State debt has been getting worse for decades.
I remember the debt, bankruptcy and blackouts of NYC in the 1970s. Everybody was depressed and wanting to leave.
I moved back to California in 1978 after the time of Proposition 13 tax cut.
Much alarm, whining, complaining, weeping.
Many books written on both topics.
Predicing future catastrophe.
States continued to spend beyond their means.
Been getting bigger and bigger debts.
So they will exploit the current crisis
to get the federal government to bail out the deadbeat states. Poor flyover states will bailout the richer states.
Beyond what they normally do.
Parasitism is ok.
Lazy entertainment addicts.
Bailout for rich parasites.
I remember 2003 or so getting alarmed at bad California fiscal problems.
But the mortgage boom was taking off and put off accountability until 2008 crash. then more bailout and boom until pandemic 2020.
Now final accountability?
Continued lockdowns in blue states a clever way of bailing out pensions?
There is a major crisis economically unfolding and the markets are not yet taking into account the seriousness of the economic damage.
I have explained that this is a Coronavirus Bankruptcy Pandemic which has put about 30% of the retail service industry in the crosshairs of insolvency.
But there are smaller municipal governments that are also bankrupt as we see with some of the first filings starting to unfold here in May.
With nearly 80% of the civil workforce employed in the service sector, these schemes of keeping the economy locked down are profoundly dangerous.
They fail to realize that this is undermining society in a major way that it is not going to return to normal even with Bill Gates’ certificates to prove you have been vaccinated by him personally.
The Democratic states are refusing to open up when there is no real justification to keep their economies closed.
What is really going on behind the curtain is a clever trick.
The $1 trillion that Pelosi was stuffing in the Democratic Bill is money to bail out state and municipal governments which have been going broke because of their unfunded pensions.
The scheme is to crash their economies and then blame everything on the virus and then blame Trump for not bailing them out for the 2020 election.
This is a very clever scheme being relayed in whispers from behind the curtain.
They are using this virus as cover to bail out 70 years of fiscal mismanagement.
US economic stagnation in the 1970s hit New York City particularly hard, amplified by a large movement of middle-class residents to the suburbs, which drained the city of tax revenue.
In February 1975, New York City entered a serious fiscal crisis.
Under mayor Abraham Beame, the city had run out of money to pay for normal operating expenses,
was unable to borrow more,
and faced the prospect of defaulting on its obligations
and declaring bankruptcy.
The city admitted an operating deficit of at least $600 million,
though the actual total city debt was more than $11 billion
and the city was unable to borrow money from the credit markets
The New York City blackout of 1977 struck on July 13 of that year and lasted for 25 hours,
during which black and Hispanic neighborhoods fell prey to destruction and looting.
Over 3,000 people were arrested,
and the city’s already crowded prisons were so overburdened that some suggested reopening the recently condemned Manhattan Detention Complex.
The financial crisis,
high crime rates,
and damage from the blackouts
led to a widespread belief that New York City was in irreversible decline and beyond redemption.
By the end of the 1970s, nearly a million people had left,
a population loss that would not be recouped for another twenty years.
To Jonathan Mahler, the chronicler of The Bronx is Burning,
“The clinical term for it, fiscal crisis, didn’t approach the raw reality. Spiritual crisis was more like it.