The Coming Depression
Friday, Feb 6, 2009
There is a high chance a majority of the States within the United States of America could file for Chapter 9 bankruptcy. There are currently 46 states with high budget deficits, Arizona being one of them.
In fact, Jan Brewer, the newly appointed Governor of Arizona has a major crisis on her hands, one that Arizona and national media isn’t covering.
The alarming news is the State of Arizona has 90 to 120 days before they completely run out of money. After that, all bills and tax refunds owed to the citizens will go unpaid.
Before Janet Napolitano left for her new Homeland secretary position, she had a stand-off with Arizona Treasurer Dean Martin. The AZ Treasurer forewarned Napolitano about Arizona’s financial crisis, but she refused to heed his words.
With neighboring California on the verge of bankruptcy this year, many States will follow in their steps.
Many States are already scurrying to cut unwanted costs, cut State-funded programs, raise taxes, not issue tax refunds to their citizens, and borrow money just to survive in 2009. Unfortunately, many banks – the same banks the Fed bailed out – are refusing to loan money to the States and their Treasury agencies.
The article, State Budget Troubles Worsen, at the Center on Budget and Policy Priorities website is an excellent piece to read. It shows where each State currently stands in these challenging economic times, and you see 46 of the 50 States are clearly in the financial red.
It’s very possible you’ll see the end of the United States as we know it.
If the Fed doesn’t bailout the States when their cash dries up and the banks don’t loan them money, then our States will be left in financial ruin. This would be a tragic and unprecedented event never experienced in the United States.
No State has ever filed bankruptcy, but it could be coming to a State near you this year. We are on the brink of something far worse than the Great Depression.
PEOPLE STARVING AND NOW FIGHTING OVER FOOD IN PARIS!
Christophe Auxerre, national secretary of Secours Populaire, a charity, sees the revival in foraging as a symbol of growing social problems.
“There are people who go hungry in our country. On the 15th of every month, there’s no money left to fill the plates,” he said. “There are shop owners who deliberately put the eggs on top in the rubbish bin so that people can pick them up.”
FIGHTING OVER FOOD
At the market in Belleville, three women curse each other in French and Arabic as they fight over a bag of leeks.
“Those are mine, I picked them up,” one of them says, pressing the bulging bag to her chest.
“Thief!” another one shouts at her.
Around them, more than 10 other people of all ages gather as much as they can before the cleaning crew arrives. Some of the traders encourage them.
His charity has helped two million people in 2008, compared with 1.5 million in 2007.
STARVING IN PARIS
Research related articles:
- Worse than the Great Depression
- How Could It Be Worse Than the Great Depression When We Have So Many “Modern Tools” to Address the Crisis?
- Nobel Prize Winning Economist: Crisis As Bad As Great Depression Or Worse
- More Economists Say Crisis Is Worse Than Great Depression
- Marc Faber: “I Think it Might Be Far Worse [Than the Great Depression] Precisely Because of the Interventions” by the Government
- Whitehead sees slump worse than Depression
- VIDEO: THE GLOBAL FINANCIAL CRISIS – Montreal Lecture: The Great Depression of the 21st Century
- Top Economist Mishkin: Worse Than the Depression
- Check This Graph-Proof we are going into a Great Depression. Notice MASSIVE job losses?
- Cramer: ‘Dysfunctional’ Banking System Puts U.S. ‘Totally’ at Risk of ‘Great Depression No. 2′
- Reports of another Great Depression were exaggeration – IMF
- Scary Similarities To The Great Depression