Posted on 12/14/2016 5:25:14 PM PST by Rockitz
Being on the hook is not going to be pretty when interest rates are raised back up, and debts come due. At a personal level, it will mean more stress and juggling to make ends meet. For the larger economy, it will mean cities and states unable to meet obligations or balance their budgets – ending in bankruptcy, and bailouts. Meanwhile, millions of people are relying on that money to keep coming in order to survive. Something is going to go very wrong.
Relying upon government to function and send you money is not a secure plan.
The mathematics are terrifying and dismal, and so is being caught up in these collapsing states.
In the next phase of the financial crisis, the debt supercycle will become the most defining feature of the big hurt that will fall on nearly everyone.
That’s the dire warning that Goldman Sachs issued about what they termed the Third Wave of the global collapse. But it hasn’t come, at least not yet:
This wave is characterised by rock-bottom commodities prices, stalling growth in China and other emerging-markets economies, and low global inflation, Goldman Sachs analysts led by Peter Oppenheimer said in a big-picture note.
This triple whammy has its roots in the response to the first two waves of crisis — the banking collapse and European sovereign-debt crisis — and it is all part of the so-called debt supercycle of the past few decades.
Unfunded liabilities for pensions and other state benefits are threatening the security and future of an entire generation of retiring, hardworking Americans.
The debt will be shifted for as long as possible… but eventually, someone will have to come to terms with it.
(Excerpt) Read more at zerohedge.com ...
Right now, the biggest risks for a bankruptcy or collapse is in the these states, based upon the ratio between what Baldwin terms “makers” and “takers.” Basically, the socialist state is enveloping all prosperity:
• New Mexico – 148 dependents per 100 private sector workers
• West Virginia – 116 dependents per 100 private sector workers
• California – 114 dependents per 100 private sector workers
• Mississippi – 111 dependents per 100 private sector workers
• New York – 108 dependents per 100 private sector workers
• Arkansas – 103 dependents per 100 private sector workers
I’m guessing it is the rest of the state that is keeping it afloat for now, but their time is sooner than later for sure.
OMG Look at NM!!! Boy what a lousy republican governor!!!
There was a list going around a couple of weeks ago as to what needs to be done. I remember these:
1. Any congressman who votes for a budget that results in a 3% or more increase in the deficit cannot run for reelection.
2. Congress cannot exempt itself from any law.
3. Two terms in office, period.
4. No pension benefits beyond those provided by the standard Social Security benefits.
5. No ex-congressman can function as a lobbyist.
I can't remember the rest, but this is a start...
I have lived in NM for the last 50 years. Martinez is nowhere as bad as Tony Annoya or King Bill Richardson. She is nowhere as good as Gary Carruthers of Gary Johnson. She is middling at best. But such is life.
So this wasn’t a problem when Bill Richardson was there? I think this is a cumulative problem. It certainly never happened overnight.
West Virginia has a bunch of currently out of work coal miners. Trump will make West Virginia Great Again.
California - Hopeless, as in, without hope. It's as if Sanders, Clinton and La Raza were running the state.
New Mexico was in good shape thirty years ago when my worthless brother-in-law (If you know him he probably owes you money) moved there. He and his brood suck the economic life out of each state they lived in. yes, they lived in Oklahoma and Arkansas for a while.
His wife recently retired, but had to draw on her own minimum wage Social Security because HE never worked in the last thirty three years, actually longer.
Once, back in 1977, I landed a good job. Then another job of the same type opened in the state he was living in. I called him and told him to put in an application quick as he had all the necessary skills they were looking for!
I described the health care benefits, pension benefits, high wages in this permanent dream job! NO layoffs! His words to me were...”I don’t want to do that kind of work!” All I said was...”O-o-Kay” and hung up. Never tried to help him again.
Brad,
Those were the six in the article?
A little mix across the political spectrum, tho I am truly surprised NOT to see Illinois on that list.
No Connecticut - color me shocked
New Mexico PING!
I wouldn’t do her any good if she had all the Answers the Sates Legislature wouldn’t just as soon let NM die in a zombie apocalypse rather than allow a Repubican to save it.
Don't worry. When global warming causes the sea levels to rise 600 feet, Chicago will be flooded out by Lake Michigan.
NM is up there because we have a very small population, and lots and lots of land claimed by the Federal Government.
With the reservations... Military and Indian, the many large National Forests and huge swaths of BLM land, The National Laboratories etc. the federal government is the largest employer in the state. Unfortunate situation.
The only solution that I can think of is to turn all of the land back over to the State, cut regulations on Mining, Gas, & Oil, Coal, Timber and livestock, and the state could support itself within a few years, and offer private sector employment to any citizen who wants it.NM is up there because we have a very small population, and lots and lots of land claimed by the Federal Government.
With the reservations... Military and Indian, the many large National Forests and huge swaths of BLM land, The National Laboratories etc. the federal government is the largest employer in the state. Unfortunate situation.
The only solution that I can think of is to turn all of the land back over to the State, cut regulations on Mining, Gas,
Not sure how that first paragraph got repeated as a sentence in the third paragraph. Sorry
What the heck?
It is even more garbled now than it was a minute ago.
Must be Putin hacking my comments.
I live in NYS. ZH isn’t wrong about NYS.
Thanks doing for the NM PING!
The price of oil is now slightly above $50 and slowly, so slowly, folks are going back to work. The dearth of private industry here means oil/gas pays 1/3 of the state budget and the idots in Santa Fe and our two eco-nazi US senators are always trying to shut it down at the federal level to save the planet.
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