Monday, September 17, 2012

QE3 & 10 States Drowning in Debt...L&C

Helicopter Ben dropped glops of dollars from his circus craft on the American economy last week. He says this action along with the recent past programs by the Fed has saved our nation from economic catastrophe. According to him, this action will spur the increase in employment. He does not admit the actions of the Fed itself were the cause for the original crisis, the lost in value of the dollar or the stealing of taxpayer's money through the hidden tax of inflation which will be even greater in the future due to QE3. The only thing that his actions has spurred is the increase in the value of gold and I see $2,000 an ounce in the future.
With the above being said, I noticed a report about the 10 states that on average have the highest individual debt and begs the question, how much higher can it go without severe delinquencies? Futhermore, the findings of the list shows that the debt standing is in well-to-do states, but there is no misery report showing the effects on the poor which reached a staggering 46 million on food stamps. Expenses are relative to income, but there is a tipping point for everyone and Ben, that includes nations as well.
released the findings from Experian. It reveals that most states have with their citizens a revolving debt load of about $25,000. Revolving debt is all credit cards and personal loan debt which means the figures would be so much higher since mortgage, auto and other debt instruments are not included.
Washington falls in tenth place and there average hits $26K per person. Keep in mind that disposable money is needed to pay this and other forms of debt. How do the unemployed pay their debt? I don't know, but I'm sure someone will do a paper on it at some time. So, we wait for that answer.
Vermont is next. This state has the lowest delinquency problems which means they know how to manage money.
Texas follows and it should be noted that this state has the highest auto debt which means that someday the new motto will be ..."Texas, the biggest delinquent."
Oklahoma, Virginia, Maryland, Colorado, S.Dakota, Wyoming and finally, Alaska.
Alaska hits the high bar at $30 per person, however like Vermont, their citizens handle money management well.
Liars and Crooks: Uncle Ben wins again! No, not a QB in the NFL, but the Chief of the Fed with QE3. He says this will lower unemployment, but what it does is allow the US to manage their $16 trillion of debt because we all know that QE1 and QE2 did not lower unemployment. What did Einstein say about insanity? Oh, yeah..."doing the same thing over and over again, seeking a different solution. END the FED!