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States take another hit in pocketbook

Discussion in 'Politics, Elections & Legislation' started by Rick Barker, Oct 4, 2011.

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  1. Rick Barker

    Rick Barker Well-Known Member

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    Okay, this story has appeared in several sources, but I listed CNN's just to make you liberal airheads happy.


    When Obama's congress extended unemployment benifits for some 99 weeks, 31 States who did not have the money to pay the benifits, borrowed money from the Fed, some 41 billion.

    Now the payment on just the interest is coming due and guess what? A lot of the States don't have the money to pay back the interest on the loans.

    Translation? Get ready for more tax hikes from your State governments to cover the interest payments.

    California alone took out over 8 billion in loans.

    Ah, the stupidity never ends.
     
  2. grunt

    grunt TS Supporters TS Supporters

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    TTT
     
  3. mrskeet410

    mrskeet410 TS Member

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    Barker - The article at your link says the states borrowed the money from a 'federal fund'. That's not from the Fed (Federal Reserve Board).
     
  4. Rick Barker

    Rick Barker Well-Known Member

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    RRRRRREEEAAAAALLLLYYYYYY???????????????

    When I said FED in this instance, I meant the Federal Government.

    The Federal Reserve does not make loans to the States.

    Here, read a little bit about the Federal Reserve, maybe you will learn something.


    ----------------------------------------------------------------------------------------------------------------------------------------------------------------

    "Second, the boards of directors of the Federal Reserve Banks initiate changes in the discount rate, the rate of interest on loans made by Reserve Banks to depository institutions at the "discount window." Discount-rate changes must be approved by the Board of Governors. All depository institutions that are subject to reserve requirements set by the Federal Reserve--including commercial banks, mutual savings banks, savings and loan associations, and credit unions--have access to the discount window.


    The Federal Reserve System, through the Reserve Banks, performs various services for the U.S. Treasury and other government, quasi-government, and international agencies. Each year, billions of dollars are deposited to and withdrawn by various government agencies from operating accounts in the U.S. Treasury held by the Federal Reserve Banks.


    The Federal Reserve Banks hold, in their vaults, collateral for government agencies to secure public funds that are on deposit with private depository institutions. In addition, Reserve Banks receive for deposit to the Treasury's accounts such items as federal unemployment taxes, individual income taxes withheld by payroll deduction, corporate income taxes, and certain federal excise taxes.


    The Federal Reserve Banks also issue and redeem instruments of the public debt, such as savings bonds and Treasury securities. They have certain responsibilities for allotment and delivery of government securities and for wire transfer of securities. In addition, the Reserve Banks make periodic payments of interest on outstanding obligations of the U.S. Treasury, federal agencies, and government-sponsored corporations."
     
  5. kiv-c

    kiv-c Member

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    Rick, I think the term "puppet masters" would be a better term to use in place of Federal Reserve.
     
  6. Rick Barker

    Rick Barker Well-Known Member

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    Just too many FED's period.

    I don't have too much problem with the Federal Reserve, but I know it irks a lot of people.

    A U.S. Bank has been tried and had many problems with graft and corruption, which led to Andrew Jackson shutting it down.

    Perhaps some changes in its structure, but really, I have yet to see anybody come up with a better idea than what we have.

    If someone does come up with something better, I would like to hear about it, but just remember, if a system is not designed so that politicans can siphon off money from it, they will. If there is a way to steal the money for their own pockets, they will.


    I worry more about the thieves in the Congress more than those referred to in the Federal Reserve.
     
  7. mrskeet410

    mrskeet410 TS Member

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    Barker - Write clearly. If you meant to the Federal Government you should have said that.

    From the tenor of your initial post suggests the US treasury should not collect interest on loans it makes to states. The revenue for 40% of those loans came from the Federal Government borrowing money at interest, much of it from China. Are you suggesting the Federal Government should borrow money, and pay interest on that borrowing, then make interest free loans to the state.

    What are your thoughts on those states paying back some of the principal?
     
  8. Catpower

    Catpower Molon Labe TS Supporters

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    The Federal gummit shouldn't be telling states they have to extend unemployment payments to people who haven't worked for over a year

    If you can't find a job in a year, you're not looking, and don't wait for the management job to come along, you're starting at the bottom again, it sucks but that's life
     
  9. pdq

    pdq Member

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    Catpower is right.

    Like many others on this list, at times I've had to work 2 jobs to make ends meet, and I've also been unemployed. But I've never sat around and done nothing.

    Oblama and Blindone say their number 1 job is fixing unemployment. They have failed at their number 1 job. By extending benefits out to 2 years (less 5 weeks) they are creating a dis-incentive for many (not all) people to get jobs. My daughter runs stores for CVS and she can't find people to fill part time entry level jobs because it'd be the same pay as doing nothing.

    Here's something to consider. Since the money is already going out, instead of paying people weekly benefits to do nothing, pay them to do something. In return for getting the benefits, they have to work 4 hours a day every day and use the rest of the day in job interviews, or be in job training. Put them to work using whatever skills they have, based on their most recent jobs. If they have zero skills, put them to work cleaning up trash along the road, railway lines, and cities. Have them start scrubbing graffitti off walls. Have them building homes with Habitat for Humanity. Let companies who need people with skills have them for free and then hire them if they are good. And, if they don't show up for work or don't perform at least an average level, the benefits stop and can't be re-started for a year.

    But -- do something, anything, versus nothing.

    Now -- I realize that there are a lot of people out there who are unemployed and are doing everything in their power to find a job and make money. I've got friends and neighbors in this position, and I see them hustling. None are sitting around and intentionally doing nothing, waiting for their check to come in. The fact that they don't have a job not only hurts them financially, but also drives them nuts. They aren't used to not having a job to go to 40+ hours a week. They aren't looking for charity, and I suspect would gladly put in half a day's work just to have something productive to do. I would.

    Sorry for the rant -- stepping down off my soapbox now. And please, before any flames start, realize I'm not including everyone who is facing unemployment in my comments above. As stated, I know people are either unemployed or under employed and are struggling -- you have my respect. But I also know there are a lot of people who don't give a hoot and will sit around for 2 years doing nothing -- no effort at all -- as long as the checks keep coming; those are the ones that get me torqued.

    Pete
     
  10. Rick Barker

    Rick Barker Well-Known Member

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    Sigh.........Yes dear, I'll spell things out for you, while I am sure everybody else knew what I meant.


    What catpower said. The whole concept that Washington DC writes a bunch of laws that the States have to fund and they do not have the money.


    All these brillant ideas like extending unemployement benifits for 99 weeks and then tell the States, the States must pay those benifits, even though the States have no money, because a lot of their citizens are out of work and no taxes are being collected, either through income taxes or sales taxes.
     
  11. ivanhoe

    ivanhoe Well-Known Member

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    "Barker - Write clearly. If you meant to the Federal Government you should have said that."

    Lets see you assume that something that he never and your assumption was incorrect.

    "The article at your link says the states borrowed the money from a 'federal fund'. That's not from the Fed (Federal Reserve Board)."

    So that makes it his fault? I have a suggestion why don't you crawl back in your hole and leave the rest here alone jerk.

    Pete I understand what you think you are saying however some of what you said isn't always possible. At one point I was laid off for 27 months, there were no jobs available to apply for. Yet you said.

    "In return for getting the benefits, they have to work 4 hours a day every day and use the rest of the day in job interviews, or be in job training."

    Pete would you tell me how you interview for jobs that aren't available? How do you get into job training without a job?? Just what will they train you to do after all you have no job to train for.

    Lastly what does putting in a job while you pay them have to do with stopping the states from having bills for it they can't pay????

    Bob Lawless
     
  12. mrskeet410

    mrskeet410 TS Member

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    So Barker - So your problem is not with the loans the to the states. You just have a problem with the whole concept of unemployment insurance. Why not just say that?
     
  13. Rick Barker

    Rick Barker Well-Known Member

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    I did say that and I said the whole government mindset is flawed.

    You have a comprehension problem.

    No one else who read this had your problem.

    --------------------------------------------------------------------------------

    Socialism in its mild to radical forms has always proven one thing during the last 90 years.......................IT DOES NOT WORK!

    Even though it has been proven over and over again, presently we have some 50% of the people in this country determined to learn that same lesson first hand.
     
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