New YorkState is Going Bankrupt. California and New Jersey will Follow Soon.

The left-liberal governor of New York State, following the carnival-atmosphere humiliation and resignation of Spitzer [Spitball #9 [1]] will make an announcement that New York’s Revenues are falling and cuts must follow. Spitzer had shouted warnings to banks before he was caught with his honey bun. [2] Now, his second, per perhaps a simple  familiar, [Patterson] follows in his sticky financial rut and bawls for money. [3]

Make the Cuts.

What he really wants is a federal bailout. NYC attempted this in the 70s by assuming they could barrow and barrow and barrow and the federal government would bail them out. The Fed did not. NY defaulted on some of its bonds.

Spitzer’s Ultimatum:

“With major bond insurers hobbled by an ill-advised foray into subprime mortgage territory, Mr. Buffett made a tough offer aimed at the biggest and healthiest chunk of their ailing business. The insurers either turned Mr. Buffett down or haven’t responded, which puts the onus on them to devise their own rescue plan. Mr. Spitzer on Thursday gave the insurers five more days to do just that. If they fail, they face a potential breakup by New YorkState’s insurance regulator.”[4] [5]

The reason they are so frantic?

“In the past week, hundreds of routine Wall Street auctions failed to attract enough buyers for debt securities issued by states, hospitals, cultural institutions, student loan authorities and port authorities, among them the Port Authority of New York and New Jersey.”[6] [7]

This is because the City and State of New York are run by simple parasites that will grunt and grab any money anywhere to pay for their phony social programs, fat salaries and generous benefits of the politicians and the coddling of criminals and illegal aliens. This is the principal identifying attribute of a wanton tax whore. CA and NJ are just like this. Warren Buffet will try to underwrite this folly and make millions by soaking the banks.

Patterson’s Ultimatum:

"The governor has said he's tired of the state going from deficit to deficit, spending like it has a credit card that never has to be paid, and that he's prepared to take action," the source said.[8]

Okay, let us hear the solution! Show us the action!

[He will just talk!]

“To make his concern even clearer, Paterson will hold a private meeting today with ColumbiaUniversity's Nobel prize-winning economist Joseph Stiglitz, the former head of the World Bank, who has called the current worldwide financial crisis the worst since the Great Depression.

"The governor has been impressed with Stiglitz's work, and there have been staff discussions leading to the meeting Monday," said an administration source.”[9]

They promised to be fiscally responsible in 1976, but returned to the public though to fund their phony social programs, ‘education’ and fat salaries. 

Why not try to cut spending? No, that is not an option.

These people are simple parasites who will never cut spending. They hope to find any way to increase taxes. They will promise anything.  Federal taxes are welcome too. Once they get more funding they will overspend on maintaining their power and go broke again and lay prostrate in the streets of New York and bawl.

The NYC and NYS crowd are the same people that brought down New Orleans, Philly, Detroit, Boston and Oakland. The same mentality of tax and spend has broken several cities and one county in California.

These people are criminally negligent and need to be voted out of office.

rycK

Comments: ryckki@gmail.com

The Economy is in Danger and Obama Wants to Hike Taxes and Squelch Oil Drilling.

In the political world, there are many opportunities to persuade the ‘voters’ to sway one way or the other using prods, mostly fears, but primarily promises to ‘fix’ problems caused the opposition.

 One of these items is the economy. Ambrose Evans- Pritchard recently wrote an alarming piece on just where the world economy is heading. The tax whores seem to ignore this warning and with good reason. They can only benefit by a financial meltdown.

From Ambrose Evans- Pritchard[1] we are alerted to many concerns in most parts of the globe:

“It feels like the summer of 1931. The world's two biggest financial institutions have had a heart attack. The global currency system is breaking down. The policy doctrines that got us into this mess are bankrupt. No world leader seems able to discern the problem, let alone forge a solution.”[2]-- Ambrose Evans- Pritchard. [Emphasis is mine in all quotes.]This link references all quotes in this essay unless otherwise stated.

True enough, but who should be alarmed?

Here are some of the financial follies of our time—all listed in the article:

[1] The Yoyo IMF[3] [read joke] upped its 2008 growth estimate 3.7% to 4.1% while simultaneously issuing the warning of a "chance of a global recession."

This is lunacy, but proper for those whose political extremes outperform their neuron sets.

[2] “Its [IMF-ed] "mean-reversion" model misses the entire point of this crisis, which is that central banks have pushed debt to fatal levels by holding interest too low for a generation, and now the chickens have come home to roost.”

The IMF YoYos are Keynesian leftists.[4]  Many are against consumption and growth, such as Kenneth Rogoff.[5]

So, here we have both good news and bad within the same purview of the ‘estimate’ based on some ‘computer models.’ Such models have predicted several sterling nonoccurrences for a generation such as the famous Limits to Growth book[6] whose sophistical computer models clearly predicted, with ringing praise from the ‘scientists’  that we would run out of oil, copper and lead by 1992 by and natural gas reservoirs by 1993. Apparently, they missed a few inputs as their GIGO[7] reward is all they have left. But, we cannot say that the publication of this worthless p9iece of political fluff was not without its praise and song from the left, a bunch always looking for a new way to lose. The liberals need dark follies like Silent Spring[8]to keep their fevers high and their morale low. These sideshow freaks were mentioned before in a previous essay:

“All this hysteria is enabled by mental freak show hucksters like Rachel Carson and screeds like her maudlin screed Silent Spring.[9]She was sick in body and mind and lashed out in fury at something that did no harm. DDT is not harmful to birds or anything else except mosquitoes.[10] This bit of pseudo science actually surpassed the political follies of Lysenkoism[11] [12], the wild magnetic healing machines of Mesmer[13] and reminds us of the wizard Merlin. [14] All this is phony and all attempts to ‘predict’ the future of natural resources, temperature and such have resulted in abject failure. The phony book: The Limits to Growth[15]used acomputer model that hilariously predicted we would run out of oil, copper and lead by 1992 and deplete our natural gas reservoirs by 1993. These fools actually produced a revision of their ‘model’ in the 90s which was ignored. “ rycK, -- The EcoNazis and Reality: Klaus Offers to Debate Al Gore.[16]

The EcoNazis [Al Gore and his Lysenkoism[17] [18] Stooges] have no proof or firm data for their narrow premise! They have nothing but sad stories, films about melting ice caps and froth. They have nothing but hate and sorrow to meld into political theatre.

 We all know, as do even the liberals, that high CO2 levels do not correlate with surface temperature. The hot years occur at other levels.[19] The facts are no barrier to any good political idea, particularly if the scams draw a high vote count.

 Continuing on with the message that the facts don’t count:

[3] The European Central Bank has raised rates, warning of a 1970s wage-price spiral.—Prichard

Somehow, the left ignores the economic reality of high fuel and energy costs to the US that produces 26% of the goods and services on this globe and consumes a proportionate amount of energy almost exactly the same 26%. Is this a wonder or is this simple greed.

Obama has said: “I’d like higher gas prices, just not so quickly”[20]-- posted at 3:20 pm on June 11, 2008 by Ed Morrissey on HotAir.

There is some virtue in high energy costs it seems.

“He stated yesterday that the reason for our anger is the rapid increase in prices, not the prices themselves. Obama claimed that Americans would have accepted a “gradual adjustment” to the current cost:[21]

Energy cost increases push inflation and lead to job losses and recession. We can wonder how wonderful that might be for liberals. For decades they thought our food prices were too low too. Maybe we ought to place a high tax on food! Mitch McConnell attacked Obama on this nonsense at the same HotAir link given in the footnotes.

Notice that the left stands firm in this view.

[4] On Bank failures: “IndyMac will deplete a tenth of the $53bn reserve of the Federal Deposit Insurance Corporation. The FDIC has some 90 "troubled" lenders on watch. IndyMac was not one of them.”

“The awful reality is that Washington has its back to the wall. Fed chief Ben Bernanke thought the US could always get out of trouble by monetary stimulus "à l'outrance", and letting the dollar slide. He has learned that the world is a more complicated place.”

Think about how nations got out of dept, depressions and financial collapses from 1900 to 2000. The US bailed out many of them with loans, many forgiven that were used to restructure their central banks and provide substance to their currencies. Who will bail us out?? China, Russia, Europe? Most countries that used inflation to wipe out their debts [and that certainly works for a while] suffered from credit problems and nasty political episodes.

[5] “My view is that a dollar crash will be averted as it becomes clearer that contagion has spread worldwide. But we are now at the point of maximum danger. Britain, Japan, and the Antipodes are stalling. Denmark is in recession. Germany contracted in the second quarter. May industrial output fell 6pc in Holland and 5.5pc in Sweden.”

Apparently, if all boats sink then there is no particular to bail any one boat. Real estate values are crashing world wide.[22] If everybody inflates then perhaps nobody will notice.

And just how do you do that? Raise interest rates?? Raise taxes?! What happens to new home mortgages when that happens? Higher monthly payments! What do high interest rates do to business, especially small businesses that create 80% of the new jobs each year?

Well, given the problems here and the assortment of phony solutions, lies and warped computer predictions, we can ask: Who is for prosperity? Can we blindly assume that everybody is willing to work shoulder-to-shoulder to fix world econ0omic problems and save the people from blistering in the oceans?

The Roman notion of qui bono may be raised here. Who benefits from a collapse of the economy? Certainly, this group is not among the capitalists and anti- Keynesians.  If we look at the mess just after the Great War with the Great Depression, wars, revolutions and worse, we can identify only one big winner: the far left. The Communists had their best decades from the 1920s to the 1940s.  Any person with an education level higher than that of the Delaware Governor Ruth Ann Minner (D-DE) [who achieved a G.E.D. after years of valiant struggle] can discover that a major reduction in oil supply,  concomitant higher gasoline prices, higher taxes and appeasing terrorism will only sink our economy.

The same reasoning goes for the war on terrorism. Here, our brave troops who give their lives to battle the insane Islamo-Fascisti are treated with contempt and no liberal politician will even mention that they want to win in Iraq. They do not. They want us to lose. They wanted us to lose in Korea and Viet Nam too.

The same leftists want our economy to sink so they can be hailed as the ecological saviors who saved the planet from the evil coal diggers and CO₂ gas mongers. They put impossible and absurd stories of disaster for polar bears or other fluff items as fact and baleful pleas for higher taxes and more economic restraints.

Our economy is probably going into the abyss and the leftists are the only group that stands to benefit from this disaster. Raising taxes will only make things worse.[23]

And Senator Obama, a racist, a racist enabler, tax whore and big spender, being a mere puppet of leftist tenets, will lead the charge downward. We can essentially prove his mal intentions by listening to the wild praise from the shrunken remains of the cowardly Europeans[24] who grovel in awe when street bums burn their cars.

Watch carefully what you are voting for. This ‘change’ proffered is probably the beginning of a depression or worse.

rycK

Comments: ryckki@gmail.com