Fiscal Disaster As Andrew Cuomo And His M.O. Are Slapped Down By Chinese Economic Reality Checks

     "You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time."  Abraham Lincoln

      Drying out in Puerto Rico, Andrew Cuomo, while hanging with his good ole' Swampies, Sampson, Silver, etc.,  replayed his same old M.O.    Andrew Cuomo reset the same old snare and called the same ole' media monkeys to howl to attract sheeple prey.
  
1. Cuomo's same ole' M.O., this time around  : Cuomo's Swamp's clarion trumpeted, "We're not going to buy our way out of these problems;"
and "I'm looking forward to working with the leadership of the Assembly. (these are the same Assembly Swamp vermin Cuomo promised to clean out)"

2. The same Cuomo M.O. in 2008, when Cuomo began as Attorney General:  In 2008, Cuomo promised: "The Amnesty 'window' will be narrow;' Andrew's pretty serious about a real shake up, and he will not give state workers, including judges, more than 60 days to 'come clean.' The plan, dubbed 'CAP' (Cuomo's Amnesty Program)by AG lawyers, is said to specifically include all attorneys admitted to practice in New York, whether or not they are state employed. 'Heads will role once the Amnesty Program ends"
And as Cuomo's term as AG ends: the result is nothing was done.


3. The same ole' M.O. in the Hevesi corruption case:  "Mr. Hevesi's conviction was the seventh and by far the most notable in a long-running investigation by state Attorney General Andrew Cuomo."
The result: no jail time or restitution for Hevesi and sons and minimal sentence for a political operative.


     Now, listen to Governor-elect Cuomo's rhetoric that, "by immediately imposing a cap on state spending and freezing salaries of state public employees as part of a one-year emergency financial plan, committing to no increase in personal or corporate income taxes or sales taxes and imposing a local property tax cap."    Meanwhile, Paterson's has projected a $9 billion deficit for the 2011-2012 fiscal year, which is grossly underestimated and Cuomo neglects to include Medicaid refunds NY State must pay back to the Federal Government.  These Medicaid refunds just begin with $1.6 Billion required in just the small sample reported on this blog.
  Will the new Republican House forgive and forget NY's unprosecuted Medicaid frauds and advance the another $1.6 billion for the same thieves to take again?  Or is Cuomo expecting the tooth fairy to intervene?



     From Arithmetic for the Economically Challenged Idiots, is a lesson for the 'Silver Spoon Fed' Cuomo:      NY in 2011-2012 must give back $1.6 Billion to the federal government and won't get another $1.6 Billion either for that same expense in the coming year.  Or doing the arithmetic:  $9 Billion + $1.6 Billion returned + $1.6 billion (expected but not to be received) = $12.2 Billion Deficit.

     Next economic reality brought to Cuomo by the Chinese: Present Federal Debt : $13.7 Trillion
The Federal Reserve plans to print:  $0.6 Trillion
Net devaluation of US dollars: $0.6/$13.7 = 4.4%
If the Chinese don't want to lose money:  4.4% must be added to any interest rates 


    Now look at NY's Total borrowing:  $120 Billion +"New York's public authorities have over $80 billion in debt that is not backed by state revenues"
NY's borrowing costs for next year: $5.6 Billion  (not including the $80 Billion noted above)

    TIC (True Interest Cost) of recent offering:  3.357%

    Now the reality slap for Cuomo from the Chinese:  they need 4.4% more to cover Fed's inflation or 4.4% + 3.35% = 7.75%  or an increase of 7.75 divided by 3.36 = 231% increase.


    Now the reality for NY state: the $5.6 Billion estimated borrowing costs can (amount depends on when and if Fed prints the money) increase to a maximum 231% or $12.9 Billion and raise the deficit.   Since the Fed's printing is for the next 6 months, a very conservative minimal estimate would be 1/2 of $7.3 Billion borrowing cost increase or a $3.6 Billion increase added to the $5.6 Billion estimated borrowing costs.


    Now the revised minimum 2011-2012 deficit then would be $12.2 Billion  +$3.6 Billion =  $15.8 Billion (2011-2012 deficit)

Or ($15.8 Billion - $9 Billion  =)  another $6.8 Billion missing from the Cuomo Budget Plan.   Will this be replaced with some Hope rhetoric from the Cuomo M.O.?  

"Trust in God, but since by Cuomo thrice fooled, hold tightly to your cash."  And voices among the Sheeple cry out, "Hands off our money!  Why should we trust a lying crook with our economic future, who's allowed  a trillion and then billions of dollars to be absconded to enrich his cronies and while fleecing millions of Sheeple?
      Where's Eric Holder! We need a modern Thomas Dewey in NY!  Where's the Grand Jury?  Where's Justice?  Send him and his good ole' crony buddies to Jail."