STATES FISCAL CRISIS GROWS AS REVENUE DROPS 30%

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THAT LIGHT AT THE END OF THE TUNNEL IS A TRAIN COMING AT US. State revenue was $1.6 trillion. Latest report is $1.1 Trillion. That is a 12 month drop!! As we all know governments don’t typically save money, so there is nowhere to go but down from here. Of course if they went after all those illegal transfers and income taxes, recording fees, penalties etc., they would be pretty much OK. But the banks own the place to paraphrase Senator Durken, and that just isn’t going to happen.

So here we are. The stimulus money runs out somewhere around June 1, 2011. Many of the states are worse than broke even now with the stimulus money coming in. So we are going to see services cut that we are pretending will always be there because we can’t imagine a world without them. It’s going to happen anyway. We are going to see bond defaults even where they were originally rated AAA by our wonderful friends at Moody’s et al.

Interest rates are going to rise across the entire market which will further depress the housing prices.

All this is happening because we don’t have the guts to cut the mega banks into little pieces even though they slashed the hell out of us, our country, and our standard of living. And we can’t depend upon our government to do anything because they too are controlled by the banks. AND the banks continue to mercilessly exercise their power with total disregard for the consequences of our nation and the citizens who gave them the charter to operate.

BUT American history has had some interesting twists and we have been here before. It turns out we have a history of allowing things to get really bad before we do anything, but when we do rise up and do something it can be pretty spectacular. Unfortunately it also looks like things have to get pretty ugly out there before American assert their rights as the only real boss of this nation, for the people, by the people. People in power never learn the essential lesson of history, perhaps because they don’t care — they will be rich and perhaps powerful even after things are turned right-side up. But if they are assuming that we will all go quietly into the economic jails they have constructed for us, they are very much mistaken. Of that I’m sure.

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