The Bankrupt States of America

If this continues…we may as well rename the country “The Bankrupt States of America”.

States of Crisis for 46 Governments Facing Greek-Style Deficits

Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end.

Unemployment was 12.4 percent in May, 2.7 percentage points higher than the national rate. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. California, tied with Illinois for the lowest credit rating of any state, is diverting a rising portion of tax revenue to service debt, Bloomberg Markets magazine reports in its August issue.

Far from rebounding, the Golden State, with a $1.8 trillion economy that’s larger than Russia’s, is sinking deeper into its financial funk. And it’s not alone.

Even as the U.S. appears to be on the mend — gross domestic product has climbed three straight quarters — finances in Arizona, Illinois, New Jersey, New York and other states show few signs of improvement. Forty-six states face budget shortfalls that add up to $112 billion for the fiscal year ending next June, according to the Center on Budget and Policy Priorities, a Washington research institution. State spending is 12 percent of U.S. GDP.

The lesson from Greece (which a 5 year old can understand) is that spending more than you make will bring you to financial ruin.

Governments can increase taxes, but eventually taxes are paid by people who need jobs to pay taxes. Or by businesses that make money… governments do not create jobs – they tax you and take part of your paycheck and call it theirs.

High taxes cripple businesses and drive up cost of doing business. That doesn’t help the economy – example; Hollywood films and TV series are now moving to places that offer lower labor costs, no unions, lower taxes and more tax credits. “The Blind Side” was moved to Georgia, “Green Lantern” (set for next year release) went to film in Louisiana. Canada (and British Columbia in particular), Ireland and New Zealand, among others, have been aggressively luring film companies in part by drawing production away from Hollywood – like Avatar, Spartacus: Blood and Sand, The Last Airbender (went to film in Pennsylvania and Greenland).

France: Shame of the World Cup

What a shame, for a proud soccer country like France to be chased out of the World Cup in such a manner. Such humiliation! How bad was it that French Supporters were cheering for the South African team against their home country’s? Good thing these players weren’t the Colombian team – otherwise drug lords’ hitmen would be welcoming them.

Arrogance and pride came before their shameful fall. Despite having players that play for world class teams like Manchester United, Arsenal, Chelsea and Barcelona the French failed to impress as a team let alone as athletes or even soccer players. They showed horrible sportsmanship and behaved far worse than spoiled little children. Their coach refused to shake hands with the South African coach!

Last World Cup the French team was the best one – this year, clearly the worst.

France’s shame: Heads bowed and faces grim, disgraced team sent home after crashing out of World Cup

Excerpt:

Their heads bowed, their faces grim, this is the French team boarding a plane in South Africa last night just hours after crashing out of the World Cup.

The team flew out of Bloemfonteim after losing 2-1 to hosts South Africa in a game that was so dismal their own fans began cheering for the opposing side.

Now the England team must battle to avoid a similar fate this afternoon in what skipper Steven Gerard has called a ‘do or die’ match against Slovenia.

The British World Cup bid has gotten off to a stumbling start, and the team must win today if it is to make it into the final 16.

50 Statistics About the U.S. Economy

This is what government does to an economy. The US government has spent trillions of dollars (which it does not have – but will get by taxing the most hard working and productive workers in society or by borrowing from China, Japan, India, etc) to bail out Maserati driving bankers, wage war against countries that pose no threat to us (this is what breeds hatred against the US and creates terrorism), funding Israel’s ethnic cleansing. Until government stops meddling – there will be no free market nor an end to the recession – only bubbles.

50 Statistics About the U.S. Economy That Are Almost Too Crazy to Believe

Excerpt:

#15) 39.68 million Americans are now on food stamps, which represents a new all-time record. But things look like they are going to get even worse. The U.S. Department of Agriculture is forecasting that enrollment in the food stamp program will exceed 43 million Americans in 2011.

#14) Phoenix, Arizona features an astounding annual car theft rate of 57,000 vehicles and has become the new “Car Theft Capital of the World”.

#13) U.S. law enforcement authorities claim that there are now over 1 million members of criminal gangs inside the country. These 1 million gang members are responsible for up to 80% of the crimes committed in the United States each year.

#12) The U.S. health care system was already facing a shortage of approximately 150,000 doctors in the next decade or so, but thanks to the health care “reform” bill passed by Congress, that number could swell by several hundred thousand more.

#11) According to an analysis by the Congressional Joint Committee on Taxation the health care “reform” bill will generate $409.2 billion in additional taxes on the American people by 2019.

#10) The Dow Jones Industrial Average just experienced the worst May it has seen since 1940.

#9) In 1950, the ratio of the average executive’s paycheck to the average worker’s paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.

#8) Approximately 40% of all retail spending currently comes from the 20% of American households that have the highest incomes.

#7) According to economists Thomas Piketty and Emmanuel Saez, two-thirds of income increases in the U.S. between 2002 and 2007 went to the wealthiest 1% of all Americans.

#6) The bottom 40 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.

#5) If you only make the minimum payment each and every time, a $6,000 credit card bill can end up costing you over $30,000 (depending on the interest rate).

#4) According to a new report based on U.S. Census Bureau data, only 26 percent of American teens between the ages of 16 and 19 had jobs in late 2009 which represents a record low since statistics began to be kept back in 1948.

#3) According to a National Foundation for Credit Counseling survey, only 58% of those in “Generation Y” pay their monthly bills on time.

#2) During the first quarter of 2010, the total number of loans that are at least three months past due in the United States increased for the 16th consecutive quarter.

#1) According to the Tax Foundation’s Microsimulation Model, to erase the 2010 U.S. budget deficit, the U.S. Congress would have to multiply each tax rate by 2.4. Thus, the 10 percent rate would be 24 percent, the 15 percent rate would be 36 percent, and the 35 percent rate would have to be 85 percent.

Read the rest at:

50 Statistics About the U.S. Economy That Are Almost Too Crazy to Believe