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The audacity - no longer do they even try to hide their evil; they come right out and tell you what they know will happen. FTA:

An audible gasp went out in the breakout room I was in at last month’s pension event cosponsored by The Civic Federation and the Federal Reserve Bank of Chicago. That was when a speaker from the Chicago Fed proposed levying, across the state and in addition to current property taxes, a special property assessment they estimate would be about 1% of actual property value each year for 30 years.

Evidently, that wasn’t reality-shock enough. This week the Chicago Fed published that proposal formally. It’s linked here.

It surely ranks among the most blatantly inhumane and foolish ideas we’ve seen yet.

Homeowners with houses worth $250,000 would pay an additional $2,500 per year in property taxes, those with homes worth $500,000 would pay an additional $5,000, and those with homes worth $1 million would pay an additional $10,000.

BUT... this is the key part of the article that you MUST understand:

Get this, which is part of the Fed’s reasoning: “New taxes wouldn’t affect people thinking of moving to Illinois. While they would have to pay higher property taxes, that would be offset by not having to pay as much for their new homes. In addition, current homeowners would not be able to avoid the new tax by selling their homes and moving because home prices should reflect the new tax burden quickly.”

In other words, just confiscate wealth from current owners because they will pay, whether they stay or not, through an immediate reduction in home value.

WOW. Just wow. The Fed is no longer hiding behind Fed Speak that Alan Greenspan made famous. They are coming right out and saying: "existing homeowners won't be in a position to sell their homes and leave Illinois because the home values will drop so much, and home buyers will be encouraged to move to Illinois because the home values will be so much lower."

h/t: ZeroHedge (An "Audible Gasp" Was Heard When The Chicago Fed Unveiled Its "Solution" To The Pension Problem)

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In the opinion of Martin Armstrong:

There is absolutely no hope whatsoever of fixing this problem of a pension crisis in Illinois and every solution, like the current one from the Chicago Federal Reserve and its proposed 1% on property annually for the next 30 years, will fail in the end...

Any reader in that state or who has family in that state had better put your property up for sale NOW and get out of town while you still can. Hopefully, a fool has just entered the housing market and its time to get out if you can get a bid.

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