Downtown_Chicago_Illinois_Nov05_img_2678The man who helped craft Obama’s “stimulus” recovery plan has led his city to a “junk” bond rating, Moody’s Investor Service announced.

Moody’s announced May 12 that the City of Chicago’s credit rating has been downgraded to Ba1, or “junk bond” status. That means the City is “a significant credit risk.”

Chicago was warned earlier this year to slow down its liberal spending policies, but ignored the advice.

In February, Moody’s downgraded Chicago’s credit from a Baa2 to a Baa1 rating, the brink of junk bond status. At the time Moody’s warned additional downgrades were looming.

That time has come.

Moody’s noted that bloated government employee rolls under Mayor Rahm Emanuel have the nation’s third largest city facing possible future bankruptcy.

Chicago’s credit rating is now on par with that of Detroit, which is itelf in a multi-billion dollar bankruptcy.

“The negative outlook also reflects our expectation that Chicago’s credit quality will weaken as unfunded liabilities of the Municipal, Laborer, Police, and Fire pension plans grow and exert increased pressure on the city’s operating budget,” Moody’s warns.

Emanuel’s lavish handouts to government employee unions are threatening the city with bankruptcy.

“We believe that the city’s options for curbing growth in its own unfunded pension liabilities have narrowed considerably. Whether or not the current statutes that govern Chicago’s pension plans stand, we expect the costs of servicing Chicago’s unfunded liabilities will grow, placing significant strain on the city’s financial operations absent commensurate growth in revenue and/or reductions in other expenditures,” continued Moody’s warnings.

Emanuel refuses to make the necessary cuts in spending. Tax hikes could send residents fleeing to suburbs.

It’s the same liberal spending plan, and same budget trajectory that turned Detroit, once the nation’s most prosperous city, into a burned-out ghetto.

Before his election as Chicago mayor, Emanuel served as White House chief of staff to President Barack Obama. There, Emanuel used his clout as a former congressman to ram through Obama’s “stimulus” bill which promised economic recovery through massive government spending.

It didn’t work.

And it’s not working for Chicago.

Future downgrades, which are likely as Chicago hurtles ahead with spending, could leave the city unable to pay its bills.

That would leave the city with little choice but to declare bankruptcy or seek a bailout.

In either case, taxpayers would be on the hook to clean up a toxic spill of failed liberal policies by none other than the architect of Obama’s economic recovery plan.