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Originally posted by SeekerofTruth101
Every economist worth his salt knows that money don't just 'disappear' into the thin air.
[edit on 8-1-2010 by SeekerofTruth101]
Standard & Poor's cut California's main debt rating on Wednesday by one notch, saying the government of the most populous U.S. state could nearly run out of cash in March -- and another rating cut might follow.
...More at link
Even with austere budget plan, California counts on federal funds
By Karl Vick and David Cho
Washington Post Staff Writers
Sunday, January 10, 2010
On Rough & Tumble, a popular California public policy Web site, the lead headline Saturday read: "Arnold to DC: Give Us The Money, Nobody Gets Hurt."
The Golden State is racked with 12.3 percent unemployment and a budget shortfall of $20 billion, and Gov. Arnold Schwarzenegger (R) warned Friday of even deeper cuts to programs without $6.9 billion in new federal funds. In unveiling an austere budget proposal, he went a giant step further with the age-old state gripe about unequal distribution of federal dollars -- actually writing the federal funds in as a budget stopgap.
Some administration officials and lawmakers on Capitol Hill were skeptical that the federal government would provide a bailout to close California's budget gap, partly because it would set off a cascade of demands from other states....