The Big Blue States Bellying Up: How about IOUs!

By Bill Glynn

California, New York, Illinois, Pennsylvania

The economies of the most liberal and largest states in our union are in jeopardy of bankruptcy and collapse. Who would ever think that we would see such chaos and fiscal mismanagement across the nation? It is hard to believe that California, one of the world’s largest economies, is on the brink of bankruptcy. Is this the writing on the wall for the federal government, too? You bet! This should be taken with the utmost seriousness on Capitol Hill - or should I say CAPITOL CLIFF - because that is what America is teetering on and close to going over while our government has the peddle to the floor. Does anyone see the borrowing and spending coming to a halt at the state or federal levels? Poll people - and I bet an overwhelming majority - would say Hell No! When state governments across the nation are in dire need of money, in political stalemate after stalemate what is their answer? More borrowing - even California is ready to issue IOUs to keep itself afloat. That means more debt on top of mountains of debt. Our currency and treasuries are not dissimilar - these are IOUs to the world. How long can states and the federal government keep the house of cards afloat? [more...]