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Washington's Dilemma: This Isn't a Recession, It's a Collapse
Seeking Alpha ^ | July 14, 2009 | Gregor MacDonald

Posted on 07/15/2009 4:17:59 AM PDT by arthurus

Washington is bluffing that it will not bail out California, and every other state suffering from collapsed revenues and massive job losses. If cuts in police and schools don’t force DC off from its current position, then the math will. Because in many states the aggregate revenue losses and looming cuts to state payrolls will largely render the intended effects of federal stimulus as moot. Frankly, unless Washington prints money and bails out every state that needs capital, including California, federal power will decline...

(Excerpt) Read more at seekingalpha.com ...


TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: bailout; bho44; bhoeconomy; collapse; democrats; depression; economy; obamanomics; seekingalpha; stimulus; thecomingdepression
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The analysis is interesting. The solution, or rather reaction proposed, is ludicrous but seems likely.
1 posted on 07/15/2009 4:17:59 AM PDT by arthurus
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To: arthurus

Declining federal power is a good thing.


2 posted on 07/15/2009 4:22:30 AM PDT by jimfree (Freep and ye shall find!)
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To: arthurus
It's a planned collapse.
3 posted on 07/15/2009 4:22:42 AM PDT by myknowledge (F-22 Raptor: World's Largest Distributor of Sukhoi parts!)
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To: arthurus

I wonder how Texas has a budget SURPLUS and no state income tax?


4 posted on 07/15/2009 4:29:24 AM PDT by NCBraveheart (Somewhere in Kenya a village is missing it's Idiot)
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To: myknowledge

[It’s a planned collapse]

Indeed it is as those with eyes to see and ears to hear and a brain to think realize.
That is a scarce few indeed.


5 posted on 07/15/2009 4:30:20 AM PDT by kindred ( Let God be true and every man a liar in order that thy sayings may be true and ...)
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To: NCBraveheart

Because our government only works six months every other year, we don’t pay them when they’re not working, and they *have* to go back and live with the laws they enacted (as well as reactions to those laws from angry constituents) as opposed to staying aloof and unaffected in a remote location. They don’t get enough time to run out of actual important agenda items and be forced come up with ways to justify their continued employment.


6 posted on 07/15/2009 4:34:48 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: arthurus
Because in many states the aggregate revenue losses and looming cuts to state payrolls will largely render the intended effects of federal stimulus as moot

Stimulus is already moot. They have only spent 6 percent of the money they had too have.

They will let the economy whither on the vine and use those funds for re election.

7 posted on 07/15/2009 4:36:09 AM PDT by Kakaze (Exterminate Islamofacism and apologize for nothing.....except not doing it sooner!)
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To: arthurus

The fly in the ointment is what do you do with all the unemployed ... And that has no government solution.

Ah you say, this is where the Nazi science of Eugenics comes in ... right you are.


8 posted on 07/15/2009 4:36:21 AM PDT by Tarpon (You abolish your responsibilities, you surrender your rights.)
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To: NCBraveheart

Oh, and this surplus is despite getting hammered by two large hurricanes in the past 5 years, paying off all the costs of taking in our Lousiana neighbors during one of those said hurricanes, having to rebuild everything in the strike zones, not to mention the successful execution of the largest evacuation in human history - which everyone said could not be done.

We don’t need the US - but the US needs us to be the economic engine that pays for everyone else. And I for one am not interested in that huge load which will surely drag us down.


9 posted on 07/15/2009 4:38:07 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: myknowledge

No. But there are many who plan to exploit and who are exploiting the grand webs of bribery, collusion, corruption and venality that involve nearly ALL Democrats and MANY Republicans in Congress as well as major executive positions in the FedGov.

This is not a planned collapse — but vultures, maggots and slime are so fast to take advantage of rot it can look that way.


10 posted on 07/15/2009 4:45:34 AM PDT by bvw
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To: Tarpon

“The fly in the ointment is what do you do with all the unemployed “

Stop paying them to be unemployed.


11 posted on 07/15/2009 4:48:16 AM PDT by Dusty Road
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/mark


12 posted on 07/15/2009 4:52:33 AM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: arthurus

It’s called COMMUNISM.

LLS


13 posted on 07/15/2009 4:57:12 AM PDT by LibLieSlayer (hussein will NEVER be my President... NEVER!!!)
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To: Dusty Road

As the money runs out, that’s inevitable ... Maybe I should have said idled workers. In most cases like today in France, it turns into ruin for civil society.


14 posted on 07/15/2009 4:57:19 AM PDT by Tarpon (You abolish your responsibilities, you surrender your rights.)
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To: Tarpon
The fly in the ointment is what do you do with all the unemployed ... And that has no government solution.

Doesn't ANYBODY take History anymore?

A country this size is going to require MILLIONS of these guys:


15 posted on 07/15/2009 5:01:09 AM PDT by Jim Noble
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To: arthurus

bookmark


16 posted on 07/15/2009 5:05:05 AM PDT by GiovannaNicoletta
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To: Jim Noble

Yep, it’s going to be bloody.


17 posted on 07/15/2009 5:05:24 AM PDT by Tarpon (You abolish your responsibilities, you surrender your rights.)
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To: Jim Noble

Especially when Bammy lets OPENLY GAYS in the military. The STRAIGHT guys will FLEE UNLESS they can’t get another job!


18 posted on 07/15/2009 5:10:14 AM PDT by Ann Archy (Abortion....the Human Sacrifice to the god of Convenience.)
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To: Spktyr

AND... Texans tend to vote out idiots that want to enhance government services at the expense of the taxpayer. Hopefully, this will continue for several more decades.

Maybe the local government is just afraid of the NRA members here in Texas...hehe...


19 posted on 07/15/2009 5:17:14 AM PDT by Deagle
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To: Ann Archy
Especially when Bammy lets OPENLY GAYS in the military. The STRAIGHT guys will FLEE UNLESS they can’t get another job!

I'm expecting (not advocating) a few blanket parties, which will demonstrate the value of remaining closeted.

20 posted on 07/15/2009 5:19:55 AM PDT by nina0113
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