Hey folks,
If you are like me, you were confused during the Bush years. The Economy was bursting, record high home ownerships, Stock Market closing at record high numbers, Lowest Unemployment in YEARS, yet we kept being told how bad everything was. Seriously, all over the Media, there were stories of pending doom.Then when there really WAS a problem identified in the Mortgage Industry, with Fannie and Freddie, yet ANY attempt to regulated them was shot down by the Dems. Then it was heading for bust. What did those same Dems do? PROTECTED Fannie and Freddie again. But yet, the Economy was still going right along, and would have continued had the Government NOT gotten into the Bailout Business.
TRILLIONS spent. Things are getting worse. People are still losing their Homes, Jobs, and are unable to get credit. Yet, to cover for this insanity, we have a President come out and tell us, "We are back from the brink." "We saved or created 60,000 jobs." We have the Media NOW telling us, we are doing great. "We have a ways to go, but imagine what would have happened if we did nothing." They are telling us stories of how being unemployed is HEALTHY for us. How double digit unemployment may be the new norm, and that's not really a bad thing. Maybe in the Obamanation, but NOT in America.So what did I see in the news? More signs we are back from the brink. According to the AP - Report: 10 states face looming budget disasters By JUDY LIN, Associated Press Writer Judy Lin, Associated Press Writer – 17 mins ago
SACRAMENTO, Calif. – In Arizona, the budget has grown so gloomy that lawmakers are considering mortgaging Capitol buildings. In Michigan, state officials dealing with the nation's highest unemployment rate are slashing spending on schools and health care.
Drastic financial remedies are no longer limited to California, where a historic budget crisis earlier this year grew so bad that state agencies issued IOUs to pay bills.
A study released Wednesday warned that at least nine other big states are also barreling toward economic disaster, raising the likelihood of higher taxes, more government layoffs and deep cuts in services.
Ah yes. Can you smell the prosperity and Economic recovery in the air?
The report by the Pew Center on the States found that Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin are also at grave risk. Double-digit budget gaps, rising unemployment, high foreclosure rates and built-in budget constraints are the key reasons.
"While California often takes the spotlight, other states are facing hardships just as daunting," said Susan Urahn, managing director of the Washington, D.C.-based center. "Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers."
The analysis, "Beyond California: States in Fiscal Peril," urged lawmakers and governors in those states to take quick action to head off a wider catastrophe. The 10 states account for more than one-third of the nation's population and economic output, according to the report.
Historically, states have their worst tax revenue year soon after a national recession ends. At the same time, higher joblessness and underemployment mean more people need government-sponsored health care and social safety-net programs, further taxing state services.
STOP! Read that again! At the same time, higher joblessness and underemployment mean more people need government-sponsored health care and social safety-net programs, further taxing state services.
So you may have heard some say that not only is Obama allowing all this to happen, but is doing all this ON PURPOSE, to further his agenda. Now, looking at the numbers and seeing the FACTS, I may have to start agreeing with this opinion. READ IT AGAIN!
At the same time, higher joblessness and underemployment mean more people need government-sponsored health care and social safety-net programs, further taxing state services.
So it may NOT just be some kind of far Right conspiracy theory, it may actually be a FACT. We already know that Obama is on a quest for Tyranny. We already know that he has come right out and said he wants to fundamentally CHANGE this Country. Well, the more people that have no other choice OTHER than to rely on Government, is the quickest way to get there.
California leads the most vulnerable states identified by the report, which describes it as having poor money-management practices. Since February, California has made nearly $60 billion in budget adjustments in the form of cuts to education and social service programs, temporary tax hikes, one-time gimmicks and stimulus spending, according to the Legislative Analyst's Office.
All Lib policies folks.
Many of those fixes are not expected to last. The state's temporary tax increases will begin to expire at the end of 2010, while federal stimulus spending will begin to run out a year after that.
Gov. Arnold Schwarzenegger estimates California will run a deficit of $12.4 billion to $14.4 billion when he releases his next spending plan in January. The governor warned that the toughest cuts are ahead.
"I think that we are not out of the woods yet," Schwarzenegger said this week.
At the same time, the Legislature is hamstrung by requirements that budget bills and tax increases be passed with a two-thirds majority, a mandate that the report labeled "a recipe for gridlock."
Actually, checks and balances.
The Pew report was based on data available as of July 31 and scored all 50 states based on revenue changes, unemployment, foreclosures and budget requirements. It also gave them grades. California and Rhode Island scored worst with D-pluses, then New Jersey and Illinois with C-minuses.
In reviewing why some states are suffering more than others, Pew found that the 10 states tend to rely heavily on one type of industry, have a history of persistent budget shortfalls or face legal constraints making it extra difficult to implement major changes, such as tax increases.
You cannot collect increased taxes if NO ONE IS WORKING.
Many require a supermajority vote for passing tax increases or budget bills.
Several state legislatures were unable to enact long-term fixes. Instead, they asked voters or governors to make the call, or used accounting gimmicks to put off the hard choices until later.
For example:
• Arizona lawmakers relied on one-time fixes to balance recent budgets as the state's home foreclosure rate surpassed California's and the nationwide average. Among the many ideas being explored by the state are a plan to mortgage state buildings, then rent the property until the state regains ownership at the end of the contract.
Someone would have to explain that to me. That would be like YOU, mortgaging your home. Say $150,000, then what? Rent it to yourself? Paying back, with interest, something like $500,000 by the end of the contract? So yeah, you could get $150,000 in your hand tomorrow, but would you NOT be adding another bill, and losing $350,000 in the long run? Just curious about this one.
• Michigan, where two of the Detroit Three automakers filed for bankruptcy protection this year, continues to offer tax incentives even as they take a toll on the state's pocketbook, leading to declining tax revenue. According to the Pew study, Michigan offered $6.3 billion more in total tax exemptions, credits and deductions than it actually collected in taxes in 2008.
Where did all the Bailout money go?
• Illinois, which has run deficits every year since 2001, is facing an $11.7 billion budget gap for its next fiscal year, beginning in July, according to the Center on Budget and Policy Priorities. Pew's Government Performance Project ranked Illinois behind only California and Rhode Island for its lack of fiscal management on paying medical bills and pension liabilities.
• With Florida facing a shrinking population for the first time since World War II, Republican Gov. Charlie Crist and the GOP-controlled Legislature balanced a $5.9 billion shortfall with cuts, federal stimulus money and tax hikes, including a $1-a-pack tax increase on cigarettes. But the future remains uncertain.
"Florida continues to face the same challenges as last year, including a very austere budgetary environment," said Rep. David Rivera, a Miami Republican who chairs both of the Florida House's two appropriations councils.
Notice Crist is the ONLY one they labeled Republican and GOP controlled Legislature? I'm not sure if they are PRAISING him for raising taxes or trying to point out that it is NOT just Liberal Policies that are causing this. Sorry, the fact IS that is IS Liberal insane, out of control spending policies, that IS creating this mess we are in.
Why is it so hard for ANYONE with a IQ higher than say 10, that can look to the past, see that it IS Insane Liberal Policies that FAIL EVERY TIME THEY ARE FREE TO ENACT THEM? Why is it so hard to see that Capitalism WORKS! Freedom WORKS! Tax CUTS WORK! This is not a partisan rant, or attack on Obama. THESE ARE THE FACTS! Bore out all throughout history.Truth is, SMALLER Government, lower taxes, and FREEDOM, works. In other words, call it original Liberalism, or Reagan Conservatism, unleashing the American Spirit WORKS. BIGGER Government, higher taxes, and HINDERING those that produce, is a recipe for disaster EVERY TIME.
Back from the brink? I think not. We could have avoiding going to the brink altogether if the Government stayed out of it. But now? It's not back from the brink, we are looking over the edge. No matter how many times those that caused this, want to tell you otherwise.
Peter
Sources:
AP - Report: 10 states face looming budget disasters
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