Thirty Two states are Officially Bankrupt

darkbeaver

darkbeaver

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Thirty-Two States are Now Officially Bankrupt
$37.8 Billion Borrowed From US Treasury To Fund Unemployment Insurance


Global Research, May 23, 2010
Zero Hedge - 2010-05-21

Courtesy of Economic Policy Journal we now know that the majority of American states are currently insolvent, and that the US Treasury has been conducting a shadow bailout of at least 32 US states. Over 60% of Americans receiving state unemployment benefits are getting these directly from the US government, as 32 states have now borrowed $37.8 billion from Uncle Sam to fund unemployment insurance. The states in most dire condition, are, not unexpectedly, the unholy trifecta of California ($6.9 billion borrowed), Michigan ($3.9 billion), and New York ($3.2 billion). With this form of shadow bailout occurring, one can only wonder how many other shadow programs are currently in operation to fund states under the table with federal money.The full list of America's 32 insolvent states is below, sorted in order of bankruptedness.


California
$6,900
Michigan
3,900
New York
3,200
Penn.
3,000
Ohio
2,300
Illinois
2,200
N.C.
2,100
Indiana
1,700
New Jersey
1,700
Florida
1,600
Wisconsin
1,400
Texas
1,000
S.C.
886
Kentucky
795
Missouri
722
Connecticut
498
Minnesota
477
Georgia
416
Nevada
397
Mass.
387
Virginia
346
Arkansas
330
Alabama
283
Colorado
253
R.I.
225
Idaho
202
Maryland
133
Kansas
88
Vermont
33
S.D.
24
Tennessee
21
Virgin Islands
13
Delaware
12
 
Spade

Spade

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Nov 18, 2008
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Steps to create "wealth."

1. Deficit finance
2. Print money
3. Raise interest rates when inflation as a result of step 2 occurs
4. Increased rates encourage investors to buy government bonds
5. Repeat Step 1.
 
Machjo

Machjo

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taxslave said:
Looks like a win win for the rich.
Click to expand...

Inflation is very much a regressive tax since the rich can hedge, the poor have nothing to hedge, so they're the ones who really get beaten up with inflation.

Same with high interest rates. The rich lend at higher rates and the poor pay at higher rates.

It's ironic that it's usually the left, you know, those who are so concerned about the well-being of the poor, who support inflation.

Though granted at least the left is honest about it. The right pretends to oppose inflation and still causes it.
 
Machjo

Machjo

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Hmmm... just to throw another fun conspiracy theory out there:

Maybe the Taliban is printing US dollars to fund its attacks on the US, which would mean the US is unwittingly funding the Taliban.

Actually, that would be a brilliant tactic as it would kill two birds with one stone: it would provide funding for the Taliban while watering down US purchasing power which would mean a weaker ability to fund its military.

Honestly, if the Taliban is not involved in this already after all these years, then it really is a stupid force to reckon with.

If I were the Taliban, I'd be printing US dollars, British pounds, Canadian dollars, any money my enemy produces.
 
captain morgan

captain morgan

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Machjo said:
Spend it of course... on gold. You can live with the resulting inflation.

My printing machine's revving up as I type.:lol:
Click to expand...

Gold, eh?

Considering that each nations keeps a careful eye on their own (and others) money supply, your scenario will not happen.

You brought up the Weimar Republic. You heard the tales of needing a sack of cash to buy a loaf of bread. Does it really make sense to you that a government can print up billions or trillions of money and no one will notice?

Machjo said:
Hmmm... just to throw another fun conspiracy theory out there:

Maybe the Taliban is printing US dollars to fund its attacks on the US, which would mean the US is unwittingly funding the Taliban.

Actually, that would be a brilliant tactic as it would kill two birds with one stone: it would provide funding for the Taliban while watering down US purchasing power which would mean a weaker ability to fund its military.
Click to expand...


The Nazis tried doing that with Brit Pounds Sterling... It almost worked.
 
Machjo

Machjo

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captain morgan said:
Gold, eh?

Considering that each nations keeps a careful eye on their own (and others) money supply, your scenario will not happen.

You brought up the Weimar Republic. You heard the tales of needing a sack of cash to buy a loaf of bread. Does it really make sense to you that a government can print up billions or trillions of money and no one will notice?




The Nazis tried doing that with Brit Pounds Sterling... It almost worked.
Click to expand...

Hey, look at it this way:

If the government has a debt of one trillion dollars, then to inflate the currency until the minimum wage is one million dollars an hour, suddenly our debt ain't so big anymore... though of course there may be fear of revolution or civil war, but that's a minor issue, really:p
 
petros

petros

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captain morgan said:
You gotta wonder how the feds are financing this. The money has to come from somewhere.
Click to expand...
Print it out at will since it's fiat money, then kick back watch prices skyrocket from the inflated monetary system and call it " economic growth" until consumer prices go nuts and everyone is broke from buying a pack of balogna and a loaf of bread.
 
Machjo

Machjo

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But now if I'm the only one printing the money, I'd be rich long before inflation would really be out of control. But no worries, I'd have inflation soaring within a year.
 
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