Friday, January 17, 2014

The price of freedom

I think the New Six Californias should accept a 2.5 trillion dollar liability for its freedom. The new states should guarantee DC the freedom to tax the highest wealth income among the Californians, for 20 years, or until our 2.5 is paid off. DC, in return, gets a guaranteed annuity to help it through bankruptcy court. By traxing California, differentially from the remaining 50, the current states get a direct payoff. As far as Texas. Texas wants to share its capital among its five states. Make them pay an additional 25% premium for the priviledge. Repeat with Florida, some 5 trillion is covered. Hey, you got the debt back to where Obama was three years ago.

I see no way DC has much of a choice in this, frankly. Bankruptcy is the lack of liquidity, and by the next census Congress will no longer work, liquidity zero, or bandwidth zero. We have gone over this. The very mechanism that is causing the secstags can't help much without structural reform. But the cause worsening, and takes a great leap badly in 2020.  

El Congreso estadounidense está en bancarrota y los grandes Estados de sunbelt deben fianza. Estados de sunbelt obtenemos 28 senadores más que nos represente en la capital estadounidense. Trato justo.

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