If you replace Illinois with South Australia, that just about sums up the current state of the state.

I think this might be endemic to politicians worldwide. Consider Australia. From all accounts our finances are in a much worse state than either main political party is willing to admit. The cash-cow of selling resources to China seems to be on her last legs. Or so many say.
And yet the ALP has back-loaded our future budgets with high cost programs like the disability insurance scheme and a new funding model for education. Both programs might well have much to recommend them, but where will the money come from?
I don't think we are in as parlous a state as is the US simply because we are not trying to rule the world. But to say we are not in financial trouble seems to me to be as foolish as saying there is nothing happening with the world's climate. We can't keep our heads in the sand forever. Days of reckoning are just around the corner, and as much as no one wants to, belts could easily end up being tightened.
And yet in the face of this, we are still being promised all sorts of goodies in the current federal election campaign. It's like the pollies are locked into a behaviour pattern and simply don't know any other way. I don't really think they are all fools, although I could be wrong there. It's more like they think we are, and unless we are willing to demand a financial reality check on the part of our representative leaders, fools is what we will be.

Nauru is the perfect example of rags-to-riches-to-rags syndrome.
Their bird poo paid for Nauru House in Melbourne and Air Nauru, but they've been repoed now and the people are living a hand-to-mouth existence except their pollies, who might be living somewhere else.

It could happen to any other well-intentioned country that starts to live way beyond its means and then the bottom drops out...

Tell me when was the last time any economic expert predicted the world financial crisis of 2008 or the great recession of 1929 or any other recession 'we had to have'?

halduell - You forgot the latest scheme, people who deposit money into bank accounts (that is your pay) a percentage goes to bail out banks.

Banks you know the extremely high paid executives that gamble with our money if they loose it we have to pay to keep them in there luxurious lifestyle.

The Government is requiring the banks to pay it but any money says they pass the charge onto the customers.

Just to make themselves look good the money will be counted with Government revenue to lessen the budget deficit.

I predict like others that the NDIS is going to end up costing BILLION more than they predicted just like NBN.

The clowns are running the country while there heads are buried in the sand to where the money will come from.

Illonoise has a desperate need for a money press: That's how the big boys in DC keep the wolf from the door...

Shrode, the GFC was predicted to within one year.
However not generally by economists, (one exception I think).
It was predicted by oil field engineers and geologists.
But then what would they know about economics ?

Illinois' problem is where many economies are going if they do not take
notice of the world wide decline in GDP towards zero growth.

It reminds me of this;

Either manage your debt or debt will manage you !
Barnaby Joyce.

We are like a business which is increasing its overheads at the same time that we are increasing our debt.
It is a formular for disaster.

Can we really commit to all these promised programs ?
How much are we betting on Chinese growth ?
What is the risk of a Chinese crash to 2% GDP growth ?

Moody's has raised the possibilty of Aus banks getting into trouble
because of their large private housing loans dependant on low unemployment.

Why did Wayne SWan sign up for the "Bail-In" provisions of the G20 ?
Does the government know something they are not telling us ?
Ask the Cypriuts.