A bottle floated ashore during the night and in this mornings’ flickerin’ light I read these messages:

There is a high chance a majority of the States within the United States of America could file for Chapter 9 bankruptcy. There are currently 46 states with high budget deficits, Arizona being one of 

In fact, Jan Brewer, the newly appointed Governor of Arizona has a major crisis on her hands, one that Arizona and national media isn’t covering. The alarming news is the State of Arizona has 90 to 120 days before they completely run out of money. After that, all bills and tax refunds owed to the citizens will go unpaid.

Before Janet Napolitano left for her new Homeland secretary position, she had a stand-off with Arizona Treasurer Dean Martin. The AZ Treasurer forewarned Napolitano about Arizona’s financial crisis, but she refused to heed his words.

With neighboring California on the verge of bankruptcy this year, many States will follow in their steps. 

Many States are already scurrying to cut unwanted costs, cut State-funded programs, raise taxes, not issue tax refunds to their citizens, and borrow money just to survive in 2009. Unfortunately, many banks — the same banks the Fed bailed out — are refusing to loan money to the States and their Treasury agencies.

The article, State Budget Troubles Worsen, at the Center on Budget and Policy Priorities website is an excellent piece to read. It shows where each State currently stands in these challening economic times, and you see 46 of the 50 States are clearly in the financial red.

It’s very possible you’ll see the end of the United States as we know it. If the Fed doesn’t bailout the States when their cash dries up and the banks don’t loan them money, then our States will be left in financial ruin. This would be a tragic and unprecedented event never experienced in the United States.

No State has ever filed bankruptcy, but it could be coming to a State near you this year.

We are on the brink of something far worse than the Great Depression.

UPDATE: Check out the newly published article, Survivalism: How to Prepare for the Economic Collapse. There’s also a printable 4-page newsletter you can download and share with your friends, family, and co-workers. Take action and help spread the awareness of this life-threatening issue.

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Written by John Paul Mitchell

And then this!:

1.      The State of Arizona and other States should immediately begin preparing for the creation of ’scrip’ as a substitute for US dollars. This is because, in addition to bond defaults, there may be severe instability in the US dollar, involving deflation, paper runs at banks, and hyperinflation. There may also be severe problems with electronic transfer of funds.

Scrip was used in the Great Depression by some municipalities and was of enormous help to them. It would perform three vital functions:

1) It would keep commerce flowing in the State, with a stable pseudo currency that could be used to buy and sell goods and services when dollars were unavailable, and until a State debit card system could be widely issued and operating.

2) It would keep local and State government functional by being able to pay employees in a redeemable token, which they could then use to pay their local bills. It would also facilitate the concentration of US dollars at the State level, to obtain things from out of State that were essential to its people, but in shortage.

3) No matter what the USD did, the State scrip would be very stable, and under tight control. As such, it would have a stabilizing effect on the USD in the State as well. Eventually, regions of the US might replace their State scrip with a regional scrip, which would be of great help in restoring the dollar as the single currency.

However, right now it is vital that State economists and the State Treasurer be made aware of what scrip is and does. It will take time to set up the legal framework and make necessary preparations for printing and distributing the scrip.

 

Daniel C. Harper

31 Jan 09 at 1:54 am

 

And now, I’m just sittin’ here thinking: I remember the ‘Loons’ back home!( no pun intended) http://www.flickr.com/photos/gfranque23/

How Odd! Here on this Island the fishing is great, and no one has asked for any money at all! I’m struck by the juxtaposition of my situation: here, staring at the rising sun through various scrub oaks, palm cabbage leaves and grasses, the sun seems to flickr’ thru to my eyes as an ever changing stream of diamond lights-dancing into shape after shape of every form and fancy my mind can imagine! It feels as though I’m growing with millions of images of learning from a place I’ve never been before while, apparently according to these messages, the Worlds’ entire fiscal policy may be being undone! This Island of images seems better all the time. Franque