January 21, 2011

First Stop: State Bankruptcy, Next Stop: Central Government

A Path Is Sought for States to Escape Their Debt Burden

State Bankruptcy Option Is Sought, Quietly - NYTimes.com


Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.

Senator John Cornyn asked this month whether Congress should consider establishing a bankruptcy procedure for states. Unlike cities, the states are barred from seeking protection in federal bankruptcy court. Any effort to change that status would have to clear high constitutional hurdles because the states are considered sovereign.

Now I know I have been accused of wearing my tinfoil hat too much in the past, but did that last sentence ring any warning bells for anyone besides me?

Isn't this how the progressive system works?  They, out of the deep kindness and compassion in their hearts, do something utterly without malice or avarice. And then BLAM you realize you made a deal with the devil.

Sounds like they are prepared to allow the states to declare bankruptcy, and the price would be their sovereignty.  No more republic.  Only a large, centralized, all encompassing, all powerful nanny, State.  Either one by one, or more likely when the first hurdle to the bill is crossed, all at once…no more states rights.

Call me crazy but I think that is the sort of thing that makes Nancy Pelosi have warm and fuzzy feelings.

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