North Carolina currently has a budget deficit of $3.7 billion and owes the federal government another $2.6 billion in unemployment benefit borrowing. We can thank Gov. Perdue’s eagerness for this debt: it is a direct consequence for taking stimulus money from the Federal government. I could have lived quite well if North Carolina had not received stimulus (or rather extortion) money. Now we find out that over 3/4 of a billion dollars not only been lost from securities lending activities, it has been covered up for almost a year. Until accountability is restored in government, we will never be able to achieve an economic recovery.
And a special thank you to Governor Bev: Only Florida received less money per capita than North Carolina. So we have to ask ourselves what was the price for the governor to sell out to the Obama administration? Maybe we will find out at her trial for campaign finance violations.
When does a three-quarter billion loss go unreported? When it’s suffered by the North Carolina Department of the State Treasurer, which swept just such a red-ink spill under the rug for an entire year.
That’s the conclusion of a report by the State of North Carolina Office of the State Auditor that was released earlier this month.
In the report, the auditor states that State Treasurer Janet Cowell’s office failed to report $771 million in losses on the fair value of cash collateral received from securities lending activities. The Treasurer’s office also failed to report $108 million in gains on investments made with securities lending collateral.