No April tax bonanza for state

And this, ladies and gentlemen, is exactly the same predicament the Federal Government is in along with the governments of the UK and Europe. The fact that tax revenues should be falling is not a local problem. If tax revenue is falling in California, it is falling in Alabama, Nebraska and New York too as it is falling everywhere else. And if tax revenue is dwindling at state level, it sure as heck is dwindling at Federal level too.

At at time when individuals, corporations and governments are excessively indebted, a deflationary bust brings about insolvency. Do you really believe that either the USA, the UK and/or Europe could conceivably declare insolvency?

Once governments will have to cut public spending like transport, mail delivery, health care, administrative services, fire fighting, road maintenance…. or, God forbid, pensions; once governments can’t replace lost jobs fast enough; once governments have to contend with hordes of (angry) unemployed workers taking to the streets; once government minions sniff the probability of their downfall in the air… do you seriously think they will declare insolvency…???


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