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I read somewhere (oops, not sure where), that one out of every six dollars spent in the economy is coming from a government payout of some kind (social security, welfare, etc).

I see that California is talking about STOPPING the welfare checks as a desperate measure to stem their state's red ink. What I'm wondering is, when will the federal government stop paying out on these massive entitlements? Do you think that'll happen sooner rather than later? Because I suspect that once those checks stop flowing, things will deteriorate very quickly.

The other question is, how are these municipalities surviving? My city has an annual budget of $1 billion. That seems like a fantastic sum of money. How are *cities* paying their bills when tax revenues are falling like a rock? And why haven't I heard more about that in the press?

HF

I only wish they would quit sending out entitlement checks to the big banks like Goldman Sachs. Where I live they are laying off teachers and people who work for the city and that would be Dallas, Oregon. They have it coming because they are all Repubs and voted Bush both terms. So now they reap what they sowed, too bad it affects me too.

States will fail in their ability to send out checks as resources can no longer be made available. The real question...

Does the Federal government stop sending out checks at some time, or does the federal government use the entitlement check mechanism to keep injecting cash into the bottom of the economy?

I think they will not stop. As long as the printer and e-transfer system is working, the checks will flow. This is much more efficient than the government buying/confiscating bread and tossing it out to the hungry mob; instead they change a number on some mob-ettes e-transfer card account, the mob-ette does all the going and fetching, which changes a number on a grocers e-transfer card account, which is then used to change the numbers on employees and tax authorities e-transfer accounts... etc.

It could artificially keep the economy eeking along for a very long time.

i don't think they'll ever stop sending out entitlement checks entirely, but they've definitely started sending out fewer of them.

i think the US gov will send out entitlement checks forever, or the 2009 version, crediting the bank accounts of their clients with devalued dollars.

Social security checks stop and we will see mad-max.

Somehow my entitlement check failed to arrive again!

I know it's coming. (Looking at stomach) I'm just too big to fail.

Hopefull, Probably the first entitlements to be cut will be those that provide any kind of support, medical, educational or otherwise to illegal aliens.

Basically the illegal aliens are going to be cut off first.

vision-master said:

Social security checks stop and we will see mad-max.

I always find it interesting that people think that a central government or central bank will somehow continue on forever. It must be something about our embedded desire to believe in deities. In actuality they all fail at some point. The Roman Empire, the Ottoman Empire, the USSR (the largest state in the history of the world) all disappeared along with their currency system.

All of these slipped into history when their monetary systems ended. Social security checks will stop when the FED’s dollar disappears, and the central government along with it. Looking at the local, state and federal deficits, credit market, asset devaluation and monetary irregularities that are now occurring, that shouldn’t to far into the future.

Entitlements will never stop. Those payments (in dollars) are a guaranteed promise from the Gov. They will however devalue the dollar to such a point that you may be able to purchase very little with your dollar denominated check. Remember the Fed controls the amount of currency in circulation. Default never need occur at the national level. More "dollars" can always be willed into existence.

Spanktron9 wrote:Entitlements will never stop. Those payments (in dollars) are a guaranteed promise from the Gov. They will however devalue the dollar to such a point that you may be able to purchase very little with your dollar denominated check. Remember the Fed controls the amount of currency in circulation. Default never need occur at the national level. More "dollars" can always be willed into existence.

Grandpa will be eating dog food.

Spanktron9 wrote:Entitlements will never stop. Those payments (in dollars) are a guaranteed promise from the Gov. They will however devalue the dollar to such a point that you may be able to purchase very little with your dollar denominated check. Remember the Fed controls the amount of currency in circulation. Default never need occur at the national level. More "dollars" can always be willed into existence.

This is what govts. generally opt for, a kind of stealth retreat from actual payment.

threadbear wrote:

Spanktron9 wrote:Entitlements will never stop. Those payments (in dollars) are a guaranteed promise from the Gov. They will however devalue the dollar to such a point that you may be able to purchase very little with your dollar denominated check. Remember the Fed controls the amount of currency in circulation. Default never need occur at the national level. More "dollars" can always be willed into existence.

This is what govts. generally opt for, a kind of stealth retreat from actual payment.

To quote Dr. Stephen Leeb: "Inflation is the politician's only choice."

And Serial Warrior: I hope your schadenfreude extends to your own immediate family when they suffer from hunger and malnutrition. Be careful what you wish for, it may visit close to home.

beamofthewave wrote:I only wish they would quit sending out entitlement checks to the big banks like Goldman Sachs.

here's an idea

Perhaps there should be NO "entitlement checks" for anybody neither the rich or the poor.

How does that sound? Personally I like the idea.

Serial_Worrier wrote:

Spanktron9 wrote:Entitlements will never stop. Those payments (in dollars) are a guaranteed promise from the Gov. They will however devalue the dollar to such a point that you may be able to purchase very little with your dollar denominated check. Remember the Fed controls the amount of currency in circulation. Default never need occur at the national level. More "dollars" can always be willed into existence.

Grandpa will be eating dog food.

already is..

MD wrote:

Serial_Worrier wrote:Grandpa will be eating dog food.

already is..

Contrary to popular belief dog food is NOT cheaper than regular food that humans eat.

I remember back in the Reagan years a bunch of bleeding heart Liberals wanted to drum up public support for the poor.
How does a blind ideologist make his case? --> Lie.
The story had a sensationalist feel to it (poor people being forced to eat dog food out of desperation) and we all know how mainstream media Loves sensationalism.
A message to: bleeding heart Liberals
I have good news and bad news.

--- good news - poor people do not have to eat dog food

--- bad news - that's because they can't afford it.

LMAO

When I was at University one of my mates had a Curry and beer party. Everyone had a great time till he showed them the ingredients for the Curry - Kennomeat. Everyone went mad, but no-one complained whilst eating it. Luckily I had other arrangements that night.

shortonoil wrote:vision-master said:

Social security checks stop and we will see mad-max.

I always find it interesting that people think that a central government or central bank will somehow continue on forever. It must be something about our embedded desire to believe in deities. In actuality they all fail at some point. The Roman Empire, the Ottoman Empire, the USSR (the largest state in the history of the world) all disappeared along with their currency system.

All of these slipped into history when their monetary systems ended. Social security checks will stop when the FED’s dollar disappears, and the central government along with it. Looking at the local, state and federal deficits, credit market, asset devaluation and monetary irregularities that are now occurring, that shouldn’t to far into the future.

Like I said, mad-max then.

56,604,000 people would be cut off right now.

Got AK-47 with 1,000+ rounds.

•Gun ownership increases with age. 48.1% of the 18-25 year-olds in the sample report owning a gun, compared to 67.8% of people 60 and older.

The goal of this exercise was to explore the relationship between attitudes about gun ownership and age, and to examine whether victimization and fear of crime are related to attitudes about gun ownership. Taken together the results show that the people least likely to be victimized (60 and older) are the most likely of all age groups to own a gun and to own it for protection. They are also more likely than younger generations to support increased gun ownership for increased safety. Younger respondents, on the other hand, are more likely to think that increased gun ownership would lead to decreased safety.

https://www.icpsr.umich.edu/cocoon/OLC/ ... nswers=yes

There used to be a saying prior to Social Security, the old died in the summer from lack of food and the winter from no heat. We will return to that then, and no I do not think their will be any mad max stuff old and disabled folks rarely have enough energy to cause problems. Since we as a nation have chosen to give our treasury to Goldman Sachs, 30 trillion in the past two years, our national resources such as oil to other multinational corporations, I believe we will soon be living like the people in Cambodia. Are the Cambodians living Mad Max? NO, the majority of people in the USA will be very, very poor very soon, people who thought they had money will find out it is worthless and the very rich will move with their money to a first world country that did not give their treasury to Goldman Sachs. The only consolation is that Tim Greithner will relocate to work in China the up and coming new rulers of the world. I hope I get to live long enough to see Halliburton try to create a mess in China so they can charge for cleaning it up like they do in USA. Heads will roll, China's leaders would simply try and convict and decapitate the CEO's the same day.