Posted on 12/21/2009 6:57:06 AM PST by george76
The California Legislative Analyst’s Office recently reported that the State faces a $21 billion shortfall in the current as well as the next fiscal year. That’s a problem, a really big problem. My young son would say it was a ginormous problem. In fact, it may be an insurmountable problem.
Our governor and legislature used every trick in their books when they created the most recent budget. They even resorted to mandatory interest-free loans from the taxpayers. Now, they have no idea where to go. The Democrats have declared that they will not allow budget cuts. The Republicans will not allow tax increases. They have probably run out of smoke and mirrors, although their ability to engage in budget gimmickry is enough to make an Enron accountant blush. No one is considering raising revenues by increasing economic activity.
In my opinion, California is now more likely to default than it is to not default. It is not a certainty, but it is a possibility that is increasingly likely.
Then what?
Unfortunately, a formal bankruptcy is not the likely scenario. There is no provision for it in the law. Consequently, absent framework and rules of bankruptcy, the eventual default is likely to be very messy, contentious and political.
the Sacramento Bee’s Dan Walters has tried to count total California public debt, including that of local municipalities, and his total reaches $500 billion.
(Excerpt) Read more at newgeography.com ...
We can sell it to Mexico....................
55 Electoral Votes = Federal bailout. No question about it.
CA will get a bailout from Congress. It was part of the $150 billion bill passed by the House just before they left for Christmas vacation. They want to use some of the leftover TARP money for this purpose.
Newsflash: Mexico has already seized it, and the fees Mexico imposed to underwrite Mexicans are why California is bankrupt.
Democrat run, Democrat ruined.
No matter, we’ll just sneak on over to the rest of America and pilfer their paychecks for the balance.
You don’t mind, do you America?
I mean, c’mon, it’s not like you don’t have the money, right?
No matter. You don’t have to like it. We’ll just have America’s politicians take it from you on our behalf.
Don’t bother resisting (we know you won’t).
Cheers!
The People of the People’s State of Kalifornia
“We can sell it to Mexico...................”
Considering it’s already part of Mexico, it’s essentially worthless. If the tech companies leave (and leave, they must in order to survive) Mexifornia should be abandoned until we once again get the cojones to invade.
The “final straw” for the Soviet Union was inability to pay gov’t employees. No paycheck, no work, no bureaucracy, no government - that simple.
California can't support it's self without importing energy from multiple states - even though they have resources to export if they chose to tap them.
I, personally, boycott CA.
I’d be willing to give them a few billion just to take it off our hands..............
You’ll fall in to receivership with a court appointed adminstrator. Most likely it will be someone from China.
I hope we will be able to understand them better than Arnold.
“In my opinion, California is now more likely to default than it is to not default. It is not a certainty, but it is a possibility that is increasingly likely.”
Don’t leave out New York and Michigan.
California, will get bailed out if it defaults.
Unfortunately Pelosi will arrange a bailout.
Go for broke (literally!)
Declare sovereignty, secede if necessary, retain all monies originally sent to the feds and re-route it back to stateside coffers, I’m no intellectual on this but desperate times call for desperate measures.
Well, I see we've already stopped teaching vocabulary in elementary and secondary education.
True. But I am not sure that I would bet on Republican politicians either. The electorate has dumbed down and are happily feeding at the trough. Any politician who cuts off the gravy train will be out of office in a trice.
Look where the cuts must be made:
State pensions - not going to happen
Real cuts in Education - not going to happen
Real cuts in State payrolls - not going to happen.
What is needed is default, education as to economic reality and above all - new politicians.
The EU: Communist Obama Orders US Troops To California, California Soon To Declare Bankruptcy
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