There are a number of actions being taken by state legislatures throughout the country that when looked at separately, appear to be symbolic statements of how individual states are expressing themselves against the growing mandates being thrust upon them by the federal government. When looked at collectively, these actions indicate a rapidly growing trend of how states are actively positioning themselves for what might very well turn out to be a true battle of survival between individual states and the federal government.
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It began last year when states like Montana, Texas, Tennessee and Florida introduced legislation about freeing themselves from federal gun law restrictions. The 10th amendment has given the federal government wide latitude in regulating interstate commerce which includes guns. The states have asserted that guns manufactured and sold within their borders are exempt from federal oversight. As of right now, 23 states have introduced this legislation. According to the TenthAmerndemtCenter.com web site, it has been passed in Montana and Tennessee, has passed one house in Utah, was defeated in Colorado and is pending debate and vote in 19 other states.
What does this have to do with the economy? A whole lot. Similar 10th amendment legislation is growing on many other topics including health care, putting sheriffs first, cap and trade, bringing the guard home and constitutional tender. Last week, the tenth amendment movement mutated into another potentially significant wedge between individual states and the federal government. A group of Utah lawmakers wants to use eminent domain to take federal land in their state. Over 60 percent of Utah is owned by the federal government. State policy makers have struggled with the fact that federal ownership of land hinders their ability to generate tax revenue and fund public schools. Their goal of using eminent domain against the federal government for the benefit and survival of the state is to spark a legal fight that supporters believe will result in the state of Utah being allowed to develop resource rich parcels of land. According to the Associated Press, last Thursday, legislation to allow the use of eminent domain on federal lands was introduced in the Utah House.The accelerating development of tenth amendment and now eminent domain legislation bears close watching. Up to now, when states passed resolutions of this nature, it was largely symbolic and designed to let off political steam. Up to now states have not been willing to turn down federal money or litigate the issue. But that is about to change. Why? Because the very survival of individual states now hangs in the balance.
There are currently seven states that are the functional equivalent of being bankrupt with California leading the way. Over 30 more states are on the verge of insolvency. The acknowledged federal deficit for this year is $1.6 trillion. In other words, we've already admitted that we're going to overdraw the national checking account by $1.6 trillion in 2010. The federal government is crippling itself almost by design.
The runaway spending orgy that we are embarked upon is going to end abruptly and painfully. Many states have exhausted their unemployment funds and are paying current benefits out of borrowed federal funds. How will these and other massive, rapidly accumulating debts ever be repaid while simultaneously providing existing government services out of current tax revenue? They won't. They can't. It is mathematically beyond the point of no return. Our debt saturation level has arrived. Few understand it. Most that do won't talk about it.
For some time now, Washington has been spending money as if they already know they're not going to have to pay it back, at least at the level they borrowed it at. How can that happen? By a devaluation of the dollar in tandem with a revaluation of gold multiple times higher from its current price. The stage has been set for just such an event. Rules have quietly been implemented that restrict redemptions on money market funds in a financial emergency. That emergency is close at hand.
Individual states are beginning to realize that they must protect their own interests because the days of depending on Washington may fast be coming to an end. When push comes to shove, people will take care of themselves and their communities first. Their states second and Uncle Sam third. States are beginning to realize and act upon this premise. In the coming years we may well see states competing for residents based on life, liberty and the pursuit of happiness. What a novel concept, and not a minute too soon. And this time, it just might be for real.
