The State of Illinois just had it’s bond rating downgraded (again) and is looking at a very bleak financial future. Essentially, the state will have to pay a premium to get investors to buy their debt since it is now rating just above junk status. At the same time, Illinois doesn’t have enough tax revenue to pay their current expenditures…much less future commitments.

This is relevant for citizens of all states and municipalities that are suffering ongoing financial problems. When governments run out of money, they have difficulty paying for services like police, fire, and sanitation. Crime increases, property values decline, and the tax base shrinks as residents flee for safer locales. The result looks a lot like Detroit, Baltimore, or Newark.

What this means for regular people is that you shouldn’t count on “the government” to be there when things go wrong. The wise choice is to develop networks of like-minded people to build the communities that are necessary to assist each other when the unexpected happens. Take the steps now to learn more about how to be better prepared, including reaching out to others who are in the same situation. In the end, we will have to rely on each other in emergencies rather than corrupt and bankrupt governments.