U.S. states must be allowed to declare bankruptcy

[decoy409]

Yes that's correct,

U.S. states must be allowed to declare bankruptcy

Read more: notmsnmoney.proboards.com/index.cgi?board=moneytalk&action=display&thread=2059#ixzz1BhpmjGyd

[decoy409]

Aww, come on now. Today's news above is not enjoyable to the self professed tiny kings?

[decoy409]

Hey look! It is a STREAK! A STREAK of U.S. States that is!

[decoy409]

Ahh, no smile for this one.

[decoy409]

And don't forget to ask your Gov. to support the states in need from contributions from yours!
Oh, and just don't pay attention to what kind of ripples that will cause.

[decoy409]

YEE HAAA!

[frankq]

I hope they do declare bankruptcy. That way the spineless politicians won't have to worry about making the hard choices in regards to cutting fat benefits that should never have been allowed. Nobody should be allowed to retire at 50 on the public dime. Hell, my kid was off school on Monday and again today and there is some teacher institute day on Monday so no school. Two weeks off for Xmas and New Year, a full week for Thanksgiving, summers off, every holiday known to man including Polaski Day! Teaching is seasonal work apparently.

[frankq]

There Decoy,

Now you can't be accused of talking to yourself on this thread.

[decoy409]

And for once we agree on something Frank Q. YEE HAAAA!!!!

Quote: I hope they do declare bankruptcy. That way the spineless politicians won't have to worry about making the hard choices in regards to cutting fat benefits that should never have been allowed.

Read more: notmsnmoney.proboards.com/index.cgi?board=moneytalk&action=display&thread=2072#ixzz1BigAwLGG

[decoy409]

Well in about 30 days it looks like the green light will be on!

[decoy409]

Did you buy up your MCD and help support the demise? See pumpy if you have not!
After all, can't ever get enough of those debt ridden fiat notes packed in the home safe! They will be great for kindling the fire! (Opps, I mean they are Great for kindling the fire!)

[decoy409]

And you betcha they are!

[itstippy]

States filing for bankruptcy is perhaps the dumbest idea Newt Gingrich has promoted yet, and that's saying something. He knows it wouldn't work. No State would put their fiscal operations in the hands of a bankruptcy court. Never, ever.

He's just blowing a bunch of crap to gullible people who think it's even a remote option for strapped States. It's not. The whole concept is simply an opportunity for windbags in Washington to spout a bunch of hooey that they know will go nowhere but that sounds like they're fighting for something.

[Decoy409 (banned)]

itstippy, you must be missing the rest of the pic. This came up long ago in the 60's that eventually due to a Fiat Driven Currency Market that all dogs would have their day.
That's why I enjoy myself so much talking to the Washington heads on this board, paid pumpers and posters.
I certainly hate ignorance and lost sheep in bed with one another but all the same, this place is fun as the supression by others is at it's finest!

[decoy409]

Newt would not be the only. To see the tale of this play one would need to be looking and reading the minutes from UN,IMF,CFR and a few other meetings and would have needed to continue to do so.
This all starts out quite frankly long before the 1960's but the 1960's meetings things were really starting to get good as to what was being hashed out and spoke about. All of this was projected to become long ago and it is no surprise to those that have followed along.
I love the controlled media deal and allowing just a bit over here, or a bit over there to be heard but the best part is how the media has been controlled for such a long time and in turn the majority of the sheep just kept on keeping busy,busy as there was a problem or two but it did not concern them! Oh really! Well while the majority stayed busy, the coffers/cookie jars from A-Z were being cleaned with scrubbing bubbles taking everything and anything plus creating more to be taken from! Why Speculation,Derivatives and Fiat Notes Rule!
Then blame it all on Pensions. That's darling. What may be even more darling is the installment plan on belief. And look at how many are actually looking at the top of the ice and not what is trapped underneath.
This is a beauty!

[usaone]

The states are not going to declare bankruptcy.

Political theater.

[decoy409]

YEE HAA! The patriot chimes in!

[decoy409]

First it was only a few, than it was a few more, then the tally really started to toll. And now the math is done from the numbers and 47% of your nation is employed. And that comes with more spin as the Full Time/Part Time are colaborated together.

Mike WD40 I addressed 2 years ago as he is a real sport. Well they had to go off as I will see in a year the jobs would be back and people will be working and all will be just the opposite (for the most part) as I was explaining.
That's funny! As in the past 2 years we have printed more currency than in it's entire stretch! 10,500 manufacturing jobs PLUS have now left the States and still are!
I said to WD40 that perhaps he had milions of jobs to give millions of people as that is what it would take.
But no, instead more smart mouth remarks is all that came from the oil can. Am I picking on WD? Nope, I am stating FACTS.

Now it is later down the road and by the numbers 47% are working in this 'structured' country.

Yummy! Tax collection time looks better than last year! (that's a bad joke...)

So revenue is what keeps her ticking! Don't you just love those World Wide debt ridden fiat notes!

[decoy409]

I get a kick out of you...

[decoy409]

Why some of the tricks of the trade was just posted in my Gold thread, and this thread shares and supports just that! And don't forget the mix of ingreadiants from the Decoy 409 Post as it even supports all the more! What a lovely combination with 3 variables all chiming in together!
Oh! But don't stop there as there are some really great other pokers out and about and some really hot ones be preparred to take out.

[decoy409]

I started a ways back putting the list together as who goes first. As it stands there are 44 in all. Of course that leaves room to borrow from a few right now.
This is getting great! Record top on todays market and the entire house ready to cave in now!

[itstippy]

This just in from Reuters:
www.reuters.com/article/idUSTRE70O66220110125

This was Reuters' story 24 hours ago:
www.reuters.com/article/idUSN2419775920110124

It's shaping up to be a bruising battle of the windbags. Get the popcorn ready!

The States are considered sovereign. This is, after all, a Federation: The United States of America. Unlike the Federal government, the sovereign States' constitutions require balanced budgets every year. Somehow they went from "balanced" a year ago to "awash in red" this year. They desperately want Washington to bail them out. Washington is allowed to run deficits, and to print money. They could raise a few hundred billion bucks easy, the States figure.

The Federal Government in Washington has no stomach for bailing out the States. The sovereign States possess the powers of taxation, and Washington politicians want the State politicians to do the heavy lifting of raising taxes and making draconian spending cuts to balance their budgets. They want no part of it. They have their own fiscal problems to deal with, thank you very much.

Meanwhile, Newt Gingrich is yammering about allowing the States to declare bankruptcy. Not that they'd use it, mind you. Apparently it'd be like Hank Paulson's "bazooka in his pants": the mere knowledge that it's there would solve everything. It's about as plausible a plan as Paulson's Bazooka, too. The idea is that it would give the States leverage to reneg on future pension payments, thus somehow solving the current crisis. I guess they would then be free to raid the pension funds or something, I don't know. Money would rain down from somewhere. Ask Newt for details.

Why don't States amend their constitutions to allow deficits? That way they could borrow shee-it loads of money and keep things running until the robust economic recovery kicks in and tax revenues skyrocket all on their own. If it takes a while, just keep raising the debt limit. Sooner or later the problem will solve itself.

[lifewasgood]

I am hoping and I realize it is a big hope! but if one big state could take the lead and coin it's own money and make it legal to pay taxes, that would shake up Washington, especially if it were made of silver.

[decoy409]

itstippy, just read it. Thanks for the update! When I say, 'just add some more zero's' well I was talking about all of the losses and already produced debt. And that's the tiny stuff believe it or not, talking trillions in just tiny stuff.
Those pensions, well most of that cake was gone long ago. Collected, and collected % on, and all the while just holding up the show. Sure, now it's easy to say, OPPS! Sorry charlie, we spent it. End of story. There is no lawsuits that could actually come from this like, 'Theft by Fraud' you think?

[itstippy]

I do know that if a State were to file bankruptcy they'd end up in bankruptcy court. In bankruptcy court, creditors seek to get payed. Including State employees who earned pensions under legal contract.

So, the judge looks at the situation:

Can the States raise money? Yes. Duh. They have the power of taxation. They can raise huge amounts of money.

Do the States legally owe these folks their pensions? Yes. Ironclad legal contracts.
Do the the States legally owe bondholders their money? Yes. Ironclad legal contracts.

Are the States legally obligated to continue helping starving widows and orphans? No
Are the States legally obligated to continue sending money to the Municipalities for schools? No
Are the States legally obligated to continue doing 3/4 of the stuff they do? No

Where does Newt think this scenario would go in court?

[decoy409]

lifewasgood, the legislation being introduced through various states is actually going very well. And as we know some states have been using their own trade currency. I don't see a problem with that.

itstippy, I posted a interesting scenario with a scary resemblence but it's worse today than yesterdays gone by. It's in my GOLD thread.
As far as all those paybacks, simply impossible. And I hate to elaborate further.

[decoy409]

This message has been deleted.

Decoy, STOP DOUBLE POSTING. rovo

[973beachbum]

Are the States legally obligated to continue sending money to the Municipalities for schools? No

I was with you till here. Although most places do have some pretty convoluted ways of funding education and who administers it. It doesn't change the fundamental fact that it is the states responsibility to provide a free public education.

I do agree with you that an entity that has the ability to tax to raise money can't file bankruptcy. I remember when NYC wanted to be bailed out by the Feds and State. They were promptly given the power to tax people's paychecks and purchases.

[itstippy]

I'm certainly no expert on how State aid to public schools is determined. I wish I knew more, but I admit I'm ignorant. I do know that more State aid goes to poorer districts to make up for their lower local property tax base and (hopefully) keep the public schools reasonably equal Statewide. There's some kind of formula that determines how much of the State funding pie each local school district gets.

The total amount of State aid to public schools goes up and down. Most (all?) States diverted ARRA money last year to increase State aid to public schools, instead of building roads and other infrastructure. If they hadn't, the cash-strapped school districts would have had to cut too many teachers. Apparently the amount of money the State is obligated to distribute as aid to public schools is somewhat discretionary.

Without any ARRA money to play with this year, I doubt the States will continue to maintain the level of State funding they did last year. Politicians at the State level are unlikely to raise the state income tax to pay for increased aid to public schools. The local school districts will have to raise property taxes, cut teachers, or hold bake sales.

Having the States declare bankruptcy will not help this situation, unless there's something I'm missing (entirely possible).

[itstippy]

Apparently States do have some legal minimum level of public school funding, but they can jigger it at will.
money.cnn.com/2011/01/19/news/economy/texas_budget_deficit/index.htm?iid=EL

NEW YORK (CNNMoney) -- Texas lawmakers unveiled a Spartan budget late Tuesday night that slashes $31 billion in spending to close the state's massive budget deficit. Education, Medicaid and corrections would be hit particularly hard.

House legislators were forced to rely on spending cuts to close the shortfall -- estimated at between $15 billion and $27 billion -- because Republican leaders pledged not to raise taxes. They also did not touch the state's projected $9.4 billion rainy day fund, one of the most flush in the nation.

The spending plan calls for a 13% hit to public education and a 7.6% drop in higher education support. Among the cuts, funding for pre-K Early Start programs would be slashed, and four community colleges would be closed.

Such a drastic decline in public education support could be problematic because it would drop the education budget below a level mandated by the state, and force the legislature to change the law.