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    Surviving Collapse
     

    Collapse of Dysfunctional States Is Another Step To The Federal Bubble Detonation

    Mac Slavo
    July 29th, 2010
    SHTFplan.com
    Comments (36)
    Read by 1,121 people

    An important thing to remember during this financial crisis is that it’s not just the federal government that has mismanaged the public’s money by taking on too much debt and entitlement promises like social security and medicare which it simply cannot service. Like the central planners in Washington D.C., many of our states are also in trouble, namely because of social service programs like state health care and state pension funds.

    Over the last several years many state pension funds have experienced massive declines and because we’re nowhere near the finish line, we can expect even more destruction as stock invested pensions get decimated in coming months and years. This means that the states will be incapable of making payments not only to pensioners, but they’ll be forced to either make massive cuts in essential services like emergency response and government administration, or borrow money from the federal government – probably both.

    Here’s how the states fared in a recent study:

    The Pew Center on the States, a nonpartisan think-tank based in Washington D.C., recently used California as the poster child for fiscal dysfunctionality. The Pew Center identified the six factors most responsible for California’s ongoing fiscal woes and then scored the other 49 states on how similar they are to the beleaguered Golden State.

    The six factors are (1) high foreclosure rates; (2) increasing joblessness; (3) loss of state revenues; (4) relative size of budget gaps; (5) legal obstacles to balanced budgets — specifically, a supermajority requirement for some or all tax increases or budget bills; and (6) poor money-management practices. The results are in the table below, with California being assigned the benchmark number of 30.

    State Dysfunction Scale

    If you’re a resident of one of the most troubled states in America, here’s a glimpse of what’s to come: higher taxes, layoffs of state workers, longer waits for public services, more crowded classrooms, shorter school years, higher college tuition and less support for the poor and the unemployed.

    But for those of you living in places that aren’t in such rough shape, don’t get too comfortable. Think about this: The 10 states in the worst financial condition account for more than one-third of America’s population and economic output.

    The health of individual states is important because the United States’ recovery from the Great Recession depends heavily on the degree to which states emerge from their economic doldrums. But the actions needed to repair finances in the 10 most vulnerable states — think higher taxes and lower government expenditures — could slow down the entire nation’s economic recovery.

    source: Investing Answers

    Lower wages, high unemployment, increased taxes and more economic woes are almost a guarantee going forward. Regardless of what we’re told is being done to quell the situation, it is clear that nothing has actually been done.

    It’s only going to get worse. No bureaucrat in Washington or your state capital is prepared to do what’s necessary, so they will continue to kick the can down the road until the road dead ends.

    How long will this be?

    It’s hard to say, but in terms of the states, we’re likely looking at sooner rather than later. States are already broke, with California, Illinois and New Jersey already showing serious fiscal strain. In the near future we’ll begin seeing states requesting bailouts directly from the federal government. Eventually, we suspect that the majority of states will be standing in the welfare line looking for hand outs.

    For now, the US dollar remains fairly strong given our economic problems. In fact, any time a financial emergency spreads across the globe, investors seem to be running to US bonds for safety, so there is still confidence in the US government’s ability to service our existing debt.

    However, we believe that once the states begin to require federal involvement to pay government workers, emergency responders and pensioners, we will be much closer to a serious collapse of not only our economic system, but the monetary system as well. It’s only a matter of time before the rest of the world realizes that we’re completely broke and takes action accordingly.

    The states blew a government spending bubble, and that bubble is about to pop. The federal debt bubble will not be far behind.

    Hat Tip Chef

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    Author: Mac Slavo
    Views: Read by 1,121 people
    Date: July 29th, 2010
    Website: www.SHTFplan.com

    Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

     

    36 Comments...

    Vote: Click here to vote for SHTF Plan as a Top Prepper Web Site
    1. TnAndy says:

      Yep…it’s coming, sure as God made little green apples.  Lot of States are broke, and the Feds will bail them out ( after the appropriate amount of hot air is expended about fiscal responsibility )…..and will do so with printed money. 

      No way the rest of the world is gonna finance this crap, China is already easing toward the exit door.

      Rate This Comment: Thumb up 1 Thumb down 0

    2. Patriot One says:

      It appears the states in red all have large illegal immigrant populations. Do you have any numbers on that Mac?

      Rate This Comment: Thumb up 1 Thumb down 0

    3. J_Ct says:

      Illinois, Obama’s state, will certainly get a Fed bailout instead of cutting bloated public sector jobs to any degree.  Then other states will want their Fed $ too.  

      Rate This Comment: Thumb up 0 Thumb down 0

    4. Dave says:

      ****Here’s some more politically incorrect observations****.
      Notice the states that are financially sound are predominantly Caucasian.
      Detroit is like detroit because of the people in it,it has nothing to do with the water or something in the air.
      Mexico is like Mexico because of the people in it,it has nothing to do with something in the soil,or air.
      Germany is efficient because of the people,it has nothing to do with something in the water,the air or the food.
      Do you see a pattern now?
      Do you realize that the multi-culti nonsense that we’ve been spoonfed for decades is a horrible lie?
      Part of acquiring wisdom is not allowing others to get away with calling you a “bigot” or “hater” when you notice these general truths,no matter who’s feelings may get hurt.

      Rate This Comment: Thumb up 1 Thumb down 1

    5. Anonymous says:

      HIGH  FIVE of the Day Dave!

      Rate This Comment: Thumb up 0 Thumb down 0

    6. Yes,  it’s going to be sad.  My wife, bless her heart, has been a dedicated school teacher for, like, 30 years?  She retired 2 years ago, and yet still works part time.  She teaches special education.  She does what she does because she’s sincerely a caring person.
      Now,  when the Colorado State Pera (teacher’s retirement) goes bankrupt, and can’t pay her earned retirement checks, she’ll lose her home, probably everything else, and none of it will be her fault.  Yes, it’s sad…….

      Rate This Comment: Thumb up 0 Thumb down 0

    7. lostinmissouri says:

      Dave….I agree.
      When you consider, that at the end of WW2,  everything sold in America, was made in America, by Americans,  then you can see what’s wrong with this picture.   Is America better off, now?
      You sir, are 100% right, when you say we have been fed  lies for decades, about globalization , multiculturalism,  and environmentalism!
      It is high time to take our Country back.

      Rate This Comment: Thumb up 0 Thumb down 0

    8. Dennis says:

      Comments…..Oregon is sitting near the bottom, but the state has no sales tax.  All it’s neighbors are from 6% to 7.5%.  Seems to me that’s one tax that could be implemented and would surly pull them into the middle of the pac, at minimum.  However, I think their property taxes are relatively higher than their neighbors so it wouldn’t be easy for the natives. 
        Another quaint fact in Oregon: They don’t allow self-service gasoline.  Demanding that an employee pump it for you.  Consequently, that state made job costs the consumers about $.15 plus more than surrounding states. 

      Rate This Comment: Thumb up 0 Thumb down 0

    9. VRF says:

      Im from Michigan, and close to the big dead city of Detroit…

      Dave hit the nail, dead center!

      Rate This Comment: Thumb up 0 Thumb down 0

    10. Comments…..Here is an nasty piece of info: The  US spanish media is broadcasting that there are 3 states ( Idaho, Washington and ?) that will issue state drivers liscenses with the illegal, non english speaking person only being asked to declare that they are legal and where they live. A citizen MUST prove their id, residence etc but an illegal only needs to declare it. I have co-workers who are hispanic americans and are angry about this because it is well known in Calif that they just go to one of these states and get a drivers liscense with no restrictions and they can return to Calif ( or any other state) and no questions are asked because it is a valid state id/drivers liscence with no restrictions. Then they convert that liscense to Calif.
      So why do we have a border?? Why do we need a Patriot Act?? What is going on??  It means that no state can actually prove that their id is valid because the person may have started with the unproven ID from one of these states!!!

      Rate This Comment: Thumb up 0 Thumb down 0

    11. Tina says:

      Dave – Your comment is bigoted, ignorant and absolutely disgusting!

      Rate This Comment: Thumb up 0 Thumb down 1

    12. Alamo City Man says:

      Right on Dave.  As proof , just look who is president, and the state of the nation now.   Banana republic comes to mind.

      Rate This Comment: Thumb up 1 Thumb down 0

    13. Tina says:

      Dave – so the looming economic collapse, statutory fiscal irresponsibility and assault on our civil liberties is all due to the fact that their are minorities in the world?  what about our over consumption, a states effort to provide luxuries in overpopulated cities and lack of foresight of us all in general? I guess I should inform you that the spirit of america is inclusive and appreciative that all men are created equal and have a right to life, liberty and the pursuit of happiness.  we are ALL americans and all in the same boat.  that comment is downright despicable and wholly un american.  i happen to be an african american female, who is a “prepper”  and made a pretty decent life for myself without ANYONE’s help.  just so you get it straight there truly are obstacles against minorities that make it just a little harder to make it in this world mostly because of people like you who secretly harbor such racist attitudes.  Do I use it as an excuse? NEVER!!!!  Don’t make a states fiscal irresponsibility about race. obviously there are many factors involved you haven’t bothered to research yourself, its not about race, this is about many things. some of them our own fault but also an elite slowly stripping away our freedoms and we will all need each other when  SHTF comes. Dave, don’t be surprised if you find yourself one day having to look upon that mexican or black face and ask for help.

      Rate This Comment: Thumb up 0 Thumb down 1

    14. Tina says:

      Oh really Alamo City Man?  So everything went to shit as soon as Obama took office? Do you really think Obama is in control?   This has been in the making by an elite for years!!!!!!! get a clue!!!!!!!!

      Rate This Comment: Thumb up 0 Thumb down 0

    15. Judy says:

      Comments…..

      It appears the states in red all have large illegal immigrant populations. Do you have any numbers on that Mac?

      I’m in Ky, and in the county I reside, I’ve counted about 10 Mexicans in 3 years, probably illegal–they come to cut tobacco.

      Other counties??  I’m not sure about.

      Rate This Comment: Thumb up 0 Thumb down 0

    16. rogue2 says:

      how many illegal immigrants shipped their companies over seas because they didnt want to pay the american union worker anymore?   (citizens who are viewed as the pathetic working class).

      how many illegal immigrants or browns or blacks were cheating the system and stealing american worker’s pensions and jobs during the unregulated bush administration’s tenure of allowing companies to con the system?  how many of them went to jail for fraud?  any poster latinos up for securities fraud?  corporate fraud?  ethics violations?  oil spill fuckups?

      how many mexicans americans or african americans are in congress and the senate dictating the laws of the land?  how many of them own the corporations that will do anything to cheat the american citizen from their money and then just take their LLC into the ground to make off scott free with all the robbed money?

      how many illegal immigrants let greed override the concern of the people and fuck over entire communities?

      how many illegal immigrants work for the state governments, sucking dry the massively expensive health care cost while having protection of the state behind them?

      oh wait…most of the aforementioned are  good american white people.

      please, for the love of keeping this forum free of ignorant bigots, please stop pretending that only the “illegals” in this country are to blame for how fat and fucking bloated most pussy americans are…and how that has also led to the downfall of this country.

      Rate This Comment: Thumb up 0 Thumb down 1

    17. Jonny V says:

      Hey Rogue2?  You know what?  I’m an American Union Worker, and you can just climb right up on your mommies shoulders and KISS MY ASS!!!!!!   FUCK YOU.

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    18. Tina says:

      That all you got Jonny V? using profanity and trying insult others for posting an intelligent response cuz you know deep down its true and you can’t come up with an intelligent enough rebuttal?  go get your blankie!!

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    19. Bill says:

      Rougue2 made a brilliant observation above. Any clamoring among the rednecks in the audience to the contrary is without merit.

      Yep, it was good ol white boy republican/main stream business types who have done the lions share of damage since that brainless actor Regan was talked into deregulating to the point of having regulators turn a blind eye to corruption.

      Make no mistake, the really huge hits to the public financial & economic health have come from Wall St,Bankers and Corporate Americas upper managment. Those aren’t exactly bastions of Blacks, Hispanics/illegals.

      And Jonny V …your response says it all.
      Greedy Corporate types were equally balanced by crude, ignorant  “American Union Worker” types.

      Rate This Comment: Thumb up 0 Thumb down 0

    20. rogue2 says:

      and i’m in the carpenter’s union, Massachusetts.  the abuse is viral.  i’ve also been in a teacher’s union.  and a concrete union.  same across the board.

      Rate This Comment: Thumb up 0 Thumb down 0

    21. rogue2 says:

      so, you want me to kiss your ass because of how many white collared (mostly white american) traitors have taken advantage of unions and fucked over the american worker?  oftentimes forcing unions to jack up their securities and insurances, which leave them ripe for abuse?

      or is your union experience filled with totally straight and honest people who do not take a 35 minute, what should be 15 minute, break? 

      it is what it is. 

      Rate This Comment: Thumb up 0 Thumb down 0

    22. SD Mule says:

      Well, it looks like the BIG MONEY is winning again. We have white people blaming inner city black people, everybody blaming the mexicans, people bashing unions, people of a similar mindset cursing at each other on the net. Who is at fault for the present condition of the United States again? Oh, that’s right, it is everybody but ME! Everything was fine when the BIG MONEY had the monetary floodgates open and I had that mid-level managers job. You remember, I spent most of my day surfing the net and answering emails. I made good money and had a nice benefit package, though I didn’t produce much. You remember, industrial and commercial construction was booming. Plenty of OT, let those rats and hacks do the residential work. You remember, Toyota, Lexus, and Honda cars, trucks,  SUV’s and were  selling like  hotcakes. What, me support the American auto manufacturer when everyone knows Toyota and Honda make the best cars. You remember, all those mid-level manager types who felt it was beneath them to do their own yard work. Driving to the Home Depot to pick up Illegal immigrants in their SUV’s on the weekends. I was never a real big Michael Jackson fan, but I must say, his “Man in the mirror” song always struck a cord with me. The hardest part of getting better is being honest with yourself. All of the comments on this issue concern symptoms, not the problem. The politicians do not elect themselves and guns don’t kill people.

      Rate This Comment: Thumb up 1 Thumb down 0

    23. Bill says:

      Unions suck.  Once they were necessary, now they are a load of crap.  The carpenters union tried coming into our town and they left all pissed off.  People in northern Michigan are smarter than that.   Look at the auto industry.  They ruined that too.

      Rate This Comment: Thumb up 0 Thumb down 0

    24. Chris C. says:

      Well spoken SD Mule.

      WE NEED TO STOP THE INFIGHTING.

      Is illegal immigration a problem? Yes. Is it at the core of our problems in this country? I would say no. It is yet another factor exacerbating the existing problems.

      THIS IS CLASS WARFARE, NOTHING ELSE.

      We must unite against those who conspire to keep us down with their money and power. This includes the bankers and politicians aided and abetted by mainstream media. This, imho, is the root of the problem.

      When the majority of the states get on the fed dole you will know the end will come soon. I’m talking anywhere from 6 to 18 months, so let’s say 1 year. It’s coming and there’s no way to stop it. Money keeps flowing out of the local economy like a sieve while Wall Street keeps raking in the billions. We need to remember this when everything falls apart.

      Rate This Comment: Thumb up 0 Thumb down 0

    25. wooba says:

      I have disagree with the opinions voiced here, re. the multi cultural/imigration phenomina all white western nations have embarked on in the past 20+ years. To me the purpose behind it is not so nefarious and is both obvious and logical.

      We wealthy white folk, for the most part, have had declining birth rates and there are simply not enough children from us paying taxes to support our baby boom generation now retiring. Not enough to pay the pensions at least, nor to buy all the investment properties, etc etc.

      What our governments have done is to basically import slave labour. All that is left now is to increase consumption taxes, turn them into wage slaves and pass the money on to us white folk.

      Whether you agree with this theory or not hardly matters since it will happen regardless. All the pieces are in place. The predominantly white boomers will be retiring, and the mexicans, etc, will for the most part be paying the taxes.

      Rate This Comment: Thumb up 1 Thumb down 0

    26. Patriot One says:

      All of us allowed this to happen. Our parents and grand parents didn’t know or care enough about the Constitution to stop it when it all started in 1913.

      If we truely want to be free we need to roll back 97 years of progressive creep, to include the New Deal, TVA, Social Security, Medicare, Welfare, Medicaid, Unemployment and every other entitlement program on the books. Once that’s complete we need to eliminate about 65% of all government agencies.

      Are you prepared to do that? No. I did think so. The very people who are trying to fix the problems, are the problem.

      Rate This Comment: Thumb up 0 Thumb down 0

    27. rogue2 says:

      dont get me wrong, i am all for a strong protection base for the working class, for skilled labor, and for fair wages.  the problem is, when ever you have an organization in charge of such a huge base, one that is protected by state laws, the lazy folk will take advantage of it.

      how many times would the superintendent walk around the corner, and the union laborers would just stop.  literally, they’d stop.  then they’d sabotage any non-union workers’ progress on the day.  not all union workers are cheap, vindictive cowards like that, but most turn a blind eye. 

      the private company would work extra hours, drive further than most contractors’ guys, and would have much more pride in their work producing a better product, more productive workday, and …well, that american pride we used to see. 

      if not, they’d get fired.  they couldn’t hide behind the protection of the union; the same protection that allowed them to abuse the system.  whether it is the fat guy at the office taking cuts from the workers’ pay for his salary, or the worker himself who would be very lazy on the job, abuse of the system is systematic.

      workers who fight to keep their jobs, have to show what they’re worth and have the contracts to prove it embody the american spirit of labor that we all pretend is ours.  but, it’s not.  there are so many american workers out there, union or private, that bust their balls and have a great work ethic.  but, unfortunately, the slugs just lag on their coattails and take advanage of the system.

      an easy system for that is any union.  so, the concept of a union is good, but they’re often too lax in their laws to weed out the leaches to the system. 

      Rate This Comment: Thumb up 0 Thumb down 0

    28. wheedle says:

      The Republic is at risk of failing because the people are no longer united. Their are dark souls in this world that want the United States of America to fail. If society does collapse in the U.S. be prepared to suffer a SHTF scenario that has never been seen in this country.
      Communication shutdowns including internet, cell phones, and land lines.
      Gas stations, super markets, and banks close early with no clear time when they reopen.
      Criminal looting will begin, and you will have to arm yourself to keep from becoming a victim.
      Fire departments and police departments will be overwhelmed as society begins to burn.
      Power failures could occur nationwide in a very short time as an attempt to curb fires and violence.

      Make no mistake, the country is at a crossroad where real change in our government is needed to save the country. If we cannot find leaders that truly love this country, and have a genuine desire to save it, then ALL will be lost.

      Don’t let your differences in opinion spark hostilities that could threaten the very core of the country’s existence. Societal Collapse will lead to Martial Law, and then lead to the nation’s lost of sovereignty. United Nation troops would eventually be allowed to take control of areas under seige and the process of dividing this country up would begin.

      If this is the SHTF scenario you hope for then prepare to get your wish. United we stand, divided we fall.

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    29. Anonymous says:

      Peter Schiff for senate in CT!!!!!!!!!!!!

      Rate This Comment: Thumb up 0 Thumb down 0

    30. Jonny V says:

      @ ROUGE2, TINA, BILL, ET AL:  Sorry about my ignorant post last night.  Bad day+ bad attitude+ too many beers= idiot postings.  My bad.

      Rate This Comment: Thumb up 0 Thumb down 0

    31. Bill says:

      J.V. and all….  It’s really hard not to have a messed up attitude now days.  It’s  obvious to most everyone that things are screwed up.  I spent a bunch of time talking to some idiot in India about my charge card here in my home town.  I was so f%$king mad yesterday my guys went home early from work.  I don’t blame them at all.  I had to buy donuts this morning and lunch to make myself feel better.  Here I am in Northern Michigan trying to cancel a credit card talking to someone I couldn’t even understand because we can’t do it here in the U.S. little lone in my own fricking town.    Is this not a perfect example of why we deserve what is happening all around us.   We’re all stressed out and tired of the bs.

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    32. Jonny V says:

      Thanks Bill.  I got clipped two days ago, but can’t afford to take time off work.  So I’m out here drywalling and hurting like hell.  Icing down twice a day and at night helps, but man I’m glad it’s Friday.

      As far as what you guys were talking about…..Here in W Washington, only the very top hands at any given company are still working, and some on reduced hours.  Getting rid of the slackers happened a while back (months ago).  A lot of guys are doing a little extra and not marking down all their hours.  No one wants to be the one that causes a job to lose money.  Everyone knows that if they don’t show up to work, they’re gonna be gone.  It’s hard core right now.  Construction has always been that way though, it’s just worse now.

      Our state seems totally oblivious to what’s going on.  I saw a bunch of state workers out planting flowers a week ago.  Sure am glad those assholes still have jobs…….

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    33. rogue2 says:

      i totally understand where your’e coming from.  no worries on the rant.  we all do it, all the time.  and we all need it, so i hear ya.

      i really hate waste.  wasteful people, wasteful policies, wasteful uncaring attitudes.   the superintendent i was talking about earlier, was my father.  i was a laborer for the concrete/carpenter contractor…so, i didnt work for his company, but one of the contractors. 

      i was in a union, and i saw real hardcore proud family guys busting ass on the job, and loving their work.  unfortunately, i also saw the loafs who would seriously walk around the corner and sit down.  ON SITE!  then, they’d pop whatever pain pills or prescription pills they had…it was like they were stoned on site.

      everyone was handcuffed to do anything about it; whether it was the carpenters who wanted the job done right, or the super himself.  nobody could do anything about them because they were protected by the laws of the union. 

      the masons on site were not union.  they were straight brazilians right off the boat.  they worked like machines.  unbelievable.  doing whatever they could to move from tenders to block layers, so they could make $3/hr more and give their children a better chance.

      they looked at me and said, “if your father is the super, then why are you working?  he makes good money”.   wow, i thought.  not all american kids are like those idiots you see on american TV.

      anyway…i would go in his trailer and fix his company’s computers during lunch time and eat my lunch on the way home, so they didnt have to wait for some IT jerkoff get out to the site to fix it.   keep things moving, help out any way you can.  enjoy your work. 

      oh yea, and i was just thinking the same (state workers planting flowers) about all the lawncare companies out there…and thinking about all the gasoline being wasted on leafblowers. 

      pickup a fucking rake and get some exercise.   for in an attempt to make the lawn “look better” you’re sure making it stink with that 2 cycle exhaust.  rant over.

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    34. Fed Up In TX says:

      Lets all be honest and break it down.

      Do we have illegals clogging our emergency departments and using our tax dollars for education with out any legal rights to be here?  Hell Yes.

      Do we have generations of unwed mothers (Grandmother, Mother and Daughter) living on welfare and Section 8 housing?  Hell Yes and I have seen it multiple times in multiple places.

      Do we have a group of wealthy business owners moving business offshore for unreliable labor at cheap rates?  Hell Yes.

      Do we have folks who over spent on housing, cars, and damn near every thing else we didn’t need?  Hell Yes and I am on of them.

      Do we have plants closed down because over zealous unions priced themselves out of the market?  Hell Yes

      Do we realize that we have generations of each that will have to learn to deal with a new reality and suck it up like my Grandparents did in the Great Depression?  Maybe

      Do we have the fortitude to make the necessary changes in our own lives to survive?  Maybe

      Do we realize that our only chance is to take responsibility for our own failings/faults and stop enabling those who refuse to (ie welfare, tax breaks, and damn near every other social program we can no longer afford)?  Maybe

      Is it worth it for our kids and grandkids to make every effort?  Hell Yes

      Can America “Rise Again” as the old Charlie Daniels song once said?  Yes – if we stop with the bitching, whinging, excuse making, and/or allowing others to do the same, and suck it up and deal with what is coming.  But we have to simplify and re-instill personal responsibility again.

      Suck it up, prepare now, be positive as we go through it, and rebuild through sacrifice and personal responsibility.  (not big government, social multi whatever — neighbor helping neighbor; church member helping church member, etc)

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    35. Can we shoot zombies?  Hell Yes!

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    36. ShoMeFox says:

      Fed Up in Tx; you are right on the money!  Every neighbor we have is on disability here and I wonder exactly what their disability is as they look perfectly healthy to me.  The majority of people here are over-weight and on some kind of food stamp program.  Im not rich, but Im not poor either.  I say prepare for the worst, as we are bringing our own judgment which is probably well deserved!

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