It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

The Economic Collapse Cometh...

page: 1
2

log in

join
share:

posted on Dec, 13 2009 @ 06:10 PM
link   
First California, and now New York.

Paterson says he will hold back cash


ALBANY -- As he had earlier promised, Gov. David Paterson today said he will withhold $750 million in local aid scheduled to go out this week.

That includes more than $500 million in scheduled school aid payments and $112 million to cities and counties. Additionally, the governor will hold back $47 million set to go to health insurance firms that cover state employees, although that is not expected to affect coverage of workers.

Paterson stressed that his actions are payment delays rather than cuts, although he hasn't precluded making cuts in the 2010-09 budget to be released next month.

The move is likely to provoke a lawsuit from the state Senate, which has been battling the governor over budgetary issues, and it will probably make some towns, cities, counties and school districts borrow money in the short term in order to cover costs such as salaries, benefits and a large payment for retiree pensions coming due in the next several months.

Some localities may even point to this borrowing and consequently raise local property taxes.

The governor said the state is going to run out of money this month, even after it taps its rainy day fund and borrows money from other pots of cash throughout state government.


How long now until the delays turn into cuts? Guess that matters on how long China will allow the Fed to print Monopoly money, and devalue the dollar to the breaking point.




posted on Dec, 13 2009 @ 06:34 PM
link   
reply to post by Ferris.Bueller.II
 


I'm not really sure two states defaulting on debts will be enough for people to start panic selling US debts. I think the third time may be the charm.



posted on Dec, 13 2009 @ 07:13 PM
link   

Originally posted by truthquest
reply to post by Ferris.Bueller.II
 


I'm not really sure two states defaulting on debts will be enough for people to start panic selling US debts. I think the third time may be the charm.


I agree. 2 states aren't going to collapse the economy nationwide, even if they are 2 of the bigger budget states. But these aren't the only states having budgetary troubles either.



new topics
 
2

log in

join