Tag: debt

Chicago Claims Its Budget is Balanced. Independent Audit Shows a $41.1 Billion Deficit.

The city of Chicago exists on another plane of the universe than the rest of us. It’s a place where up is down, black is white, and the basic laws of physics are held in abeyance so that when adding one plus one, any number that’s convenient (and politically viable) can be the answer.

In Chicago’s budget, the “new physics” includes the caveat that nothing is real unless we (the aldermen and the city’s hapless Mayor Brandon Johnson) say it is. And even then, nothing is permanent in this alternate plane of the universe. An equation that’s “true” today may not be so “true” tomorrow.

Do you think I’m being facetious? 

“Chicago finished fiscal year 2024 with a $41.1 billion gap between the money it has available to pay bills and the obligations it owes, according to a new report from Truth in Accounting, placing the city among the worst financially managed major cities in the nation,” according to The Center Square.

That’s only half the story. The city denies there’s a deficit at all. City officials say (how can they not giggle when saying this) the budget is balanced.

Truth in Accounting CEO Sheila Weinberg clears up any ambiguity.

“They only include the expenses they’ve paid, not all the expenses they’ve incurred,” Weinberg said. “They also include loan proceeds as revenue and still claim the budget is balanced. In the real world, borrowing money to balance your budget would be insane. But in government budgeting, that’s how they do it.”

One person’s “insanity” is another’s denial of reality.

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“Train Wreck” US Adds $481 Billion In Debt In 3 Months

The government hit the debt ceiling back in January which blocked any net new debt from being created from January to June. Once the debt ceiling was lifted, the government wasted no time in catching up for all the months where borrowing was frozen. Over the last 7 months, the government borrowed an incredible $2.28T!

Note: Non-Marketable consists almost entirely of debt the government owes to itself (e.g., debt owed to Social Security or public retirement)

January was a very small month, but the chart below shows that $2.3T was borrowed for all of 2025. This follows $2.6T and $2.2T in 2023 and 2024. Needless to say, there seems to be a new standard of $2T+ annual borrowing. This will likely mean adding $10T every 4 years at current rates. More than likely that is going to accelerate going forward.

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China calls on banks to limit exposure to US debt – Bloomberg

China has urged its banks to curb their exposure to US government debt, citing market volatility and growing financial and geopolitical risks, Bloomberg has reported citing people familiar with the matter.

Over the past decade, China has steadily trimmed its US Treasury holdings, a shift that has seen it overtaken by Japan and the UK as the largest foreign holders of American debt. Since peaking at around $1.3 trillion in 2013, its holdings have fallen roughly by half to about $650–700 billion, reaching levels not seen since 2008.

Beijing has advised China’s major financial institutions to limit new purchases of US government bonds and reduce positions where exposure is high, according to sources who spoke to the outlet on Monday. The guidance reportedly does not apply to Beijingss’s official state holdings.

According to the report, which cited China’s State Administration of Foreign Exchange, Chinese banks held about $298 billion in dollar-denominated bonds as of September. It is unclear how much of that total consisted of US Treasuries.

The guidance, reportedly intended to diversify market risk, came ahead of last week’s phone call between Chinese President Xi Jinping and his US counterpart, Donald Trump. In October, the two leaders agreed to a one-year trade truce, under which tariffs and export controls on each other’s goods would be lowered.

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“Out Of Touch”: Marylanders Fume As Gov. Moore Prioritizes Building Energy-Hungry ‘Sphere’ Amid Power Bill Crisis

Marylanders are raging at left-wing Governor Wes Moore, accusing him of fast-tracking a massively power-hungry Sphere entertainment venue near Washington, DC, while working-class households across the central part of the state are drowning under crushing electricity bills.

“So this Governor spends money he doesn’t even have yet. 200 million dollars of the cost for the Sphere at National Harbor will come from the State of Maryland’s 2027 budget. He is so out of touch with what MD residents need and doesn’t care as long as his name is in the headlines every day,” Maryland resident Amy Milberger Seaman wrote in a Facebook group called “BGE Victims,” which has nearly 15,000 residents upset about exploding power bills.

Local media outlet WBAL-TV reported Monday that Sphere Entertainment plans to build its second U.S. Sphere venue in National Harbor, in Prince George’s County.

The Sphere will be slightly smaller than the one in Las Vegas, seating 6,000. Gov. Moore called the project the largest economic development project in the county’s history. The venue is expected to be funded through a mix of public and private financing, including $200 million in incentives from the state.

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Trump Administration Says Banks Will Soon Begin Distributing ‘Trump Cards’

A “Trump card” with an interest rate of 10 percent could be coming to Americans through banks that want to join President Donald Trump in lowering credit card rates.

Kevin Hassett, the director of the National Economic Council, said the concept of a one-year cap of 10 percent could be implemented voluntarily without needing to go through Congress.

“Our expectation is that it won’t necessarily require legislation, because there will be really great new Trump cards presented for folks that are voluntarily provided by the banks,” Hassett said on Fox Business.

“We’ve been in conversations with the big banks, with CEOs of many of the big banks who think that the president is on to something, that he’s got a great idea,” he said.

Banks “could potentially voluntarily provide for people who are in that sort of sweet spot — not having financial leverage very much because they don’t have access to credit, but they have enough income and stability in their lives that they’re worthy of credit,” Hassett said.

Trump kicked off the idea in a social media post earlier this month.

“Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration,” Trump posted on Truth Social, adding “AFFORDABILITY!”

“Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%,” Trump posted.

“Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! PRESIDENT DONALD J. TRUMP,” he wrote.

Trump pushed the interest rate cap along with banning large institutional investors from buying single-family homes and a push to have Fannie Mae and Freddie Mac buy $200 billion in mortgage bonds to lower mortgage rates, according to The Hill.

Banks panned Trump’s concept.

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Bank Sues Former Chicago Mayor Lori Lightfoot for Refusing to Pay Bill for 17 Months

JPMorgan Chase Bank is suing former Chicago Democrat Mayor Lori Lightfoot for letting her $11K credit card bill go unpaid for 17 months.

The media has learned that Lightfoot, who became the first Democrat Chicago Mayor not reelected to city hall in about 40 years, was served with a subpoena at her $900,000 Chicago home in October, the Chicago Tribune reports.

Chase ultimately decided in March that her $11,000 bill would be a charge-off, but her last payment of $5,000 on the debt was made on August 7, 2024, according to the bank’s records.

The bank reported that Lightfoot has had the card since 2005.

Lightfoot seems to be struggling to pay her bills despite claiming $402,414 in adjusted gross income in 2021 alone. The Tribune also notes that records show Lightfoot took out $210,000 in early distributions from her retirement account. She also earned $216,000 during each of her four years in office.

The ex-mayor seemed to have just as much trouble paying the bills for the city when she was mayor. As she was headed out of office in 2024, for instance, the city was suffering under an $85 million budget shortfall.

Lightfoot’s next appearance in court for her credit card debt is scheduled late this year.

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DNC ‘drowning’ in nearly $16M of debt — and pointing fingers as failed 2024 Biden-Harris campaign haunts Dems

The Democratic Party’s principal fundraising committee saw donations slump in the second-to-last month of the year, recording just a $12 million campaign war chest and almost $16 million still in debt due to a loan taken out the previous month, Federal Election Commission filings show.

The fundraising doldrums come amid party infighting over whether to release a 2024 autopsy report on the failed Biden-Harris campaign and pressure ahead of the critical 2026 midterms, in which Democrats want to retake Congress.

The Democratic National Committee listed a little more than $12.6 million cash on hand, $10.7 million raised, and $15.9 million in debts in its FEC filing for November, with national Republicans accusing their opponents of “drowning” in their obligations to pay off bills.

That puts the DNC only a few hundred thousand dollars ahead of the Republican National Committee (RNC) for that month’s fundraising — but far behind the GOP’s $89.9 million cash on hand and lack of outstanding debts as both parties look ahead to the 2026 midterms.

From Nov. 1 to 30, the DNC actually lost roughly $6 million from its campaign war chest with spending having outpaced its donations. The month before, it had also raised $23 million — more than double its November haul.

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Jasmine Crockett’s Finances Exposed – Subject to Personal Liens While She Spends $50k-100k of Taxpayer Cash on Limos, Luxury Hotels Just This Year

If the new congressional maps enacted by Texas Republicans stand until 2026, which it appears that they will, Rep. Jasmine Crockett would likely be out of a seat.

To everyone else, this is pretty much a win-win; I’m going to assume that this includes Democrats, who must be tiring of her antics by now, particularly given her lack of substantive support to the party’s caucus in the lower house. For Crockett, it’s a big lose — because not only will she be out of the corridors of power, but out of ways to spend the taxpayer’s money, as well.

And boy, does she spend it. That’s why her Senate run is so important to her, and soon to be loathed by the Democrats. Not only does it put the left’s one big potential upset of 2026 out of reach for them, most likely, but it also means that Crockett’s profligate spending — while she had a three-grand lien on her condo, no less — is going to be front-page news for a while.

So, in case you missed it (no shade; keeping up on all things Jasmine-related has shaved at least 5 IQ points off my poor, addled brain), Rep. Crockett announced Monday that she was running for GOP Sen. John Cornyn’s seat in the upper chamber.

“Trump, I know you’re watching, so let me tell you directly,” Crockett at her announcement event, according to CNN. “You’re not entitled to a damn thing in Texas. You better get to work because I’m coming for you.”

Dun dun DUN! Be scared, Donald. Be very scared.

Actually, the environment is probably one of celebration rather than anxious celerity on the part of state Republicans. Unlike the usual Democratic saber-rattling about turning Texas purple, this time they looked like they actually had a shot. A divided GOP is likely to mean that Cornyn doesn’t emerge from his own primary as the nominee, with state Attorney General Ken Paxton leading the way in polls.

Paxton is a little bit more MAGA but a lot more controversial than the other Republican challengers, and while he does well in a GOP primary he’s not necessarily the candidate you want to go into a general election with.

On the other hand, pretty much every character issue you can bring up about Paxton goes out the window the moment Crockett gets the Democratic nomination — which she instantly becomes the favorite for. Paxton could be accused of the most abhorrent thing you can think of — do it on live TV, even — and he’d still be considered a near-lock to win the general election.

To that end, too, Crockett has shoved the one candidate who’s remotely electable out of the running — former U.S. Rep. Colin Allred — leaving Crockett to duel it out with James Talarico, a progressive state representative who once said during a floor speech that “God is nonbinary” and somehow managed to dodge the ensuing lightning bolt from the empyrean.

But let’s not talk about the gift that is Crockett’s statewide unelectability. Let’s instead take a look at the gift that is Crockett’s finances for a moment.

According to Fox News, the Dallas County Clerk’s website shows that Crockett — who makes $174,000 a year in her position as a congresswoman — is currently behind on her payments to the Westside Condominium Association by $3,047.79.

The unpaid lien notice dates from over a year ago.

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Another Scandal for Jasmine Crockett

Rep. Jasmine Crockett (D-Texas) has found herself in yet another scandal, and this time it involves unpaid bills on her own luxury condo while she burns through tens of thousands of dollars in campaign cash on five-star hotels and limousine rides. Dallas County records reveal that Crockett has been carrying an unpaid lien of more than $3,000 on her upscale condominium for over a year, raising fresh questions about her judgment as she flirts with a Senate run.

Fox News Digital reports, “Progressive firebrand and rumored Senate candidate Rep. Jasmine Crockett, D-Texas, has had an unpaid lien balance of over $3,000 against her luxury condo in Dallas for over a year, according to county records reviewed.”

A notice of a lien filed on April 11, 2024, which is publicly available on the Dallas County Clerk’s website, shows that Crockett owes the Westside Condominium Association a total of $3,047.79.

The notice said that Crockett “is in default in her obligation for payment of assessments and has failed and refused and continues to fail and refuse, despite demand upon her, to pay the Association assessments and related charges properly levied against the Property.”

The lien gives the Westside Condominium Association in Dallas a legal claim on the unit, preventing Crockett from selling or transferring the property until the debt is paid.

The Dallas County Clerk’s Office confirmed to Fox News Digital on Tuesday evening that there is no record of the lien being released, indicating Crockett has still not paid the overdue amount.

Crockett purchased the Dallas condo, located just north of downtown, back in May 2014, and it remains her registered voting address. HOA fees for the property reportedly range between $222 and $403. The complex boasts spa-like amenities, including a pool and clubhouse, all within a gated community. For someone pulling in a congressional salary of $174,000 a year, compared to the average Texan’s annual income of $52,885, you’d think paying a few hundred bucks a month in HOA fees wouldn’t be a problem.

But this is a Democrat we’re talking about after all.

Crockett’s latest FEC filings show she burned through nearly $75,000 in donor cash on luxury travel and security this year, hitting pricey hotels and chauffeured rides in cities far from her Dallas district. Her campaign shelled out more than $25,000 on upscale lodging and limousines alone, with charges at the Ritz-Carlton, the Luxury Collection, the West Hollywood Edition, the Times Square Edition, Las Vegas resorts, and multiple Martha’s Vineyard inns.

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Report: U.S. Is the World’s Largest Debtor to China — Thanks to Amazon, Disney, and Tesla

A report published on Tuesday by the AidData research lab at William & Mary university in Williamsburg, Virginia, found that the United States is the largest recipient of loans from China.

The report, entitled Chasing China: Learning to Play by Beijing’s Global Lending Rules, found that 1,193 Chinese banks, investment companies, and government institutions loaned $2.2 trillion to recipients in 179 countries between 2000 and 2023.

AidData researchers drew two surprising conclusions from their research: “China’s overseas lending portfolio is vastly larger than previously understood,” and its loans to the developed world are an order of magnitude larger than widely believed.

The common image of Chinese loans is banks pumping huge loans to Third World countries through China’s Belt and Road Initiative (BRI). The ostensible purpose of BRI was to help developing countries build vital infrastructure, but the projects are often criticized as unprofitable “debt traps” approved by spendthrift local governments that saddle the borrowing nations with debts to Beijing they can never repay.

Whatever the flaws of BRI might be, AidData determined that only about 20 percent of China’s titanic lending portfolio involves infrastructure projects in developing nations. Meanwhile, the amount China loans to developed nations “skyrocketed from 12% to 76%” between 2000 and 2023. Ten of the top 20 destinations for Chinese loans are “high-income” countries.

“Another major discovery is that Chinese state-owned creditors have bankrolled approximately 10,000 projects and activities in 72 high-income countries to the tune of nearly $1 trillion,” the report said.

“Much of the lending to wealthy countries is focused on critical infrastructure, critical minerals, and the acquisition of high-tech assets like semiconductor companies,” noted AidData’s lead author, Brad Parks.

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