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April 18, 2009


James Bowery

Animate this to the end:


Notice at the last frame (Feb 2009) notice the blue dot in the sea of Mid-Atlantic red:

Arlington, VA



There are contrary data to these assumptions. First, as tax receipts falls, due to foreclosed properties and declining income tax due to rising unemployment, municipal and state revenues fall prompting layoffs in the public sector. Primary civic services such as schools, public health, sanitation (garbage collection), and support services to these functions, all suffer layoffs. For instance, big cities such as Dallas, TX, and Detroit, MI, have laid off hundreds of teachers and municipal workers. States are not immune. State universities and community colleges are especially vulnerable cutting off opportunities for retraining unemployed workers.

With regard to public pensions, many states and local governments are grossly underfunded, relative to liabilities, and will likely start to impose severe financial penalties for early retirement.

Sooner or later the federal government is going to have to tackle entitlement spending for social security & medicare through means testing.

It appears the Chinese are tapped out buying our T-bills and may have started to dump dollars through purchases of primary metals and other key commodities. So don't count on them to acquire more debt from the U.S.

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