As Goes California So Goes the Nation?, page 1

As goes California, so goes the nation?This article from The Economist is far more important than an initial glance might indicate...

Source

A good outcome is no longer possible. California now has the worst bond rating among the 50 states. Income-tax receipts are coming in far below expectations. On May 11th Arnold Schwarzenegger, the governor, sent a letter to the legislature warning it that, by his latest estimates, the state will face a budget gap of $15.4 billion if the ballot measures pass, $21.3 billion if they fail. Prisoners will have to be released, firefighters fired, and other services cut or eliminated. One way or the other, on May 20th Californians will have to begin discussing how to fix their broken state.

Think about the repercussions of what is happening here....Mass Chaos is an understatement..

Many others, however, now believe that California needs to start from scratch, with a fully-fledged constitutional convention. California’s current constitution rivals India’s and Alabama’s for being the longest and most convoluted in the world, and is several times longer than America’s. It has been amended or revised more than 500 times and now, with the cumulative dross of past voter initiatives incorporated, is a document that assures chaos.

Can you imagine the level of civil unrest that such a measure will create? Special interest groups stirring up the populace to fever pitch... It is my theory that we will see the first shots of a larger national uprising fired in California....It looks like we're in for a hot summer....GHUA

reply to post by RolandBrichter

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California has already gone. The day they failed to pay the bills on time was a default. Other states on on the same path. People just don't get it. This is a depression. 15 million Americans starved in the previous depression and to think it cannot happen again is a true shot in the dark.

Our country is in deep debt, with something like a $130,000 average debt load *per taxpayer* and rapidly rising. But on top of that, most individual states are in deep debt California is about $30 billion in debt and losing $2 billion a month. They have no choice but to cut a lot of jobs. But then again so do a lot of states, especially the highly populated ones. Florida maybe the next to go bankrupt. But what is more, many or most individual cities are in debt. But on top of that many individuals are deeply in debt. And many of those in debt are losing their jobs, pushing them to declare bankruptcy. The only solution is rapid liquidation of the debt, meaning their assets must be siezed and sold for a fraction of their actual worth. However the government purposely slows down this process, meaning this thing will drag on for years and years.

The only way this could be resolved without a very nasty depression is if the free market was put in charge of things. That will never happen. I recently heard the banks are still heavily leveraged at about 25x their worth *on average*. That is sheer insanity and means a lot of banks have yet to go bankrupt. And the feds continue over and over again to believe that no matter what, we must be 6 months from a recovery. They are incompetent and just screw things up. And yet they are rewarded for their incompetence by given more and more powers to screw things up even more.

After failing to account for trillion of their bailout money, we still don't even know if Ron Paul's audit the fed bill will pass, meaning congress may be even more incompetent by not even caring about lost trillions. What can I say it isn't their money it is ours.

reply to post by RolandBrichter

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I hate to admit it, but... good. Perhaps the exposed reality of the situation will prompt some closer scrutiny by the masses of the Fed. The international nature of our central bank is an insult to our Constitution, but the majority of Americans don't even know what the true nature of the Fed is.

Restore the Constitution, downsize the bloated Federal government, revise the US Code, abolish the illegal Federal income tax, audit the Federal Reserve... For starters.

The people that got us into this mess, and continue to perpetuate it are criminal in their actions and intent. They must be treated as such. We, the People would be remiss in fulfilling our civil responsibility if we do not demand redress.

California is in huge trouble...all of the west coast states look like they are in deep trouble...at least by unemployment indicators.

Check this out if you haven't already.

There is a map here that shows how bad each county in the US is economically....and these are the "good" numbers. Needless to say, even with the numbers made to look better...it still looks nasty anyway.

www.abovetopsecret.com...

.....and now THIS....

With headlines like "let the New California Tax Revolt Begin"..this is soooooo much larger than people realize...

reply to post by Anonymous Avatar

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I have a feeling that fed.gov will declare California a "state too big to fail" and will funnel more of our money into a useless cause...

reply to post by RolandBrichter

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here it comes.....

Source

They say they need the Obama administration to step in and back billions of dollars in emergency loans. If Washington fails to do so, the state could start running out of cash in July and then would have to stop paying huge amounts of its bills. That, in turn, could set off dangerous ripples throughout the economy, state officials say. The argument is familiar. Just like AIG and General Motors, California says it is too big to fail.

"A fiscal meltdown by California . . . would surely destabilize the U.S., if not worldwide, financial markets," State Treasurer Bill Lockyer wrote in a May 13 appeal to U.S. Treasury Secretary Timothy Geithner.

A broken record......

reply to post by RolandBrichter

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Unbelievable... It's really happening. How did it ever get this far? Now Schwarzenegger is begging for a bailout, and California will soon become the largest of the FEMA camps in the country, willingly and by proxy.

I'm so sorry this had to happen, and I pray for all of you in California, who will see the second "Siege of Boston" in our lifetimes.

The S is truly beginning to HTF.

Still, millions are complacent, too brainwashed to read this article and realize the true implications of the "guarnatee" that the Obama administration has given to prospective lenders.

There's no like guarantee that California will even be able to make it, why should the rest of us be held liable for a gamble that We, the People may not be willing to take with our money?

Because the administration said so, Seig heil!!!

reply to post by RolandBrichter

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Yea this summer is going to be real fun, balanced by some real bad occurring.

I can feel it now. Something BIG will happen this summer.

The only question is, will we be able to recognize how big it is.

Sometimes Big things come in small packages.

reply to post by RolandBrichter

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You should see it now... And it can only get worse.

California is the canary in the coal mine for the rest of the nation, a national warning.

There are too many counties in California with greater than 25% unemployment, and every county has been hit hard by the bad economy.

There are so many things right now against the state, short of miracles all anyone can do is pray for better days... And rain!

It's too bad, California is a great place, though I do not believe it was ever meant to sustain so many humans. That fact along with a liberal spend crazy government and a collapsing economy may leave the state in perpetual downfall and eventual ruin.




[edit on 22-5-2009 by Walkswithfish]

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