US Budget Deficit Stands At An All Time Record $1.267 Trillion
Let's put this into perspective folks.
The Progressive state of California was thrown into coronary arrest by a $26 billion budget hole. California is said to be the world's 5th largest economy. They have 35 million residents.
The United States which is the world's largest economy had a government budget deficit of $1,267 billion. (Yes I know that there is a difference between 'the economy' and the government debt).
If California with just 2% of the deficit that the US government has was forced to make painful cuts because they are forced to have a balanced budget - where are the calls for the Federal Government to practice similar fiscal discipline lest the nation suffer some pushback from the financial markets?
Recall that California now has the lowest bond rating of any state because of its perilous fiscal situation. The financial markets are aware of risk and over-leverage. The key difference between California and the Federal government is that only the latter owns printing presses to create new "magic money".
Well come to think about it California did print "IOUs" for distribution to its debtors during this trying time. Alberton's does not accept California IOUs though.
Like it or not people - this deficit, the debt, the Medicare and the Social Security issues are not going away. People had better work to moderate their demands upon the government or some future point in time will translate into a dramatic loss of what we now expect as our standard.
1 comment:
Jct: There’s nothing wrong with small denomination municipal or California State IOUs if anyone can pay their taxes with them. When Argentina’s government workers were faced with cuts, their unions talked 6 state governments into paying them with small-denomination state bonds which could be used to pay for state services and taxes by everyone.
When the local currency is pegged to the Time Standard of Money (how many dollars per unskilled hour child labor) Hours earned locally can be intertraded with other timebanks globally! In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture.
See http://youtube.com/kingofthepaupers on growth of the international time-trading network.
Too bad California IOUs won’t be accepted in payment for state taxes and services like state bonds were in Argentina. Too bad California IOUs will be denominated too big to use as local currency. Too bad Argentina people were smart enough to avoid the tent-cities catastrophe and California people are too stupid to follow their example.
If they make IOUs legal tender, I'll take back every joke I ever made about Girlieman Governor Musclehead if he engineers the California state currency lifeboat.
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