• 1) State tab for jobless loan: $912 million (California)

"California will have to pay the federal government an estimated $912.3 million in interest over the next two years for money the state has borrowed to pay unemployment benefits. The first payment comes due Sept. 30 — for $319.5 million.

The high cost of the state's unemployment was spelled out Wednesday in the state Employment Development Department's semi-annual report on the status of the Unemployment Insurance Trust Fund.

California's trust fund, which is made up primarily of employer contributions, has been in the red since 2009, when the state paid out $11.3 billion in unemployment benefits but only collected $4.8 billion in receipts. So the state has been borrowing from Uncle Sam to make the payments. As of May 6, California owed the federal government $10.9 billion.

A lot of other states are in a similar boat. Thirty states and the Virgin Islands owe the federal government a total of $44.1 billion for money they borrowed to pay unemployment benefits over the last three years. But California's $10.9 billion tab is by far the greatest. Pennsylvania is a distant second at $3.8 billion."

• 2) Spain offers higher yields in latest auction

"Spain's government had to pay out higher rates today to auction off nearly €4 billion of bonds amid deep concerns in the European debt markets over Greece.

Demand was strong for the Spanish government bonds as investors applied for a total of €10.3 billion of debt, but the government had to offer higher returns.

Debt markets appeared nervous after Moody's Investors Service sharply downgraded Greece's debt and warned that the odds of a Greek debt-default were 50-50.

The Spanish Treasury sold a total of €3.953 billion in three and four-year government bonds. It sold €2.753 billion three-year bonds with an average annual return, or yield, of 4.037%, up from 3.568% at the last comparable auction on April 7."

• 3) States Pour Money Into Medicaid

"NEW YORK (CNNMoney) -- States are gearing up to spend nearly 19% more of their money on Medicaid as enrollment rises and federal stimulus funds dry up.

Governors have proposed spending $15.9 billion more on Medicaid in fiscal 2012, according to a survey released Thursday by the National Governors Association and the National Association of State Budget Officers.

At the same time, they are slashing spending on higher education by $5 billion, on public assistance by $3.5 billion and on K-12 education by $2.5 billion.

State officials have been wrestling with rising Medicaid costs since the Great Recession began driving more people to the government assistance program. Enrollment is projected to rise 3.8% in fiscal 2012, which would represent a 17.3% increase over a three-year period.

Since early 2009, federal stimulus money has helped states cope with the steep downturn in tax revenue. All told, states used $135 billion in emergency stimulus support.

But that funding is now ending, leaving states to shoulder their Medicaid burden alone. This is forcing states to cut provider payments, limit spending on prescription drugs and reduce benefits since the federal government is not allowing them to kick participants out of the program.

The disappearance of federal support is wreaking havoc on state budgets, contributing to a collective $75.1 billion in shortfalls for the coming fiscal year."

• Other news, headlines and opinion:

Moody's Downgrade Puts Greece in Debt-Rating Hall of Shame Alongside Cuba (Moody's Downgrades Greece Rating to Caa1)

Portugal, Ireland Bond Risk Rises to Record, Default Swaps Show

China's Dagong Lowers Japan Credit Rating

Japan Debt Downgrade 'Unavoidable' Even After Vote, Mizuho Says

Monetary Base Rises 16.2% On Year In May (Japan)

Tepco debt swaps facing 53% chance of defaulting

Europe's Stress Tests to Be Delayed

Palm Beach County school board starts work on $2.5 billion budget that cuts 745 positions, creates one upaid furlough day

Greece's Credit Ratings Freefall Is 30 Times Average Rate, Evolution Says

Ivory Coast says to miss June debt coupon payment

Talks between city of San Jose, cops break down; 156 more layoffs loom

Jobless rate to top 7% until 2016, budget officer warns (Canada)

States See Uptick in Revenue, Costs

Moody's downgrades outlook on RI bonds

Auto bailout: US taxpayers may lose $14B

More job seekers give up, reducing unemployment

Fed May Signal Balance Sheet Will Stay at Record

Rice Soaring 50% in Thailand as Thaksin Seeks Votes in World’s Top Shipper

Greek default could bankrupt ECB

Treasury to sell $66 billion in bonds next week

It is a pretty sad testament to how upside down and downright crazy things have become when not increasing debt is seen as credit-risky and the opposite, increasing debt, is seen as the most credit-worthy thing to do. It is also pretty sad that the only alternative Moody's even considers is increasing the debt limit.  They do not even consider cutting expenses as an alternative!  I guess they cannot be blamed since our fearless leaders are too afraid of cutting anything. 

Imagine if personal credit-ratings were computed the same way:  gee, you're debt to income level is 800%.  If you do not increase your debt limit by taking out another credit card, with which you can then pay interest on all your other cards, we are going to downgrade you! 

I guess it makes sense, in la-la-land.  In la-la-land we can just keep adding debt, because everytime we add debt, we are able to use that debt to pay our obligations on all the prior debt!  Shazaaaam, Timmy and Benny, we're off the hook!

Seriously, how much more rediculous can/will this get????!!!

Interesting video on capitalism by David Harvey: The Crisis of Capitalism

http://www.orlandosentinel.com/news/local/crime/os-homeless-feedings-arrests-20110601,0,7226362.story

Three arrested, accused of illegally feeding homeless

June 2, 2011

Members of Orlando Food Not Bombs were arrested Wednesday when police said they violated a city ordinance by feeding the homeless in Lake Eola Park.

Jessica Cross, 24, Benjamin Markeson, 49, and Jonathan "Keith" McHenry, 54, were arrested at 6:10 p.m. on a charge of violating the ordinance restricting group feedings in public parks. McHenry is a co-founder of the international Food Not Bombs movement, which began in the early 1980s.

The group lost a court battle in April, clearing the way for the city to enforce the ordinance. It requires groups to obtain a permit and limits each group to two permits per year for each park within a 2-mile radius of City Hall.

Arrest papers state that Cross, Markeson and McHenry helped feed 40 people Wednesday night. The ordinance applies to feedings of more than 25 people.

"They intentionally violated the statute," said Lt. Barbara Jones, an Orlando police spokeswoman.

Police waited until everyone was served to make the arrests, said Douglas Coleman, speaking for Orlando Food Not Bombs.

So, are you for or against these actions?  The way I see it, these laws are probably the result of someone who thought the government should "require" a permit to feed the homeless.......

This is blatantly discriminatory. If the state is worried about drug dependent people selling their food stamps (which of course could happen) why not have more food banks and soup kitchens??? Or let kind strangers feed them in public places.  Maybe because the JP Morg wouldn't get their cut on the electronic transaction fees. There are OTC meds, one or two food products and many prescription meds that caue false positive drug urine testing in particular. Meaning the person is "clean" but tests "dirty" through no fault of their own, just because the state chooses to use a cheaper test.  6 month to three year ban for taking nyquil the night before the test. Wild.

http://www.onsitescreening.com/pdf/Cross-Reactivity%20Manual%20by%20Generic%20Name.pdf   (false positives at the end of the list)

I seriously doubt Florida will pay for repeat testing and more expensive testing to rule out false positives.  So many (people taking a decongestant, appropriate pain meds or an antidepressant in particular) may be at risk for getting denied food without cause.    I wonder if they will be testing children too.  I guess this is really an effort to drive out people with substance use disorders (I wonder if they will test for alcohol too, breathalyzing people who apply).  I expect there will be resistance to this. I hope to get time later today to forward this to the local medical societies.

Maybe it's me but I don't see how requiring energy efficiency in buildings is compared to requiring permits to feed the hungry.  We ALREADY have building codes for efficiency.  If we didn't people would be tempted to build insulation less homes with single pane windows to save money....

And as I have pointed out here before, it works in Australia........  nobody's died in a cyclone (hurricane to you) since the 1972 Cyclone Tracy event which destroyed Darwin....... and caused all building codes to be severely rectified.

Which they do all the time......

Save money?  Have you ever run an aircon?  I SAVE MONEY because I educated myself on how to build properly over and above the building code standards.  Ignorance is bliss, but it's a huge pain in the hip pocket......

Well I would put it to you that in America they are not regulated enough!!!  Above instances as quoted by you very rarely occur here in our "over regulated nanny state"!

Government involvement tends to:

• Stifle innovation by requiring things be done only the way the government says. THAT"S just plain wrong... You are assuming (in this particular argument) that I am advocating the guvmint force everyone to build houses just like mine, while I KNOW there are many ways to skin a cat..
• Favours larger companies/organizations over smaller entities.  Rubbish.  It's the largest building companies here that continuously lobby government to reduce standards.
• Limits consumer choice.  Consumer choice in energy efficiency is limitless... the way I did it is just one way.
• Provides a false sense of safety.  False?  Ask all those people who just survived Cyclone Yasi...
• Builds dependency.  More rubbish.  I actually think it does the complete opposite by making you less reliant on the Matrix.
• Promotes less personal responsibility.  Maybe that's because most people these days have zero idea how to be responsible...

Who said that?  Wasn't me....

It seems to me, that from reading this site every day, it is Americans who have given up much of their freedoms, and not Australians.

Mike

But it's your hip pocket when you make the choices and it should be your choice.  Your arrogance in this respect is amazing.  You figured out what was important to you and how to build your house, but anyone else should be forced to follow your beliefs!

No it's not wrong.  As soon as government starts picking which technology should be used - either via regulation or subsidies, they handicap any newer technology or method.  The problem is regulations end up listing acceptable methods, techniques, requirements, and so any new idea is dead because some bureaucrat can't check off an item on a form.

Generally most large companies are not pushing for reduced standards, they are pushing for standards that favor them over their competitors.  Just look at the industrial farming.  They push for onerous paperwork that are much easier for a large corporate farm  to comply with than the smaller family farm.  It's becoming a problem for nearly every industry. anyone trying to start a small company is at a huge disadvantage to the larger players because many and ever growing regulations.

I think you're making a pretty huge leap to assume that building codes were responsible for no loss of life.  How about the fact that people had adequate warning and got out of the way.

[quote=http://www.naplesnews.com/news/2011/feb/03/cyclone-yasi-australian-terror-ruin-no-deaths-huge/]

Officials said lives were spared because, after days of increasingly dire warnings, people followed instructions to flee to evacuation centers or bunker themselves at home in dozens of cities and towns in Yasi's path.

Promotes less personal responsibility.  Maybe that's because most people these days have zero idea how to be responsible...

Who said that?  Wasn't me....

Good, then consider your self lucky and you can sit on your high horse!  Perhaps you should stop bashing those of us in the US who are concerned about our freedom loss and then telling us we need more regulation and control by government to save our freedoms.  I'm most amazed at how much political commentary you put out about the US from your home in Australia. 

Ever seen a thatch roof in a hurricane....??  ;)

Mike