On 4-Jun-2009, Gene wrote:

****ing borrowed money down the drain on state "employees" is not
economic
stimulus. It's simply exacerbating (for those in Maryland, that is not a
sexual term) the problem that already existed.

NC does not run a deficit budget. I suppose we could have closed the
state for a couple of months..... but that's kinda the problem. State
government knew things were really bad, but when the (lack of) tax
receipts came in, in April, they found out they were really in deep
doo-doo....

NC like most other states have tripled their spending over the past 20
years? For what? Make work jobs for buffoons. Cut the activities and the
expenses are gone. The elimination of waste is easy, but then, the empire
would shrink.


We have the lowest union membership in the US. In spite of that, we've
lost tobacco, furniture, textiles and other industries as income.

People sending 80% of their expendable income overseas allowed that to
happen.


In
this dream like trance of "post-industrial" existence, nobody can
afford to buy the "services" that are supposed to be the cash cow.

Services are not cash cows, they are 3rd world commerce activities. A
production base of core industries establishes multi level activities and
income. That created the large middle class - with those industries gone, so
goes the middle class. Economic viability does not come about from banking
scams, medical scams, investment scams, real estate scams nor millions
working at minimal wages at Walmart. Money borrowed from other countries to
sustain unneeded government make work jobs merely makes the problem worse.

Most "service providers" are among the increasing ranks of unemployed.
(and get ready for another round of mortgage defaults from those
otherwise "prime folks" that have recently lost their jobs)

Bad planning.


Even the new promising technologies, pharmaceuticals and
silicon-valley ware have laid off.

You buy all those things from overseas, also. No new, competent company
would, for the past 20 to 25 years stay in the U.S.

I have a friend that owns a resort.
Easter weekend he normally rents more than 90 units.... this year? He
rented a whole 4. Tourism has flopped and taken with it the monies
from gasoline, innkeeper, sales, and other taxes.

Trickle down works during a demise, also. All activities involving
discretionary income will be downsized or close. Marina's already are down
30 to 40%, and the worst is yet to come. ****ing money into government make
work jobs can't fix that, either.


When one (even a state) has both bills to pay and an insufficient
income, one MUST borrow to cover the essentials.

PLENTY is available for essentials - it the BS you are constantly getting
raped to pay for.

It sucks. It is often
the precursor to an unrecoverable downward spiral. It is a last
resort. It is necessary.

It's a final, futile last gasp before default, like 3rd world countries in
central America. It can't be reversed, but, activities to keep a carcass
warm should not occur to accelerate the demise, on state levels, and
certainly the insanity that's occurring at the federal level.