Treasurer warns of credit risk

[kayell]

http://www.thestate.com/mld/thestate/news/politics/8498820.htm

Treasurer Grady Patterson has sent a strongly worded letter to all senators, warning that the state could lose its high credit rating if it does not drastically change its proposed budget.

Patterson is upset that the Senate Finance Committee wants to spend higher-than-expected tax collections from this year for K-12 and other needs next year.

snip

Leatherman said he has no intention of using any more of the surplus to pay debt, especially after three years of budget cuts.

The state has laid off thousands of employees and cut some agencies by as much as a third.

“Do you want to cut back on education?” Leatherman said. “No, I don’t want to do that. Do you want to cut Medicaid? No, I don’t want to do that.”

more

[rkc3]

1. Credit Risk

At some point Alan Greenspan will make the same commentary about the US economy. It will go like this:

Given the current administration's policy of tax cuts for the rich and donations to corporate America, tied with their marginal propensity for military budget increases and foreign occupations, the United States will soon be faced with a serious problem: Foreign governments and investors will see US Debt as second tier. Sluggish jobs growth and reduced corporate spending will limit the country's future growth and therefore the government's ability to cover its foreign debts. Americans will be forced to cover these shortfalls through imposition of higher interest rates and reduced government services.

The poor and retired will be most affected by these actions.

To which Pres. Bush will reply - Fuck the poor, fuck the old - they don't vote republican anyway.