Donald Hank
A survival plan for the States
By Donald Hank
Tyler Durden, a crack analyst at zerohedge.com, has noted some activity in at least one fiscally irresponsible state, Illinois, that suggests states may someday be demanding, and getting, bailouts from the Federal government. I think he is right. I have long been waiting for California or any of its bankrupt cities to do just that and am surprised it has not yet happened.
If Europe is the model, as Durden suggests, then this is logically the next move. The international power elites pick each others' brains. Just today I saw reports about Europe and Japan either considering printing money or actually having done so, no doubt taking their cue from Bernanke. This is how they hope to make us poorer and themselves infinitely richer. But the states could, with God's help, fight back against this wanton assault on our economy. It might seem like a desperate move, but then, these are desperate times.
Let us consider the implication of, say, a permanent unlimited bailout system for fiscally unsound states similar to the European Stability Mechanism, now approved by the German high court. This would inevitably mean that, unless the fiscally responsible (Republican) states start printing their own sound money (which they will probably have to do at some point if they want to survive) and declare themselves independent (as Catalan might, from Spain, for example), they will be slaves to the Federal Reserve and Washington, to the extent they are not already. For example, a state like Arizona may not receive a bailout unless it fell in line behind the Fed and started encouraging illegal aliens, for example, to come into the state and opened its border to them, including many criminals and cartel members.
The bailout is a whip. In Europe, it is being taken to the Greeks, the Spanish, the Irish and anyone else who asks for or gets a bailout. In that case, it is used to keep these nations from overspending and undertaxing, which makes sense. But in the US, such a financial whip would no doubt be used for more devious purposes like bringing conservative states into line, say, with gun control and open door immigration policies.
The central governments — EU and Eurozone in Europe and Washington and the Federal Reserve in the US, could keep everyone in line this way, wielding central control like the Soviet Politburo.
But we are not the Soviet Union quite yet. States still have rights and they must pull back when the time comes. A good time would be now. They should, at a bare minimum, start drafting legislation authorizing them to print their own sound money to defend against the phony play money from the Fed, which is getting weaker and weaker by the day (throughout the world, including here in Latin America) thanks to QEs 1-3 and a readiness to bail out crony bankers implementing failed policies, and will inevitably cause galloping inflation of the Weimar type, but on a worldwide scale. Such defensive state legislation authorizing the states in question to print a common currency, say, a Red State currency, would be a warning to the Feds to back off. And more than that, in the worst case scenario, it could actually be implemented to prevent blackmail from Washington. Any state that succeeded in pulling off such a "financial declaration of independence" could, with God's help, become an economic powerhouse as Europe and the US see their currency debauched to the point that virtually the entire middle class is impoverished — which is where we are trending.
It may eventually be the only way, no matter who becomes our next president.
Money printing around the world:
Europe (ECB)
http://www.spiegel.de/international/europe/ecb-prints-money-for-greece-to-buy-time-for-athens-a-848989.html
http://www.spiegel.de/international/europe/ecb-prints-money-for-greece-to-buy-time-for-athens-a-848989.html
Japan printing money:
http://www.moneymorning.com.au/20120921/the-bank-of-japan-joins-the-money-printing-party.html
© Donald Hank
September 22, 2012
Tyler Durden, a crack analyst at zerohedge.com, has noted some activity in at least one fiscally irresponsible state, Illinois, that suggests states may someday be demanding, and getting, bailouts from the Federal government. I think he is right. I have long been waiting for California or any of its bankrupt cities to do just that and am surprised it has not yet happened.
If Europe is the model, as Durden suggests, then this is logically the next move. The international power elites pick each others' brains. Just today I saw reports about Europe and Japan either considering printing money or actually having done so, no doubt taking their cue from Bernanke. This is how they hope to make us poorer and themselves infinitely richer. But the states could, with God's help, fight back against this wanton assault on our economy. It might seem like a desperate move, but then, these are desperate times.
Let us consider the implication of, say, a permanent unlimited bailout system for fiscally unsound states similar to the European Stability Mechanism, now approved by the German high court. This would inevitably mean that, unless the fiscally responsible (Republican) states start printing their own sound money (which they will probably have to do at some point if they want to survive) and declare themselves independent (as Catalan might, from Spain, for example), they will be slaves to the Federal Reserve and Washington, to the extent they are not already. For example, a state like Arizona may not receive a bailout unless it fell in line behind the Fed and started encouraging illegal aliens, for example, to come into the state and opened its border to them, including many criminals and cartel members.
The bailout is a whip. In Europe, it is being taken to the Greeks, the Spanish, the Irish and anyone else who asks for or gets a bailout. In that case, it is used to keep these nations from overspending and undertaxing, which makes sense. But in the US, such a financial whip would no doubt be used for more devious purposes like bringing conservative states into line, say, with gun control and open door immigration policies.
The central governments — EU and Eurozone in Europe and Washington and the Federal Reserve in the US, could keep everyone in line this way, wielding central control like the Soviet Politburo.
But we are not the Soviet Union quite yet. States still have rights and they must pull back when the time comes. A good time would be now. They should, at a bare minimum, start drafting legislation authorizing them to print their own sound money to defend against the phony play money from the Fed, which is getting weaker and weaker by the day (throughout the world, including here in Latin America) thanks to QEs 1-3 and a readiness to bail out crony bankers implementing failed policies, and will inevitably cause galloping inflation of the Weimar type, but on a worldwide scale. Such defensive state legislation authorizing the states in question to print a common currency, say, a Red State currency, would be a warning to the Feds to back off. And more than that, in the worst case scenario, it could actually be implemented to prevent blackmail from Washington. Any state that succeeded in pulling off such a "financial declaration of independence" could, with God's help, become an economic powerhouse as Europe and the US see their currency debauched to the point that virtually the entire middle class is impoverished — which is where we are trending.
It may eventually be the only way, no matter who becomes our next president.
Money printing around the world:
Europe (ECB)
http://www.spiegel.de/international/europe/ecb-prints-money-for-greece-to-buy-time-for-athens-a-848989.html
http://www.spiegel.de/international/europe/ecb-prints-money-for-greece-to-buy-time-for-athens-a-848989.html
Japan printing money:
http://www.moneymorning.com.au/20120921/the-bank-of-japan-joins-the-money-printing-party.html
© Donald Hank
The views expressed by RenewAmerica columnists are their own and do not necessarily reflect the position of RenewAmerica or its affiliates.
(See RenewAmerica's publishing standards.)
