I don’t know what’s so hard about this problem!

We have to give the states the right to file bankruptcy.  More than 40 of them are broke, and what a folly it is to think the Fed, even more broke, can bail them out.  Just today on national news the commentator was spouting off about high food prices, blaming it on ethonol and the high cost of corn as a result.  That’s so much bunk.  As I’ve said time and time again, you can’t crazily print money without expecting the inevitable result…INFLATION.  And it’s upon us and will get worse.  The only way to stop it is to turn small and large business loose, free them from burdensome taxation, and let them prosper…and hire, and produce, and pay taxes at a reasonable level on what they earn.

Then it’s imperative we pay attention, and treat our politicians like the children they’ve proven to be.  Now, sonny, you can only spend what you earn.  Duh!

This from Vision to America:

State governments are in a huge hole, and they’re still digging. Thanks to the Great Recession, their tax receipts have suffered the greatest decline since the Great Depression: now 12 percent below pre-recession levels (adjusted for inflation). For their 2012 budgets, states face gaps hovering around $140 billion, and that’s on top of previous budget shortfalls of over $400 billion since the recession began.

Federal assistance had mitigated previous-year deficits, but there is now only about $40 billion left in the program. High unemployment will keep state income tax receipts below normal levels. President Obama’s healthcare bill has compounded the fiscal effects of Medicaid expansion on states. Medicaid costs from 1998 to 2008 had already risen four times as fast as the consumer price index, but the new impositions are eating up state budgets as additional support for Medicaid from the federal government will expire in June 2011. Add to this red ink the drop in revenue from the big investment losses experienced by state pension funds.

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