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BANKRUPTCY FOR STATES QUIETLY STUDIED

Discussions about the economic and financial ramifications of PEAK OIL

Re: BANKRUPTCY FOR STATES QUIETLY STUDIED

Unread postby smiley » Sun 23 Jan 2011, 18:12:25

I don't know how it is on the other side of the pond, but I'm not particularly impressed by our governements workforce. They may not be so well paid, but they are certainly overpaid for the amount of work they conduct. I bet that if you would force them to actually work the hours they are supposed to (instead of arriving at 9.30 and leaving at 16.00) and restrict their coffeebreaks, daily strolls to the park, endless "meetings" etc, you could easily fire 30% of them and not notice the difference.

That little frustration aside, I think this tread touches something which might become very important this year. The US states and municipalicities are IMO the 500 lbs Gorilla that is hiding in the economic attic.

The US cannot afford to loose its AAA status on federal debt. The debt load is barely maintainable at current rates let alone at higher rates. If you look at the money that would be needed to rescue the states if this situation escalates, you're looking at numbers in the $500 to $1000 bn region. That would almost certainly invoke a downgrade.

The choice for the administration is thus to have the states default, or risk a nationwide default.
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Re: BANKRUPTCY FOR STATES QUIETLY STUDIED

Unread postby Homesteader » Sun 23 Jan 2011, 20:06:18

$this->bbcode_second_pass_quote('smiley', ' ')They may not be so well paid, but they are certainly overpaid for the amount of work they conduct.


I consider us lucky that we don't get as much "government" as we pay for.
:-D

I don't remember whose quote that is, somebody will know.
"The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place we are entering a period of consequences…"
Sir Winston Churchill

Beliefs are what people fall back on when the facts make them uncomfortable.
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Re: BANKRUPTCY FOR STATES QUIETLY STUDIED

Unread postby smiley » Mon 24 Jan 2011, 17:02:52

$this->bbcode_second_pass_quote('', 'I') consider us lucky that we don't get as much "government" as we pay for


Aint that the truth :-D


Meanwhile I guess even CNN is getting the picture.
clicky - brace for muni downgrades -CNN
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Re: BANKRUPTCY FOR STATES QUIETLY STUDIED

Unread postby Timo » Mon 24 Jan 2011, 18:02:45

Somebody please help me out with my faulty memory. OK, all jokes aside, i remember reading waaaay back in my college days the writings of some great philosopher, like Plato or Socrates, or someone else of that historical stature who recommended that the only true path to democracy was to relegate revolving responsibilities for governing amongst ALL of the republic's citizens. Everyone was required to have their turn at governing. My early onset of Alzheimer's keeps me from remembering, though, who this fanatical liberal was. Anyone care to enlighten me as to who it was?

Anyway, i can't help but wonder how different the context of anti-government rumblings would be if everyone actually had their turn in sitting in the halls of power. Of the people, for the people, and by the people. Does that phrase ring any bells?
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