State Unemployment Funds Running Out

As unemployment skyrockets and the tax base shrinks, state unemployment insurance funds are finding it increasingly difficult to meet the needs of the unemployed. Not only are states running out of funds, but the processing of unemployment compensation applications are slowing dramatically. The New York Times reported on July 24 that 16 states, having exhausted their funds, are now paying benefits with borrowed money, and that number could double by year's end. About 9.5 million people are now collecting benefits, up from only 2.5 million people in 2007 and state spending is expected to reach nearly $100 billion, about triple the level of two years ago.

However, the rise in unemployment, and drop in benefits is only one aspect of the larger, accelerated collapse of the economy. In a discussion with associates yesterday, Lyndon LaRouche set the context:

"Now, just to make it clear: As of now, the fiscal year of the United States comes to an end at the beginning of October. Which means that between the 12th and the 15th of October, which is the ten-day-plus allowance for monkeying around, the entire U.S., as of now, is going to shut down! Because, for example, one-third of the actual unemployed are actually receiving compensation. Those who are receiving it, are receiving it, two to three weeks late in starting. The conditions for unemployment insurance are vanishing. The whole economy is collapsing. We're in a breakdown crisis, where we have to assume by the 10th or 15th October, that the world is going to shut down. Nations are going to cease functioning, at least many of them. One of the nations, which, presently, is about to cease functioning, in about 60 days from now, or near 60 days from now, is going to be the United States, in every part. We have 48 states, that are not even nominally functioning, as governments. We have an insane President. We have lunacy...

"If we do not change the policy of the Presidency of the United States, within the next 60 days, you won't be anywhere!"