Treasury targets states to force debt ceiling raise

[Guest guest]

This is a dirty trick but it will probably work the ceiling will be raised. Unfortunately this only works because states and cities have allowed themselves to become dependent on federal money. Much of this goes to welfare and other wealth redistribution schemes rather than real upkeep for the cities and states. This is something I've been warning about for some time, the state dependence on the feds. This was NOT allowed in the Constitution and I'm sure the Framers would be appalled.

Quote:

Starting Friday, the U.S. Treasury will stop issuing special securities that help state and local governments pay for their debt, Treasury Secretary Tim Geithner announced in a letter to Congress this week. This freeze, the first in a series of "extraordinary measures" undertaken by the Treasury to avoid a federal default, could pose difficulties for local governments nationwide, making it more complicated for strapped localities to manage their already weak finances.

"I could see it being a real problem for those guys, on top of all the headaches they have already," said , a partner at the Chicago-based ACM Partners, a boutique financial firm that advises struggling municipalities.

http://www.huffingtonpost.com/2011/05/04/debt-ceiling-treasury-slgs_n_857238.html

[Guest guest]

" This is a dirty trick but it will probably work the ceiling will be raised.

Unfortunately this only works because states and cities have allowed themselves

to become dependent on federal money. Much of this goes to welfare and other

wealth redistribution schemes rather than real upkeep for the cities and states.

This is something I've been warning about for some time, the state dependence on

the feds. This was NOT allowed in the Constitution and I'm sure the Framers

would be appalled. "

It's a move designed to make the Fed look good. While the fed says " Look! We're

paying down our national debt! " people will forget that they cut funding to

states and they will see the states rack up bigger debts.

Wait till the taxes kick in. The fed will raise them and the states will raise

them.

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