👉States Bankruptcies Are The Next Shoe to Drop-America will Follow !!

👉States Bankruptcies Are The Next Shoe to Drop-America will Follow !!





States Bankruptcies are the next shoe to drop. The Pandemic has triggered a severe state budget crisis, the full magnitude of which is not yet evident. State revenues are declining precipitously while costs are rising sharply. States across America have seen their revenues dropping as revenues from income tax and sales tax are falling. Many are going to have to make significant cuts fast unless the federal government does more to step in. Thirty-one states rely on income taxes as their most significant sources of revenue, but fewer Americans will have paychecks coming in because of the outbreak, meaning a decrease in tax revenue. Some states such as Florida and Washington have no income tax and rely on sales tax, but those revenues have also taken a hit. State budget shortfalls this time around could total more than $500 billion in a single year. Cities and states across the country are now sounding the alarm. About 70 percent of tax revenue for states comes from sales and income taxes. And given that economic activity has been brought to a stop across much of the country — thousands of businesses have closed, millions of people have been laid off — you can start to see the problem. There is no question that sales tax revenue has completely fallen off the table, so that is about one-third of state revenues that are completely collapsing, and then income taxes are also falling rapidly with all those people getting laid off. And with the stock market decline, that means that quarterly tax payments that wealthy people and corporations pay will be lower. That is two primary revenue sources that are in very sharp decline, much steeper than anything from the Great Recession. Another group of states face a double threat. States with a high concentration of oil-related industries are seeing a decline in economic activity and tax collections due to plunging oil prices on top of COVID-19-related effects and the recession. Blue states like New York, New Jersey, Illinois, and California are all basically bankrupt, brought to this point by their voters who think there is free lunch to pay for massive government salaries and pensions. How many pension millionaires are there in these states! Way too many. Why would other states bail them out !. The millions of people that would be getting hurt would be the taxpayers in states that didn't need a bailout. Let's socialize the debt of New York, California, and Illinois. Every American owes it to every other American to make sure. They might have made bad choices, but we are all in this together. Next year no state budget will be too large for the taxpayers of the rest of the country to subsidize. Every state worker earned his/her pension, so the rest of us have to guarantee it. McCabe wouldn't retire until he had his retirement secured. After all the pension is the goal of every government worker, sitting at his desk, five days a week, staring at a government computer, waiting to go home after 3:00, waiting for the weekend off, waiting until he/she can retire with a $2 million pension. Yeah, we should guarantee more of that. Wall Street are the ultimate predators, but the public sector unions aren't far behind. They get guaranteed percentage gains and six-figure pensions. In Silicon, all the tech companies either made it or didn't, and there were no bailouts. That is the way it supposed to work. No bailout in actual Capitalism. All government employees should have never gotten more than $50,000 per year pension. Anything over that is pure lunacy! Open up the economy and no bailouts to any government or corporation. Ten trillion more dollars already gone up in smoke and added to our debt. Forget the states, America as a whole is going to default soon. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Senate Majority Leader Mitch McConnell took a hard line Wednesday against more funding for state and local governments. He suggested in interviews Wednesday that Democrats are trying to get the federal government to essentially bail out state and local governments for bad decisions they made related to public pension obligations and other sources of expensive debt. "I would certainly be in favor of allowing states to use the bankruptcy route," McConnell told Hugh Hewitt in a radio interview. "It saves some cities. And there's no good reason for it not to be available. My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them now, so they don't have to do that. That's not something I'm going to be in favor of." What McConnell doesn't know is that the U.S. Constitution has no allowance for states to file bankruptcy. A city can, but not a state. It's called a default, it's not legal, and the debts are still binding. We are so freaking doomed. To allow this to happen would require a new Constitutional Amendment. It is stupid to amend title 11 and allow individual states to be eligible for bankruptcy protects, enabling them to discharge unpaid state debts and liabilities. Besides moral hazard, it just passes back losses of outstanding debts to banks, pension funds as whole owning state bonds, to other owners or investors of state debts. Let's just bail everyone out by printing money, and if not, just make it legal not to pay back debts, government, corporate, and individual alike. A clear recipe in itself to destroy economy in as much as state shutdowns of business. Bankruptcies mean haircuts for bondholders. Legacy pension and healthcare obligations mean it is inevitable. We can bail them out, But they will just be back again in a few years asking to be bailed out again. What would Declaring bankruptcy accomplish? More unpaid debtors who would now refuse to do any more business with the state unless they are paid cash in advance. Tens of thousands of pensioners who would come up with ingenious ways to get their money back from the state. Untold numbers of investors who would not buy bonds again for fear of getting burned. All of this being suggested by one of the politicians who voted to limit bankruptcy for average citizens during the credit reform act. Debt jubilee is about the only way out of this one. These are gruesome times, but they believe they have the tech tools to control the entire population upon an involuntary basis, so they are going for it because they are facing the chop after the final straw of total incompetence. Politicians won't do it until it hits 40 or 50 trillion. Then they will run away to New Zealand or somewhere where the pitchforks can't get to them. Decades of election bribes to unions for new government jobs, with double-time pay, over hiring, health coverage for life, and full salary pensions have resulted in these states bankruptcies. That's what happens when you elect narcissistic fools who have never had a real job, ran a business, and know absolutely nothing about how the real world works. In the real world, FAILURE is how we are held accountable and learn from our mistakes. Governors have been in bed with unions to promise pensions that cannot ever be paid unless they get a federal bailout. NEVER were the pensions feasible. The political lying class was complicit with unions and employees to make sure the contributions were artificially low while the payouts were gamed by focusing on the highest-earning year, which was PACKED with overtime hours. This is PURE CORRUPTION, and now they want to be bailed out. They are trying to socialize the costs while reaping the benefits. Ditto private enterprise. The pension funds were based on an 8% rate of return. That's the line Wall Street was selling in the 1980s in order to privatize the pensions (and get their hands on the money). No pension fund can come anywhere close to that rate of return. Hence, bankruptcies. The states should have to be made to pay for their transgressions. Each one of these States are in trouble based on the decisions they have made. On the one hand, Governors-General, like Cuomo and Inslee, claim that the states are the supreme pillars of the sovereignty in the nation, that they - and only they - will determine their own fate and that they - and only they - are calling the shots. On the other hand, they hold the cup with which to beggar from the national government. They chose to overpay their workers and over-promise pensions, for political gain, while well-run states made better choices. To bail them out is to REWARD lousy decision making. The States will just continue the same behavior that got them in such a sorry shape. Think of all of the state and municipal bonds that would default, or be worth fractions of a penny after bankruptcy court. Public employee pensions ultimately wrote off or paid a tiny fraction of what the public employee unions negotiated. The Blue states made a mess of their balance sheets, and the blue voters keep re-electing the blue politicians. Reap what you sow. Going to be a whole bunch of retired state employees pulling in fat pensions before they turned 50 who are about to begin looking for employment. Breaks my heart. The government-mandated economic decline affects all economic activities, including state and municipal operations and revenues. If the state and lost municipal revenues are not restored as they have been for businesses and households, then there will be a massive wave of municipal bond defaults. The Municipal bond market is vast, including issuing authorities that have the notorious pension liabilities, while the majority do not. For example, revenue bonds for housing, hospitals, utilities, transportation, etc... The Republicans should be wise and fair enough to craft a relief package for state and municipal operations that excludes funding for pensions but does provide revenue continuity for economically useful and necessary activities .Especially after the Republicans exuberantly bailed out corporate executive parasites, hedge funds, etc. By the way, BOTH of the monopoly political parties are immoral social parasites. They'd have to change the Constitution or do what they always do. We wouldn't be in this mess if we stuck to the Constitution. If silver and gold were the only monetary instruments, then we wouldn't be dealing with a debt-based Ponzi scheme. States do not have to declare bankruptcy. States can merely repudiate their debt. States are sovereign. Unsecured lenders would have no recourse against a sovereign state. The king can do no wrong. A State filing for bankruptcy confesses it is a business and not a sovereign. Sovereigns go insolvent, and the lenders are stuck. Businesses go bankrupt. This was The Atlantis Report. Please Like. Share. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!