Re: 46 Of 50 States Could File Bankruptcy In 2009-2010
- From: Strabo <strabo@xxxxxxxxxxxxxx>
- Date: Wed, 04 Feb 2009 04:24:57 -0500
Winston_Smith wrote:
State Budget Troubles Worsen
http://www.cbpp.org/9-8-08sfp.htm
Calif. Taxpayers Due Refunds May Get IOUs WS - {including welfare per a radio story yesterday}
http://www.msnbc.msn.com/id/28448852/
46 Of 50 States Could File Bankruptcy In 2009-2010
http://freedomarizona.org/2009/01/30/46-of-50-states-could-file-bankruptcy-in-2009-2010/
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.
That would be the "State of Arizona" not "Arizona". The difference in
names indicates the unconstitutional status of the corporation under
which US states mostly function.
Arizona itself cannot file bankruptcy since it is the sovereign entity
and must function within the limits of its constitution which does not
authorize concealed assets and confiscating citizen's money except for
operating expenses.
>
map showing MT, WY, ND, & WV are OK.
http://www.cbpp.org/9-8-08sfp-f1.jpg
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 challening 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.
UPDATE: Check out the newly published article, Survivalism: How to
Prepare for the Economic Collapse. There’s also a printable 4-page
newsletter you can download and share with your friends, family, and
co-workers. Take action and help spread the awareness of this
life-threatening issue.
http://freedomarizona.org/2009/02/02/survivalism-how-to-prepare-for-the-economic-collapse/
Survivalism: How to Prepare for the Economic Collapse
If this forecast holds true, and a major portion of our states file
bankruptcy, there will be widespread panic, our state funded services
and programs will be closed down immediately, and confusion amongst
political leadership and the citizenry.
Not long after the states file bankruptcy, could we see martial law
declared by the President of the United States, as a means to bring
order and peace. Those who are not willing to comply with the mandates
of the martial law will be hauled off to FEMA camps and military bases
throughout the United States.
How can you prepare for this economic collapse now?
Food
• Begin stocking up your cabinets, pantries, and closets with
non-perishable food items.
• Purchase a portable camping stove in case your home’s electricity is
shut off.
• Start consuming a healthier diet so your body isn’t dependent on the
processed and junk foods we’ve grown accustom to.
• If your have the space in your yard, plant and grow a garden.
• Stock up on vitamins and necessary supplements to ensure you stay
healthy in the next Great Depression.
Household
• Discuss emergency plans with your family, roommates, friends, and/or
loved ones.
• Store a stockpile of hygiene items including deodorant, toothpaste,
towels, washcloths, and toilet paper.
• Make sure you have a hefty reserve of bottled water on hand, stored
in a safe place.
• Keep extra pillows, sheets, and blankets in your closets.
• Have at least one shotgun, rifle, or handgun, if not more.
• Ensure you have enough ammunition to defend yourself, your
household, and your loved ones in emergency situations.
Community
• Get to know your neighbors.
• Know who you can and cannot trust in your local community.
• Gather together with like-minded individuals in your community,
choose designated methods of contact, and choose a few leaders.
• Pick a safe house, where your community coalition will go in
emergency situations.
• Pick two alternative safe houses, in case the primary safe house
becomes compromised.
• In times of peace, continue to make your community aware of
political, social, and economic dangers.
Money
• Save paper and coin money in a safe place in your house.
• Invest in a small or medium size safe to store your money and other
valuables.
• Slowly begin withdrawing from your savings and investment accounts
on a regular basis. Store this money in a safe location.
• If you can purchase gold, buy it. Gold retains the same value no
matter how low or high the currency markets go.
• Stop paying taxes to save money and force government leaders to
listen to the citizenry, the people who put them in office.
Further Reading
Read the survival documents at:
http://www.textfiles.com/survival/
It’s better to prepare for the worse, and hope for the best.
Take Action
Remember the government belongs to the people and it’s our duty to
ensure our rights and freedom.
Spread the Economic Collapse Newsletter [pdf] everywhere. Download.
Print. Distribute.
http://www.321gold.com/editorials/ruff/ruff020209.html
Money Allocation in a Time of Crisis - Howard Ruff
I can't respond to all I have been asked for individual situations,
but here are some general principles you can use as guidelines.
Defensive Strategies
1) We are temporarily in a deflationary period, which means that
dollars will become more valuable for a while, so you should be out of
debt. Build up your cash reserves ready to be deployed in the coming
hyper-inflation.
2) Commodity Storage: Commodities, including food will never be
cheaper than they are today. Buy extra commodities and store them.
Don't buy three cans of tuna, buy a case! This is a classic example of
"buy low, sell high." You will buy at today's low prices and consume
at tomorrow's higher prices. It is really an investment strategy in a
period of runaway inflation, which we will be headed into, probably
within six months to a year. When commerce is crippled by inflation,
you may not be able to buy what you want, when you want it, at a price
you would like to pay. Take advantage now; it's just practical
counsel.
Go to any store and start accumulating extra - ranging from diapers,
to soap, to motor oil, to fertilizer, etc. This is the buying
opportunity of a lifetime.
Every family should have at least a half bag of "junk silver"
(pre-1964 dimes, quarters and halves), which are valued not for their
face value, but for their silver content. At least a half bag for each
member of the family, but do the best you can.
3) Reduce Spending. Other than commodity storage, reduce your spending
to a bare minimum.
Every car in your garage should be a used car - at least two years
old. If you need a car now is a good time to buy as there is a huge
glut of good-quality used cars on the sales lots. You can bargain from
a position of strength with the car dealer.
You will be just as comfortable in a well-cared-for three-year-old car
as you will be in a new one. Buying a new car is a big no-no,
regardless of how great the deal sounds that the dealers offer you.
Go to a car dealer and look over these mouth-watering deals on used
cars.
4) Real Estate. Don't use cheap mortgage money to buy a bigger house
today. Prices are still plummeting, and the unsold inventory is still
huge and has to be worked through before these houses will become
decent inflation hedges when bought at future reasonable prices. Real
estate prices are still plummeting, and we probably won't see the
bottom for another year or two.
Don't go for the big ads in the Sunday paper promoting new-home sales.
I'm perfectly happy to live in my relatively modest home, which is
actually bigger than it looks, but is anything but a show-off home. We
bought it at a very reasonable price. Yes prices are down, but I
borrowed against the home and invested the money before the decline.
Even though the investments (gold, silver, oil and CEF) are currently
down with everything else, they are gradually coming back up. I will
have converted my home equity from fallow asset to a growing asset.
Offensive Strategies
Strangely enough the ultimate result of this deflation will be
inflation. As the government fights deflation with trillions of newly
created dollars, and the money begins circulating in the economy, it
will bare its inflationary fangs.
It is not too soon to start preparing for inflation this time, so some
of that excess cash flow you have after reducing your debts should be
steadily put into inflation hedges while you wait patiently.
1) Precious Metals have obviously bottomed out. Silver is up from
around $9.30 to today's market of over $12. Gold is flirting around
$900 on its way to $1,000. The world is buying the metals as a hedge
against calamity, and there are certainly enough calamities to
stimulate buying.
The liquidating of metals futures is pretty well behind us, so it
won't be depressing metals prices as much. Buy, buy, buy!
Actually the accumulation of gold and silver is the offensive benefit
of your basic defensive strategy. Precious metals will not just
protect your purchasing power and protect you from runaway inflation,
but will also help you to turn small amounts of dollars into genuine
fortunes.
If you think this is outrageous, let me tell you what I really think.
The day will come sometime in the next few years when gold will be
measured in many thousands of dollars per ounce, and silver in many
hundreds of dollars per ounce. So it's not just a way to make a great
deal of money as measured in cash dollars, but to protect your
purchasing power.
The markets will eventually evolve the monetary uses of these metals.
I don't know exactly how it will work, but history tells us it will.
My personal bias is toward silver; it's the poor-man's gold, which
will be attractive to many times more buyers that gold will. I expect
it to out-perform gold. That is why I have recommended the Central
Fund of Canada Ltd. (CEF). When you buy shares of that mutual fund on
the American Stock Exchange, the company will then use your cash
dollars to buy gold at a ratio of one ounce of gold to 50 ounces of
silver.
2) Oil Income Trusts. Obviously, the Canadian Oil Income Trusts I
recommended took a terrible beating with the price of oil crashing
from $150 to below $40. But remember the principle of "buy low, sell
high." Oil will rebound. It is low now only because people are scared
to take vacations with a car because of their serious financial
problems created by this crisis. Less gas bought is converting itself
into lower gas prices.
OPEC will cut production to push up the price of gas, so the auguries
are there for much higher oil. How high will it go? I can only guess,
and that guess is around $75 - $80 per barrel. That's almost twice the
present barrel price, so the oil-income trusts will do very well
indeed. Right now they are yielding over 20 percent; a great return.
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