Just days ago, in the midst of the Puerto Rico debt morass, 24 members of Congress introduced the “No Bailouts for State, Territory, and Local Governments Act.”
The title pretty much sums it up.
Congress knows there’s a massive wave of defaults looming at the city and state level.
Detroit and Puerto Rico are just the tip of the iceberg.
Aside from a few top performers like Alaska, South Dakota, and Wyoming
(which, ironically, have no state income tax), many US states have
Illinois and Maine, for example, have dangerously low levels of cash relative to the debts and obligations they have to pay.
New Jersey and California have are among several states that are
technically insolvent, meaning they lack sufficient assets to make good
on all the promises they’ve made (like pensions and bonds).
And as the case of Puerto Rico shows, these fiscal imbalances can become a major crisis. Quickly.
Needless to say, the US federal government is in the exact same boat.
Uncle Sam has the worst finances of the bunch-- $19 trillion in debt,
$40+ trillion in long-term pension liabilities, and decades worth of
But unlike state governments, the US federal government has an ace in the hole: the Federal Reserve.
Right now the Fed is one of the largest holders of US debt; whenever the
US government goes into debt, the Fed essentially bails them out by
printing money and buying Treasury bonds.
This convenient relationship with the Federal Reserve has allowed the US government to kick the can down the road for years.
Every time they run a budget deficit and need more cash, the Fed prints money.
But states can’t do that.
They don’t have the ability to conjure money out of thin air like the central bank.
So when they run out of funds and can’t borrow anymore, the natural
tendency would be for states to seek a bailout from the US federal
That’s what happened in Puerto Rico. The island is in default, and as a
US territory, they’ve gone to the federal government with hat in hand.
Of course, the US government is too broke to bail anyone out, including itself.
So this new bill was put on the table to prohibit any federal agency,
including the Treasury Department, from bailing out ANY bankrupt city,
state, or territory (cough, cough Puerto Rico).
What’s even MORE interesting is that the bill specifically prohibits the
Federal Reserve from “financially assisting State and Local
In other words, the Fed is not allowed to print money to buy bonds issued by city or state governments.
So Congress is basically rigging the system in its favor and telling the
Fed, ‘Hey, all that money you print is going to end up in OUR pockets!’
As the most insolvent government of them all, Congress needs all the
bailouts it can get, and they can’t afford to have any competition from
cities and states.
This pretty much tells you everything you need to know about the financial system:
There is so much debt in the system, and these governments are all so
absurdly bankrupt, that Congress proposed a special law to make sure
they get to steal 100% of the money that the Federal Reserve is
conjuring out of thin air all for themselves.
Just when you thought you knew everything there is to know about the
U.S. Government- coordinated false flag operation known as 9/11, along
comes the following video exposé. This highly detailed and high integrity analysis provides a massive
amount of insider information and privileged data, as well as a
motherlode of whistleblower disclosures. Only by understanding the
crucial interconnection between the complex web of financial
transactions and security swaps, DOD fund losses and gold thefts, can
one of the main reasons for the 9/11 terror attacks be correctly
This past weekend in Chicago saw
another five killed and 40 wounded in shootings, slightly down from
Mother's day weekend when eight people were killed and 42 wounded. The
two weekends are indicative of what's taking place in the homicide
riddled city, in which the number of people shot so far this year is running an astonishing 50% above this time last year - what's worse, summer is not even here yet, which is traditionally the city's most violent period.
As readers know, I have seen some optimism in voters support for
Trump and Sanders as neither are members of the corrupt Republican and
Democratic political establishments. Members of both political
establishments enrich themselves by betraying the American people and
serving only the interest of the One Percent. The American people are
being driven into the ground purely for the sake of more mega-billions
for a handful of super-rich people.
Neither political party is capable of doing anything whatsoever about it, and neither will.
During the Oregon standoff, where a group of US citizens calling
themselves the Citizens for Constitutional Freedom, seized control of a
federal wildlife refuge in protest of harsh sentences being given to
members of a ranching family for allegedly allowing fires set on their
property to spread on to federal land, Ron Paul posed a question: Is the event isolated, or a sign of things to come?
It is becoming increasingly apparent that the Oregon standoff was the latter.
As the Washington Post writes, there
is a significant movement among US citizens that are demanding that the
federal government adhere to the Constitution, and stop what they see
as systematic abuse of land rights, gun rights, freedom of speech and
With all the anti-one-percenter rhetoric and
tax-evading-evil-doer narratives spewing forth from the mainstream
media mouthpieces of the establishment since The Panama Papers were
exposed for all to see, it may come as a surprise to some to find out
which cohort of the elites are the most populous among the
http://www.zerohedge.com/news/2016-05-21/government-aint-fixable-it-will-correct Government as we know it is doomed.
It will not recognize this reality until markets and/or citizens force
it. This time is likely close and the process will not be painless. The
more government ignores what is inevitable the greater the pain will be.
One hopes that civilization does not enter an economic and anarchical
Dark Ages. To the extent that government refuses to respond to
the fantasy world they have created, the more likely that is to be the
Government is too large and entrenched to be changed by elections. The
political establishment considers themselves to be privileged and
pretends to like and tolerate citizens. The truth is that the citizenry
are nothing more than a commodity to the rulers. Their votes and
pocketbooks are mined so that political lifestyles can be continued.
It has been proven, beyond any doubt, that the Shemitah has
governed the timing of cataclysmic events on Earth over the past
century. In fact, there have been several periodic economic collapses
and financial crashes which have aligned perfectly with the Shemitah calendrical cycle.
The Central States Pension Fund, which handles the retirement benefits for current and former Teamster union truck drivers across various states applied for reductions under that law. Currently the plan pays out $3.46 in pension benefits for every $1 it receives from employers. That’s a drain of $2 billion annually. The plan filed for
60% cuts in pensions. The Treasury Department has the final say. The
verdict came in today: “cuts not deep enough”.
The United Nations Security Council wants a global “framework” for censoring the Internet, as well as for using government propaganda to “counter” what its apparatchiks call “online propaganda,” “hateful ideologies,” and “digital terrorism.” To
that end, the UN Security Council this week ordered the UN
“Counter-Terrorism Committee” — yes, that is a real bureaucracy — to draw up a plan by next year. From the Obama administration to the brutal Communist Chinese regime, everybody agreed that it was time for a UN-led crackdown on freedom of speech and thought online — all under the guise of fighting the transparently bogus terror war.
The UN, ridiculed by American critics as the “dictators club,” will reportedly be partnering with some of the world’s largest Internet and technology companies in the plot.
The United States States government and the oligarchy that
controls it comprise the most malign force that has ever existed on
Earth. Finian Cunningham writing in the online journal Strategic
Culture Foundation explains how the Dark Lords use fear to rule scared
America – the Most Frightened Nation on Earth
By Finian Cunningham