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alstry (36.01)

Grab Your Wallets....Your Uncle Needs $$$$

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October 03, 2008 – Comments (9)

NEW YORK (MarketWatch) -- California Gov. Arnold Schwarzenegger said that California may need up to $7 billion in emergency funding from the federal government as the state is almost running out of cash to pay for daily government operations, according to a report Friday in the Los Angeles Times. In an email obtained by the newspaper, Schwarzenegger wrote: "Absent a clear resolution to this financial crisis, California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing."

Again...this is another issue I have been warning you about.  This is just the beginning.  States and Cities are seeing revenues evaporate.  Many only survived for the past few years by borrowing more and more.  Just look at our wonderful President and the Federal Government.  Now spread that over the entire nation and each state and municipality. 

Expenses are skyrocketing.  Deficites are exploding.  And fewer and fewer can afford to pay taxes.

We are going to have HUNREDS of BILLIONS of shortfalls just from local governments.....and these shortfalls are going to keep growing larger.  Cut programs and cut staff and the economy will contract further and unemployment will keep rising.  Keeping spending and tax rates will absorb everyone's income.

This too is another very serious issue among a growing list of serious issues.   Its funny, niether of the candidates are  addressing the problem really facing America....it is not a credit crisis.....it is a shrinking revenue crisis......and since much of the past revenues was based on writing toxic loans.....where do our politicans expect to make up TRILLIONS in annual revenures?

Based on my analysis....we could be looking at a 80-95% top marginal tax rate.....for those of you old enough.....that is what it used to be not too long ago.  This time conditions are much worse.

 

9 Comments – Post Your Own

#1) On October 03, 2008 at 9:26 AM, dinodelaurentis (73.83) wrote:

talked to my 79 year old mother yesterday. she's afraid that a depression is coming because of everything she learned in the thirties. guess that puts me in the deflation camp...

mom's pretty sharp; still working as an RN at her age!

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#2) On October 03, 2008 at 9:53 AM, alstry (36.01) wrote:

Gotta luv mom!!!!!!

I have and still tend to side with the deflation perspective right now....Demon thinks I am nuts.....but he is still my favorite blogger.

But stay tuned...this could change on a dime.

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#3) On October 03, 2008 at 9:54 AM, lquadland10 (< 20) wrote:

Yes and so do the major churches and mosque's and temples and large organize religions around the world. As people give their 10% to places like the food bank and salvation army instead of the churches I hear the cry all the way to Rome about how people shouldn't do that. How can they help the poor? See the major churches take our 10% from each of us. Then they keep 90% for operations and give 10% to the poor. Much like our government and large  corporation today. The salvation army and food banks on the other hand take our 10% use 10% for operations and give 90% to the poor. I tithe to them instead. It works out much better for me. Just a thought.

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#4) On October 03, 2008 at 10:02 AM, abitare (87.45) wrote:

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#5) On October 03, 2008 at 10:33 AM, dinodelaurentis (73.83) wrote:

ain't arnie the schnizlle?

"Pumping Iron: 25th aniversary edition" $9.99 at best buy!

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#6) On October 03, 2008 at 10:52 AM, mliu01 (< 20) wrote:

deflation won't last too long.

Unless you think the govt will close it's door.

When there is not enough income and nobody have money to lend to you or they are not willing to lend more to you. What are you going to do? Remember you and I don't have printing press. But uncle Sam does. YOu really think they are not going to use it no matter what?

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#7) On October 03, 2008 at 11:02 AM, jesusfreakinco (28.93) wrote:

It will be asset deflation and price inflation spurned by a falling dollar as foreigners sell USD en masse...

Al - good call - you saw this coming a long time ago and warned us all.  How will states deal with these massive deficits...  A LOT of municipal paper will be downgraded in the coming months.

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#8) On October 03, 2008 at 1:04 PM, alstry (36.01) wrote:

Not how will states deal with it.....how will WE deal with it......WE are the states.........WE are the cities......

That is why both political parties are setting up America to be screwed!!!!!!

Unless we are taxed 100% of our income......this puppy is going down........

That is the part of the equation that politicans fail to tell you.

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#9) On October 03, 2008 at 1:59 PM, zygnoda (27.33) wrote:

The bill of crap has passed...

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