Individuals aren't the only subprime borrowers

This morning I read that the current administration's plans of spending trillions of dollars will leave our grand kids with the bill for getting us out of the recession and I started thinking about the finances of our cities and counties across the country.

Over the last couple of decades, while times were good, many municipal governments decided to expand services rather than use the surplus to pay down debts or heaven forbid save the money for future use.

The result is that many state & local governments are on the verge of bankruptcy. Sad but true. Now the only recourse is to cut services - dramatically. We couldn't afford the expansion of services in the first place and now we can't even afford some of the basic services.

I heard on the radio that one state couldn't afford their state-wide referendum. Isn't it a basic right - to have your voice heard by our elected officials. How can they know the will of the people without a vote? The state's budget is in the billions $ but they can't afford $5 million to count the votes. That's a sorry state of affairs.

But there is a solution and I think those tricky politicians may have been planning this for a while. The answer is hyper-inflation. Yes, the same thing that is going to get us out of the recession will get them out of hock. Yes, that's right - by pumping the economy full of money there is no doubt inflation will rear it's ugly head once again. Our government organizations at all levels have borrowed beyond their ability to repay - so they simply wait for inflation to kick in and they are able to raise taxes because we're taxed as a % of income or a % of value (property taxes) and as inflation increases our incomes and property values government is able to raise taxes while their payments stay the same.

Problem solved.