States in financial trouble – Don’t move there

While we concern ourselves with the state of the federal government, perhaps we should really be as much or more concerned with the financial stability of the state in which we live. This will determine how the basic safety of our family and ourselves fare. Fire, police and schools are impacted. Here tis:

Most people don’t consider this, but you should really look into the financial stability of any state that you’re thinking about moving to. If worse comes to worse, and the economy collapses, you want to make sure that the state you live in is fiscally responsible. States that have high debts and low credit ratings are living on the edge. Any major economic event could push them into bankruptcy.

That means pensions could go unfunded. Public services like law enforcement and firefighting would be understaffed. The infrastructure of the state would crumble, and public education would be decimated. Taxes would likely be increased, which would only exacerbate the financial problems of the state because businesses would leave, leading to more unemployment and a smaller tax base. Obviously, all of these factors could contribute to the risk of civil unrest.

So which states should you avoid? There are three factors you should look out for. There’s the amount of debt as a percentage of the state’s GDP, the amount of debt per person (debt per capita), and the state’s current credit rating.

The 10 states with the worst debt to GDP ratios are:

New York-22.71%

South Carolina-21.31%

Rhode Island-19.40%

Washington-18.83%

Florida-18.65%

Kentucky-18.50%

Illinois-18.45%

Connecticut-17.52%

California-17.18%

Pennsylvania-17.17

The 10 states with the most debt per person are:

Massachusetts-$11,337.63

Connecticut-$9,297.33

Rhode Island-$8,919.27

Alaska-$8,516.41

New Jersey-$7,517.15

New York-$7,040.97

Hawaii-$6,194.64

New Hampshire-$6,152.00

Delaware-$5,962.86

Vermont-$5,259.69

And perhaps the most important factor is the credit rating of any given state. This gives you a good idea of how investors think a state will fare financially in the future, as opposed to a state’s current financial woes. According to credit rating agencies like Standard and Poor’s, as of last year the states with the five worst credit ratings are: (Has interesting stats as well)

  • Illinois-BBB
  • New Jersey-A
  • Kentucky-A+
  • California-AA-
  • Connecticut-AA-

More at Preppers Blueprint

New Bankruptcy law exempts three firearms

Yes, in these troubled times, good news! Lost your job? Home? Car? But AK-47’s are safe and sound. Thanks National Rifle Association.
H. R. 5827. Passed by the Senate, allows anyone filing for bankruptcy to keep a single rifle, shotgun or pistol, or any combination thereof, as long as their total value didn’t exceed $3,000.
Bankruptcy laws became more humane in the 20th century.  You are entitled to certain “protected assets” that Citibank’s Repo Man cannot touch and little Josh and Tiffany need not join Oliver Twist on the sneaker assembly line. 
Last week, the US Congress moved to help real Americans in these tough economic times.  It approved a bill permitting individuals filing for bankruptcy to exempt up to three firearms with an aggregate value of $1,500 from creditors’ claims.  You can still lose your home, car, and the clothes off your back to Citibank, but, by God, they’re not getting your AK-47. 
 
Clearly, the unemployed would be wise to use that last benefit check not to pay down the mortgage or the credit card bill, but to purchase a weapon.  You can use it to shoot your food in the nearby woods or, for you urban dwellers, empty out the neighborhood bodega if you are armed.

N.J. Gov. Christie Freezes Spending

With State’s Budget In ‘Shambles,’ New Governor Slices Into School Surpluses, NJ Transit Subsidies; Dems Furious. Christie is doing just what he said he would do. Fiscal discipline. These States keeping thinking the feds are going to help them out– well, no. You cannot keep spending more than you have. Three cheers for calling out the unions. Now the local governments will have to follow suit. School districts, et al– you do not have to raise taxes to make up the difference, nor are you “forced to” what nonsense–cut back like we all need to do.

Saying New Jersey is on the verge of bankruptcy, Christie declared a fiscal emergency, announcing drastic cuts. Among them, aid to school districts that have excess surpluses.

“Today we are going to act swiftly to fix problems too long ignored. Today I begin to do what I promised the people of New Jersey I would do,” Christie said.

The move had Democrats in an uproar, angry the governor used his executive powers instead of working with the Legislature.

“What that’s going to mean is that those school districts without that money are going to be raising property taxes in the upcoming year to make up for that shortfall,” said Assemblyman John Wisniewski, D-19th District.

The governor also cut state subsidies to New Jersey Transit, saying it needs to become fiscally efficient.

“Revisit its rich union contracts,” Christie said. “And they may also have to consider service reductions or fare increases.”

http://wcbstv.com/local/governor.christie.freezes.2.1487727.html

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