James McKee

The Future of the USD: Illinois



Posted: Monday, January 17, 2011

by James McKee
http://www.forex.tradingcharts.com

The state of Illinois has been in turmoil financially for as long as anyone can remember.  Despite being a state with a smaller population Illinois has a deficit higher than that of California by a couple billion dollars, many are left scratching their heads in disbelief as the bills ad up.  The quality of life in Illinois (particularly in Chicago) is not desirable by any stretch of the imagination and indeed the state suffers from numerous serious acts of violence on a regular basis.

The state legislature has seen fit to increase taxes on private citizens and also on businesses, this has lead to a mass exodus from Illinois by both citizens and businesses.  Those left behind are now facing an economy and an infrastructure that are lacking to say the least.  These conditions have only intensified the criminal elements within Illinois causing a rise in crime and a drop in tax revenue as well as business revenue.

The way to fix the economy of Illinois lay in repairing a battered infrastructure and satisfying the exponential debt present in the education system at the moment.  Without a sound foundation any progress being made in Illinois will not last.  The social programs and other current debacles that are receiving government funding in Illinois must be re-evaluated if the state is to avoid bankruptcy.

If Illinois should end up having to declare bankruptcy the USD will definitely drop exponentially on the forex currency exchange.  Now that Illinois has proven that states within the US are vulnerable to bankruptcy more states may follow suit
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
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