Greece, Spain, NY State and the NY Senate Race


The Ability to Repay Debt based on GDP

I’m updating my table copied below from my earlier post concerning the ratio of Government debt per capita/GDP per capita.  The data for Spain’s debt were inaccurate, because not all debts were included.   Zero hedge reports that Spain’s Real National and European Debt is $1.733 trillion total.  Spain’s “OFFICIAL” debt to GDP/Ratio was 0.685, when Spain’s ACTUAL Debt to GDP Ratio should be 1.338.   Worse still, the effect of the large Spanish unemployment rate for those under age 25 at 52% on GDP is still not included.  Spain has been offered $125,00 billion to recapitalize its banks.  Greece’s local debts were already included in its total debt.

Returning to the USA, I’ve also included the State and Local debts for NY State which should be included, just as was done for Spain above.  The graph above shows Greece vs Spain vs the USA vs the USA+NY with Government debt per capita/GDP per capita ratios. This ratio indicates the inability to pay back the debt.  So if things are bad in Spain; they’re worse in Greece and even worse in NY in the USA.

     State         Government Debt per capita             GDP per capita                Ratio
1. NY +USA           $68,410                                                   $48,147                          1.421
2.  Greece                $38,937                                                  $27,624                          1.409
3.  Italy                    $40,475                                                  $30,165                         1.342
4.  Spain                   $40,972                                                 $30,622                          1.338
5.  Ireland               $43,887                                                  $37,587                          1.111
6.  France                $33,491                                                  $35,048                         0.956
7.  USA                    $44,215                                                  $48,147                          0.918
8. NYS +Local        $24,195*                                                $48,147                           0.503

Should NY Senate candidates address this?   Last week, I talked with Wendy Long, NY Conservative Party nominee, running in the NY Republican primary for Senate about the fiscal issues and the corruption which were my concern.    Years earlier, I had talked with Democrat Kirsten Gillibrand, who was running for the House, at the time.  Gilllibrand, while speaking to me, ignored my desire to talk fiscal issues and thought her being pro gun and a NRA member was all that should matter to me.  Gillibrand impression then: Ditz, legacy hack politician standing for nothing.

What are Gillibrand’s problems now:

  1. Gillibrand was tied for #1 Liberal in the Senate.
  2. Gillibrand totally flipped on guns.
  3. Gillibrand’s functions as Chuck Schumer’s hand puppet and an enabler of his pay to play hustle.   The American Thinker picked up on this with “understand well that a shakedown system is in place.
  4. Gillibrand, a lawyer, tolerates the corruption of the DOJ in not prosecuting financial crime in NY’s financial businesses.
  5. Gillibrand failed to end and has tolerated the corruption in NY State’s use of Medicaid funds, where NY State pays twice as much or more per Medicaid recipient as other States.   This isn’t free federal money to NY State or its taxpayers, because NY State and the NY counties or cities pay a matching 50% for all such Medicaid received money.  Medicaid is the largest part of local budgets/taxes and it provides the fodder for the large army of politically protected fat cats.  Cuomo family members feed at this Medicaid trough. The daily rate for Medicaid patients tops $5,000 in nine institutions in NY and was described as a “cash cow for the State.”   NY spends per Medicaid recipient more than three times as much compared with California, which is hardly stingy with government benefits.  Here are the Medicaid comparisons by State in 1998: New York ~  $8,961; California $2,386; Washington $2,563; Oregon $3,652.
  6. Gillibrand fails to understand and/or tolerates the consequences of her spending at the federal level and the unsustainability of the combined Federal debt and the NY State and local debt per capita whose ratio is greater than that of Greece and Spain as shown in my chart above.

Wendy Long understood what I said.  I hope she will quickly connect NY’s pending fiscal disaster to the acts in the US Senate by Schumer/Gillibrand and to Gillibrand’s ineptitude and subservience to Schumer.    Will Captain Cuomo follow the example of that other Italian Captain when his cruise ship hit the rocks?  The fiscal disaster is the overwhelming issue.  All eyes are focused on Europe, but the US problem is just as severe and will follow.

*Note: New York leads California in official debt per person by 29% and greater than the average for all States by 73%.   NY State’s Pension Plans use a fraudulent Madoff like safe promised return of 7.5% to calculate Pension reserves.  (The actual rate of return for the past 5 years was 1.1%).   If one corrects the NY pension liabilities with an extremely optimistically assumed 3.1% return on investments, instead of the present assumed 7.5% fraudulent rate, we find another $9,664 additional debt per person, raising the New York Debt per person including local debt to $24,195. Now imagine what the debt would be with realistic accounting using the present 10 year Treasury rate of 1.47%, as used for private pension plans. (Greece then looks frugal)

NY and the rest of the US needs candidates who address the real critical issues, not a hand puppet for Schumer’s venal shakedown for his personal advancement.   Stick it to Gillibrand, Ms. Long.


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  • Igor

    Sorry, Sub, fiscal sanity is not going to happen, the crash will come first.  NY dug a hole and kept  digging, and now it’s too steep to dig their way out.  The US *may* have a chance, I’m not holding my breath.

    I’ve said it before and I’ll say it again, pessimist that I am: We are going to have to go through hard times before the Great Unwashed Masses wake up and smell the coffee.  By that time, the coffee urn will have been either repossessed or been broken for some time.

    Stock up, people.