Governors Seek $1 Trillion Bailout - Reuters

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rci2145's picture
rci2145
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Governors Seek $1 Trillion Bailout - Reuters

Businesses and individuals aren't the only entities that are going bankrupt:

 http://www.reuters.com/article/newsOne/idUSTRE5014F120090102

jrf29's picture
jrf29
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Re: Governors Seek $1 Trillion Bailout - Reuters

As I've said before, the idea of the states being in debt to
the federal government strikes me as destructive to the very basis of
our system of constitutional checks and balances.  This infuriates me. 
Let me see if I have this right:

The federal government takes money by taxation from the citizens of the
fifty states, and then LENDS IT back to them. With interest! The
unbelievable audacity of this is almost too much to comprehend.

If the balance of power were as it ought to be, the federal government would be asking the states for a bailout, and the democratically elected legislatures in the 50 states would then be able to consider the proposition.  Rather, the 50 states are at the mercy of the one, unelected, fed.

rci2145's picture
rci2145
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Re: Governors Seek $1 Trillion Bailout - Reuters

Local governments are going to need bailouts too. They rely on property taxes and obviously, the value of property and the ability of taxpayers to pay, is plummeting. My Dad is a retired fireman that depends on a city pension and I am very worried for him.

DurangoKid's picture
DurangoKid
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Re: Governors Seek $1 Trillion Bailout - Reuters

For debt to work, the future must be bigger than the present.  This $1 trillion is nothing but debt upon more debt.  If OPEC is cutting production, where will this growth come from?  How will the obligation to pay be resolved?

And where will this $1 trillion be spent?  Roads and highway bridges?  No bid contracts to the likes of KBR?  Whip a comatose horse, much?

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Damnthematrix
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Re: Governors Seek $1 Trillion Bailout - Reuters

I don't believe this......  REALLY!!

 Here in AUS our Fed govt taxes people, and distributes the income to the states.....  interest free.

No wonder the US is going down the gurggler faster than we are... 

jrf29's picture
jrf29
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Posts: 453
Re: Governors Seek $1 Trillion Bailout - Reuters
Damnthematrix wrote:

I don't believe this......  REALLY!!

Here in AUS our Fed govt taxes people, and distributes the income to the states.....  interest free.

No wonder the US is going down the gurggler faster than we are... 

 

Well, here in the U.S. the states collect their own taxes.  But since the fed has control of the currency, it has the ability to print as much funny money as it likes, utterly destroying the balance sheets of those government entities which do not have printing presses.

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