As the recession took hold, revenues dropped precipitously, especially at the state level. Driven partly by balanced-budget requirements under their constitutions, many governments have responded by cutting numerous programs and reducing workforces. Says Ben.
I don't think so Ben, The Fed and the DC crowd have the much bigger challenge in trying to cover the losses on all that Congressional debt Ben is buying up. Felix tells us that county bond holders get first claim. Then there is California government, if that folds you have no enforcement for debt service. That leaves you, Ben, stuck trying to get debt service from an increasingly restricted set of incomes. You, Ben, are the one being squeezed.
With the Fed taking losses, how exactly is Timmy going to coduct his international socialist banking enterprise? In yaun, and other foreign currencies? Why would international finance need a bunch of American socialist traders?
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