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State Budgets:the day of reckoning


biaggio
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The voter initiative in the state of Washington to install an income tax on persons earning over $400,000 per year was shot down.  We don't do tax increases in this state I guess.

 

The Democratic governor of the state is proposing to balance the budget by cutting spending:

 

http://seattletimes.nwsource.com/html/localnews/2013685184_budget16m.html

 

Unlike the last budget, higher taxes are not being considered. A Tim Eyman initiative approved by voters in November requires a two-thirds vote in the Legislature or voter approval to increase taxes. It's hard to imagine a supermajority of Democrats and Republicans agreeing to boost taxes.

 

 

 

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I guarantee you the federal government will bail them out. It has already begun with the BAB bonds, and it will continue in a more direct way eventually. If the government bailed out GM, AIG, Fannie, Freddie, and others they will certainly bailout the states. It may take a major default before the politicians become aware of the gravity of the situation, but the bailouts have already begun.

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I guarantee you the federal government will bail them out. It has already begun with the BAB bonds, and it will continue in a more direct way eventually. If the government bailed out GM, AIG, Fannie, Freddie, and others they will certainly bailout the states. It may take a major default before the politicians become aware of the gravity of the situation, but the bailouts have already begun.

 

Alexander Hamilton did it -- so at least the newspapers can't say it's "unprecedented".

 

John Adams' wife wanted to buy the paper when it was discounted -- but John Adams refused because he said that Adams' only invest in land.  His wife was right -- the paper was trading at such a discount that it would have been a multibagger.

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great video..unfortunately as a citizen of the great state of illinois im watching this movie play out first hand...its a mess.  Not quite sure where it all ends but we illinoisans are going to get are pants taxed off.  Down in springfield every tax imaginable is being tossed around.  Im sure we will have a income tax increase along with a increased gas tax.  the best one i heard yet was a "download" tax on music..you may be thinking im kidding but im not.

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The trap door of democracy...even if you can identify the fix with a 100% certainty, can you get voted in to office to implement the fix if it is unpopular?

 

We shall see. 

 

The bottom line in the US is that forgetting muni's and states for a minute - we will print our way out.  There is no other way.  None.

 

Does that mean buy gold?  I dunno.  You would think yes, but I can't identify a "value trade" on this.

 

Maybe it means borrow as much money as you can and buy property, hopefully with low interest rates and for as long a duration as possible.  Pay back the banks with US funny money.

 

Maybe invest in foreign currencies, such as the swiss franc, but that seems to have a great deal of risk IMO as well.

 

Maybe move somewhere with cheap land and grow your own vegetables and fruits. Inflation is gonna be a beach.

 

 

 

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