Tuesday, February 2, 2010

Insolvent States of America

To pay unemployment money to people out of a job, the individual states have a Trust Fund. The majority of them are now insolvent (see below). Those states are relying on borrowing from the Federal Government to help those out of work. The outlay for unemployment insurance indicates what many already know, that unemployment is far higher than official figures suggest.

So, exactly how much have they had to borrow from a Federal Government whose own tax take has nosedived (corporate tax down 56% and income tax down 22%)? Below is a chart showing different states. Red is borrowing from Federal Government and Blue is funds still left in Trust.

Unemployment is still growing and there is no 'recovery' despite the propaganda getting pumped out in the corporate media. So, the blue in the chart is going to get smaller and the red bigger. Each state will have to cut more and more services to try and pay unemployment.

No doubt each state will be forced to sell state property to banksters like JP Morgan for quick money fixes. Slowly and surely the banks will take over each state. As the US economy continues to sink because of bail-outs and 'stimulus' will rich states begin to wonder whether or not the Union and subsidising poor states is such a good idea? Keep in mind that 2.5 million were thrown out of their houses in the US last year and the second wave of the housing crisis is just starting..

Many Scots seem to think that throwing our oil money at the British economy is a good idea despite Britain now having combined public and private debt of 449% which is around the same predicament that Iceland finds itself in.

The more desperate the population becomes the more desperate political solutions will be.

And they told you bail-outs and stimulus were necessary to save the economy. How much more propaganda are you willing to swallow?


voiceofourown said...

Very unsettling stuff, Alex.
I agree that, rather than liberating themselves from the avarice of the financial sector, the States is in a process of being consumed by it.

Alex Porter said...

I think Washington literally is Wall Street now. There's been a coup and I think Obama was annointed as its frontman.

UK policy seems to be the same thing. I wonder if Blair will soon be joined by Brown as consultants with JP Morgan?

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