Posted on 10/30/2018 7:02:10 AM PDT by AT7Saluki
There could be. Just as NY State created the Municipal Assistance Corp.* to manage and oversee the finances of broke a NYC in the 70s, the Fed. Gov't. could create a State Assistance Corp. to do the same for broke states.
Not saying I'm for or against such a measure, just that it could be an option
*...Big MAC voted itself out of existance after things got straightened out (lol) in the Apple.
All pensions should be 401k types so this predictable, kick the can down the road, situation did not happen. Eventually it will not be sustained.
bigbob,
I’m a little confused I guess. The humor I put in my entry was for little fun, but the point of trying to pay for something the state doesn’t have on a contractual basis will not work if it is legal or not. You can’t bleed a turnip. The information I gave you about California is factual. They did issue IOU’s and then didn’t pay them off. And a number of small businesses the next year tried to pay off their state income tax with the IOU’s and they wee not accepted. As for printing more money, that is a ploy the liberals have used many times in the past and paid their commitments with money that was worth half it’s weight because of it. But they were legal in their payments. If the feds print money for the states’ uses, it will be available to use right before the inflation catches up with it. So having a contract that the worth of it can flux if certain things happen like this or in other cases, bankruptcies or other actions that destroys the holdings of the contracted group, the party’s over. So printing money is a way to cloak the problem and kick it down the road.
The problem with printing more money is best described by the following two articles. One from the NY Times:
https://www.nytimes.com/2008/12/28/weekinreview/28goodman.html
And the other from economics help.com:
https://www.economicshelp.org/blog/634/economics/the-problem-with-printing-money/
But if the governments bail each other out with this process as they have done before, it creates more problems than it solves.
rwood
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