Cities, States to default soon?

----- Original Message -----
Sent: Monday, January 10, 2011 2:57 PM
Subject: Fw: Cities, States to default soon?

[MM: States can legally issue and control their money usury-free through state-chartered banks that bypass Rothschild's private "Fedreral Reserve" Corporation.
NO BUDGET CUTS NECESSARY: ABOLISH THE PRIVATE FED...IT'S THAT SIMPLE, PEOPLE!!! DO YOU PREFER TO BE SLAVES OF THE BANKSTERS?


"... we conclude that the [Federal] Reserve Banks are not federal ... but are independent, privately owned and locally controlled corporations ... without day-to-day direction from the federal government.."--9th Circuit Court in Lewis vs. United States, 680 F. 2d 1239 June 24, 1982


"People [private Federal Reserve Corporation stockholders] who will not turn a shovel full of dirt on the project (Muscle Shoals Dam) nor contribute a pound of material, will collect more money [usury] from the United States [TAXPAYER] than will the People who supply all the material and do all the work. This is the terrible thing about interest ...But here is the point: If the Nation can issue a dollar bond, it can issue a dollar bill [U.S. Note]. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the [Rothschild] money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort [usury-free] provided by the Constitution [Article I; Sec. 8; Cl. 5] pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one [Federal Reserve Notes] fattens the usurer and the other [Usury-free U.S. Notes...See attached image of $5 denomination] helps the People. If the currency issued by the People were no good, then the bonds would be no good, either. It is a terrible situation when the Government, to ensure the National Wealth, must go in debt and submit to ruinous interest charges at the hands of men [International Bankers] who control the fictitious value of gold. Interest is the invention of Satan [Rothschild]".--Thomas A. Edison



----- Original Message -----
From: Undisclosed
To: Undisclosed
Sent: Monday, January 10, 2011 7:02 AM
Subject: Fw: Cities, States to default soon?

Subject: Cities, States to default soon? Weiss mentions that Bernanke will not bail out state and local governments, which is the correct thing to do. But, the hypocrisy is suffocating. Bernanke is the guy who admitted in testimony before Congress that the Fed has doled (bailed) out 12 trillion dollars to foreign banks. Largesse paid to people who are not even Americans. He knows how to take care of his own [Rothschilds], but Americans will starve...




"My publisher, Martin Weiss, is deeply concerned about the rapidly growing municipal debt crisis — and rightfully so. It could easily turn the quality of your life and your investments upside down. Please see his report, below." — Best, Larry





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Uncommon Wisdom

Monday, January 10, 2011
Two Urgent Questions for You This Morning
by Martin D. Weiss, Ph.D.



Dear Robert,

Martin D. Weiss, Ph.D.

With so many major cities and states now on the brink of bankruptcy, I have two very urgent questions for you this morning:

What cuts in government services are you aware of in YOUR area? And how do you and your family plan to cope with them?

Just click this link to give me your comments, and over the next few days, my team and I will do everything in our power to give you feedback and guidance. Unfortunately ...

This Crisis Is Turning Into a Greek
Tragedy in More Ways Than One!

In recent years, the Greek government was so deep in debt, it had no choice but to borrow heavily from bond investors just to pay its daily bills.

Then, in late 2009, the Greek debt crisis reached critical mass. Fitch downgraded Greece's credit rating. Despite radical reforms and spending cuts, the crisis deepened.

By April 2010, global bond investors were stampeding for the exits. Short-term interest rates exploded to 18 percent, making it virtually impossible for Athens to continue financing its operations.

Greece was on its deathbed.

The World Bank and the European Union agreed to an 11th hour cash transfusion — but only on one condition: The Greek government would have to perform radical budget surgery, slashing expenses like never before.

By May, the entire nation was in chaos. Thousands of government workers were rioting in the streets. Blood was shed.

And today, Greece's economy is still bleeding; its very survival still in question.

Meanwhile, 5,133 miles to the East — in Washington, DC — the most pressing question on our leaders' minds now is:

Which State Will Be
America's First "Greece"?

There is a disease in America — the same sort of disease that mortally wounded Greece and Ireland ... hobbled Portugal and Spain ... and has started to spread to other nations.

In America, though, it's a double-edged debt crisis which is now poised to crush the economy — on both a FEDERAL level and a LOCAL level.

Indeed, at EVERY level of government, debt and deficits are now exploding, or on the verge of exploding.

The debt crisis at the federal government level is the one everybody talks about. The massive $14 TRILLION debt bomb that Washington has built — and the $1.4 trillion in NEW debt that Washington is still piling up each year.

The second debt bomb is not quite as large, but it's far more dangerous because it's on a hair trigger: the debt-and-deficit disaster at our nation's states and cities.

As you read this, our state and local governments owe as much as $2 trillion more than they can pay. They owe STILL more to pension funds — a whopping $3.5 trillion. Plus, they also owe health benefits of more than $500 billion.

For the past couple of years, the states have been scraping by on billions of dollars in federal stimulus funds. But now, that money has been spent and is nearly gone. Bottom line:

The Day of Reckoning Is Now at Hand!

There's no overstating how serious or how pressing this crisis is.

Unlike the federal government, the cities and states cannot print money to pay their bills.

Unlike Washington, they are bound BY LAW to balance their budgets each and every year.

But too many cities and states simply cannot balance their budgets. Decades of gross mismanagement ... insane concessions to government workers' unions ... and unrealistic promises to voters have left them with only once choice ...

To cut their budgets to the bone and then pray for the best.

Consider how desperate U.S. cities and states already are:

Many states and cities are cutting their police forces. Newark, for example, just laid off 13 percent of its police officers in November.

Others are releasing prisoners early because there isn't enough money to house them.

Philadelphia, Baltimore, Sacramento, and many other cities are laying off firefighters and emergency medical personnel, shutting down firehouses.

Many states — including New York and New Jersey — have attempted to stop the bleeding by refusing to pay their pension funds, which are now collectively underfunded to the tune of $1 trillion.

Governor Chris Christie slashed New Jersey's budget by 26 percent, laying off thousands of teachers ... firing 1,300 state workers ... and drastically reducing funding to New Jersey cities and counties. Yet he's still facing another $10 billion deficit next year.

In Illinois, state Comptroller Dan Hynes says there are tens of thousands of people — if not hundreds of thousands — in queue waiting for their checks, which are now up to six months overdue! Social service groups have laid off hundreds of workers while waiting for checks. Pharmacies are closing for lack of Medicaid payments.

Also in Illinois, state officials are being evicted from their offices for nonpayment of rent.

California now faces a deficit of $28.5 billion over the next 18 months and annual deficits of AT LEAST $20 billion for the next five years.

Before leaving office, Governor Schwarzenegger proposed $7.4 billion in new spending cuts in welfare, health care, and child care. But after three years of budget cutting, there is little left to cut.

Analysts generally agree that the only solution would be for in-coming Governor Jerry Brown to scrap virtually everything related to Proposition 13, which caps real estate taxes and which he himself championed the last time he was governor, 36 years ago. But that's legally and politically impossible.

Meanwhile, California's credit rating is approaching junk status, the lowest of any state in the Union.

Arizona is so desperate that it sold off its state capitol, Supreme Court building, and legislative chambers. And now it leases the buildings from the new owner.

The state also eliminated Medicaid funding for most organ transplants.

The demand for food stamps has been rising significantly in Idaho, but tight budgets led the state to close nearly a third of the field offices of the state's Department of Health and Welfare, which take applications for them.

Wondering why the jobs report was so disappointing this Friday? Now you have the answer! It was almost entirely due to this crisis, according to the data released by the U.S. Labor Department last week.

But the Biggest and Most
Immediate Threat Is DEFAULTS!

Time has run out.

The first major state or municipal defaults are now just a few months or even weeks away.

Even The New York Times recently reported that Illinois, California, and several other states are at increasing risk of being the first states to default since the 1930s.

That's not just my view: According to Meredith Whitney, who accurately predicted the global credit crunch, 50 to 100 MAJOR American cities are likely to go bankrupt THIS YEAR!

If Ms. Whitney is right — and I believe she is — those 100 American cities will default on hundreds of billions of dollars of loans and bonds. Up to one million public employees could lose their jobs.

How Bad Could It Get? Consider
This Possible Sequence of Events ...

A state or major city announces that it is unable to pay the yield on its bonds.

Panic grips the entire bond market.

Investors dump nearly ALL tax-exempt instruments.

Scores of other cities and states find it impossible to refinance their debt or sell new bonds without offering sky-high, double-digit yields.

Many MORE defaults follow.

The U.S. dollar folds like a cheap suit.

Interest rates launch into double digits.

Soaring interest rates hit America's businesses like a ton of bricks.

Earnings crater — and along with them, stock prices.

Dozens of government entities declare states of emergency and demand billions of dollars in immediate bailouts from Washington.

What Happens Next?

Will our new, fiscally conservative Congress surrender to political pressure and save the states and cities? Or will it surrender their principles to these realities and step into the gap?

Consider the latest news ...

* Late last week, Fed Chairman Bernanke formally declared that the Federal Reserve cannot and WILL not bail out the local governments.
* At the same time, the new Republican leadership in Congress has also drawn a line in the sand, foreswearing any bailouts of cities and states.

Moreover, this is not just political posturing. Far from it! These pronouncements reflect the inescapable fact that Washington has truly exhausted the political will to embark on a whole new round of bailouts.

What If Washington DOES Decide to
Pile Up Billions More in Federal Debt
To Save the States and Cities?

Then, the question will be an even MORE ominous one: WHO IS GOING TO SAVE WASHINGTON when the next shoe in this great debt crisis — the implosion of federal debt — drops?

Could it happen?

"NO!" say Standard & Poor's and Moody's — the two bond rating agencies that got everything wrong in the housing collapse.

My answer is quite different: The federal day of reckoning is ALSO imminent!

That time could come a lot sooner than you might think ...

No more papering over the debt monster with phony-baloney accounting tricks!

No more borrowing from Peter to pay Paul!

No more time for the United States of America to stay on the dole from overseas creditors like China and Japan!

Look. Regardless of what happens on a federal level, it's only a matter of a short time before news of the first city and state defaults explodes into the headlines — and then, it could be too late for you to protect your wealth.

There's no way I'm going to sugarcoat this: To get through 2011 with your wealth intact, you will need to (1) FULLY understand the danger and then (2) ACT to insulate yourself.

For the next several days, I'm going to use my personal blog to do everything in my power to help prepare you for this rapidly unfolding crisis. And in a few days, my team and I will give you our solutions for protecting your wealth and even profiting as this dire situation unfolds.

Each day, I'll pose a critical question and meet with you on my blog to discuss your answers.

So let me repeat today's questions of the day that I posed at the outset:

What cuts in government services
are you hearing about in YOUR area?

and ...

How do you and your family
plan to cope with them?

Just click this link to jump over to my personal blog now and make your voice heard!

Good luck and God bless!

Martin

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