Lindsay Lohan of States, Broke and Broken: California Borrows $40 Million a Day from Feds to pay Unemployment Insurance

by the Left Coast Rebel

Incredible figures from the People's Republic of California:

With one in every eight workers unemployed and empty state coffers, California is borrowing billions of dollars from the federal government to pay unemployment insurance.

The Los Angeles Times reports that the state owes $8.6 billion already, and will have to come up with a $362-million payment to Washington by the end of next September.

One can only imagine the depths of economic illiteracy, socialism, mismanagement, theft and balance sheet-defiance malfeasance that the Once Golden State has been destroyed from within by. The same ethos that Looter & Obama Looter Co. has "shellacked" the nation as a whole with has finally reached a pay-the-piper climax.

$40 million per day, borrowed from the Federal government to pay for unemployment payouts in California. Can you imagine?

I can see Greece from my house (in Virginia).

In and out of rehab, this state will never learn it's lesson:

Listen up, California. The other 48 states—your cousin New York excluded—are sick of your bratty arrogance. You're the Lindsay Lohan of states: a prima donna who once showed some talent but is now too wasted to do anything with it.

After enjoying ephemeral highs and spending binges, you suffer crashes that culminate in brief, unsuccessful stints in rehab. This cycle repeats itself every five to 10 years, as the rest of the country looks on with a mixture of horror and amusement. We'd feel sorry for you if you didn't constantly flip us the bird.

Instead, we're making bets on how long it will be before your next meltdown. Oh, wait—you're already melting down.

You've racked up nearly $70 billion in general obligation debt, and that doesn't include your $500 billion unfunded pension liability. Your own analysts predict you'll face a hole of at least $80 billion over the next four years.

Your government's run by a brothel of environmentalists, lawyers, public-sector unions and legislative bums. When they're not taxing or spending, they're creating regulations and commissions like the Board of Barbering and Cosmetology and the California Blueberry Commission. Many businesses would leave if it weren't for your sunny climate.

Which may explain why you're so obsessed with climate change. If your climate changes, no one, including your Hollywood friends, would tolerate you anymore. So you've created a law to tax carbon emissions—no matter that it will kill jobs.

Updated: Maggie's Farm lists California state agencies and asks, is there any wonder California is broke?

Updated x2: Zero Hedge, hat-tip W.C. Varones:

Fitting in perfectly with the previous article by Ron Paul suggesting the dissolution of the US welfare state, we now read that insolvent California is borrowing $40 million each day from the Federal government to pay for unemployment insurance. And while we won't comment on the ethics of all of America paying for one insolvent state's unemployment problems, what does need to be highlighted is that California, which already owes $8.6 billion to the government will have to cut a check for $362-million to Washington by the end of next September. As California, as pointed out earlier, is insolvent, it will never make this payment. Which means that we now have a timeline of when the Fed will start bailing out bankrupt states, and that QE3 will next focus monetizing on municipal debt.
Peachy, no? Only government could mismanage an entire state, and economy, to this extent.


  1. Oh, the dirty little secret is that California will never have to "pay back" the Feds- Too big to fail!!! With A Demorat governor and legislature, the rest of the nation foots the bill!!!!

  2. As could have been expected, this post and the WSJ link provide yet more evidence that you can't trust "fiscal conservative"/libertarian/teaparty types.

    The WSJ is on the wrong side of immigration, and their ideology has led to many of CA's problems: it causes citizens to leave the state, it raises spending, and it gives even more power to the free-spending far-left.

    And, they won't acknowledge the role their ideology has played.

  3. @ Lonewacko-- for the life of me, I don't know why you would blame the teaparty types for the pathetic state CA is in.... I just don't get your reasoning there.

  4. LW here.

    I wasn't blaming the teapartiers for CA. I'm pointing out that the ideology of many of them (libertarian and libertarian lite) has contributed to CA's problems. That ideology is only concerned with money and short-term profits, no matter the long-term costs. And, even for those 'partiers who aren't libertarians, they're still consorting with the bad guys.

    So, I'm not blaming the partiers for CA's problems, I'm blaming their ideology for helping and them for being on the bad guy's side.


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