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California Treasurer Asks U.S. to Backstop State Borrowing

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posted on May, 14 2009 @ 09:43 PM
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California Treasurer Asks U.S. to Backstop State Borrowing


www.latimes.com

California Treasurer Bill Lockyer on Wednesday formally requested federal help to backstop a wave of short-term borrowing the cash-strapped state will need to undertake this summer.

In a letter to U.S. Treasury Secretary Timothy F. Geithner, Lockyer asked the government to in effect guarantee the state's debt against default, so that investors would be willing to provide the financing at reasonable interest rates.
(visit the link for the full news article)




posted on May, 14 2009 @ 09:43 PM
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Well, here's more bad news from Cali... essentially, the state is asking the Federal government to guarantee its debt because it can't cough up the cash it owes.

California is an excellent "canary in the coal mine" or bellweather for the US as a whole and, in many ways, the entire Western world. As the westernmost edge of the most western nation, it in many ways epitomizes various trends facing the modern world and often magnifies them to extremes...its interesting to me how often what happens first in California then goes on to happen elsewhere. Look to see similar debt-related messes in other states soon.

www.latimes.com
(visit the link for the full news article)



posted on May, 14 2009 @ 10:23 PM
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California has had irresponsible government for a long time. The legislature fights over the budget, creating millions in additional debt because they can't come to a bipartisan agreement. California over pays it's state workers. If you don't think so, go to CalJobs and look up some of the pay rates for entry level positions. It's obscene. The solution by the legislature, which is always a majority of the Democratic Party, is to find a novel way to increase taxes. They are generally not called "taxes," but are fees or bonds. First, pressure and scare tactics are used on the populace, like "we will have to reduce the police and fire response, close more schools, etc.". Of course, the public, like sheep, fall for this political drivel out of fear, and vote more taxes. As the state reaches closer to socialism, and more state workers are hired, more regulations are created making business more difficult to be conducted in the state. I have known many business owners who have moved out of state to less hostile territories. Those who are "dug in" and unable to move are still here, putting up with ever increasing problems caused by the legislature. Arnold had tried over and over, unsuccessfully, to create bipartisan agreement, but the stalemate continues. imho, this state is fiscally irresponsible. I know people in the state who cheat the system. One of my family members was working in a wage labor condition, installing drywall and fixing up state offices. He was a lowly worker. When his supervisors told him to work two hours and put in for 8, he balked. He said he couldn't do that. They fired him.

Another thing that makes me mad in this state is education. Politicians always come into office promoting better education, but the end result is useless money poured into a defunct teacher-union frozen system. When the electorate put forth a proposition to home school, anti-home school ads featured Wiccans on the steps of the capitol saying they were glad to get the voucher system so they could promote witchcraft instead of public school. Hence, the voucher system initiative died. People were scared to allow Wiccans to have vouchers, so the other 180,000 home-schoolers had to pay to educate their kids, on top of paying their taxes.

I honestly believe that the majority of the electorate in this state falls for the media babble instead of intelligent research and thoughtful consideration of the issues. This electorate has been voting benefits for itself for so long, they think the benefits are rights.

One assemblyman was on the radio. He was upset with the waste. He said his child went to school about 30 miles from the Capitol. He said (around 1990) he voted $4500 for school funds, but by the time the funds reached his student 30 miles away it was reduced to $2500 by administrative costs. That happens when your state government is overloaded with state workers. He said that in California, for every 100 students, there are 122 administrators over them. By comparison, in parochial schools there were 8, and in Catholic schools there was 1.

What is it with government? Don't they realize they are destroying themselves and us with them? If they don't keep these costs under control, the system fails. There has not been a plan to prepare for times like these. There has not been a huge cash reserve building interest. I like to think of the story of Joseph in Egypt. He saved during times of plenty for the hard times. It was prudent, important to do so, established stability, and promoted peace and safety. When you have times of plenty, store up for hard times. Hard times will definitely come. Seems like each generation has to reinvent the wheel. Don't people study and remember the problems of the past?

I can't believe that the tax and spend environment in California has come to this. It's like they have blinders on. Child Protective Services is another corrupt branch. It is political suicide to do anything to stop CPS, so they keep increasing their size and influence in the state, under the non-management of county supervisors. I personally know of a family who is going through CPS hell for no reason, yet the charges to the state budget must be enormous for all those legal fees, foster parent fees, etc. Would you pick up and enslave a family if: 1. parents had no criminal record, 2. parents took child to emergency, 3. emergency room suggested rape kit, 4. children picked up, 5. rape kit showed no rape, 6. kids still in CPS custody over a year later with no end in sight, after 5 court hearings. That is classic mismanagement of funds, especially when the funds are desperately needed to help kids with real problems.

The education system in California is very poor. The teachers' union is so strong that it can prevent any improvement in the system. That union makes increased wages it priority. Hence, California has some of the highest paid teachers in the nation, while the education ranks 44th. More money did not solve the problem. If anything, overpaid state workers cause a problem for all of us in the private sector. First, it makes purchasing increase. That drives up prices. Higher prices come to the average citizen as an after-tax. The average business in California pays seven types of tax. Picture a hobo walking along with seven big bags on his back. Whenever there is a problem in this state, more taxes is the solution. Hence, there is always a big problem between Rep and Dem parties to provide enough services for the dollar. A great inspection of the state government is in order, with a sizeable reduction in jobs. I wish I had a dollar for every time I have been in a state office and workers are not busy. I honestly believe that this electorate needs to understand that government is not the solution to every problem. Privatization is needed to control costs. Start with education, then highway patrol and fire.

Well, if I were elected, I would make it happen successfully. For some reason I do not understand, politicians in this state are killing the state. I believe in transparency, honesty, honor, trust.



posted on May, 15 2009 @ 04:58 PM
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reply to post by silent thunder
 

If California gets bailed out, they are giving them my tax dollars!

I don't live there. I don't use their services. I pay retail for their agricultural and industrial products.

I disagree with many things the CA government and CA courts (State and Federal) have done.

Why should taxpayers in the remaining 49 states have to bailout California's profligate, shortsighted ways?

If they qualify for funds, where does it end? How many states will ask for the same treatment?

Just last week, Obama threatened CA that he would pull the February 'stimulus' funds he'd authorized if the State did not restore its $2.00 per hour of unionized "home health care" workers, bowing to the SEIU. (These positions are funded by state, local and federal funds; and, are notorious for overbilling and other fraud on the various programs and their clients. One Indiana 'provider' just got sentenced to Federal time for a $7,000,000.00 scam.)


deny ignorance

jw



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