U.S. governors seek $1 trillion federal assistance

PHILADELPHIA (Reuters) - Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession. The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin -- all Democrats -- said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues. Gov. David Paterson of New York said 43 states now have budget deficits totaling some $100 billion as tax revenues plunge. "It's clear that the federal government needs to step in and jump-start the economy," said Gov. Deval Patrick of Massachusetts. The latest package calls for $350 billion to create jobs by building or repairing roads, bridges and other public works; $250 billion to maintain education; and another $250 billion in "counter-cyclical" spending such as extending unemployment benefits and food stamps, which are typically a responsibility of the states. The remainder would be used to fund middle-class tax cuts, stimulate the embattled housing market, and stem the tide of home foreclosures through a loan-modification program.

Woo Hoo lets spend our way out of debt! What do you guys think. I'm no economist but when is this spending spree going to end?

Link

well, ya.....we've adopted a new budget policy that's based on the federal policy.....we've borrowed the money to buy 100 monopoly games....counted up all the money out of those games, (hey, those dollars probably aren't worth much less than ours), added it to our assetts on our balance sheets, added a little leverage to the mix, and hey, we should be able to afford the yacht, the multi-million dollar home, and the around the world vacation this year!!! what ya mean, it don't work like that???

it does for them!!!

which would you prefer....
that they give the states a trillion dollar bailout and well, we stir up the hyperinflation wave a little more?
or, that they don't and the states comes to it's residents and tax the hades out of them ?

I suppose that the states could just cut some of the spending, but well, that was the right action all along, for the states, for the federal, and for us citizens.....and no one liked that idea, did they?

maybe I should go out and buy some more monopoly games, or hey, maybe a new design is in order, thinking maybe I'll buy the Game of Life this time around....

reply to post by dawnstar


One question I have... Isn't the states asking for federal money the same as taxing the citizens of the states? I don't get this stuff too well, any additional points would be greatly appreciated.

i just can't go along with it... the OP & the Reuters link:


" ... The latest package calls for $350 billion to create jobs by building or repairing roads, bridges and other public works; $250 billion to maintain education; and another $250 billion in "counter-cyclical" spending such as extending unemployment benefits and food stamps, which are typically a responsibility of the states. etc ..."


Just how many finance clerks or banker execs could man the jobs required to build roads and bridges, tunnels...

maybe the $15Hr positions which flag traffic is about all they could do

What is 'maintaining' education to the tune of $250billion?
keeping the tenured Profs in paychecks?
Keeping over priced universities in operation...when there will no longer be needed the 10s of thousands of degreed baby-sitters which political-correctness has churned out in the last 3 decades?
howabout future curtailed needs of business majors or stock brokers as there are soon-to-be nearly 200,000 of them looking for work in a broken system of credit


Nope... everything in that article is a doomed attempt to revive a failed system of fraud & minor larceny for most everyone... and an avenue of extravagance for the monied charlatans to make even more ill gotten gains

reply to post by Raustin


You can not be far from the truth with your last sentence, actually yesterday in CNBC the bigwig that are all for the bail out for the elites said publicly that the only way to get out of the mess is to keep borrowing into oblivion because is not other way out.

Japan is already getting tired, China now our number one lender is starting to rethink its priorities, so now America's politicians are looking for rich oil Arab nations for the next wave of cash flow.

reply to post by St Udio


You just catched what now the bigwit and elites want to do, they want to hyperinflate the economy to keep their standards of living while keeping the American tax payer workers in more debt with more borrowing.

reply to post by Raustin


Yes and no. The Federal government can simply print money out of thin air and later pay for it by increasing taxes or borrowing. The states cannot print money and relying on the taxes of their citizens alone wouldn't be enough.



[edit on 1/3/2009 by eldard]

reply to post by marg6043


Did I read a post of yours talking about the Arab money only being used in accordance with Muslim law? No that's not cool IMO.

To St Udio, I didn't quite understand this statement it's too early here

i just can't go along with it... the OP & the Reuters link:

[edit on 3-1-2009 by Raustin]

I believe Udio is talking about hyperinflation and the over saturated nation of college students with no way to find jobs in a dying job market. Still the ones in charge of the nation rather keep the standards of failure that they have set off for profits than fixing the real problems that are affecting the nation.

[edit on 3-1-2009 by marg6043]

reply to post by marg6043


Ahhh thank you, I need some Red Bull and cigarette action.
I'm usually fairly useless but without the caffeine and nicotine I may as well stay in bed!

reply to post by Raustin


Don't worry, I always enjoy Udios post but you have to follow up on them so you don't get lost in his point of view, that usually is always right.

the gov't/fed can print the money they spend and it costs them very little (as long as you overlook the effect that does to the inflation level, trade imablances, ect). they don't have to increase taxes to come up with this revenue.

but the states don't have that luxury, they can't just create their money out of thin air....heck, many of them can't really borrow it and stay within their state constitutions. many states of constitutions that clearly state that they have to run on a balanced budget.
so, these states will be forced to either drop services (kind of hard when the number on expense that is killing them is the healthcare for state employees and the mandated programs like medicaid.) or well...raise taxes.
they are mandated by the federal gov't to provide a percentage of the costs of such things as medicaid and unemployment I believe, so, well, there's some things that they are just gonna have to pay for.

reply to post by Raustin


tax by stealth...

In England we get taxted like crazy.. but we dont worry so much about health care or public travel ect becouse we get taxted for that..

BUT they do use stealth taxs "inflation" is one of them....

Corpate take over of the world is what you are seeing here.