Insufficient liquidity

NYC Dangerously Close To Bankruptcy, Experts Warn 

Happens all over, is the problem, all layers of government are MMT synchronized.  Treasury is short about 200 billion if we drop to 2% growth, they will drive up rates at the same moment all layers of government suffer the same income loss. And they all went borrowing at the same time, so the roll over synchronizes the spiral, down.

Enumerate the X index. Chicago, New York, LA basin, and a huge city in Texas. New Jersey has it. The only exemption is Florida which relies on entitlement income. SF has it. In California, LA needs a 5% increase in taxes. They are looking for openings in the 1% range, so a 1% hike in interest charges is relevant, it is a third of their interest budget.

Sudden rush to avoid taxes everywhere compounds the problem right when there is a tax hunt at all layers of government.  The result is tax and sequester, as there is no liquidity for stimulus.  But we can even change the order further and go to central banking liberation and cash flow accounting