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California Sinks into the Financial Abyss: The Leftists will NOT Stop Spending.

California Sinks into the Financial Abyss: The Leftists will NOT Stop Spending. 

 

Abstract: California is finished as a society.

 California is a critical test case for the world to watch[1] and test the theorem:  if a place that large can crash fast enough in a suicidal financial maelstrom then observers might learn something useful from the process. It is clear that the cretinic subculture that produced the idiot socialists and Marxian droolers and elected them and endowed them with political power so they could strut and squeak and hop and clap in Sacramento has succeeded in producing a nest of monsters. The usual words required to describe the leftists in California [like pervert, loser, druggie and imbecile] no longer suffice to offer an adequate description of these beings. We probably need to barrow some new words from the rodent or insect worlds to study and discuss their antics. Simply stated, they will not accept any financial responsibility for their wild social spending. They intend to tax and spend until oblivion comes and then beg money from Washington. I saw behavior like this in the 60s when many ‘students’ could lay around for years, smoke dope and copulate with any creature in sight because they had a ‘sugar daddy’ who would pay the bills. They wanted to change the system then. They have succeeded.

 

Here is their problem:

 

They have a 104 bln dollar budget and a looming 42 bln dollar deficit. The state laws state that they need a 2/3 majority to pass spending and taxation laws and the Republicans are holding out. So, in the latest plot, they have come up with this farce:

 

The budget put up to vote over the weekend session would have outlined spending for the next 17 months. It called for $14 billion in tax increases, $15 billion in spending cuts and $11 billion in borrowing.”[2]-- California Lawmakers Fail to Pass Budget Feb. 16, 2009, 3:25 A.M. ET

 

Now, given that the state is overrun with illegal aliens, besotted with dopers and perverts and has a lousy school system [that costs 40 bln a year] that is almost as bad as Washington, DC or Detroit and, to cap this off, has to lowest credit rating of the 50 states, they have nothing but chaos planned for the very next budget of 2011.

 

We might ask: How can you barrow 11 bln to get through the next 18 months when you must barrow more after that? When does this stop? Who is going to buy your phony bonds? The Chinese?

 

Next round, are we going to see California cut spending another $15 and raise taxes another $14 billion and barrow yet another 11 bln? It only takes 7 rounds of 15 bln dollar cuts to cut the budget to zero, a good idea in the minds of many. They spend 18 bln on salaries for their so-called state employees and 40 bln on schools so what do they cut? If they fired half their union stooges they could only save 9 bln and if the closed down half the schools they would only save anther 20 bln.

 

If they freeze spending at 104 bln and cut another 15 bln next round, but just once, then they would have to borrow another 11 bln. These numbers really get exciting when you look down the Golden Brick Road for a few years.

 

Year

Budget

Cuts

Borrowing

 Debt

2009

104

15

11

11

2010

104

15

11

22

2011

104

0

26

48

2012

104

0

26

74

2013

104

0

26

100

2014

104

0

26

126

2015

104

0

26

152

2016

104

0

26

178

2017

104

0

26

204

2018

104

0

26

230

2019

104

0

26

256

 

 

But allowing for a mere 5% increase in the budget per year with no more cuts, this happens:

 

Year

Budget

Cuts

Borrowing

 Debt

2009

104

15.0

11.0

11.0

2010

109

15.0

11.6

22.6

2011

115

0.0

28.6

51.2

2012

120

0.0

29.9

81.1

2013

126

0.0

31.2

112.3

2014

133

0.0

32.5

144.8

2015

139

0.0

33.8

178.6

2016

146

0.0

35.1

213.7

2017

154

0.0

36.4

250.1

2018

161

0.0

39.0

289.1

2019

169

0.0

40.3

329.4

 

Hey, what is 250 to 300 bln among friends for a decade? That works out to only about 329/50 or about $7,000 dollars for every single taxpayer who lives outside California.  That is only $12.65 per week for 520 weeks and just below the $13 we all gonna get from the O’Bozo stimulus, if it lasts that long.  We can afford that much.  The other alternative, not esthetically endorsed by the Republicans, is to raise increase taxes to the skies. We can wonder how the taxes might go. Is it possible to levy a 100% tax in the California system?  I think the liberals could explain how that would be a fine example of social justice. Would Sacramento dive on this opportunity? Or, how about a tax rate above 100% when you could save taxes by not living or working there? Isn’t everything free if the taxes are 100% or higher?

 

The only hope for the budget wizards in Sacramento is to levy a wealth tax and pull out say 5% of all citizen’s homes and assets per year, which would buy them a decade or two. The drug addicts, losers, pan handlers and illegal aliens would not have to pay as they have essentially nothing now except the vote. Maybe Sacramento can instantly make all illegal aliens citizens or put up a referendum to this effect and let the illegal aliens vote on that as well.  How about having a plebiscite where only aliens can vote to become citizens if they wish. That would be fair. The other solution is a Marxist revolution where private property and all the bank deposits become the property of the state.  That worked very well in Russia, Cambodia, Cuba and China. The people were taught how to be happy and adore their leaders. All it takes is a little education.

 To suggest that California is rigidly locked into some financial and sociopathic misadventure that will end with a terminal episode vastly underestimates the situation.

 The remaining question is: will anybody learn from this wreckage? I doubt it. Just keeping taking more drugs and raising taxes and Californians can spend their way to prosperity and enjoy life in the sun. Europe has already discovered some of the bliss of the California Experiment in places like Paris and Berlin and London and can welcome suggestions as how to rescue some more wealth and spread it around among the masses. Burning 500 cars a night in Paris actually created jobs, a stimulus of sorts.

 rycK

 Comments to: ryckki@gmail.com



[2] California Lawmakers Fail to Pass Budget  Feb. 16, 2009, 3:25 A.M. ET http://online.wsj.com/article/SB123471420669690181.html

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