No Whining, No Federal Bailout; You Made Your Bed Of Debt, Lie In It, New York

From Arithmetic for the Economically Challenged Idiots 


For the USA:
1. Total public debt outstanding Dec. 20 $13,868,461,000,000
2. nation's population on April 1 was 308,745,538 
3. USA debt per person $44,805
     And just today, "The U.S. government fell deeper into the red in fiscal 2010 with net liabilities swelling more than $2 trillion as commitments on government debt and federal benefits rose, a U.S. Treasury report showed on Tuesday."

    The federal Government can't bailout New York; it's sinking itself.  You're on your own, New York. 


    New York State reports State-funded debt was $60.5 billion or $3,105 per person and in 2009, NY was the second most indebted State behind California.

    BUT, this debt doesn't include the Pension liabilities from the present phony estimated safe return on pension investments of  7.5%, when the New York fund earned annualized returns of 3.1 percent for the 10 years ended in March 2009, and 1.1 percent over five years and New York state’s $132.6 billion pension fund is the nation’s third-largest. 

   So we need to correct the pension liabilities optimistically with a 3.1% return, or a pessimistically with a 1.1% return.  Doing the arithmetic optimistically, we have 7.5/3.1 x $132.6 billion = $321 billion,  which should be in pension fund, when only $132.6 billion is, or NY has net debt burden owed the pension fund of optimistically $321 billion - $132.6 billion = $188.3 billion or another $9,664 additional debt per person, which should be added to $3,105 per person above.   Making $12,769 debt per person as a better debt estimate in New York.   But now look at the 4.52 million people on Medicaid in NY (don't pay taxes) out of a NY population of 19,541,453  which raises the debt per taxpaying person and each of their dependents to $16,600 each.

The party's over; the hand writing is on the wall and on the paper; the accounting's been done; the prophet heard; the piper must be paid.

The words, Mene, Mene, Tekel, u-Pharsin, written by a God of Justice Disrupt the Albany Victory Celebration (King Cuomo, Paterson, Silver and Sampson in their blue uniforms with their new committees behind them)

Andrew Cuomo's Credit Card Will Be Taken Away

The last two NY Governors have proven Lord Acton right, "There is no worse heresy than the fact that the office sanctifies the holder of it."    Spitzer, Paterson desecrated their offices, and Cuomo will follow. 

      From Spitzer 's whores, we go to "Don't let the door hit you, Gov. Paterson"  The state’s top ethics watchdog slapped Gov. Paterson with a whopping $62,000 fine for accepting free World Series tickets from the New York Yankees"    "The moral and ethical tone of any organization is set at the top," Commission Chairman Michael Cherkasky said. "Unfortunately the Governor set a totally inappropriate tone by his dishonest and unethical conduct."

Was Paterson from Spitzer, a temporary upgrade?   How much lower can Cuomo's moral and ethical tone  go?

   With an ill wind at his back Andrew Cuomo will enter the governor's Mansion and will slip and fall into all of slimy messes the below:
1. Gov.-elect Andrew Cuomo may have forced the issue in his campaign by proposing a freeze for the state's nearly 200,000 employees. and said, "You have no economic future if New York is the tax capital of the nation,"  Instead, he wants to cap property tax increases and has warned of cuts in education and health care.

2. Build America Bonds Federal program ends in 2010 and although, "States and cities have embraced these taxable bonds to borrow money at what they assume are favorable interest rates. The federal government pays 35 percent of the interest costs on the bonds, a huge potential saving,''   BUT, New York shouldn't have borrowed money which it can't pay back.     And where, Andrew, will New York get this money in 2011?

3.  The municipal market that so scares people right now is one of heavy supply and uncertainty over the direction of mutual fund investment flows. What happens when the bond rate rises, Andrew?  
NY's borrowing costs will move up from $5.6 Billion to $18.8 Billion.


4. How about repaying the Unemployment Insurance: State Trust Fund Loans of $3,176,873,427.71 since January, 2009; that's $3.1 billion?

5.  States Slow to Face New Fiscal Reality

6. There's the $1.2 Billion to repay the Federal Government for Medicaid fraud which Cuomo failed to prosecute.


7. The absurd assumption of a 7.5% safe return on pension investments.

8. Andrew Cuomo claims he has a $9 billion dollar debt, when if he could add the above numbers he'll get $22.1 billion debt which is larger than his estimated $9 billion,  without even  counting the pension shortfall from the phony 7.5% safe return and the "Build America" funding losses.


9. From link: Ignoring the spending budgeted for the sacred cows of education and medicaid from where do you take the $22.1 billion dollars from the remaining budget categories below:
From the $4.2* billion spent for public welfare
   or the $4.8* billion spent for public safety
   or the $5*billion spent for transportation
   or the $0.8* billion spent for Environment and Recreation
   or the $0.2* billion spent for business regulation
   or the $6.4* billion spent for General government

  With a total of $21.4*billion

     Watch a replay of a typical post-adolescent crisis, "my credit card was declined because the evil credit card company has put a limit on my charges."    Watch when the silver spoon fed Andrew starts demanding that the federal government extend more credit.    Hold Andrew's hand and explain to him that there are limits on what can be borrowed?    Read to Andrew from France's AAA Grade at Risk as Rating Cuts Spread: Euro Credit  about how the parents (The EU or US Treasury) can be ruined by the spending of their children (European States in EU and States in the USA).

   Watch when our leader,  "the son of Mario" starts to whine and bang his spoon.   

"Democracy is the theory that the common people know what they want and deserve to get it good and hard." ~ Mencken