This Is Down Right Stupid Fools
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.
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......