With George Noory
Live Nightly 1am - 5am EST / 10pm - 2am PST
FAST BLAST »
State Bailouts & Bankruptcy - Shows

Coast Insider

Not a member? Become a Coast Insider and listen to the show 24/7
Advertisement

Coast Insider

Not a member? Become a Coast Insider and listen to the show 24/7
Advertisement

Last Show Recap

State Bailouts & Bankruptcy

Host Richard Syrett welcomed crop circle investigator Patty Greer for a discussion on the latest developments in crop formation research and how she thinks the phenomenon may change the course of human history forever.

In the first hour of the program, David Kekich, President of the Maximum Life Foundation, talked about his work with longevity, life extension, and anti-aging research and why he believes that we all will be living much longer lives.

Upcoming Shows

Mon 04-27  Alternative Cancer Treatments/ Hubble Anniversary Tue 04-28  Predictions for 2015 and Beyond Wed 04-29  Transformative NDEs/ Vietnam War Thu 04-30  Earthfiles Reports Fri 05-01  Vocal Psychic Sensitivity/ Open Lines
• Joe Who

CoastZone

Sign up for our free CoastZone e-newsletter to receive exclusive daily articles.

State Bailouts & Bankruptcy

Show Archive
Date: Saturday - January 29, 2011
Host: Ian Punnett
Guests: Andrew Gause, Adam Fergusson

In the first half of the program, monetary historian Andy Gause joined Ian Punnett to discuss the serious ramifications if states start filing for bankruptcy protection. According to Gause, many states have unfunded pension obligations that they are legally required to pay but have no way of meeting. California, for example, owes half a trillion dollars to its public servants. The state may choose to increase the tax burden on its residents or possibly seek to restructure this debt through bankruptcy, he explained. Municipalities such as Vallejo, CA, which recently emerged from bankruptcy, may set a precedent for state-level bankruptcy, Gause suggested. And a real threat of bankruptcy could compel the federal government to step in with a bailout. "I think you're going to see a bit of an abdication of sovereignty by the states in exchange for bailout-type deals," he added.

Fiscally troubled states may also look to help from large private investors who, flush with low interest loan money from the Federal Reserve, could go in and buy up their public assets (garages, airports, turnpikes, etc), Gause continued. This has already happened in Arizona, where the state sold off its capitol buildings (to an investment group from whom they now rent) in order to pay off debt obligations. For some states, even selling all of their infrastructure projects may not be enough. Massachusetts, for instance, is sinking under the enormous and continuing financial burden of its universal healthcare plan, and Illinois has its own $40 billion unfunded healthcare liability to contend with, Gause said. These states, and others in similar situations, will likely also need to increase taxes while slashing public services. If states do end up pursuing bankruptcy, in addition to the taxpayers, the biggest losers will be individual bond investors, he warned.

Currency Collapse

In the third hour, journalist Adam Fergusson talked about what caused the German financial collapse in the 1920s and what can be learned from it today. Fergusson said the German economy was in a terrible state after the first World War and the value of their mark fell by half. The German government's solution to a slumping economy was to print more money. This resulted in monetary inflation and, as people lost confidence in their increasingly worthless currency, the mark collapsed totally, Fergusson explained. It took a million million marks to buy what a single mark had once purchased, he noted. Countries cannot inflate their way out of trouble, Fergusson continued. "I do not believe that quantitative easing, or inflation, or printing money, ever has a desirable... effect on any economy," he added. Fergusson further suggested that quantitative easing has not helped the U.S. economy and, like an addictive drug, can be hard to stop and lead to much deeper problems.

Open Lines followed in the last hour.

Related Articles

Strange Lights in Utah Sky

Two residents of Utah County reported seeing unusual lights in the night sky over their homes. According to Lynette Chidester, a group of three red lights eventually appeared that made no sound and started dropping white streams. Mike Galbraith, who served in the Air Force and recorded the red lights, does not think the falling white trails were military flares. Neither witness could identify what the flying objects were, but both agree they did not seem like conventional aircraft. More info, including video report, at ABC4.com.

Bumper Music

Bumper music from Saturday January 29, 2011

Advertisement