Now get this everyone. I am your canary in the coal mine. I am your sounding alarm. I reside in the Once Golden State and have seen firsthand the damage that statist-socialist-liberal policies do to a region, a state and the soul. The stories I could tell from operating a business here since the 1990s.......
My current favorite story to tells friends and family out of state? Well here's how it is. Unbenknownst to I, the State of California saw it fit recently to dock the pay of everyone receiving a paycheck in the state, (ie everyone other than illegal aliens, drug addicts, crackheads and street walkers). In other words, the fleeting few left here. They increased the state income tax witholding overall by 10%. CA also stepped up the witholding amounts for businesses. They're calling it an IOU, saying that it 'will be returned.' No one voted on it in the public, no one approved. The insane thing is that my wife and I have a couple-friend that are high income, high consumption folks. They are staring down a signifigant deficit in their monthly budget. Being that they live paycheck to paycheck at this point, who knows what they will do. The likewise is true for cash-starved businesses large and small.
Like a crack whore looking for the latest fix, California literally has no shame in search for the latest debt-dollar high. The incredible thing is that the picture is even bleaker than one may know, just as is the case with our destructive Federal leviathan, the actual debt of the state far exceeds the budget shortfall. Why? Entitlements. Dan Walters in the Sacramento Bee explains:
......debt is scattered through myriad agencies in many forms, but well over a half-trillion dollars is a fair estimate. The biggest chunks of debt, however, are the unfunded obligations for pensions and health care of retired public employees.
The latest annual pension report from the state controller covers 2006, when the unfunded liability was $64 billion. But since then, state and local pension funds have lost at least $150 billion on investments, so a reasonable estimate of today's unfunded liability is $200-plus billion. A state commission, meanwhile, says the state-local liability for retiree health care is about $100 billion.
No one keeps complete data on local government general obligation debt, but it appears to be roughly the same as the state's, perhaps $50 billion, plus several billion dollars in debt incurred by local redevelopment agencies.
There are tens of billions in specialized state debt, such as veteran home loan bonds, "securitization" of tobacco lawsuit proceeds, and budget deficit bonds.
The interest that must be paid on all that state and local debt is probably an additional $100 billion, so we're already talking about well over $500 billion.
I'll never forget the day that I was listening to Roger Hedgecock here in San Diego. He had a soundclip of a statement from the Speaker of the State Assembly. She was espousing her opinion of proper governance.
That state will find the level of social spending that is socially responsible then find the revenue that it needs to meet that obligation.
In other words folks, bankruptcy. Precisely that which the Obamanation is gunning for too.
Via Memeorandum
What amazes me is the failure of governments to learn from another's mistake. We are watching CA implode and yet the federal government is marching solidly in their wake. We watched businesses and banks require bailouts because of overspending and risky investments and yet our governments insist on making the same mistakes as the companies they bail out.
ReplyDeleteWhen oh when will we have public officials who do not believe that only they can make what has historically and repeatedly failed work only for them?
That is outrageous! Y'all must be in an uproar over this (I know I would). I guess the only way to fight it is: Leave. The. State. Take your money, good work ethic and free enterprise with you and let the buffalo chips fall where they may.
ReplyDeleteGood luck pal. Hope y'all can work something out soon. Sending prayers your way. :)
LCR, every time I comment here, I wonder about "Plouffian Mind Control", lol! Sounds useful!
ReplyDeleteMaybe if we could control the minds of our State legislators, we could make them understand how to live within their means. Foreign concept, will take some work. I hold onto a sliver of hope.
Alternatively, what does bankruptcy mean to the retired public employees. Do they lose their pensions and benefits completely?
@ Sparky - Thank you friend. Which state do you reside in? As to your suggestion --- I am taking my Buffalo chips as soon as I may :).
ReplyDelete@ Spinster - It's amazing precisely because there is no incentive for them to learn from their mistakes. When a state is ruled by one-party oligarchy they exist in perpetual power and motion.
@ Opus - Refer to James at Reaganite for the David Plouffe stuff, it is in reference to trolls that the Obamanation's campaign team sends out to police and harass critical bloggers and patriots. I have been frequented by these a%%ho@@es and know the tactics they use.
As to using the Leftwing's mind control tactics on them......it may just work!
Bankruptcy means that public employees receive nothing then and I do believe that they lose their pensions. Of course I have heard that the Obamanation admin is toying with the idea of changing just that and already may have :(.