For whatever reason, despite enormous propaganda from across the news media, and I am talking blogs to MSM, the belief is that the Fed has pumped huge sums of money into the system since the financial crisis started, they have not done so. They have re-directed money from the main street to the elite bankers, but they haven't printed any new money.
Take a look yourself, the Fed data shows there is no growth in money supply (M2).
This lack of money printing means a crash of the entire economic structure that grew up based on continuous Fed money printing. This inflation based economic structure includes the tax system. The tax system for almost all cities and states was designed to siphon money off inflation growth (It's less painful than straightforward taxes.. Taxes on profits and real estate sales always are). With no inflation, the tax systems are not generating anywhere near the money needed to support built-in spending. Thus the cities and states crisis.
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