The crux of the problem

Zero Hedge reports what in my opinion crystallizes the count-down to a global war as a means to get out of a funding jam that, despite the several dozen Trillion Dollars our governments have shoveled into bank coffers, is clearly not solvable with the traditional policy tool of excess spending.

That graph is the breakdown of government income.

In the following article linked in the ZH piece above, you are presented with the reality of the situation. That is, state revenue is dwindling and unemployment figures are massaged by gargantuan borrowing to pay for unemployment insurance.

Here is a peek at state revenue expressed in % change yoy

FRED Graph
The question in my opinion is this. If unemployment keeps rising and tax revenue therefore keeps declining, what happens when states will no longer be able to borrow more in order to pay for unemployment insurance?
Banks are making obscene profits not two years after they willingly and deliberately brought themselves to the brink of extinction and had to be saved for the good of humanity. If banks are so healthy why are our governments still allowing them to disregard mark to market rules? If the health of banks is so paramount to the well being of society, why is unemployment still rising? And why is state revenue still declining? And why is the Money Multiplier at multi decades lows?

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