The U.S. Postal Service has cut back on spending by $10 billion since 2008, but it’s still nearly out of money. The Washington Post reports that in advance of the USPS’ announcement Thursday of recent postal,service,broke,rate,increase losses totaling billions of dollars, the agency is banking on a 5.6 percent increase in postal rates to help […]
California is back under the spotlight. California representatives are saying they have only enough money in the budget to pay for state assistance until November 2010. What happens if California defaults? Sacramento Bee’s Dan Walters has tried to count total California public debt, including that of local municipalities, and his total reaches $500 billion. Whatever […]
California has the eighth-largest economy in the world yet is on the verge of bankruptcy. There are a few simple ingredients that any state needs in order to function. One is a budget. Another is toilet paper. “Remote rural state parks will likely run out of toilet paper by early October,” says an internal email […]
Boston University economics professor Laurence Kotlikoff says the government “is going broke.” In a Federal Reserve Bank of St. Louis Review article, he points out that bankruptcy is usually defined as an inability to pay interest on current debt, with no prospect of being able to pay without changes in circumstances. In assessing whether the […]
