There is a high chance a majority of the States within the United States of America could file for Chapter 9 bankruptcy. There are currently 46 states with high budget deficits, Arizona being one of them.
In fact, Jan Brewer, the newly appointed Governor of Arizona has a major crisis on her hands, one that Arizona and national media isn't covering.
The alarming news is the State of Arizona has 90 to 120 days before they completely run out of money. After that, all bills and tax refunds owed to the citizens will go unpaid.
Before Janet Napolitano left for her new Homeland secretary position, she had a stand-off with Arizona Treasurer Dean Martin. The AZ Treasurer forewarned Napolitano about Arizona's financial crisis, but she refused to heed his words.
With neighboring California on the verge of bankruptcy this year, many States will follow in their steps.
Many States are already scurrying to cut unwanted costs, cut State-funded programs, raise taxes, not issue tax refunds to their citizens, and borrow money just to survive in 2009. Unfortunately, many banks - the same banks the Fed bailed out - are refusing to loan money to the States and their Treasury agencies.
The article, State Budget Troubles Worsen, at the Center on Budget and
Policy Priorities website is an excellent piece to read. It shows where
each State currently stands in these challenging economic times, and you see 46 of the 50 States are clearly in the financial red.
It's very possible you'll see the end of the United States as we know
it. If the Fed doesn't bailout the States when their cash dries up and
the banks don't loan them money, then our States will be left in
financial ruin. This would be a tragic and unprecedented event never
experienced in the United States.
No State has ever filed bankruptcy, but it could be coming to a State near you this year. We are on the brink of something far worse than the Great Depression.
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PEOPLE STARVING AND NOW FIGHTING OVER FOOD IN PARIS!
Christophe Auxerre, national secretary of Secours Populaire, a charity, sees the revival in foraging as a symbol of growing social problems.
"There are people who go hungry in our country. On the 15th of every month, there's no money left to fill the plates," he said. "There are shop owners who deliberately put the eggs on top in the rubbish bin so that people can pick them up."
FIGHTING OVER FOOD
At the market in Belleville, three women curse each other in French and Arabic as they fight over a bag of leeks.
"Those are mine, I picked them up," one of them says, pressing the bulging bag to her chest.
"Thief!" another one shouts at her.
Around them, more than 10 other people of all ages gather as much as they can before the cleaning crew arrives. Some of the traders encourage them.
His charity has helped two million people in 2008, compared with 1.5 million in 2007.
STARVING IN PARIS
I think the operative word of 2009 will be
ReplyDelete'DEFAULT'
I think this is all over the world never mind the US. Look at FRANCE!
ReplyDeletebuy your gold and silver now before it skyrockets
ReplyDeleteYeah I know why the banks aren't lending out the money, they are collecting interest on it so why take the risk on potential defaults when they can get the interest from the fed?
ReplyDeleteIf it's so bad, why is the Stock Market going up? I think things are getting better.
ReplyDeletethe stock market isn't going up! The low was 7400 we are not too far off. The high keeps getting lower, you may notice. We sg=hould be at or near 7400 over the next few weeks
ReplyDeleteThe funny thing is that to the common person this will never be another great depression. The signs arent there for them to see it even though it is happening. You see people are waiting to see "soup lines" and all those people selling apples to survive. THose things will never be seen even though they already exist.
ReplyDeleteFood stamps have replaced soup lines, you wont see those. Garage sales have replaced the selling of apples. Begging is now done by our government for the people rather than the people having to do it themselves. This time it is your residence that is going into forclosure rather than the family farm. Individuals no longer have that sense of community that was present in the 30's and so there is no community gathering to buy back a families home from the bank like communities did with the farmers in the 30's.
Its my view that even though we have had a piece of prosperity for some time now, it has all been an illusion and we have actually been in serious trouble for quite some time now only it has all been swept under the rug so to speak.
Welcome to the new world! Same as teh old world.
Barrack Obama, the last president of the United States of America....at least in the sense of what we call the United States of America today!
Maybe it’s time for state Governments to start merging (get rid of the redundancies), but that will never happen, so bankruptcy is the only option.
ReplyDeleteWhat a world we live in, no reserves for hurricanes, earthquakes, fires or floods, but we surely can find the money for a good old war. HELL-O!ponzi world.
"buy your gold and silver now before it skyrockets."
ReplyDeleteMore like, buy your brass and lead now before you need to but can't.
you will be able to trade your silver and gold for lead, guns, food, cars , houses and more. SILVER and GOLD is your ONLY bargaining tool in this coming DEPRESSION
ReplyDeleteEconomic Realist replies to economic analyst:
ReplyDeleteIf this economy spirals to the point of a barter system, then I seriously doubt you will be able to trade silver and gold for anything. The only things that hold their value as barter in an economic collapse are cigarettes and whiskey.
Just look at Germany after WWII. Gold and silver were useless, but cartons of cigarettes and pints of whiskey could buy you anything.
re: the French Poor: let them eat croissants
ReplyDeleteThis greater depression has been in the making for at least the last 30 years, but the last 10 years were an unimaginable insanity. I've been calling for the greater depression since late 1999 but I never thought one bubble would morph into an even larger bubble (real estate). Now there is one last larger bubble remaining that is popping as we speak and that bubble is in US treasuries. No matter how you slice it the US is BANKRUPT and this reality is soon to sink in. In 1999 I thought we were due for a greater depression, today I am hoping and praying we don't descend into global anarchy.
ReplyDeleteIf the end of this mess is anything less than global anarchy we should consider ourselves very lucky. Thank you USA for destroying the fucking world. And at the same time I am affraid you aren't done...just like Germany after the Weimar Republic I fear you will know go on the rampage to try to conquer others to keep up your unsustainable standard of living. Here's to hoping the US collapses as soon as possible and the world doesn't descend into anarchy.
Economic Realist- i will disagree with you on this one. We are going into MUCH different times than the 1929 Depression. We have the internet that is preaching GOLD and Silver in bad times. We have thousands of people with MILLIONSof dollars exchanging their useless dollars for GOLD. We have internet sites by the dozens selling bullion including EBAY. Therefore we have a different mindset now. We don't have the land available to grow food like we did the the 40's. We will be doing a total different type of bartering. I believe it will be GOLD and SILVER. its in the main street news. The media will create this new "money".
ReplyDeleteI live in The Netherlands, i am so worried because of the freedom of speech, look @ http:// www.pvv.nl, give help, thx so much !!!!!!!Sorry slighty off topic, but thank you anyway...
ReplyDeleteI am starting to believe that the govt is
ReplyDeletemaking things much worse. If some one would just have the nerve to draw a line in the sand and say NO MORE BAILOUTS. NO MORE STIMULUS.
lead by example and save money, pay their bills
and not spend more than they have I think that
psychology would start to penetrate the private sectors and the buisness world. If buisnesses and banks knew that no govt money
was coming then I believe that the whole mindset would change and people would say
well we better get on with life.Things would start to take care of themselves. But all this
high drama that congress and the president seem to thrive on I think is because they are
all attention hogs and they want to look like
they are saving us all. But this stimulus
crap is just more govt spending on crap,junk
and waste. Is there ever going to come a
day when the huge national dedt will kill us all?
Anonymous said...
ReplyDelete***Economic Realist replies to economic analyst:
The only things that hold their value as barter in an economic collapse are cigarettes and whiskey.
Just look at Germany after WWII. Gold and silver were useless, but cartons of cigarettes and pints of whiskey could buy you anything.***
Good idea. I don't drink the stuff. For some people it's like liquid gold! It's also a good anaesthetic and sterilizer for open wounds.
Crickets.
ReplyDeleteWhiskey and cigarettes may be good barter but I would wager that seeds, fertilizer, gardening tools and really good top soil would trump Jack Daniels and the Marlboro Man.
Oh Ya Spoiled double rotten worry-worts !! This is just a bunch of BS... you cannot starve in America.. have ya not heard of happy hours ?? ..?? Ya might have to give up your cable Tv and your cell phones and lots of other BS luxuries... but were gonna be fine .. The prices of things need to collapse and so does the wages out of sinc too ... How many people paid 150,000.00++ for a double wide trailer house, this all has got to change, then we'll b fine .. we got 3 years of hell and 7 years of stagnation and then in 2020 it will all begin all over again ... Enjoy the Show, most of us caused all this by over paying and demanding too higher wages ...
ReplyDeletePeople forget that when the dollar looses its value due to the inflation caused by spending and borrowing money, the government will have to introduce a value standard to prop up the currency. They will be forced to do what they did in the 30s - confiscate the gold and silver held by individuals and force them to accept paper money for it. Under penalty of law!
ReplyDelete