OPINION
c/p/w permission Wayne Madsen Report – The U.S. economy: stand by for even worse news. Open Thread
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November 24, 2010 — The U.S. economy: stand by for even worse news A top economic adviser to the Democratic Party, speaking on deep background, told WMR that the domino-like collapse of the economies of Iceland, Greece, Ireland, and, now, possibly Spain, is coming also to the United States.
One of the triggering mechanisms will be at the end of this month when two million idled workers, now collecting unemployment, will be dropped from the rolls. At the end of December, another two million workers will join the ranks of those who have exhausted their unemployment benefits and a total of 4 million Americans will be without unemployment checks and face destitution.
Four million Americans will put financial pressure on municipalities and state governments already facing bankruptcy. Unlike Iceland, Ireland, Greece, Portugal, and, to some extent, Spain, which have strong central government control, the United States is a federal republic and, as such, the collapse of the economy will be state-by-state and begin at the municipality level, according to our source who has contacts within the Obama White House and the Democratic leadership of the Congress.
Municipalities, which guarantee the pensions of their retired employees through the issuance of municipal bonds, will find themselves faced with bankruptcy and the “Muni” bonds will be rated at junk status. Municipalities unable to pay out pensions will discover their pension funds can be bailed out by the Pension Benefit Guaranty Corporation (PBGC) in Washington, a federal corporation set up by the Employee Retirement Income Security Act of 1974.When the first municipality declares bankruptcy and seeks a bailout from the PBGC, there will be a domino effect, with others seeing it as a quick way out. Soon, the PBGC will, itself, be forced into bankruptcy. WMR has been told by our source it is doubtful that a Republican Congress will be interested in bailing out the PBGC.
The wildfire of municipality bankruptcies will then spread to the states, with California and Illinois likely to be the first two states to default on their debts and declare bankruptcy.
In order to raise quick cash for a financially-desperate state government, California Governor Arnold Schwarzenegger plans to sell 24 state buildings, including the Earl Warren Building in San Francisco, headquarters for the California Supreme Court, and then rent them back from the new owners. However, such desperate moves by states, including the selling off of their turnpike systems and state buildings — with parks maybe next on the auction block — is not enough to forestall bankruptcy. Unlike the federal government, which can print as much cash as it likes and needs, states do not have that luxury. However, given the imminent collapse of the national economy, some states may decide to print their own currency, an act that would lead to the dissolution of the present 50-state union.
As far as bank accounts are concerned, our source recommended avoiding large national and regional banks that have a high percentage of toxic assets, especially in the commercial real estate area. The next major bust, after the residential real estate plunge, will be commercial real estate, where values of buildings and shopping centers have been halved. Our source sees smaller, state-based banks, as safer for account holders. Also, as more and more large shopping malls begin to close across the country, the unemployment numbers will also skyrocket.
WMR was also informed that President Obama will not seize the bully pulpit and level with the American people about who and what caused the present economic crisis. “Obama is subservient to his teleprompter,” the White House insider source said, “if he’d scrap the teleprompter and speak directly to the American people, he might help things, but right now, he’s a disaster.”
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Happy Turkey Day, Everyone! Wishing you and yours a safe holiday.
Wowza! Check out this amazing sand art!!!
A THANKSGIVING DAY MESSAGE FROM GAZA
….. pass your laptop around the dinner table today and share it with your guests…. it’s a must see for all Americans.
http://www.youtube.com/watch?v=MQWUbPN4ooM
Forgot the link to story accompanying above video.
http://desertpeace.wordpress.com/2010/11/25/a-thanksgiving-message-from-gaza/
Made my day. Miss you.
Happy Thanksgiving to you and yours.
Happy Thanksgiving everyone!
Made my day, too, venice. Happy Thanksgiving to you and yours
From Wayne Madsen Reports to his readers –
Former Congressperson Bob Barr who is w/OptOut Alliance is offering a TSA No Your Right’s Traveller Card -
Don’t Fear the TSA! Request your FREE Traveler’s Rights Card
Dear Friend of Liberty,
Groping, naked X-Ray scans, and invasive searches by government bureaucrats — probably not what you had in mind as part of your holiday travels. Like many Americans, you might even be having second thoughts about flying this holiday season to avoid these invasions to your privacy at our nation’s airports.
That’s why Liberty Guard is launching the Opt Out Alliance and distributing Traveler’s Rights Cards.
The cards provide you with:
•The appropriate steps to Opt Out of TSA Full-Body Scanners and “enhanced” pat downs.
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As a friend and supporter of personal liberty, we’re offering this card at no-charge to you — all you have to do is request your Traveler’s Rights Card below.
“https://www.optoutalliance.com/rightscard
More Chris Hedges – touching and beautiful.
http://www.youtube.com/watch?v=B2SaM8RJ30c&feature=related
Chris Hedges’ Empire of Illusion
http://www.youtube.com/watch?v=_EpeF1fcji0&feature=related
Hedges hits every note in the above speech on “Empire of Illusion” except for the reference to global warming which has sense been revealed to be based on fraudulent data.
Well, I’m canning chicken this week…and I got more Libby’s corn, peas, green beans….but these were 3/$1….at Dollar General.
And more sugar.
As the comedian says…can’t remember his name?? “STOCK UP!!”
JustMe, 5;51pm,
Finally someone who has been able to tell the tale of Michael Jackson as the quintessential example of “celebrity culture”. Brilliantly done indeed.
I am sure that you were also thinking of O as a parallel figure because Obama certainly is. Is Palin to follow?
Happy Thanksgiving everyone!
Sometimes it seems like we do not have much to be thankful for, but look again. We can give thanks for life, the freedom to enjoy it all, and for gathering together with friends and family to share the holidays.
We pray for health and strength to carry on and to try to live as God would have us.
Peace and comfort to all of you this night.
And if you’re going shopping…take care, IT’S MINE, I SAW IT FIRST!
Where’s Prairie??
I am thankful for some things I DON’T have…volcanic ash on my roof, porch, yard, and covering all items in my house…mud slides clearing my yard away….earthquakes breaking and destroying my house and household items…and there are many more.
God is soooo good and merciful…for I am unworthy!!
JJ – like you, I miss Prairie too. Through private correspondence, I have learned she is work very hard on her children’s book and needs to be in the art studio to do some work. Let’s hope she’s doing great work and will join us from time to time as time allows.
Kim – Amen. You are a beautiful soul and we are grateful you wished us such a lovely message. Thank you.
****NEW POST – Why too much money make’s some stupid…a perfect example is the “Pretender” US Senator John Kerry****