics/ct-cook-county-pension-proposal-met-20150515-story.html). 17 May 2015.

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Jim Rogers: ‘The Game Is Getting Close To An End’

GoldSeek.com Radio’s Chris Waltzek recently interviewed well-known investor, author, and financial commentator Jim Rogers. Talking to GoldSeek.com Radio from Switzerland, Rogers discussed a number of topics related to investing. While insightful, it was his “parting words” for listeners that grabbed my attention. The former investing partner of George Soros in the legendary Quantum Fund said in the interview:

My parting words are, be very aware of what’s going on and be careful- be worried and be careful. Sure, I write about it in my books. But more important than my books are- just be prepared, because the next time we have a problem in the world it’s going to be really, really bad.

GoldSeek Radio’s Waltzek asked what type of “safety net” is left, to which Rogers replied:

I mean nothing. They’ve put up a lot of PR. But no- I mean, interest rates are at historical lows. They’ve printed staggering amounts of money. I mean, sure they can just go out and buy stocks or something, and then print even more money. But the game is getting close to an end. We haven’t had a recession or hard times in America and the world in six years. We’re overdue historically. When it comes, because the debt is so, so, so much higher, it’s going to be a mess. I mean, I’m still long stocks. I’m still long stocks, don’t get me wrong. I’m just saying, please be aware of what’s going on, because when it ends, it’s going to be serious.


GoldSeek Radio – May 8, 2015 [JIM ROGERS, PETER ELIADES & DAVID MORGAN]
(Jim Rogers Segment 6:08 to 18:08)
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

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Peter Schiff: Gold Still On Course For $5,000 An Ounce Or More

In a recent MarketWatch phone interview, Peter Schiff, President and CEO of Euro Pacific Capital, repeated his call for the price of gold to reach and possibly surpass $5,000. Myra Saefong reported on the financial news website Friday morning:

“You need to be long gold and there is going to be a huge payday,” Schiff said. “Ultimately,” gold will see $5,000 an ounce and it “could go higher.”

Though gold has been range bound since about mid-2013, Schiff said the turning point for the metal would be a close above the high it saw in January. Gold futures peaked at around $1,300.70 that month, according to FactSet.

“That’ll change the current dynamic,” Schiff argues…

(Editor’s note: Bold added for emphasis)

I’ve blogged about that $5,000 number from Schiff before. Back on October 25, 2012, Schiff told viewers of CNBC’s Futures Now TV show:

$1,700? One day we’re going to look back at $1,700 with nostalgia. People are going to be shocked at how inexpensive gold was when it could be snapped up for such a bargain price. It’s not going to take too long. Just in a few years. I mean, we’re talking gold $5,000. That’s not the ceiling. That might end up being the low end of the range that we’re going to be into. Remember, Ben Bernanke has promised to print over a trillion dollars in 2013. I think he’s going to print more than that. It’s not going to revive the economy. It’s not going to create jobs. But it will help destroy the dollar. And that is going to send gold higher…

I think you’re going to see a big move in the next couple of years.

It’s not just physical gold he’s bullish on. Saefong added in that MarketWatch piece:

“I think the upside in gold stocks is phenomenal from here,” Schiff said.

(Editor’s note: Bold added for emphasis)

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Source:

Saefong, Myra. “Peter Schiff, more bullish than ever, sees gold headed to $5,000 an oz.” MarketWatch. 15 May 2015. (http://www.marketwatch.com/story/peter-schiff-more-bullish-than-ever-sees-gold-headed-to-5000-an-oz-2015-05-15?page=1). 16 May 2015.

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Chicago’s Credit Rating Lowered By Fitch Ratings, Moody’s, Standard & Poor’s

The three major U.S. credit rating agencies have downgraded the City of Chicago this past week. Last Tuesday, Moody’s announced on its website:

Rating Action: Moody’s downgrades Chicago, IL to Ba1, affecting $8.9B of GO, sales, and motor fuel tax debt; outlook negative

Also downgrades senior and second lien water bonds to Baa1 and Baa2 and downgrades senior and second lien sewer bonds to Baa2 and Baa3, affecting $3.8B; outlook negative

New York, May 12, 2015 — Moody’s Investors Service has downgraded to Ba1 from Baa2 the rating on the City of Chicago, IL’s $8.1 billion of outstanding general obligation (GO) debt; $542 million of outstanding sales tax revenue debt; and $268 million of outstanding and authorized motor fuel tax revenue debt…

In case readers didn’t notice, that was a two-notch downgrade from “Baa2″ to “Ba1.”

According to Moody’s “US Municipal Ratings,” “Ba” indicates “Issuers or issues rated Ba demonstrate below-average creditworthiness relative to other US municipal or tax-exempt issuers or issues.”

In other words, “junk.”

A day later, Moody’s was at it again, lowering the Chicago Board of Education’s credit rating. From their site on May 13:

Moody’s downgrades Chicago Board of Education, IL’s GO to Ba3; outlook negative

Ba3 rating applies to $6.2 billion of GO debt

New York, May 13, 2015 — Moody’s Investors Service has downgraded to Ba3 from Baa3 the rating on the Chicago Board of Education, IL’s $6.2 billion of outstanding general obligation (GO) debt. The Chicago Board of Education is the primary debt issuer for the Chicago Public Schools (CPS) (the district). The outlook remains negative…

A three-notch downgrade. And even worse “junk.”

Standard & Poor’s joined in on the downgrade parade later in the week. From a press release Friday:

Chicago, IL GO Bond Ratings Lowered To #A-# From #A+#, Placed On CreditWatch Due To Short-Term Liquidity Pressure

CHICAGO–15 May–Standard & Poor’s

CHICAGO (Standard & Poor’s) May 14, 2015–Standard & Poor’s Ratings Services lowered its rating to ‘A-‘ from ‘A+’ on the city of Chicago’s outstanding general obligation (GO) bonds, and placed the ratings on CreditWatch with negative implications…

According to the S&P website, “A” indicates:

Somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong.

Fitch Ratings was the last of the three major credit rating agencies to the party, releasing the following Friday on their website:

Fitch Downgrades Chicago, IL’s ULTGOs and Sales Tax Bonds to ‘BBB+'; Ratings on Negative Watch

Fitch Ratings-New York-15 May 2015: Fitch Ratings has downgraded the ratings on the following Chicago, Illinois obligations:

–$8.1 billion unlimited tax GO bonds to ‘BBB+’ from ‘A-‘;
–$546.5 million (accreted value) sales tax bonds to ‘BBB+’ from ‘A-‘;
–$200 million commercial paper notes, 2002 program series A (tax exempt) and B (taxable) bank bond ratings to ‘BBB’ from ‘BBB+’.

At the same time, the ratings have been placed on Negative Watch…

According to the Fitch Ratings website, “BBB” indicates:

Expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

You can read the May 12 Moody’s press release on their website here. The May 13 Moody’s release is here. Standard & Poor’s press release can be found here (on thailand4.com) and the Fitch Ratings release on their website here.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Quote For The Week

“Our ambition should be to rule ourselves, the true kingdom for each one of us; and true progress is to know more, and be more, and to do more.”

-Oscar Wilde (Irish writer and poet. 1854-1900)

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Sunday, May 17th, 2015 Quote For The Week No Comments


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Free UPS ship to store on all Tractor Supply Company orders! Shop now! Tractor Supply Co. Review Coming Soon
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JM Bullion Reviewed HERE
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Nitro-Pak--The Emergency Preparedness Leader Nitro-Pak Reviewed HERE
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Food Insurance Food Insurance Reviewed HERE
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CHIEF Supply Reviewed HERE
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BulletSafe Reviewed HERE
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Pyramyd Air is your one-stop shop for everything airgun related. PyramydAir.com Reviewed HERE
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Airsoft Megastore Reviewed HERE
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