State Governments in Deficit Crisis

July 19, 2010

by Robert Poteat

“States of Crisis for 46 Governments Facing Greek-Style Deficits” headlines a Bloomberg website article, June 26, 2010, by Edward Robinson, referring to states of the United States.  The plight of California is one of the worst.  California’s economy, if a nation, would rank ninth in the world.  The United States federal government is in huge deficit, also.  How can this happen in the once richest nation of the world and still rated as the world’s largest economy?

The economic conditions cannot be caused by devastating acts of nature such as drought, freezes, famine by insects, floods, hurricanes, volcanic eruption, etc.  While some of these have been experienced, the United States is too large and diverse for them to cause such general havoc.

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Why States Going into the Banking Business Would be a Distraction, not a Solution to their Fiscal Problem by Jamie Walton, AMI researcher

August 24, 2009

“We may not be able to stop them, but we can join them. We the people need to play the bankers’ game ourselves.”1 – that was written by one of the promoters of the notion that the state governments should go into the fractional reserve banking business to beat Wall Street at its own game and solve their fiscal problems.

What an insult to humanity! How about a dose of morality and common sense. Isn’t that like saying: “We’re victims of organized financial crime, so lets join the criminals!”

Trying to beat Wall Street at its own game is obviously not the answer. As Albert Einstein once said, “We can’t solve problems by using the same kind of thinking we used when we created them.”

…Read more at
http://www.monetary.org/moneyscenefive.html

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