Is this the key to a Perdue comeback? | newsobserver.com projects

Give Perdue the same consideration she gives the new Republican legislature, show me the savings!

Reorgs don't save money, particulary in the short term. Is this another case of kicking the can down the road 6 months to wait out the feds rescue of technically bankrupt states?

The state budget is 90% payroll and 50% of state employees are due to retire within the next 5 years with better benefits than that of many private sector employees. The reality of the current economy, and national economic outlook for the next 20 years dictates the state implement payroll and retiree cost savings measures now. One immediate benefit to the state would be forcing the retirement of all retirement eligible employees not in a mission critical role, and replacing them with entry level hires, not contractors. This accomplishes two goals. It reduces the budget by moving retirement eligible employees to a comparatively well funded pension fund. Secondly, it nominally reduces the unemployment rate and prepares the state for a post boomer work force.

The state should also increase copays for state retirees with less than 20 years of service. The state has already ended providing health care at retirement for any employee with more than 5 years of service, an extraordinarily generous benefit. Steps are needed to mitigate the disruptive impact this benefit is already incurring.

Surely there are bright minds in elected office to navigate a course through what is being referred to as the Greater Depression. Whether the state continues in it's current form or another round of carpet baggers dictate reform to us depends on the state remaining solvent. It's in everyone's best interest.

Is this the key to a Perdue comeback? | newsobserver.com projects

THE HAVES ARE HAPPY « The Burning Platform

Novista, good point. The little guys are going to get knocked around pretty good. But those at the top of the food chain, Muck About, RE, and Admin, and it sounds like, you, too, are going to be ok.

For the rest of us, there's the basics, water, food, shelter, personal defense, and finances. I'm ok with paying off my house with precious metals, should it come to that. In the meantime, I'll continue to show up for work as long as the paychecks keep coming, and paying my bills.

Unfortunately, for many Americans this isn't the case, through no fault of their own. For them, I would be mad as hell. As a society, we can't continue to pay these people to not work. Similar to Novista's point about paying farmers not to farm, and continue to do so, btw. As long as people's basic needs are met, things can continue to perk along. However, this is a false prosperity, propped up by deficit spending. How long the status quo can continue is anyone's guess. A lot longer if wealth disparities can be addressed, which isn't likely, and doesn't bode well for the vibrancy of our society, if indeed, there's any left.

THE HAVES ARE HAPPY « The Burning Platform

Guest Post: Underneath the Happy Talk, Is This As Bad as the Great Depression? « naked capitalism

In the 1930's, the federal government wasn't on the leading vertical edge of accelerating deficit spending. If the declining housing market is the signal of a double dip recession, there isn't much anyone can do about it, and Bernanke can take his academic credentials and go packing with the rest of Washington, DC.

As long as basic needs are being met, the distribution of wealth can continue to stratify, and the wealth gap continue to grow. It's when basic needs aren't met that people will revolt.

There won't be any Great Society legislation that will appease the masses this time around, because the feds won't have any means at their disposal with which to provide it. Thus a restructuring of society will be necessary, or a police state. We didn't choose one in the sixties, and I don't see us choosing one this time around, God willing.

God bless and happy household holidays!

Guest Post: Underneath the Happy Talk, Is This As Bad as the Great Depression? « naked capitalism

The Progressive Pulse – Media seems to have forgotten keeping temporary sales, wealthy income tax as budget crisis option

The health cost issue was kicked down the road in the 60’s when medicare and medicaid were enacted, thereby hiding the real cost of health care in the federal deficit.SS, Medicare, and tax reform are long needed. A wealth tax and national sales tax could be instituted, thereby spreading the tax burden across the spectrum of activity, instead of placing it squarely on the shoulders of income producers It’s one course of action, another being to eliminate the income tax, which begins another debate about the constitutionally of it. So, yes, let’s discuss health care as part of the larger issues. The failure of Congress to reform itself and the major social institutions is exacerbating the issues, including the cost of health care.

Someone mentioned to me that 50% of state workers are due to retire in the next five years. I would suggest that all retirement eligible employees should retire now, indeed many will rather than suffer through Bev’s reorganization. Another statistic for you is fully 80 – 90% of the state budget is payroll. Private industry regularly purges it’s ranks, yet state employees have enjoyed 20 years or more of relative stability and prosperity. The quick and easy budget fix is to shed all retirement eligible state employees not working in mission critical positions, and replace these with entry level positions, not contractors.

Boomers will be retiring at the rate of 10,000 a day for the next 20 years. Reorganizing state government is a start, however it’s meaningless without addressing the demographics of health care, as you mentioned, as well as state employment and pensions.

The Progressive Pulse – Media seems to have forgotten keeping temporary sales, wealthy income tax as budget crisis option

The Progressive Pulse – Media seems to have forgotten keeping temporary sales, wealthy income tax as budget crisis option

Once again, the left conveniently ignores the fact that state spending has outstripped inflation and population growth over the past 20 years, that current levels of spending are unsustainable given the current economy, and that the economic outlook is rather bearish due to the high level of debt incurred at the federal level.

The next 2-3 years are going to require a serious wind down of public spending. 11 of 50 states are technically bankrupt, and will run out of money before the end of the fiscal year. Care to be the recipient of a CA IOU? Which is where we're headed unless spending is cut. The feds can't bail out everyone, and they chose Wall Street over Main Street, from which the state receives it's tax revenue. The writing is on the wall.

The governor would do well to present her own plans, instead of poo-pooing the new legislature's plans to decentralize government regulation. It's a little early for taking anything off the table. Besides a plan to reorganize, and outsourcing ITS, what are her plans? Reorgs don't provide an immediate cost benefit. However, let's give her the same benefit of the doubt she gives the legislature. Show us the savings, Bev. I'm more than willing to apply the same benefit of the doubt to you, as well Adam, run the numbers.

The Progressive Pulse – Media seems to have forgotten keeping temporary sales, wealthy income tax as budget crisis option

Christmas Musings on Money « The Burning Platform

The world's population has risen to a level unsustainable without the highest level of efficiency. If the supply chain is disrupted, or when resources inevitably deplete, the population will return to sustainable levels by war, disease, or starvation. Because resources tend to be regionally consumed, a depletion of resources necessary for survival would inevitable lead to war.

A population can be sustained through a system of distribution, but when that distribution system is overwhelmed, civil order breaks down until an equilibrium is reached between supply and demand.

What will be the black swan event that erupts our world order into chaos. As long as basic needs are being met, the distribution of wealth can continue to stratify, and the wealth gap continue to grow. It's when basic needs aren't met that people will take to the streets.

There won't be any Great Society legislation that will appease the masses, because the feds won't have any means at their disposal with which to provide it. Thus a restructuring of society will be necessary, or a police state. We didn't choose one in the sixties, and I honestly don't see us choosing one this time around, God willing.

God bless and happy household holidays to all!

Christmas Musings on Money « The Burning Platform

10 REASONS TO WORRY « The Burning Platform

Wow, this is what it must have felt like on Christmas in the trenches during WWI, without the cold, rats and foot rot, depending on your situation.

Not all state and local governments are broke. But enough are that something will have to be done. If contracts can be broken, where does it end?

In the meantime, it's a good time to attend to the basics, food, water, shelter, personal safety, and finances.

If the social contract breaks down, what replaces it? The feds are going to have their hands full maintaining global interests, unless it sees domestic forces as a greater threat.

What is the big reset going to look like, if indeed it even happens. We were done when Congress figured out they can borrow money and use it to buy votes. Since the end of WWII, deficit spending has increased at an accelerating pace.

My step father in law looked me straight in the eye, and said he "paid in to social security" and that's why he's entitled to draw benefits, even though SS benefits should have been means tested long ago. But no one is interested in saving money at the federal level. When inflation out paces his monthly check, it will be too late to do the right thing.

10 REASONS TO WORRY « The Burning Platform

30 YEAR ITCH

While the neoconservatives may have been busy in the years after Nixon, the socialists were just as busy bringing the West to the brink of insolvency, and the jihadists just as busy increasing their control in foreign countries. Some might say these are all part of the same one world conspiracy, except the jihadists, they're screwed either way. Just look at Palestine, which is what the rest of the world will look like under the satanic illuminati.

Even if you don't subscribe to the conspiracy theorists, there is a world wide conspiracy against man by Satan. If you don't believe that, you're one of them, unwittingly or not.

I could almost go along with a one world government, after all, what's one tyrannical dictatorial government to another, except the correct response is to fight against tyranny and dictators.

30 YEAR ITCH

GREEKS REALLY REALLY LIKE THEIR FREE SHIT

American politicians have been piling on debt and giving away free shit since the end of WWII, when they figured out they could borrow money and use it to buy votes. Getting elected was more important than doing the right thing, because the day of reckoning was a day in the future. Who can blame the other countries of the world for following suit, especially when money seemingly grows on trees.

The GI Bill was the first government give away program, which I have no problem with, unless it's with borrowed money. Therein lies the problem. So, instead of means tested Social Security, as should have happened in the fifties, when Corporate America went global, we get senior citizens claiming their entitled to a monthly stipend from the government, simply because they've paid into it. Well, I've got news for senior citizens, and every other taxpayer. We don't pay enough in taxes! Because the federal government takes every dime we pay in taxes and spends twice as much! We got Medicare because it was cheaper for insurance companies to buy Congress than it was to pay the real cost of a person's health care, thereby hiding the cost in the federal deficit.

Here we are 50 years later and bank deregulation has allowed wall street to walk off with the national treasury, at the same time the bill is coming due for all of governments largess at all levels of government. Yes, we are a free people, and there are those who don't like it. The battle of this century will be against global corporatism, and a sixties style protest, which is all the europeans are accomplishing, may not be enough to persuade the powers that be of the ill considered method of their madness. The europeans are being provoked by anarchists, or so the media would have us to believe. Nothing short of reparations in the form of debt forgiveness will head off the inevitable consequences of a half century of delusional governance.

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