Washington Post: California's scary sneak preview

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]

Oh but if we see what the Fed and the federal government is doing, money appears out of thin air, and it can disappear just as easily.

Going to be an interesting thing to watch thats for sure. Can you imagine what will happen if troops do end up in CA? I don't see the majority of CA putting up too much of a fight but it would be my guess that this would be something that might get the nearby militias from other states a reason to visit CA. Exciting times indeed!

S&P lowers California debt rating, cash crunch looms

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.

www.reuters.com...

reply to post by eldard


Related article, "Arnold to DC: Give Us The Money, Nobody Gets Hurt"

California will depend on a Federal Bailout. Federal government won't want to go there, it'd cause a landslide in state bailouts.

www.washingtonpost.com...

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....

...More at link