The Big Blue States Bellying Up: How about IOUs!

California, New York, Illinois, Pennsylvania

The economies of the most liberal and largest states in our union are in jeopardy of bankruptcy and collapse. Who would ever think that we would see such chaos and fiscal mismanagement across the nation. It is hard to believe that California, one of the world’s largest economies, is on the brink of bankruptcy. Is this writing on the wall for the Federal government too? You Bet! This should be taken with the utmost seriousness on Capitol Hill – or should is say CAPITOL CLIFF because that is what America is teetering on and close to going over while our government has the peddle to the floor.

Does anyone see the borrowing and spending coming to a halt at the state or Federal level? Poll people and I bet an overwhelming majority would say no – even Hell No! When state governments across the nation are in dire need of money, in political statement after stalemate what is their answer? More borrowing – even California is ready to issue IOUs to keep itself afloat. That means more debt on top of mountains of debt. Our currency and Treasuries are not dissimilar – these are IOUs to the world. How long can states and the Federal Government keep the house of cards afloat?

This house of cards is cracking from the inside and from the outside. We are fighting a multiple front war against collapse – like the Wizard of Oz pulling all the levers behind a curtain of promises and pandering of social programs that are further bankrupting America. Can you imagine around $ 111 trillion of un funded government liabilities. A $12 billion debt load and growing astronomically. Do we have anyway of changing this? Poll the people again and I bet an overwhelming majority would say NO! Write a letter to a Congressman. Even I tried that – what a joke! If they won’t listen to me on innovative solutions like the 10% solution to buy back our national debt – why would they listen to Joe Bag of Doughnuts. The only reason why is if it could be publicized and pandered all over the TV for political gain.

Even if the states get their act together and steer clear of political, social and financial meltdown – what changes would they make to end the irresponsibility. NONE! Things won’t change until we run off Capitol Cliff. Change in our nation is reactive not proactive. In my opinion we will see massive debt issued at all levels – maintained borrowing and then spending and we are sure to crash and burn. The world is looking and it sees even great states like California teetering on bankruptcy what do you think they are saying about America itself?