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alstry (35.40)

This Is Down Right Stupid Fools

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December 02, 2009 – Comments (3)

North Carolina's high unemployment rate has stuck the state with $1.4 billion in debt - money that officials don't know how they'll pay back.

It gets worse. The debt is still rising. The problem is that with about 500,000 people out of work, the state has more unemployment claims than it can pay. So it has been borrowing from the federal government since February, sometimes as much as $20 million a day.

The tally will rise to at least $2billion by the end of the year, said David Clegg, deputy chairman and chief operating officer of the N.C. Employment Security Commission. Next year, depending on the economy, could add another $2 billion to the tab, he said.

For purposes of comparison, the state budget for the current fiscal year is $19 billion.

http://globaleconomicanalysis.blogspot.com/2009/12/24-states-borrow-money-to-pay.html

North Carolina is borrowing money it doesn't have and not likely able to repay to pay unemployment benefits to somebody out of a job who probably borrowed money from a bank which in all liklihood is lying about its assets.

To add insult to injury, North Carolina is borrowing from the Federal Government who is borrowing from who knows who...those same banks lying about assets???  or how about Dubai's soverign fund????

Soon you will realize that our entire economy, and much of the world's, was not much more than one person who borrowed money paying another person creating even more lending and spending. 

Is that really any different than a Ponzi scheme where the perp takes money from one investor and pays another without ever really thinking a profit is attainable????

A lot could unravel between now and 1.01.10.....we just had another billion dollar Ponzi scheme in FL yesterday......

3 Comments – Post Your Own

#1) On December 02, 2009 at 7:46 PM, babypoop (< 20) wrote:

Defaults are sure to come, however, this mess will not all unravel at your specified date.  Wait two more quarters before seriously getting short.  When Ireland and Greece default next year all hell is going to break loose.

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#2) On December 02, 2009 at 9:35 PM, alstry (35.40) wrote:

1.01.10 Is when it starts breaking apart.

Let's think about this:

Insolvent Banks Borrow From Federal Government For Basically Free Who In Turn Borrows Back From The Same Insolvent Banks At A Higher Rate Then Turns Around And Loans The Money To An Insolvent State Who Admits It Can't Pay Back The Loan Who Then Gives Money To  An Unemployed Resident Who Likely Owes A Payment To The Insolvent Bank?

Can anyone explain how this is different than a Ponzi Scheme???

This could never happen with gold or a banking system where proper legal principles were applied.

Once you understand this......you are well on your way to understanding Alstrynomics.  In the end, we are all Dubai.

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#3) On December 03, 2009 at 8:22 PM, babypoop (< 20) wrote:

The money printing merryground isn't going to come off its wheels in merely one month. 

Wait until mid-2010 when all of these Alt-A loans begin to fail. 

 

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