WASHINGTON (Reuters) - The already gloomy conditions of states' economies are set to worsen, according to preliminary survey findings from the National Governors Association released on Saturday.
"The situation is fairly poor for a lot of states around the country. In fact, most states," Vermont Governor Jim Douglas, who is chairman of the association, said at a press conference at its annual meeting.
"What we're finding out from a fiscal standpoint is that the worst is yet to come," Douglas said.
In a survey conducted last week of 45 of the 50 states, the group found that states have $18.8 billion of budget gaps yet to be closed in fiscal 2010. This comes after they have already imposed measures to eliminate budget imbalances totaling $87 billion in the fiscal year, which for most started last summer.
In the budgets they are drafting for fiscal 2011, states foresee shortfalls of $53.6 billion and for fiscal 2012 $61.6 billion.
"Economists have declared the national recession over. But for those who are still unemployed, for those who have lost their homes, it's clear that as a nation we have a long way to go," said Douglas, who added that states' revenues have plummeted for four quarters in a row.
Is it true that Congress is kicking around the idea of confiscating IRA and 401k accounts?
ReplyDeleteyes, that bill is in congress right now, when they do that, they will devalue the dollar, bank holidays, people with no money rioting, then martial law, coming this year
ReplyDeleteI am pretty sure that will be the straw that broke the camels back. Stealing from taxpayers indirectly, ie, money printing and the bailouts is one thing.
ReplyDeleteBut literally in your face stealing, hmm ... what will average American slob apathetic Joe do about that? Will he 'write his congressman?" LOL
I shouldn't laugh. I have an IRA and haven't cash it out, but will do that in 3 weeks after meeting with my accountant. Hopefully it will still be there.
Side Note:
A little rudeness and disrespect can elevate a meaningless interaction to a battle of wills and add drama to an otherwise dull day.
The irony of the situation is that I'm making more now than ever in my life--it's pure luck; right position at the right time. $41K for the 1st two months of the year with OT, offering to work anything and everything. Need someone to travel there? I got it. Need someone to support that effort? I got it. I then take a percentage of the fiat and convert to tangible assets.
ReplyDeleteWhere do states get their money from ?
ReplyDeleteWhen will these Govenors, Congressmen, Senators
and Presidents learn? If you aren't manufacturing anything; your basically dying. And I'm not talking a bridge project in East Harlem.
Yesterday as I was surfing job info I came across AOL homepage & there it was " top 25 comapnies hiring in Feb. 2010" some of you may have seen it. At number 11 was a small electronics company who actually made something - the other 24?? SERVICE SECTOR or GOV'T related.
These states who have stood idlely by while business after business scuttled plants and idled workers STILL don't get it and the reason I know that is because THEY ARE STILL SPENDING RECORD AMOUNTS !
It will get worse and worse for them as tax revenues from laid off workers and aforementioned idled plants pay no taxes and their consumer spending in said state is dramatically reduced.
We have as a nation; effectively made ourselves non-competitive and this time around folks, it IS different because we cannot get it back.
Our tax structure, unions, courts, enviro policy,
state code structure, wage laws, insurances of all types --- ALL are anti compete - pick one; then go to the country making a same product and beating us at our own game ( not very hard to do) I guarantee you the playing field heavily favors them.
What will these staes do ??
Read 1:56's comment - that is one of about 20 scenarios they are looking at. Remember; the states can't just crank up the printing press.
The cover story is that Americans are too stupid to manage their own savings so they should take the savings away for the greater good.
ReplyDeleteAll it takes is one good False Flag my friends and all of this will not require laws to be passed. Exec orders will do it all over night. Get your money/savings out of the hands of the crooks and into your own hands. Buy gold and silver now while you still can.
"Another justification for Ghilarducci’s plan is to eliminate investment risk. In her testimony, Ghilarducci said, “humans often lack the foresight, discipline, and investing skills required to sustain a savings plan.” She cited the 2004 HSBC global survey on the Future of Retirement, in which she claimed that “a third of Americans wanted the government to force them to save more for retirement.”
And don't forget, states are also responsible for paying unemployment.
ReplyDeleteWhy buy gold and silver when the gov't will just take that too? Nobody wants to talk about that elephant in the room but I can promise you it will happen, might not be for another 10 or 50 years but it will happen.
ReplyDelete"Economists have declared the national recession over."
ReplyDeleteWhat Economists? The ones in Federal Office Buildings.
.
ReplyDeleteWilliam K. Black:
"I'm not in favor of a gold standard. Gold standards produce even more severe economic crises and they make it very hard to recover, and recovery rates for those on gold standards were actually worse than those on fiat currency"
.
Maybe people should cash in their IRAs and 401ks while they can, even if there is a penalty. Then they can pay off their mortgage or stockpile useful stuff like rice and beans and guns and Bibles.
ReplyDelete2:20 pm I have to say I agree with you. It is good to see some actual discourse rather than some of the recent disheartening rants.
ReplyDeleteYou are correct the state organizations cannot print currency. That is the task of the ferderal government. Money will be printed to cover expenses. That will eventually result in dramatic inflation or even hyperinflation. It is unlikely defaults will be allowed to occur.
There has been little manufacturing in recent years within the United States. As you mentioned, government has disproportionately grown, becoming the employer of preference. It is a dangerous sitiuation.
The last nation to seize citizens assets was Argentina I believe. The results were catastrophic and the seizures did nothing to alleviate the economic and currency crisis.
Truth reigns eternal. Many of the innocent will sustain great loss in this crisis. Help those you can, prepare your families now.
there will be no confiscation, a smart person would buy with cash, no credit, no paper trails, how would they know if you had it?
ReplyDelete4:58 is ignoramus, what good does pm's do you if you can be thrown in jail for trying, even if no paper trail is present?
ReplyDelete512 is really stupid, trying what Moron?
ReplyDeleteRecourse to counter possible gold and silver confiscation:
ReplyDelete- Platinum (available from 1/20 to 1 full troy ounce re: Canada Maple Leafs)
- Palladium (available in 1 full troy ounce re: Canada Maple Leafs)
- Diamonds (do your homework first though)
I'm feelin' ya, 6:10!
ReplyDeleteI am amused by such brave souls. It has been my finding that those shouting the loudest have absolutely no life experience in such matters.
ReplyDeleteIn fact they will likely be found whimpering for mercy while others carry out the unpleasant tasks at hand. However, such is life.
The recession is over, LOL, what a joke; yeah, that's because the depression has just begun!!
ReplyDeleteUse your illusion, 7:58pm.
ReplyDeleteYou got a big one going there.
We will see shortly 8:29. Very shortly.
ReplyDeleteI love this blog because people are so nice to each other.
ReplyDeleteTo Anonymous 4:58: It retirement accounts they wanna confiscate, not gold.
ReplyDeleteIt's about IRAs and 401Ks. But who knows, after they take that, they might come for the gold too.
I have to laugh at the anti-Gold people. They would like to have you think your money is safe in an IRA or bank. Wrong.
ReplyDeletePhysically held precious metals is the way to go, and I am not worried even in the slightest bit about getting it confiscated. Any attempt to make gold/silver illegal will just make the price skyrocket even farther into the stratosphere (prohibition as an example).
Money in the bank though takes a whole 5-second effort on their part and you are wiped out.
People that are telling you not to get PMs are either extremely stupid, jealous that the have none, or a shills for the banksters.
The powder keg will erupt if they confiscate gold or IRA's. Theres a lot of itchy trigger fingers out there just looking for an excuse.
ReplyDeleteThe politicians, for the most part, are fools. The top elites aren't.
ReplyDeleteThey're not going to confiscate IRAs, 401Ks, gold, etc, because they know this will result in social chaos, if not outright civil war.
What will happen instead is an overnight currency devaluation to right debt. This will be followed by "brisk" inflation in time. The rest will take care of itself.
Why confiscate the aforesaid when you can create economic conditions that force people to cash these things in themselves? Think about it.
The IRA/401k thing is REAL. I'm going to be cashing in my meager 401k this week, taking the penalty.
ReplyDeletehttp://market-ticker.denninger.net/archives/1830-401kIRA-Screw-Job-Coming.html
There is NO chance that we'll return to a gold standard, Ron Paul notwithstanding. It would require a revaluation of gold that would entail value in the MILLIONS of dollars per ounce. It would also alter the geo-political landscape too much. The UK, for example, would instantly become almost a 3rd world nation. Gordon Brown sold off their gold at rock bottom prices (like $ 250 an oz.) some years ago. Russia and China would be kings, as they are still buying.
We, however, are still waiting to see what is in Fort Knox (if anything), via audit.