Posted Apr 26, 2019 by Martin Armstrong
OK. New York City can’t pay its bills and politicians think chasing Amazon out of town because they wanted a $3 billion tax break actually saved $3 billion when that was predicated on them paying some taxes, has now moved to ban hot dogs to save the environment? Mayor Bill de Blasio approved a complete insane $14 billion Green New Deal on Monday, April 22, to combat climate change. He has ordered cuts in purchases of red meat by 50% in its city-controlled facilities such as schools, hospitals, and prisons. What they don’t tell you is the Fed feed inmates meat that is marked “NOT FIT FOR HUMAN CONSUMPTION” because the FDA compel producers to send a portion of every lot of food for testing. However, the FDA may test one box and the rest goes to prisoners to reduce costs.
Mayor de Blasio has also declared he wants Meatless Mondays in all NYC schools. He publicly stated: “It is a difficult plan. It is a necessary plan…. Estimates that tell us that we have only 12 years to get it right. Let’s be clear, we have until 2030 to change things fundamentally, or our lives won’t be the same.” So banning hot dogs will now stop Global Warming or else we will all die in 12 years.
NYC is running a deficit so Mayor de Blasio’s administration spends more than it takes in and he forgets he is not the federal government. Raising taxes has only resulted in a mass migration from NYC and when interest rates diverge and begin to rise for the peripheral sovereign markets such as state and municipal governments, NYC may go off the edge once again. Many analysts are concerned about his deficit spending. In February 1975, New York City entered a serious fiscal crisis. Under mayor Abraham Beame, the city had run out of money to pay for normal operating expenses. It was unable to borrow more due to the hard times and faced the prospect of defaulting on its obligations led it into declaring bankruptcy. It took just 43 years (86/2) to return to the same position of deficit spending. The New Green Deal is really absurd. It demonstrates he is living in a fantasy world where he sees deficit spending without end as no problem. After all, federal governments all do that with no problem. The different is, they have the power to create more money – Mayor de Blasio does not.