Thursday, April 23, 2020

Cuomo want a federal dictatorship

Cuomo slams McConnell: States declaring bankruptcy is 'one of the really dumb ideas of all time'
Additional funding for state and local governments has turned into a point of contention as lawmakers negotiate federal coronavirus relief. The National Governors Association sent a letter to McConnell and other congressional leaders Tuesday asking Congress to approve $500 billion "in direct federal aid that allows for replacement of lost revenue."
A $484 billion bill passed by the Senate on Tuesday and expected to clear the House Thursday did not include any new funding for state and local governments despite Democrats' initial demands. Congress provided $150 billion for state and local governments as part of last month’s $2.2 trillion coronavirus bill and it is expected to be a key issue when lawmakers turn toward a fourth stimulus bill.

Cuomo suddenly forgot the duties of the Senate, to represent the states.  The only way to represent the states is a cash amount divided fifty ways, on a regular basis.  Once a crisis hits, the various states are not hedged evenly.

Hence, the TOE predicts an attempt by the House to federalize pensions, setting up a state crisis. The result a sudden stop to the bailouts and the emergence of federal dominance for a period which is not sustained and leads to the debt crisis in the previous posts. Once the Senate stops we lose sight of who is responsible for what costs, the economy will take a much longer time to find ts Nash.

This is the Krugman solution, and he knows it includes a default and regime change in the Fed. My solution is to quit faking it, like Cuomo. Cuomo is a deliberate liar here, doing the pile on.

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