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Treasurer shuffling investments to keep state afloat

SPRINGFIELD -- Even though lawmakers raised the country's debt ceiling in time, our state's top financial advisers say they're still keeping a close eye on U.S. finances.
SPRINGFIELD -- Even though lawmakers raised the country's debt ceiling in time, our state's top financial advisers say they're still keeping a close eye on U.S. finances. The debt ceiling deal President Obama signed last night is only temporary. If we get close again, it could have a big impact on our state budget.

Illinois invests billions of dollars into U.S. treasury bonds. So, if the country did default, we'd lose a lot of money. That's why the State Treasurer's Office has to have a backup plan, just in case.

It's been shuffling money around and using other investment strategies. The only problem is, those aren't always as predictable as treasury bonds usually are.

But, State Treasurer Dan Rutherford (R) says Illinois has not lost any money because of it. Rutherford says they're going to keep mixing up the state's investments over the next few months since it's unclear whether or not we'll end up in the same situation come February.

That's when the U.S. could hit the new debt ceiling. The different investments would keep our state afloat for a few weeks, but if a default ever went longer than that, the state wouldn't be able to pay its bills either.
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