Texas Bill Would Prepare for Federal Meltdown
 

It's good to see that some states see the writing on the wall and are working to set up Plan B, so to speak, in case what many expect to happen, actually does...Texas is not the only state: others are working on or have already passed bills along the same reasoning.

http://thenewamerican.com/usnews/...l-meltdown

Interesting.

States, and individuals, should be considering what to do if the federal government stops sending out checks.

^FTFY :popcorn:

TX meltdown
 

Would ceding the blue border regions back to Mexico, bulldozing Houston into the Gulf and building a fence around Austin be feasible as part of the TX plan?

http://3.bp.blogspot.com/-v7lkJqmm5d...ue+Co+2012.png

I wonder who they will appoint King.

It's incredible how some on the right are rationalizing their failure in the last two elections as being part of an end-of-days or apocalypse scenario. "It must mean that the republic is doomed," they think. Or they blame voter fraud. Or they blame the electoral system. Or they blame minority voters. The simple explanation is that a fringe element has hijacked one of the two political parties in this country. Until the non-fringe voters realize this, we will hear more paranoid rhetoric about government meltdowns, civil war, and gun seizures. In the meantime, for normal people, life goes on. If voters in Texas will tolerate their legislators spending the taxpayers dollar working on this kind of policy and not working on real issues, then nothing is really surprising.

All States should have some sort of contingency plan in case the Feds decide they can't distribute money any more. States have been far too dependent on getting Federal money in the past decades, and due to poor economies, it's only getting worse.

:confused:

It sounds to me like Texas isn't placing the blame anywhere (nor the representatives). They're realized that there's not alot that can be done when it comes to federal government control. As they look at the government from a purely economic standpoint they are preparing for a very plausible scenario that the government has no more to spend. CBO projections were released again just 2 days ago. Again they estimated made GDP, ObamaCare etc.. to be far worse yet again.

Where would certain areas in Greece be if they had a plan B in place already set up incase of complete government economic failure? I'd guess everyone would be begging to move to those areas because they would be the only places still sustainable. There should always be a plan B, as well as C and probably a D. You must account for all scenarios

Why would there need to be a king? :scratchh:

people who think the federal government will run out of money don't understand money. people who think the federal government will stop spending money are the ones advocating that they stop spending money, which will be pointless and bad. the stupidity here is layered.

keep telling yourself that lie....when the money that the feds (or the rest of us for that matter) hold becomes worthless, whether they have it or not, or spend it or not, will be irrelevant. You might want to educate yourself about the dozens of examples of hyperinflation and government bankruptcy in the 20th century alone, let alone all of history.

you might want to educate yourself as to why none of those examples are applicable.

http://www.usinflationcalculator....ion-rates/

where's this hyper inflation boogey man you warn of?

you'll see it soon enough...when the Fed has to CREATE FICTITIOUS DIGITAL MONEY to buy 80% of the new bonds the government issues, because NOBODY IS BUYING THEM, that should set off a bunch of alarms in your head, if you knew anything about how money works. Then on top of not buying them, when those who DO have them decide to bail out and dump them on the market, it will just turn a disaster into a calamity.

but carry on burying your head in the sand.

I challenge if you understand money. If Greece had their own currency prior to their economic destruction.. where would they be now.. probably actually in a worse place off then today. Running out of money is not possible in a system that prints money and sell bonds etc.. but its entirely feasible for that money to be virtually worthless to other countries. Thus all imports will be astronomically priced and we'd be almost become purely self reliant. What would the effects of $20/gal do? How about all electronics at x5 the cost? (which primarily also include medical equipment).

We'd also be pushed into a China like role and common workers would make wages equivalent.. well to China.. we'd have to regain economic strength through cheap labor and exporting till our currency level rises.

Currently in terms economic power we are slated at #1. In 10 years we are predicted to fall to #2 (to China). In 20 more we are predicted to fall to #3 (below India). Notice that Both China and India have rather low debt to GDP values..

we are one of the very few modern countries that have an estimated rising debt to GDP number for the next 5 years. The only other country predicted to rise at our rate is Japan, who is #1 in Debt to GDP.

that's rich coming from someone who's understanding of monetary policy involves some sort of distinction. lol @ fictiitious money.

i challenge you don't. greece would probably be in a better situation right now.

the government should only be looking at two economic indicators. inflation and unemployment. inflation is low, unemployment is high. government deficit spending is public surplus. public surplus leads to hiring. right now things like factory output and production are low. print money, spend money, hire people, people produce, production increases, inflation remains low. taxation also checks inflation.

it's clear who's understanding of monetary theory stops at around the turn of the century. 1900 that is.

read this interview with stephanie kelton:

http://harryshearer.com/transcrip...interview/

if people who aren't working can be put to work via spending, and produce goods we won't have inflation.

The turn of the century eh.. or maybe Greece learned from the mistakes they comitted around 75 years ago..

in 1944 Greece Inflation hit 13,800% with a daily rate of 20.9 because war left them in debt.. so they PRINTED MONEY!! There economy was basically destroyed the Central Banks started issuing Gold Franc coins.

Or how about something more recent..

http://www.telegraph.co.uk/news/w...weeks.html

there are dozens upon dozens of major instances like this.. Maybe you should brush up on your history first.

and what is the solution to these problems? Typically to abandon their currency and go with another county's.

or maybe you'd like some more examples..

http://www.businessinsider.com/10...011-3?op=1

or maybe you'd like a list of all of them in pdf format..

http://upload.wikimedia.org/wikip..._Table.pdf



um.. printing money creates hyperinflation which increases unemployment......

Good idea.

lol@"Modern Money Theory".....

Saw this the other day:

Virginia to mint coins in case dollar collapses? [usatoday.com]

"We can't mint money, but we can mint gold and silver coins," he explained previously, according to an NBC network news report. "It sounds like a small difference, but it is a difference legally."

Per the U.S. Constitution, states can't actually "coin money." But but they are permitted to make "gold and silver Coin a Tender in Payment of Debts," according to a story on Newser.com.

"The problem with Socialism is you eventually run out of other people's money."

The gvment doesn't have a spending problem, it has a banker problem. News flash: bankers are suicidal sociopaths.

No it doesn't. They've killed velocity. This is easily proven.

At least thikthird is right about something; hyperinflation is nonsense. Why he bows at the MMT and Krugmanite altar when they just keep pissing up a rope, though is beyond me.

http://www.investopedia.com/terms...z2Ken7uwBV

http://en.wikipedia.org/wiki/Hyperinflation

:lol:

Fine, the 001010 on the bank's balance sheets are hyper-inflated. We all know that. So what? There's no lending! Do you even understand what money velocity is? :rolleyes:

Your assertion is that such phenomena creates asset price hyperinflation as a causal factor, correct? I mean, the Fed could hyper hyper hyperinflate it's BS right now and it wouldn't do a damn thing to the price of my morning coffee, gas or a plane ticket. Get over it!

The gvmnt will melt down because they will not pay in the end, just like every other soverign. There's never been a hyperinflationary event in any core economy with the reserve currency. The $US will not implode until capital has sufficiently shifted away causing a run on the *rest* of what's left of it. History shows when that happens, it happens fast...and no....you will not be able to predict when.

I find it fascinating that the left likes to paint the right as being crazy for realizing that leftist spending is unsustainable indefinitely. Considering that right wing states comprise over 75% of the nation geographically, it would make sense for them to secede simply on the basis of not desiring to subsidize programs that do not reflect their sensibilities and lack of adequate representation in an overbearing federal government.

The money supply moves have been HORIZONTAL. They are printing bonds and dollars. Start worrying when they mint a high value coin to put on the balance sheet without a bond liability or otherwise repudiate debt.

all these examples prove my point. either you are terribly ignorant of the subject or are deliberately trying to obfuscate the facts here. i'm guessing the latter since you go on to explicitly refute your point in your later post. none of these instances of hyperinflation were caused by overprinting money.

"Hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by a corresponding growth in the output of goods and services."

printing money creates jobs. jobs create growth in the output of goods and services. right now there is a dearth of jobs, while meaningful labor can be done and able bodied citizens are available to do it. therefore, we will not experience hyperinflation in the us if we print money.

you don't get to the point where a loaf of bread costs a wheelbarrow full of money unless loaves of bread are pretty scarce.

Better safe than sorry right?
You don't believe a federal government meltdown is at all possible?
If history serves as an indicator, it would seem we are due for one.

lt's a waste of time and money when there are so many other pressing issues.

I think just about everything else could meltdown around it before the federal government becomes non-functioning.


As the earth gets smaller, society's interest in status quo and stability get larger. I do, however, think our civilzation's ability for self-destruction has grown faster than our wisdom, which is sometimes worrisome.

it's amazing how you think your idea is somehow the silver bullet fix all that every economist and world leader just identically missed. First the Potential GDP and real GDP (aka Output Gap) in Greece isn't that large at all. It's actually not that much large than the output gap we have in the United States..

So we print some money.. and what? make some jobs. But nobody needs really any more products exported from Greece. The exportation area is already taken care of.. So we make these jobs to do what??? What Greece doesn't have they import from other countries. Something they've done for a long time.. except they paid with IOU's (absolutely tons of them to other UK countries). So what will they do with new found money.. import more products (um.. that decreases GDP). Greece has virtually forever been at the bottom end of the UK per GDP. They propped themselves up by throwing out money and filling their country w/ government jobs. They essentially bankrupted themselves.. So your fix is to .. print more money and do exact same thing?????

Now if they can find some new commodity they can export talk to me. Or they could work for subhuman standard wages and compete with Chinese exportation. Other than that.. um.. yeah. Printing money is about the most backward idea I've heard. Should they pay off their debts to every other country w/ printed money also?

As the Obama administration and Congress continue to rack up trillions of dollars in debt while the Federal Reserve conjures ever-greater sums of fiat currency into existence out of thin air, lawmakers in Texas have officially become the latest policymakers to openly explore the potential consequences. Legislation filed recently in the Lone Star State would, among other points, require a study on the effects of having to become partially or completely independent of the federal government in case Washington is unable to function due to financial chaos.