Richard Fuld was punched in the face and knocked out cold in the Lehman Brothers gym. (Thanks to D.L. Ward.)

The Best of Llewellyn H. Rockwell, Jr.

Jefferson County, Alabama, which includes the city of Birmingham, is on the brink of the biggest municipal bankruptcy in US history thanks to a $3.2 billion sewage project. Why? A combination of federal intervention, corrupt government-business partnerships, and the stupido-faith that the boom would go on for ever. The establishment moans that in the event of a bankruptcy, spending would have to be cut, government workers laid off, and more borrowing made difficult. What is the downside? They claim taxes would have to be raised. But since they want to do that always and everywhere, that is no downside for the establishment. But if they try it this time, as during the last depression, they will have a revolution on their hands. Jefferson County, live up to your name, and shrink. (Thanks to Steve Bartin.)

The Best of Llewellyn H. Rockwell, Jr.

State and local governments, lacking the printing press of the Fed, can only borrow or raise taxes or cut back when revenues fall. And there are real limits on the first two, especially in a depression. So kicking and screaming, they have to cut. Arnold’s proposal to temporarily cut back some of the vast, arrogant, and overpaid California bureaucracy is only the beginning. And it is just one of the silver linings in the return to economic reality we know as depression. (Thanks to Steve Bartin.)

The Best of Llewellyn H. Rockwell, Jr.

The government of Vallejo, California, files for bankruptcy, thanks to diminished returns from its tax-thefts to pay its tax-eating police, fire, and other unions. (Via Drudge.)

UPDATE from Tim Wangelin: a list of the 242 public servants publicly serving the tax-payer of Vallejo by making $100,000 or more a year.

UPDATE from Robert Mayer: “Vallejo, California’s motto of ‘City of Opportunity’ couldn’t be more appropriate…if you’re government bureaucrat, that is. Using the handy online search tool you linked to, I was shocked to discover that this city of a mere 125,000 employs 77 people in the fire department who make over $150K per year! Is this the most fire-prone city on the planet or what?”

The Best of Llewellyn H. Rockwell, Jr.