“Last week, the House approved another increase in the national debt ceiling. This means the government can borrow $1.9 trillion more to stay afloat and avoid default. It has been little more than a year since the last debt limit increase, and graphs showing the debt limit over time show a steep, almost vertical trend.” Ron Paul, Weekly Update, Feb 8, 2010.

The National Association of State Budget Officers: Fiscal Survey of States, Fall 2009 report concludes: “States are currently facing one of the worst, if not the worst, fiscal periods since the Great Depression. Fiscal conditions significantly deteriorated for states during fiscal 2009, with the trend expected to continue through fiscal 2010 and even into 2011 and 2012. The severe national recession drastically reduced tax revenues from every revenue source during fiscal 2009 and revenue collections are expected to continue their decline in fiscal 2010. As state revenue collections historically lag behind any national economic recovery, state revenues will remain depressed throughout fiscal 2010 and likely be sluggish into fiscal years 2011 and 2012.”

“These are the worst numbers we have ever seen.” As the executive director of the National Association of State Budget Officers, Scott D. Pattison said that only federal stimulus funds that will soon be exhausted have prevented widespread paralysis.

Download full report.

Congressman Ron Paul speaks about President Obama considering the legality of assassinating an American citizen.

Since our last post about failed banks 2010 has seen another 15 banks fail in January. They just keep on failing!

With the DOW turning and falling again, things have a long way down to go.

So far there is no let up for banks in 2010. If you have significant equity in a bank, put it in a safe bank. Check out Elliott Wave International for lists of safe banks.

Since our last post about failed banks an additional 13 banks failed during the month of December. Total bank failures for 2009: 139.

What will 2010 be like for banks?

As credit-card delinquencies continue to rise banks, like Bank of America, need cash as credit card losses continue to build. But not to worry because H.R. 4173, a House bill introduced by Barney Frank, will support the biggest banks with $4 Trillion gift, from the taxpayer.

Who saved the economy? Ben Bernanke or the taxpayer? More importantly, was the economy saved?

A few days ago Time Magazine put Bernanke on its cover and announced that he was the person of the year for 2009. But what about the taxpayer? Should not the taxpayer be the person of the year? Because, after all, it is the taxpayer who will pay for Bernanke’s trillion ‘bailout’ dollars.

The sad part about this is that another larger, deeper economic contraction is coming. What will Bernanke do then?

Through an interactive map on their site, “Using the Labor Department’s local area unemployment statistics, Slate.com presents the recession as told by unemployment numbers for each county in America.”

It is a map you must see.

We think the deflationary spiral cannot be stopped.

The difference is staggering- 2,240,000 searches for inflation vs. only 165,000 for deflation.

Although deflation is not on people’s minds at the moment it will not be long before it is. As the continued deflationary period marches on again (but this time at a faster rate) all hopes of a recovery will be washed away and the economy will continue to deteriorate.