Wednesday, July 27, 2011

States Count Cash While Hoping for U.S. Debt Agreement

Unfortunately there is no easy, painless solution to this problem. The least painful, quickest recovery would be for America to default now. A lot of people - tax feeders, mostly - would lose their jobs. They'll lose their jobs anyway, now or at a later date. The debt isn't even ours anyway. Default, default, default.

    Bloomberg -

    Arizona is prepared to draw on its $1 billion in cash to cope with a possible federal government shutdown. South Carolina has plans to idle all but its most essential employees. Michigan may have to cut aid to the poor.

    With Washington in a political deadlock that may stop the federal government from borrowing money as soon as next week, states are preparing for the fallout should the Treasury Department run out of cash. Used to the brinkmanship in their own legislatures, state officials say they expect Congress to reach a deal to head off a shutdown, or that any disruption would last only a few days.

Read it all.