DEBT

Debt saturation has occurred. Here's a tidbit on the state scale -

STATE - Money needed to pay bills - Each Taxpayer's Financial Burden
Connecticut - $53,355,852,000 - $41,200
New Jersey - $106,613,338,000 - $34,600
Illinois - $110,631,129,000 - $26,800
Hawaii - $11,490,322,000 - $25,000
Kentucky - $29,028,734,000 - $23,800
Massachusetts - $48,105,872,000 - $20,100
West Virginia - $9,964,282,000 - $18,900
Louisiana - $20,985,863,000 - $16,800
Maryland - $33,113,519,000 - $16,500
Delaware - $4,827,966,000 - $15,900
California - $163,594,912,000 - $15,100
Michigan - $45,091,433,000 - $14,700
Rhode Island - $5,152,507,000 - $14,300
Mississippi - $10,299,745,000 - $14,300
Maine - $6,324,945,000 - $14,300
New York - $85,111,304,000 - $13,700
Alabama - $16,571,155,000 - $12,900
Vermont - $2,818,825,000 - $12,500
New Hampshire - $5,763,524,000 - $11,600
North Carolina - $29,854,780,000 - $11,200
Oklahoma - $10,529,554,000 - $10,000
South Carolina - $12,362,717,000 - $9,700
New Mexico - $5,171,077,000 - $9,000
Georgia - $23,038,002,000 - $8,900
Pennsylvania - $34,895,286,000 - $8,200
Washington - $14,930,531,000 - $6,500
Kansas - $5,240,815,000 - $5,800
Texas - $38,555,614,000 - $5,700
Wisconsin - $9,826,296,000 - $5,100
Virginia - $12,721,870,000 - $4,800
Ohio - $18,091,427,000 - $4,700
Missouri - $8,348,327,000 - $4,600
Nevada - $3,580,937,000 - $4,200
Idaho - $1,249,903,000 - $2,900
Colorado - $4,551,796,000 - $2,800
Arizona - $4,540,691,000 - $2,600
Oregon - $3,075,410,000 - $2,600
Florida - $14,016,798,000 - $2,500
Indiana - $4,566,960,000 - $2,300
Minnesota - $3,492,921,000 - $1,900
Alaska - $410,026,000 - $1,400
Tennessee - $2,194,246,000 - $1,200
Arkansas - $544,613,000 - $700
Montana - $226,019,000 - $700
Iowa - $434,504,000 - $400
South Dakota - $85,021,000 - $300
Utah - ($1,593,907,000) - ($2,200)
Nebraska - ($1,488,332,000) - ($2,500)
North Dakota - ($1,507,664,000) - ($6,400)
Wyoming - ($3,043,191,328) - ($15,100)

FYI - Based upon each state's 2009 Comprehensive Annual Financial Report and retirement systems' actuarial valuations.
Source

....so basically you are looking at fiscal 2009 which is Jul 1st 2008 to June 30th 2009.....in other words its gotten substantially worse since then as tax receipts have fallen off a cliff since that point in time and the states bought into the banks promises of extended letters of credit which now aren't materializing.

So you can see why Connecticut (top of the list)is doing this -

Malloy's Plan B calls for 5,466 layoffs, cuts to cities and towns

Also a little tidbit on Wyoming (at the bottom of the list) -

Wyoming first in federal dollars per capita

The federal budget provides about 30 percent of state revenue, making it the largest single source of funds for many states. But the feds are more generous with some states than with others, according to an analysis by Federal Funds Information for States, which tracks budget policy. Some Western states receive a greater proportion of federal grants in the form of revenue from leasing rights to the rich resources being extracted on public lands. That's the primary reason why Wyoming rakes in the most federal dollars per capita. Some states receive fewer federal dollars because they operate relatively modest Medicaid programs that trigger a smaller amount of matching federal money. That's the primary reason why Nevada gets the least federal funding per capita.

Source

I think the Federal portion is running roughly at $45k per taxpayer.....and with 44 million on food stamps (SNAP program).....not looking good!
SNAP

The one and only clearest indication of just how effective the recovery and QE2 in general has been, comes courtesy of the USDA, whose just released update of April participation in Supplemental Nutrition Assistance Program (SNAP), better known as "foodstamps", shows yet another record, this time 44.647 million people, an increase from May's 44.587 million. And after rising modestly in the last month, the average monthly benefit per household dropped again to a post April 2009 revision low of $282.38/month.

Source

SNAP Monthly Data
SNAP Link

Here's the daily summary of state borrowing from the Fed to pay people who aren't producing anything (spent some time doing that myself) -
State Unemployment Borrowing

Also have your local portion of debt via city and county obligations. Not to mention personal debt....which is several fold higher than federal government debt.




Not pretty! Game over! Say goodbye to all your assets! Welcome to slavery!

Here's an example of how it works -

Ilargi: 39 airports, 850 ports, railways, motorways, sewage works, a couple of energy companies, banks, defence groups, thousands of acres of land for development, casinos and Greece's national lottery.

All these things are for sale in Greece. As part of the IMF/ECB/EU bailout deal Athens voted in this week, this wholesale firesale of what amounts to something close to an entire public economy, is supposed to bring in €50 billion ($72 billion). And what will Greece be left with afterwards? They’d better come up with something good, because estimates are that the firesale will fall short by some 75%.

Source

Of course “injecting” another $124 Billion into Greece will work out peachy, just like the last iteration of print money from nothing, take real assets and productive people’s efforts, robbery. I’d say that it will work out the same as last time, but that’s not the way debt works, it will work out worse than last time because the effects are cumulative, just like the nuclear hot particles we are all consuming.

Source

After New Jersey was forced to reach out to JP Morgan for an emergency bridge loan a few days ago, it is Minnesota's turn. From ABC: "Minnesota's government has shut down, ahead of the holiday weekend, for the second time in six years after state leaders failed to find common ground on resolving a $5 billion budget deficit. Thousands of state workers will be laid off, state parks will be shuttered, the issuance of fishing licenses will be halted and the Minneapolis zoo will be closed. Road projects will also grind to a standstill just as people hit the road for the holiday. A midnight deadline passed without an agreement as talks between Democratic Gov. Mark Dayton and top Republicans unraveled over Dayton's proposal to impose taxes on the state's top earners, a move on which top GOP officials have refused to budge...Some programs that will continue unabated include critical services including the State Patrol, prisons, disaster response and federally funded health, welfare and food stamp programs." Granted this is not a first: "Only four other states -- Michigan, New Jersey, Pennsylvania and Tennessee -- have had shutdowns in the past decade, some lasting mere hours. Minnesota's government partially shut down under then-Gov. Tim Pawlenty in 2005 over a budget fallout." However, if NJ is any indication, as predicted, expect ever more states to bypass the municipal route of funding, and appeal directly to commercial banks. Which will generously provide as much Fed-generated one and zeros...in exchange for 80% LTV collateral of course.

Source