Fox News host Chris Wallace is to Fox News as George Stephanopoulos is to ABC. Both members of the allied uniparty system function for the same purpose. Once you see the strings on the marionette is impossible to go back to a time when you did not see them. Wallace’s job is to manipulate his audience while giving the impression of questioning.
In today’s interview with Secretary Mnuchin the insufferable Wallace is cheering for as much economic damage as possible and questioning anyone who might dare have a more fact-based approach. At one point Wallace even calls the CBO “independent experts”.
The biggest of all the bigger financial issues around the economic shut-down will ultimately come down to a battle this spring/summer over a massive bailout for state governments to replace their missing revenue. States like California, New Jersey, Illinois, Connecticut & New York have been struggling with financial issues for years.
“You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.” ~ Rahm Emanuel
Long before the Wuhan Virus those states were near financial collapse. The only thing keeping them afloat was as expanding economy, and new revenue as a result of President Trump’s economic policies (making bigger pies).
The economic shut-down in those specific states makes their preexisting financial trouble exponentially worse.
Not only will CA, NJ, IL, CT and New York demand a bailout, a very massive bailout to cover their revenue shortfall, but they will almost certainly use the wuhan virus as an excuse to cover and bail-out preexisting budget deficits. Governor Andrew Cuomo hinted toward his intention weeks ago. He sees this as an opportunity to get federal money.
So when Senate Majority Leader Mitch McConnell throws a bucket of ice water in the face of blue state governors who were anticipating to “make money” by forcing the country to subsidize their overindulgent spending habits, obviously Cuomo is apoplectic.
For several decades, and particularly since 2008, the issue of unfunded liabilities has been a growing problem for the Blue State governors. One reason Obamacare was created was to address this issue on the union and healthcare side. However, the underlying over-spending by state legislators/governors was never addressed.
The solution of allowing states to declare bankruptcy has been a part of that discussion for years. However, every Blue state governor knows if they declare bankruptcy they will never sell another bond again…. which means no investment… which means they will implode.
If the laws changed allowing states to declare bankruptcy, internally the blue states would collapse… there would be a massive exodus… people would flee the rust and collapse…. housing values would plummet overnight in Blue states…. business would leave… unemployment would skyrocket…. it would be statewide chaos.
The ultimate result would be smaller populations within the Blue state misery zones.
Think about the worst impacts and outcomes within the city of Detroit, Michigan, due to these issues on a municipal level… now overlay that visible outcome across an entire state; or group of states.
So we can look forward to an epic battle over federal bailouts of the state revenue shortfall. New York, New Jersey, Illinois, Connecticut and California will be demanding hundreds of billions, perhaps trillions.
This will be one of the issues that frames the election.
Keep watching… we’ve seen this all before.